Federal Tax Authority conducts first specialised workshop on Corporate Tax treatment of income from real estate

The Federal Tax Authority (FTA) held a physical awareness workshop focused on Corporate Tax treatment of income from real estate, underscoring the importance of the real estate industry as a cornerstone of the UAE’s economy. This further showcases the FTA’s commitment to supporting all taxpayers and business sectors by providing tailored awareness workshops to suit each category of taxpayers and stakeholders in the relevant sectors.

The FTA continues to implement educational events and workshops, targeting various groups and entities involved in the application of Corporate Tax, as part of the second phase of its comprehensive campaign to raise awareness of Corporate Tax among the different categories of taxpayers. The objective of these awareness workshops is to promote tax knowledge among businesses and all taxpayers to enable them to comply with the Corporate Tax Law, which came into effect in June 2023, and applies to financial years beginning on or after 1 June 2023.

In a press statement issued today, the FTA highlighted the impressive turnout of the workshop, which was held in Dubai under the name of “UAE Corporate Tax treatment of income from Real Estate” and attracted over 260 attendees including real estate owners and investors both individuals and companies.

The FTA’s comprehensive awareness campaign reflects its commitment to raising Corporate Tax awareness and educating businesses and guiding them to overcome any challenges they face and ensure full compliance with Corporate Tax.

The FTA highlighted that the second phase of its campaign started in January this year and is focused on raising awareness about specific Corporate Tax topics that are tailored to the needs of various business sectors and taxpayer categories. In line with that, the workshop gives a special focus on income from real estate to explain the tax obligations and exclusions applicable to the various types of real estate owners.’’

Zahra Al Dahmani, Director of Taxpayer Services at the FTA, said: “offering awareness programs and workshops dedicated to specific sectors and corporate tax topics reflects the FTA’s commitment to supporting all businesses and ensuring they each have the knowledge support and guidance they need to understand their obligations under the Corporate Tax Law and ensure their full compliance in a voluntary manner. This also underscores the FTA’s continued efforts to boost confidence in the UAE tax system and reassuring the concerned taxpayers and concerned parties in the real estate sector of our commitment to encourage the growth of this vital industry while enhancing our efficiency in tax administration, in line with international tax standards and best practices.”

The FTA Director General concluded his keynote speech by encouraging all taxpayers to apply for Corporate Tax Registration based on the deadlines specified by the FTA Decision No. 3 of 2024 and highlighted that registration for Corporate Tax purposes is available through the EmaraTax digital platform as well as through 23 government service centres across the UAE.

The workshop on Corporate Tax and real estate provided an overview of the Corporate Tax Law in the UAE and then focused on explaining rules for the taxation of real estate for natural and juridical persons. The session highlighted the scope of real estate taxation in the UAE for both individuals and companies.

The FTA highlighted that registration for Corporate Tax purposes is available through the EmaraTax digital platform as well as through 23 government service centres across the UAE

The FTA called on all taxpayers to proactively register for Corporate Tax and obtain a Tax Registration Number (TRN) and highlighted that the FTA Decision No.3 of 2024, which came into effect on 1 March 2024, has specified deadlines to apply for Corporate Tax Registration for the various taxpayer categories based on their licence issuance date. The FTA reminded all resident juridical persons who are subject to Corporate Tax and hold licences that were issued in January or February of any year, to submit their Corporate Tax registration applications no later than 31 May 2024 in order to avoid administrative penalties.