If you are a fan of buying and selling real estate and land in the UAE, will you be subject to corporate tax?

If you are a fan of buying apartments, villas, or even land for the purpose of real estate investment and benefiting from a return that ranges between 6 to 7% annually, have you ever wondered whether this return will be subject to the corporate tax that the UAE intends to impose as of June 1, 2023, or not?.

The Ministry of Finance clarifies the matter by saying that “investment in real estate by individuals in their personal capacity is not subject to corporate tax in the country if it is not required to obtain a commercial license or permit to practice this activity in the country,”

which means that individuals buy and sell units for the purpose of private investment and without the need Until obtaining any license or permit from the authorities responsible for regulating the real estate market in the emirate in which he is located, the individual is not subject to corporate tax.

It is noteworthy that the corporate tax that will be applied in the country is a form of direct tax imposed on the net income or profit achieved by companies and other businesses.

In some countries, corporate tax is referred to as "corporate income tax" or "business profit tax".

The Ministry of Finance has set the lowest globally applicable rate for this type of tax, which is 9% on businesses that generate an annual income of more than 375,000 dirhams.

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