Do I need to register for Corporate Tax if I have a trade licence but earn little?

Article 51 – Tax Registration 1. Any Taxable Person shall register for Corporate Tax with the Authority in the form and manner and within the timeline prescribed by the Authority and obtain a Tax Registration Number, except in circumstances prescribed by the Minister. 2. For the purposes of an exemption from Corporate Tax under this Decree-Law or for purposes of Clause 6 of Article 53 of this Decree-Law, the Authority may Federal Decree-Law No. 47 of 2022 and its amendments – Unofficial translation (as published by the Ministry of Finance) 54 require the relevant Person under paragraphs (e), (f), (g), (h) and (i) of Clause 1 of Article 4 of this Decree-Law, or the Unincorporated Partnership, as applicable, to register for Corporate Tax and obtain a Tax Registration Number. 3. The Authority shall, at its discretion and based on information available to the Authority, have the ability to register a Person for Corporate Tax effective from the date the Person became a Taxable Person.

3.2.5.1. Wage Wage, including any compensation or benefit received, whether in cash or in-kind, by any employee from his/her employer is not subject to Corporate Tax. Thus, a salary or other form of remuneration received by a natural person as an employee from his/her employer would not fall within the scope of Corporate Tax. 3.2.5.2. Personal Investment income Personal Investment income is not subject to Corporate Tax when derived by a natural person from investment activity conducted in his/her personal capacity that is neither conducted through a Licence or requiring a Licence from a Licensing Authority, nor considered as a commercial business in accordance with the Commercial Transactions Law.9 3.2.5.3. Real Estate Investment income Real Estate Investment income is not subject to Corporate Tax when derived by a natural person if it is related, directly or indirectly, to the selling, leasing, sub-leasing, and renting of land or real estate property in the UAE that is not conducted through a Licence nor requiring a Licence from a Licensing Authority.10 Whether or not a natural person’s activities which give rise to investment income or income from the selling, leasing, sub-leasing, and renting of land or real estate property in the UAE, is conducted through a Licence or required to be conducted through a Licence, is a question of fact to be determined by each natural person based on his/her own facts and circumstances. 3.2.5.4. Natural person not exceeding the AED 1 million threshold If a natural person conducts a Business or Business Activity in the UAE and his/her total Turnover does not exceed AED 1 million in a Gregorian calendar year, he/she will not be subject to Corporate Tax, hence the natural person would not need to register for Corporate Tax. For further details on taxable Business or Business Activities for natural persons, readers are advised to consult Cabinet Decision No. 49 of 2023. 9 Article 1 of Cabinet Decision No. 49 of 2023. 10 Article 1 of Cabinet Decision No. 49 of 2023. Corporate Tax Guide | Registration of Natural Persons | CTGRNP1 15