Introduction Understanding the concept and importance of Corporate Tax in the UAE are vital for natural persons engaged in business activities within the country. This section will provide an overview of the applicability of Corporate Tax to natural persons, highlighting…

Amount of Annual Income Subject to Corporate Tax-CD-116 of 2022 0% CT rate Taxable Person Income not exceeding (375,000) shall be subject to Corporate Tax at the rate of (0%) zero percent in the Tax Period irrespective of whether the…

Caculating Corporate Tax liability Corporate Tax Reliefs Transfer of Tax Loss–(Article 38) Tax loss can be offset against taxable income of another person if: Tax Return To complete a tax return for CT folloing information will be included: a) The…

Deductible Expenses–(Article 28) Interest Expenses Entertainment Expenditure –(Article 32) 50% of entertainment expenses are deductible. Entertainment include the followings:a) Meals.b) Accommodation.c) Transportation.d) Admission fees.e) Facilities and equipment used in connection with such entertainment, amusement or recreation. Non-Deductible Expenses–(Article 33) Contact…

Tax Base –(Article 12) State Sourced Income–(Article 13) Permanent Establishment–(Article 14) Fixed or Permanent Place–(Article 14) Fixed or Permanent Place–Exceptions (Article 14) A fixed place or permanent place is not operated by the non-resident person, or its related party or…

Taxable Income–(Article 20) Taxable Income– Financial Statements (Article 20) Taxable Person that prepares financial statements on an accrual basis may elect to take into account gains and losses on a realization basis in relation to: Exempt Income–(Article 22) Participation Exemption…

Related Parties–(Article 35) Transactions between Related Parties–(Article 34) Arm’s length ruleThe arm’s length result of a transaction or arrangement between Related Parties must be determined by applying one or a combination of the following transfer pricing methods:a. The comparable uncontrolled…

This article provides useful information about corporation tax registration and deregistration. Read on to simplify your company tax compliance journey. Registration–(Article 51) Tax Groups–(Conditions: Article 40) If a Government Entity have one or more subsidiaries where hold 95% or more…

Government Entities – Exceptions (Article 5) (automatic exemption) Government Controlled Entities that are specified in a Cabinet Decision – Exceptions (Article 6) (automatic exemption) Extractive Business – CONDITIONS (Article 7) a. The Person directly or indirectly holds or has an…

Family Foundations–(Conditions: Article 17) Can make an application to the Authority to be treated as an Unincorporated Partnershipbased on following conditions: Unincorporated Partnerships–(Article 16) Transfer of Tax Loss–(Article 38) Tax loss can be offset against taxable income of another person…