Value Added Tax (VAT) is a consumption tax imposed in the UAE on goods and services. VAT is applied to the value that is added to goods and services at each stage of production or delivery. Unlike some other taxes, VAT is paid by the end consumer. The typical VAT rate in the UAE is … Continue Reading
The bilateral income and capital tax treaty, which came into effect on December 25, 2016, marks a significant development in the relationship between the United Arab Emirates (UAE) and the United Kingdom (UK). The treaty officially signed on April 12, 2016, represents a pioneering agreement between these two nations and encompasses a comprehensive range of … Continue Reading
Small Business Relief, in the context of UAE Corporate Tax, is a supportive initiative tailored for small businesses classified as residents for tax purposes. Its core objective is to simplify its adherence to the Corporate Tax framework. Small Business Relief eases the regulatory burden faced by small enterprises, particularly during the initial phases of the … Continue Reading
Determining the taxable income of a Tax Group under UAE Corporate Law is essential in ensuring the consolidation of taxable income within a group structure. Article 42 of the UAE Corporate Tax Law outlines the criteria for the formation of a Tax Group, a legal entity that consolidates financial outcomes, assets, and liabilities, ultimately resulting … Continue Reading
India signed the Double Tax Treaty with more than 90 countries, including UAE, USA, UK, Qatar, Italy, Romania, Spain, Sudan, and Canada, and limited agreements with 8 countries such as Afghanistan, Pakistan, Lebanon, and Iran. UAE-India DTAA reduces tax rates on dividends (5%), interest (12.5%), and capital gains. The UAE-India Double Tax Treaty ratified in … Continue Reading
Free zone under UAE corporate tax law Important Questions/Answers (FAQ) Who is considered eligible as a Free Zone entity? Every person engaged in business activities within a Free Zone is automatically categorized as a Free Zone entity. The satisfaction of the following conditions is required to be met The entity must possess and uphold a … Continue Reading
Double Tax Treaty (DTT) is a formal contract between two or more states to mitigate the taxation burden. Their fundamental purpose is to combat the potential issue of international double taxation on income and assets. The central aim of the Double Tax Treaty (DTT) is to allocate tax jurisdiction equitably between the involved countries, thereby … Continue Reading
Extractive and non-extractive businesses are different types of industries based on their operations and resource utilization. Extractive businesses involve the extraction of natural resources from the earth or sea, such as minerals, oil, gas, timber, metals, and raw materials. Non-extractive businesses, on the other hand, engage in sectors like manufacturing, services, technology, finance, retail, tourism, … Continue Reading
The UAE’s Corporate Tax Law sets out the criteria to establish if an investment fund qualifies for exemption from Corporate Tax. An investment fund, in this context, refers to a structured entity primarily engaged in pooling investor funds and investing them based on a defined policy. This category encompasses various entities such as real estate … Continue Reading
The UAE corporate tax law provides a set of adjustments and guidelines to be followed when determining taxable income in specific scenarios. This article highlights the provisions of corporate tax law regarding the calculation of income, its implications and its significance for businesses operating in the UAE. Businesses should seek professional assistance from tax consultants … Continue Reading
Under the corporate tax law in UAE, a non-resident person is considered taxable if they have a nexus in the UAE. This nexus can be established if the person earns income from immovable property in the country. Immovable property includes land, buildings, and related fixtures or equipment. The registration with taxation authority in UAE is … Continue Reading
Timely and accurate filing of corporate tax returns ensures compliance, prevents penalties, and maintains good standing with the Federal Tax Authority (FTA). This article explains the filing requirements, including necessary documentation, filing periods, and obligations for taxable persons, exempt entities, and tax groups. Non-compliance with corporate tax filing requirements may result in penalties, audits, or … Continue Reading
Country by Country Reporting (CbCR) is a mechanism that seeks to improve clarity, accountability, and justification in the global tax system. In this article, we will discuss the implementation of Country by Country Reporting, with its purpose and the essential elements involved. Businesses should seek the services of Tax Consultants in Dubai to ensure compliance … Continue Reading
This article seeks to explore whether government entities and government-controlled entities are exempt from corporate tax UAE as per the latest Corporate Tax Explanatory Guide. Thus, taxable persons are advised to seek the services of Tax Consultants in Dubai to seamlessly determine their taxability and to stay compliant. What are Government Entities under Corporate Tax … Continue Reading
Ministerial Decision No. 26 of 2023 stipulates the conditions and criteria for conducting electronic commerce business for the purpose of keeping delivery records. The requirement is applicable to taxable persons whose e-commerce taxable supplies are more than 100 million AED in a financial period of 12 months (calendar year). Therefore, it is advisable for e-commerce … Continue Reading
Under the UAE’s comprehensive corporate tax regime, businesses can manage their taxes in a streamlined manner. By forming a corporate tax group, companies or entities can share profits, losses, and assets within the same corporation as well as operate under stand-alone concepts with their own distinct operations. To make use of this scheme effectively and … Continue Reading
UAE corporate tax relief for small businesses statute was enforced through Ministerial Decision No. 73 of 2023 in line with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (the UAE Corporate Tax Law). Subsequently, taxable persons are advised to seek the services of accredited tax consultants in UAE to seamlessly … Continue Reading
Under the UAE corporate tax regime, partnerships are considered to be legal entities and thus liable to register and file for corporate tax. However, there are exceptions to this rule, some unincorporated partnerships will be exempt from corporate taxes under certain conditions. Different types of partners may also be subject to different levels of taxation … Continue Reading
Corporate Tax Law, UAE vide Federal Law No. 47/2022 will be enforceable on taxable income of both resident and nonresident persons in real estate business under commercial and trade licenses. The UAE corporate tax rate is zero percent for a gain of up to 375,000 or less and nine percent for 375,000 or more. Therefore, … Continue Reading
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