Page 5 - ICAI UAE TAX UPDATE_October 2024

3 UAE TAX UPDATES
3.1 Corporate Tax Guide on Real Estate Investment for Natural Persons

The Federal Tax Authority (FTA) has issued a guide • Wage,
“CTGREI1 - Real Estate Investment for Natural Persons” • Personal Investment income,
providing insights on the specified conditions which • Real Estate Investment income.
enable a natural person to be exempt from Corporate
Tax (CT) in Real Estate Investment during the month of Investment Activity for purposes of Real Estate
October 2024. Investment exclusion include:

Real Estate Investment is any investment activity • Selling,
conducted by a natural person related directly or • Leasing or renting,
indirectly to the sale, leasing, sub-leasing, and renting • Sub-leasing.
of land or real estate property in the UAE that is not
conducted, or does not require to be conducted, through Real Estate Investment specifies that the investment
a Licence from a Licensing Authority. activities must be conducted in relation to land or real
estate property. When determining whether Real Estate
Criteria for Real Estate Investment exclusion Investment activities are being performed, it is irrelevant
whether the third-party occupant(s)/lessee(s) use(s) the
Natural persons will only be subject to Corporate land or real estate property for Business or non-Business
Tax, and required to register for Corporate Tax, if the purposes.
total Turnover they derive from Business or Business
Activities conducted in the UAE exceeds AED 1 million Regardless of the size, quantity or value of land or
within a Gregorian calendar year. real estate property owned and the amount of income
derived, such income would not be subject to Corporate
Income from the following categories is disregarded Tax as long as it satisfies the definition of Real Estate
when determining Turnover: Investment.

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UAE TAX UPDATE NEWSLETTER ISSUE 07 - October 2024 ISSUE 07 - October 2024 UAE TAX UPDATE NEWSLETTER