It remains vital for charities operating in the UAE to competently manage the process of VAT recovery in a manner that would allow them to direct as much funds as possible towards their charitable objectives. VAT recovery for charities therefore has specific rules with respect to the distinction between what is and is not taxable. … Continue Reading
Excise tax is a component of indirect tax system that has been adopted in the United Arab Emirates (UAE) with the main aim of controlling the consumption of some goods that are deemed to have negative impacts on the society. However, excise tax has faced various challenges and controversies when it comes to its implementation … Continue Reading
The introduction of Value Added Tax (VAT) in the UAE on January 1, 2018, was a significant step towards boosting UAE’s economy. The construction industry is a crucial sector of the UAE economy which is also subject to VAT regulations. VAT Policies for the Construction Industry The construction industry in the UAE must pay the … Continue Reading
The United Arab Emirates (UAE) has introduced a corporate tax law, Federal Decree-Law No. 47 of 2022, effective from financial years starting on or after 1 June 2023. While most businesses will be subject to a 9% corporate tax rate on taxable income exceeding AED 375,000, however there are certain businesses and entities are exempt … Continue Reading
Decisions No. 10 & 3 of 2024 were Issued by the UAE Government by declaring mandatory registration for all taxable entities including free zone companies. Earlier in December 2022, the new legal regime of the corporate tax UAE was introduced by the Ministry of Finance and was declared effective from June 2023, for adjusting the … Continue Reading
Corporate tax is charged on net profits at the rate of 0% on the first AED 375 000 and 9% for any amount that exceeds this sum for standard mainland companies. A free zone entity’s corporate tax rate is 0% for entities that are Qualifying Free Zone Persons (QFZP) in line with the UAE free … Continue Reading
Individual foreign tax relief and tax treaties play an important role in international tax agreements. With individuals and companies forming cross-border affiliations, the problem of double taxation is created, which must be resolved. This article’s focus revolves around individual foreign tax relief and tax treaties which are used to obtain double taxation relief. What is … Continue Reading
UAE has implemented Corporate Tax in UAE in June 2023 with a standard rate of 9% applicable on business entities having taxable income over AED 375,000. The following article aims to elaborate on how the UAE computes corporate tax for companies. Corporate Tax Calculation UAE When calculating the amount of corporate tax payable from the … Continue Reading
In August 2022, the Ministry of Finance of Kuwait announced the upgrading of her bilateral relation with the United Arab Emirates (UAE). The Treaty for the Avoidance on Double Taxation Treaty (DTT) can be viewed as the creation of a new level of cooperation in taxation between the two countries and the strengthening of the … Continue Reading
Businesses seeking to enhance efficiency and profitability should learn how to minimize corporate tax liability in UAE. This article gives guidelines on how to reduce corporate tax liability and also explains corporate tax planning. Thus, Taxable Persons should seek the expert services of top Tax Consultants in the UAE to seamlessly implement corporate tax reduction … Continue Reading
Value Added Tax (VAT) is a form of consumption tax imposed on the added value to goods and services at each stage of production or distribution. In the United Arab Emirates (UAE), VAT is set at a standard rate of 5%. However, specific goods and services either fall under a zero-rated or exempt category. This … Continue Reading
The Corporate Tax Law recently implemented in the United Arab Emirates (UAE) establishes the legal framework for imposing federal taxes on corporations. It encompasses essential provisions regarding foreign tax credits and withholding tax, imperative for comprehending the tax consequences for businesses operating within the UAE. This article offers an overview of these provisions and their … Continue Reading
The Federal Tax Authority published the Qualifying Group Relief Guide on April 3rd, 2024, UAE Corporate Tax Law to facilitate the taxable entities by streamlining and making it easy to understand the existing relief as per UAE Corporate Tax. The term “Qualifying Group” refers to a group of Taxable Persons that can transfer assets and … Continue Reading
Every year, a great number of UAE nationals achieve their dream of building a house where they can enjoy living together with their families. The construction of a home is a very expensive project and the prices of the expenses are always going up with the inflation. With the aim of supporting home construction among … Continue Reading
Business restructuring relief is covered under Article 27 of the UAE Corporate Tax that when a qualifying business is transferred between two tax-paying entities in return for shares or an ownership stake, there won’t be any immediate tax on the gains or losses from this transfer. To keep this tax relief, the shares or ownership … Continue Reading
What is the Zero Government Bureaucracy Programme (ZGBP)? The UAE government came up with the notion of a new program, Zero Government Bureaucracy Programme (ZGBP), which served as a revolutionary tool for improving the existing administration and ensuring a well-coordinated government structure. The objective of such initiative is to eliminate the double registration, aimless activities … Continue Reading
On March 15, 2024, the Ministry of Finance of the United Arab Emirates started a discussion with the public about new global tax rules. These rules are known as the Global Minimum Tax or GloBE (Global Anti-Base Erosion) Model Rules, part of Pillar Two. The UAE and the OECD have signed the Base Erosion and … Continue Reading
Cabinet Decision No. 108/2023 on November 6, 2023, has amended, the provisions outlined in Article 2 of the Implementing Regulation of Federal Decree-Law No. 37/2017 & 7/2017 on Excise Tax in which UAE witnessed significant changes in its tax landscape, particularly concerning excise tax. The liability of individuals involved in various stages of the supply … Continue Reading
This article analyzes the various corporate tax registration deadlines specified in Federal Tax Authority Decision No. 3 of 2024 in detail. It discusses the timeline for resident and non-resident companies as well as individuals. The implications of late registration are also highlighted. Thus, for Taxable Persons to effectively meet corporate tax registration deadlines and to … Continue Reading
The Commercial Activities Certificate is an important document issued by the Federal Tax Authority to registered businesses generating enough revenue. It confirms that the business is legally conducting commercial operations in the UAE. This allows the firm to claim credit for the VAT paid on supplies and services required to run the business. In this … Continue Reading
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