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UAE Corporate Tax Fundamentals/Taxable Person & Taxable Income
5 min

Defining the Taxable Person

Who qualifies as a taxable person under the CT law.

Taxable Person

A taxable person is any person subject to Corporate Tax. This includes:

  1. Resident juridical persons — entities incorporated in the UAE or managed/controlled in the UAE
  2. Natural persons — individuals conducting business in the UAE
  3. Non-resident juridical persons — with a permanent establishment or UAE-sourced income

Resident vs Non-Resident

  • Resident: Incorporated in the UAE or managed and controlled in the UAE. Taxed on worldwide income.
  • Non-resident: Has a UAE permanent establishment or UAE-sourced income. Taxed only on UAE income.

Management and Control

An entity is considered managed and controlled in the UAE if key management decisions are made in the UAE. This can make a foreign-incorporated entity a UAE tax resident.

Key takeaways

  • Resident persons are taxed on worldwide income
  • Non-residents are taxed on UAE income only
  • Management and control determines residency

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This lesson is general educational content, not individualized tax or legal advice. Always consult a qualified professional for your specific situation.