Corporate Tax NO Income Tax on Salary in UAE

Corporate Tax NO Income Tax on Salary in UAE:

Every payment made by an employer to his employee for service rendered would be treated as salaries. For a payment to be treated as salary, it should fulfil the important condition that that there should exist the relationship of an employer and an employee between the payer and the payee.

Here payee means the person who receives the payment for the work done by him i.e., Employee. The Payer is the person who pays for the work done for him i.e., Employer.

However, Salary and any other employment income (whether received from the public or private sector) is not taxable under corporate tax. Since it is a revenue expenditure, corporate tax does not consider the same while concerning the profits of a business. It is a well-known that corporate tax is not only for corporate entities. It is also applicable on the income earned by an individual from his/ her established business.