The new Guide applies to individuals who invest in property in the UAE. It explains how income from real estate investments can be exempted from corporate tax if the conditions set out in Cabinet Decision No. 49 of 2023 On Specifying the Categories of Businesses or Business Activities Conducted by a Resident or Non-Resident Natural Person that are Subject to Corporate Tax are met.
According to the Guide, the income from property investments is exempt from coporate tax if it:
- relates only to a sale, lease or sublease with regard to investments in land or property;
- includes activities without a license or activities that do not require a licence;
- applies to land or real estate in the UAE and/or outside the UAE;
- the investments are made directly or through a mediator, which may be an agent or a property management company.
To claridy some issues, there are some examples provided in the Guide on situations when income is subject to tthe tax and when it may be exempted.
| Example 1: An individual owns two property objects (one located in the UAE and another one located outside the UAE) and deriv... |