For an individual carrying on a business or business activity in the UAE, the AED 1 million threshold is based on turnover (gross business income before expenses), not total annual income. Wage, personal investment income and qualifying real estate investment income are not treated as business or business activities for this threshold.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
For corporate tax purposes, wage includes remuneration an employee receives for services under an employment contract, whether in cash or in kind, including allowances, bonuses and other benefits provided under the employment contract or applicable UAE legislation.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\r\n\t\t\t\tTable of Contents\t\t\t<\/h2>\r\n\t\t\t\t\t\t\t\t\t\t<\/i><\/div>\r\n\t\t\t\t<\/i><\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t\r\n\t\t\t\r\n\t\t\t\t<\/i>\t\t\t<\/div>\r\n\t\t<\/div>\r\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\tWhat Counts as Wage for UAE Corporate Tax?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tA payment does not become subject to corporate tax simply because it is not expressly listed in an employment contract. The key question is whether the individual receives the payment in their capacity as an employee. The FTA states that employee status and the character of the remuneration are determined based on the facts of each case.<\/p>
\u00a0<\/p>
If the payment is remuneration for independent consulting, freelance work or another business or business activity, it may instead form part of the individual\u2019s business turnover.<\/p>
\u00a0<\/p>
Receiving remuneration from more than one company does not, by itself, determine the corporate tax treatment. Each arrangement should be assessed based on the individual\u2019s actual role and the capacity in which the payment is received.<\/p>
\u00a0<\/p>
Director fees also require separate consideration. The FTA\u2019s Natural Persons Guide states that director fees will generally not be considered a business or business activity and therefore would generally fall outside corporate tax. The facts of the arrangement should still be reviewed.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\tPersonal Investment Activity<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tPersonal investment income is outside UAE corporate tax where the investment is conducted by a natural person for their own account, is neither conducted through nor requires a UAE licence, and is not classified as a commercial business under the Commercial Transactions Law.<\/p>
\u00a0<\/p>
The Commercial Transactions Law includes certain profit-seeking speculation within the commercial-business framework and separately lists virtual asset activities as commercial activities. The facts of the individual\u2019s activity must therefore be assessed before assuming that investment income is outside Corporate Tax.<\/p>
\u00a0<\/p>
Share and securities trading does not automatically fall within UAE Corporate Tax. The FTA gives an example of an individual investing personal savings in listed securities without requiring a Licence; the resulting income is treated as Personal Investment income and is outside Corporate Tax.<\/p>
\u00a0<\/p>
However, where an individual\u2019s activity is instead classified as a business or business Activity, the AED 1 million test applies to turnover (gross business income before expenses). If the threshold is exceeded, corporate tax is then calculated by reference to taxable income (business profit after applicable tax adjustments), not simply gross turnover.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\tVirtual Asset Activities<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tThe Commercial Transactions Law lists virtual asset activities as commercial activities. However, this does not mean every personal holding or disposal of a virtual asset is automatically subject to Corporate Tax. For a natural person, the analysis should consider whether the activity is conducted for the person\u2019s own account, whether it is conducted through or requires a UAE licence, and whether it is classified as a commercial business under the Commercial Transactions Law.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\tLooking for a Corporate Tax Consultant in the UAE?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tBeaufort Associates can help you assess whether income is treated as wage, personal investment income or income from a business or business activity for UAE Corporate tax purposes. Contact Beaufort Associates to discuss your position.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\tFrequently Asked Questions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Payments Outside an Employment Contract Automatically Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tNo. A payment does not automatically become taxable merely because it is not specifically stated in an employment contract. The nature of the payment and the capacity in which the individual receives it must be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Salaries and Wages Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tGenerally, no. Wages received by an individual as an employee are not treated as income from a business or business activity for UAE Corporate Tax purposes.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Can Bonuses and Allowances Be Treated as Wages? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tThey may be treated as wages where they are received by the individual in their capacity as an employee. The treatment depends on the facts and circumstances and is not determined only by whether the amount appears in the written employment contract.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Director Fees Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tDirector fees received by an individual will generally not be treated as income from a business or business activity. However, the individual\u2019s circumstances and the nature of the activities should still be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t![\"Picture](\"https:\/\/beaufort.ae\/wp-content\/uploads\/2026\/06\/cropped-4-300x300.png\")
\r\n\t\t\t\t<\/div>\r\n\t\t\t\r\n\t\t\t
What Counts as Wage for UAE Corporate Tax?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tA payment does not become subject to corporate tax simply because it is not expressly listed in an employment contract. The key question is whether the individual receives the payment in their capacity as an employee. The FTA states that employee status and the character of the remuneration are determined based on the facts of each case.<\/p>
\u00a0<\/p>
If the payment is remuneration for independent consulting, freelance work or another business or business activity, it may instead form part of the individual\u2019s business turnover.<\/p>
\u00a0<\/p>
Receiving remuneration from more than one company does not, by itself, determine the corporate tax treatment. Each arrangement should be assessed based on the individual\u2019s actual role and the capacity in which the payment is received.<\/p>
\u00a0<\/p>
Director fees also require separate consideration. The FTA\u2019s Natural Persons Guide states that director fees will generally not be considered a business or business activity and therefore would generally fall outside corporate tax. The facts of the arrangement should still be reviewed.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\tPersonal Investment Activity<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tPersonal investment income is outside UAE corporate tax where the investment is conducted by a natural person for their own account, is neither conducted through nor requires a UAE licence, and is not classified as a commercial business under the Commercial Transactions Law.<\/p>
\u00a0<\/p>
The Commercial Transactions Law includes certain profit-seeking speculation within the commercial-business framework and separately lists virtual asset activities as commercial activities. The facts of the individual\u2019s activity must therefore be assessed before assuming that investment income is outside Corporate Tax.<\/p>
\u00a0<\/p>
Share and securities trading does not automatically fall within UAE Corporate Tax. The FTA gives an example of an individual investing personal savings in listed securities without requiring a Licence; the resulting income is treated as Personal Investment income and is outside Corporate Tax.<\/p>
\u00a0<\/p>
However, where an individual\u2019s activity is instead classified as a business or business Activity, the AED 1 million test applies to turnover (gross business income before expenses). If the threshold is exceeded, corporate tax is then calculated by reference to taxable income (business profit after applicable tax adjustments), not simply gross turnover.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\tVirtual Asset Activities<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tThe Commercial Transactions Law lists virtual asset activities as commercial activities. However, this does not mean every personal holding or disposal of a virtual asset is automatically subject to Corporate Tax. For a natural person, the analysis should consider whether the activity is conducted for the person\u2019s own account, whether it is conducted through or requires a UAE licence, and whether it is classified as a commercial business under the Commercial Transactions Law.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\tLooking for a Corporate Tax Consultant in the UAE?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tBeaufort Associates can help you assess whether income is treated as wage, personal investment income or income from a business or business activity for UAE Corporate tax purposes. Contact Beaufort Associates to discuss your position.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\tFrequently Asked Questions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Payments Outside an Employment Contract Automatically Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tNo. A payment does not automatically become taxable merely because it is not specifically stated in an employment contract. The nature of the payment and the capacity in which the individual receives it must be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Salaries and Wages Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tGenerally, no. Wages received by an individual as an employee are not treated as income from a business or business activity for UAE Corporate Tax purposes.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Can Bonuses and Allowances Be Treated as Wages? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tThey may be treated as wages where they are received by the individual in their capacity as an employee. The treatment depends on the facts and circumstances and is not determined only by whether the amount appears in the written employment contract.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Director Fees Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tDirector fees received by an individual will generally not be treated as income from a business or business activity. However, the individual\u2019s circumstances and the nature of the activities should still be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t<\/div>\r\n\t\t\t\r\n\t\t\t
A payment does not become subject to corporate tax simply because it is not expressly listed in an employment contract. The key question is whether the individual receives the payment in their capacity as an employee. The FTA states that employee status and the character of the remuneration are determined based on the facts of each case.<\/p>
\u00a0<\/p>
If the payment is remuneration for independent consulting, freelance work or another business or business activity, it may instead form part of the individual\u2019s business turnover.<\/p>
\u00a0<\/p>
Receiving remuneration from more than one company does not, by itself, determine the corporate tax treatment. Each arrangement should be assessed based on the individual\u2019s actual role and the capacity in which the payment is received.<\/p>
\u00a0<\/p>
Director fees also require separate consideration. The FTA\u2019s Natural Persons Guide states that director fees will generally not be considered a business or business activity and therefore would generally fall outside corporate tax. The facts of the arrangement should still be reviewed.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Personal Investment Activity<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tPersonal investment income is outside UAE corporate tax where the investment is conducted by a natural person for their own account, is neither conducted through nor requires a UAE licence, and is not classified as a commercial business under the Commercial Transactions Law.<\/p>
\u00a0<\/p>
The Commercial Transactions Law includes certain profit-seeking speculation within the commercial-business framework and separately lists virtual asset activities as commercial activities. The facts of the individual\u2019s activity must therefore be assessed before assuming that investment income is outside Corporate Tax.<\/p>
\u00a0<\/p>
Share and securities trading does not automatically fall within UAE Corporate Tax. The FTA gives an example of an individual investing personal savings in listed securities without requiring a Licence; the resulting income is treated as Personal Investment income and is outside Corporate Tax.<\/p>
\u00a0<\/p>
However, where an individual\u2019s activity is instead classified as a business or business Activity, the AED 1 million test applies to turnover (gross business income before expenses). If the threshold is exceeded, corporate tax is then calculated by reference to taxable income (business profit after applicable tax adjustments), not simply gross turnover.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\tVirtual Asset Activities<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tThe Commercial Transactions Law lists virtual asset activities as commercial activities. However, this does not mean every personal holding or disposal of a virtual asset is automatically subject to Corporate Tax. For a natural person, the analysis should consider whether the activity is conducted for the person\u2019s own account, whether it is conducted through or requires a UAE licence, and whether it is classified as a commercial business under the Commercial Transactions Law.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\tLooking for a Corporate Tax Consultant in the UAE?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tBeaufort Associates can help you assess whether income is treated as wage, personal investment income or income from a business or business activity for UAE Corporate tax purposes. Contact Beaufort Associates to discuss your position.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\tFrequently Asked Questions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Payments Outside an Employment Contract Automatically Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tNo. A payment does not automatically become taxable merely because it is not specifically stated in an employment contract. The nature of the payment and the capacity in which the individual receives it must be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Salaries and Wages Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tGenerally, no. Wages received by an individual as an employee are not treated as income from a business or business activity for UAE Corporate Tax purposes.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Can Bonuses and Allowances Be Treated as Wages? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tThey may be treated as wages where they are received by the individual in their capacity as an employee. The treatment depends on the facts and circumstances and is not determined only by whether the amount appears in the written employment contract.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Director Fees Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tDirector fees received by an individual will generally not be treated as income from a business or business activity. However, the individual\u2019s circumstances and the nature of the activities should still be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t<\/div>\r\n\t\t\t\r\n\t\t\t
Personal investment income is outside UAE corporate tax where the investment is conducted by a natural person for their own account, is neither conducted through nor requires a UAE licence, and is not classified as a commercial business under the Commercial Transactions Law.<\/p>
\u00a0<\/p>
The Commercial Transactions Law includes certain profit-seeking speculation within the commercial-business framework and separately lists virtual asset activities as commercial activities. The facts of the individual\u2019s activity must therefore be assessed before assuming that investment income is outside Corporate Tax.<\/p>
\u00a0<\/p>
Share and securities trading does not automatically fall within UAE Corporate Tax. The FTA gives an example of an individual investing personal savings in listed securities without requiring a Licence; the resulting income is treated as Personal Investment income and is outside Corporate Tax.<\/p>
\u00a0<\/p>
However, where an individual\u2019s activity is instead classified as a business or business Activity, the AED 1 million test applies to turnover (gross business income before expenses). If the threshold is exceeded, corporate tax is then calculated by reference to taxable income (business profit after applicable tax adjustments), not simply gross turnover.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Virtual Asset Activities<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tThe Commercial Transactions Law lists virtual asset activities as commercial activities. However, this does not mean every personal holding or disposal of a virtual asset is automatically subject to Corporate Tax. For a natural person, the analysis should consider whether the activity is conducted for the person\u2019s own account, whether it is conducted through or requires a UAE licence, and whether it is classified as a commercial business under the Commercial Transactions Law.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\tLooking for a Corporate Tax Consultant in the UAE?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tBeaufort Associates can help you assess whether income is treated as wage, personal investment income or income from a business or business activity for UAE Corporate tax purposes. Contact Beaufort Associates to discuss your position.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\tFrequently Asked Questions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Payments Outside an Employment Contract Automatically Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tNo. A payment does not automatically become taxable merely because it is not specifically stated in an employment contract. The nature of the payment and the capacity in which the individual receives it must be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Salaries and Wages Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tGenerally, no. Wages received by an individual as an employee are not treated as income from a business or business activity for UAE Corporate Tax purposes.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Can Bonuses and Allowances Be Treated as Wages? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tThey may be treated as wages where they are received by the individual in their capacity as an employee. The treatment depends on the facts and circumstances and is not determined only by whether the amount appears in the written employment contract.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Director Fees Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tDirector fees received by an individual will generally not be treated as income from a business or business activity. However, the individual\u2019s circumstances and the nature of the activities should still be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t<\/div>\r\n\t\t\t\r\n\t\t\t
The Commercial Transactions Law lists virtual asset activities as commercial activities. However, this does not mean every personal holding or disposal of a virtual asset is automatically subject to Corporate Tax. For a natural person, the analysis should consider whether the activity is conducted for the person\u2019s own account, whether it is conducted through or requires a UAE licence, and whether it is classified as a commercial business under the Commercial Transactions Law.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Looking for a Corporate Tax Consultant in the UAE?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tBeaufort Associates can help you assess whether income is treated as wage, personal investment income or income from a business or business activity for UAE Corporate tax purposes. Contact Beaufort Associates to discuss your position.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\tFrequently Asked Questions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Payments Outside an Employment Contract Automatically Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tNo. A payment does not automatically become taxable merely because it is not specifically stated in an employment contract. The nature of the payment and the capacity in which the individual receives it must be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Salaries and Wages Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tGenerally, no. Wages received by an individual as an employee are not treated as income from a business or business activity for UAE Corporate Tax purposes.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Can Bonuses and Allowances Be Treated as Wages? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tThey may be treated as wages where they are received by the individual in their capacity as an employee. The treatment depends on the facts and circumstances and is not determined only by whether the amount appears in the written employment contract.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Director Fees Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tDirector fees received by an individual will generally not be treated as income from a business or business activity. However, the individual\u2019s circumstances and the nature of the activities should still be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t<\/div>\r\n\t\t\t\r\n\t\t\t
Beaufort Associates can help you assess whether income is treated as wage, personal investment income or income from a business or business activity for UAE Corporate tax purposes. Contact Beaufort Associates to discuss your position.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Frequently Asked Questions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Payments Outside an Employment Contract Automatically Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tNo. A payment does not automatically become taxable merely because it is not specifically stated in an employment contract. The nature of the payment and the capacity in which the individual receives it must be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Salaries and Wages Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tGenerally, no. Wages received by an individual as an employee are not treated as income from a business or business activity for UAE Corporate Tax purposes.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Can Bonuses and Allowances Be Treated as Wages? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tThey may be treated as wages where they are received by the individual in their capacity as an employee. The treatment depends on the facts and circumstances and is not determined only by whether the amount appears in the written employment contract.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Director Fees Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tDirector fees received by an individual will generally not be treated as income from a business or business activity. However, the individual\u2019s circumstances and the nature of the activities should still be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t<\/div>\r\n\t\t\t\r\n\t\t\t
\n\t\t\t\t\t Are Payments Outside an Employment Contract Automatically Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tNo. A payment does not automatically become taxable merely because it is not specifically stated in an employment contract. The nature of the payment and the capacity in which the individual receives it must be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Salaries and Wages Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tGenerally, no. Wages received by an individual as an employee are not treated as income from a business or business activity for UAE Corporate Tax purposes.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Can Bonuses and Allowances Be Treated as Wages? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tThey may be treated as wages where they are received by the individual in their capacity as an employee. The treatment depends on the facts and circumstances and is not determined only by whether the amount appears in the written employment contract.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t Are Director Fees Subject to UAE Corporate Tax? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/i><\/span>\n\t\t\t<\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tDirector fees received by an individual will generally not be treated as income from a business or business activity. However, the individual\u2019s circumstances and the nature of the activities should still be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t<\/div>\r\n\t\t\t\r\n\t\t\t
No. A payment does not automatically become taxable merely because it is not specifically stated in an employment contract. The nature of the payment and the capacity in which the individual receives it must be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t Generally, no. Wages received by an individual as an employee are not treated as income from a business or business activity for UAE Corporate Tax purposes.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t They may be treated as wages where they are received by the individual in their capacity as an employee. The treatment depends on the facts and circumstances and is not determined only by whether the amount appears in the written employment contract.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t Director fees received by an individual will generally not be treated as income from a business or business activity. However, the individual\u2019s circumstances and the nature of the activities should still be considered.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t\t\t
\r\n\t\t\t\t<\/div>\r\n\t\t\t\r\n\t\t\t