The UAE has introduced new taxation rules for investors

The Ministry of Finance of the United Arab Emirates has announced new taxation rules for real estate investments. The ministry assumes that the new rules will make the process of paying taxes more transparent and simpler.

According to the new rules, foreign companies and property owners must register their investments in real estate. Foreign companies named in the law as non-resident judicial persons must pay corporate tax on income from real estate investments.

The law applies not only to investments, but also to real estate, which is used by companies to conduct business. Meanwhile, individuals, as a rule, do not pay corporate tax on income from real estate, except in cases when real estate investments are part of their licensed business activities.

Corporate tax (corporate tax) appeared on June 1, 2023 and will take effect starting from the next fiscal year. As a general rule, companies doing business in the UAE must pay a 9% tax on profits exceeding AED 375,000 AVD ($102,000). If the profit turned out to be below AED 375,000, the person is exempt from paying corporate tax.