UAE Corporate Tax Law
Ministerial Decision No. 97 of 2023 Requirements for Maintaining Transfer Pricing Documentation for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses
The processes of determining the price involved in International transactions between two or more related parties with reference to Corporate Tax UAE is referred to as “Transfer Pricing.”
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Ministerial Decision No. 116 of 2023 on the Participation Exemption for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses
Ministerial Decision No. 116 of 2023 for the purposes the Taxation of Corporations and Businesses stipulates the conditions to qualify for Participation Exemption. As per the Decision, ownership interest include and is not limited to, holding any one or a combination of Ordinary Shares, Preferred Shares, Redeemable Shares, Membership and Partner Interests, Other types of securities, capital contributions and rights that entitle the owner to receive profits and liquidation proceeds....To determine whether a Taxable Person has a Participating Interest, different types of ownership interests in the same juridical person shall apply and be aggregated. Further, ownership interests in the same juridical person held by members of a Qualifying Group in which the Taxable Person is a member shall be aggregated with those of the Taxable Person. Read more
Ministerial Decision No. 114 of 2023 on the Accounting Standards and Methods for the Purposes of Federal Decree Law No. 47 of 2022 on the Taxation of Corporations and Businesses
Ministerial Decision No. 114 of 2023 on the Accounting Standards and Methods for the purposes of corporate tax stipulates that a Taxable Person shall apply the International Financial Reporting Standards (“IFRS”)
statement of other comprehensive income, balance sheet, statement of changes in equity and cash flow statement. Read more
Maintenance of Audited Accounts Statements by Taxable Persons under Ministerial Decision No. 82 of 2023
Ministerial Decision No. 82 of 2023 1 was recently issued following some amendments to the UAE Corporate Tax Law. The newly annexed law determines the categories of taxable persons who are required to maintain and prepare audited accounts statements in line with international standards towards a minimum corporate tax rate. Essentially, businesses must establish whether they are taxable, exempt or a qualifying free zone person.... Thus, it is imperative for taxable persons to seek the services of Tax Consultants UAE to seamlessly implement tax standards and to stay compliant.
Requirements as per the Ministerial Decision No. 82 of 2023: –Under the Ministerial Decision No. 82 of 2023, the following persons are required to maintain and prepare audited financial statements as listed below: – Compliance date for 1st October 2023: – – The deadline for Qualifying Public Benefit Entity is 1st October 2023 Compliance date for 1st June 2024: – The below stated categories deadline is 1st June 2024 – Qualifying Investment Fund – A Public Pension/social security Fund – A Private Pension/social security Fund – A Juridical entity controlled by Government Entity partially or wholly Exemption from Corporate Tax, UAE The mentioned taxable persons below qualify to file for an exemption request from corporate tax if the necessary requirements are satisfied. Read more
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Conditions for Change in Tax Period for Corporate Tax Purpose as per Federal Tax Authority Decision No. 5 of 2023
Federal Tax Authority Decision No. 5 of 2023 stipulates the conditions for changing the tax period for corporate tax purposes.
The decision puts a specific criterion for taxable persons to qualify for change of their tax period, effective from 1st June 2023.
Therefore, it is imperative for taxable persons to seek the services of tax consultants UAE to seamlessly determine their tax period and to stay compliant with tax standards.
Small business relief for the purpose of taxation of corporations and businesses, (Ministerial Decision No. 73 of 2023)
Ministerial Decision No. 73 of 2023 provides relief to small Businesses, aimed at easing their corporate tax burden and reducing compliance costs. The Decision stipulates a revenue threshold that qualifies for the tax relief. Thus, it is advisable for small businesses to seek the expert services of Tax Consultants UAE to establish their taxability and to avail tax relief in compliance with the UAE corporate tax law.
The decision stipulates that resident persons with revenue in the relevant tax span and prior tax duration lower...than three million dirhams for each tax period will be eligible for Small Business Relief. However, if a taxable person exceeds the revenue threshold of AED 3 million in any tax period, they will no longer be qualifying for the relief. This revenue threshold will come into effect for tax periods starting from June 1 st 2023 and will be valid for successive tax duration that concludes before or on December 31, 2026. Read more
Determination of Tax Residency (Ministerial Decision No. 27 of 2023)
Ministerial Decision No. 27 of 2023 on Implementation of Certain Provisions of Cabinet Decision No. 85 of 2022 on Determination of Tax Residency stipulates the requirements for taxable persons to be regarded as tax residents in the UAE. Therefore, for taxable persons to effectively assess and determine their tax residency, it is advisable to seek the services of Tax Consultants UAE.
What is tax residency?According to the Cabinet Decision, tax residency refers to the location at which a taxable person or business must pay tax on their international revenue.
...For instance, if a business is regarded as a tax resident in the UAE, it will be required to pay corporate tax on revenue earned both domestically and internationally. The Cabinet Decision specifies a number of requirements to assess whether a person or business is a tax resident in the UAE. Read more