Are you a business that is Non-Resident in the UAE? Do you earn any income from immovable property in the UAE? If yes, it is highly likely that you or your business will need to register for corporate taxation in the UAE on the FTA portal.
You may have a company outside UAE that owns property in UAE, if it meets the nexus conditions 9% corporate tax must be paid. It is also important to understand the concept of Nexus is to understand permanent establishment as well.
Bottom Line
A Non-Resident Person will be considered to have a Nexus in UAE if it earns income from immovable property located in the country. This income will include -
1. Right in rem ( right to recover, process or enjoy the property),
2. Sale,
3. Disposal,
4. Assignment,
5. Direct Use,
6. Letting or subletting, and
7. Any other form of exploitation of the property.
If a non-resident person has a nexus in UAE, the person must register for corporate tax.
The following are considered as immovable property -
1. Any area or land over which rights interests or services can be created
2. Any building, structure, or engineering work attached to the land permanently or attached to the seabed.
3. Any fixture or equipment which makes up a permanent part of the land or is permanently attached to the building, structure, or engineering work or attached to the seabed.
In essence, we can say that if a non-resident company owns property in the UAE, income from the same will most likely attract corporate taxation
To get detailed consultancy on having nexus in UAE, please get in touch with our expert tax team.
4 FAQ for UAE Automotive Industry - VAT edition
10 Oct 2021
What is a business or business activity for corporate tax in UAE?
23 Aug 2024
Have UAE Free Zones Lost Their Sheen? 5 Reasons why investing in them is still a great idea
11 Aug 2021
Free zone Corporate Tax | UAE Public Consultation Document
02 May 2022
UAE VAT Regulations for Social Media Agencies and Influencers
01 Apr 2021