Is rental income from my own property subject to Corporate Tax?

In such circumstances, the income from the leasing of the apartments would not be considered as connected to the bakery Licence. As such the rental income shall qualify as Real Estate Investment income and thus would be outside the scope of Corporate Tax. On the other hand, if based on the facts, the land or the real estate property or any related income from it, forms part of the Business or Business Activity, and this is conducted or is required to be conducted through a Licence, then any income would fall outside the definition of Real Estate Investment and, therefore, be within the scope of Corporate Tax. Example 9: Rental income received by a sole establishment which has a Business Licence relating to real estate receives rental income through a Licence A natural person who is the owner of apartments receives rental income through their real estate management sole establishment. The real estate management sole establishment does not have a separate legal personality from the natural person (owner). The sole establishment possesses the appropriate Licence for property management and leasing. Among other services such as sourcing tenants, tenancy contract registration, advertising properties, etc., the real estate management sole establishment also collects the rent from the tenants. As the property management sole establishment carries on the Business of leasing, or otherwise dealing in real estate through a Licence, the natural person would be considered as operating through a Licence and would not be entitled to apply the Real Estate Investment exclusion. As a result, the rental income would need to be taken into account in the calculation of their Turnover by the natural person for Corporate Tax purposes. Corporate Tax Guide | Real Estate Investment | CTGREI1 17

Example 13: A natural person selling artwork A natural person, Mr. L, based in the UAE, observes that the prices of the artwork of a specific UAE artist have been increasing for more than a decade. Mr. L sets up a small office at home and starts buying the artworks from the UAE in order to sell them to clients located outside of the UAE through a network of partners located in different countries. The total Turnover from this activity amounts to AED 5 million within a Gregorian calendar year. The income derived by Mr. L due to the sale of the artwork will be subject to Corporate Tax as it is considered to be the conduct of a Business or Business Activity. 3.8.3. Real Estate Investment income Real Estate Investment income is not subject to Corporate Tax when derived by natural persons 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 through a Licence nor requiring a Licence from a Licensing Authority. Example 14: A natural person selling a residential apartment A natural person, Mr. M, based in the UAE, sells his residential apartment for AED 2,500,000. As the value of the apartment had increased since he bought it, Mr. M makes a profit of AED 500,000. The income derived by the Mr. M due to the sale of their apartment is not subject to Corporate Tax as he was not required to obtain a Licence to execute the sale. Example 15: A natural person earning rental income A natural person, Mrs. N, based in the UAE, owns several properties located in the UAE and rents them out for AED 1,200,000 per calendar year. As long as such activity is not required to be conducted through a Licence from a Licensing Authority, the income derived by Mrs. N is not subject to Corporate Tax as the activity is Real Estate Investment. Corporate Tax Guide | Taxation of natural persons under the Corporate Tax Law | CTGTNP1 22