UAE Government Clarifies Personal Tax for Residents & Expats

UAE Government Clarifies Personal Tax for Residents & Expats – the Ministry of Finance in the UAE has announced the issuance of a Cabinet Decision No 43 on the Treatment of Natural Persons Undertaking a Business or Business Activity for Corporate Tax Law purposes.

With the introduction of a Corporate Tax framework as at the 1st of June 2023 many residents of the UAE, including Australian expats, have been worried that this may lead to the introduction of a personal income tax.

The UAE Ministry of Finance confirmed yesterday that the following sources of income will not be considered as Business Activities as it relates to the new Corporate tax system and will be exempt from the 9% tax charge:

  • Wages and salaries
  • Personal Investment income
  • Real Estate Investment income

“Yesterday’s announcement will be seen as a positive by Australian expats living in Dubai, Abu Dhabi and the 5 other emirates as it will provide them with the peace of mind knowing what their financial position will be moving forward” said Brett Evans, Managing Director for the EMEA region who is based in Dubai.

“Dubai and Abu Dhabi are becoming incredibly popular amongst Australian expats looking to move from other foreign countries, as well as Australian residents looking to move overseas, and this announcement gives those expats confidence with their relocation”.

However if you are a resident of the UAE and you are conducting a business or business activitity as a individual you will be subject to corporate tax and be required to register for new tax scheme should your combined turnover exceeed AED 1 million.

The UAE is home to over 16,000 Australian expatriates as well as over 300 Australian companies and is seen as a popular destination for Australians looking to move abroad.

About the Atlas Wealth Group

Atlas Wealth Group is the leading provider of financial advice, tax, mortgage and asset management services to Australian expats in over 45 countries.

With offices in Dubai and Australia we have the skills and resources to ensure that an Australian expats time away is financially successful.


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