Does UAE corporate tax apply to payments beyond employment contracts?
The impact of UAE Corporate Tax is determined by employment contracts. Individuals engaged in business exceeding Dh1 million turnover must comply. The tax guide clarifies wages under labor contracts, emphasizing employment terms. Payments outside contracts risk not being considered part of entitled wages, requiring case-by-case assessment. Business owners drawing salaries from multiple companies need clarity on working under multiple contracts. Director fees are exempt from corporate tax. Personal investment income excludes activities classified as a business under Commercial Transactions Law, including speculative practices and virtual assets. Trading in shares and securities may trigger corporate tax. Transactions in virtual currencies, non-fungible tokens, and carbon credits require detailed tax evaluation. Income from business activities conducted in the UAE falls under the tax, irrespective of residence or customer location. Professionals like doctors and lawyers need to assess corporate tax implications based on income nature and quantum.
