Does income from a job and a side business count together for Corporate Tax?

Article 2 – Income Subject to Corporate Tax at 0% (Zero Percent) 1. For the purposes of Paragraph (a) of Clause 1 of Article 3 of the Corporate Tax Law, the portion of Taxable Income of the Taxable Person not exceeding (375,000) three hundred seventy-five thousand dirhams shall be subject to Corporate Tax at the rate of (0%) zero percent in the Tax Period irrespective of whether the Taxable Person conducts multiple Businesses or Business Activity in that Tax Period. 2. Where it is established to the Authority that one or more Persons have artificially separated their Business or Business Activity and the Taxable Income across their entire Business or Business Activity was subject to Corporate Tax at (0%) zero percent in the Tax Period on an amount exceeding (375,000) three hundred seventy-five thousand dirhams, this would be considered an arrangement to obtain a benefit in relation to Corporate Tax under Clause 1 of Article 50 of the Corporate Tax Law. 3. For the purpose of verifying whether two or more Persons have artificially separated their Business or Business Activity, the Authority shall consider whether the arrangement was undertaken for a legitimate commercial purpose and Cabinet Decision No. 116 of 2022 - Unofficial Translation 2 whether the Persons substantially carry on the same Business or Business Activity taking into account all relevant facts and circumstances, including for example without limitation their financial, economic and regulatory ties.

Figure 1: Taxation of foreign source income for a Taxable Person under the Corporate Tax Law Taxable Person Non- Resident Person Resident Person Juridical person Natural person Conducts a Business or Business Activity in the UAE? Juridical person No Has a Permanent Establishment in the UAE? Natural person Yes Has Permanent Establishment in the UAE?** Yes Does Turnover from a Business or Business Activity exceed AED 1 million in a Gregorian calendar year?* Yes No No Yes Does Turnover attributable to Permanent Establishment exceed AED 1 million in a Gregorian calendar year? Subject to Corporate Tax on foreign source income that relates to a Business or Business Activities conducted in the UAE No Yes Not subject to Corporate Tax Subject to Corporate Tax on foreign source income No Foreign source income is not subject to Corporate Tax (subject to Corporate Tax only on State Sourced Income*** or income from UAE nexus) Not subject to Corporate Tax Subject to Corporate Tax on foreign source income that is attributable to a Permanent Establishment in the UAE * Wages, Personal Investment income, and Real Estate Investment income do not count as Turnover from a Business or Business Activity. ** If a natural person conducts a Business or Business Activity in the UAE, they are a Resident Person under the Corporate Tax Law, subject to an applicable Double Taxation Agreement. *** Subject to withholding tax, currently at a rate of 0%. Corporate Tax Guide | Taxation of foreign source income | CTGFSI1 17