VAT Public Clarification (VATP038) on Manpower & Visa Facilitation Services in UAE On 31 May 2024, the Federal Tax Authority (FTA) issued VAT Public Clarification VATP038 regarding the VAT treatment of manpower and visa facilitation services concerning employment visas and…

Ministerial Decision No. 261 of 2024: Clarifications on Unincorporated Partnerships, Foreign Partnerships, and Family Foundations (Effective from 1 June 2023)  Date of Issue: 28 October 2024  Effective Date: 1 June 2023  The UAE Ministry of Finance has issued Ministerial Decision…

Ministerial Decision No. 265 of 2023: Updated List of Qualifying and Excluded Activities for Free Zone Corporate Tax Regime (Effective from 1 June 2023)  Date of Issue: 27 October 2023  Effective Date: 1 June 2023  The UAE Ministry of Finance…

Cabinet Decision No. 100 of 2023: Clarification on Determining Qualifying Income for Free Zone Entities (Effective from 1 June 2023)  Date of Issue: 25 October 2023  Effective Date: 1 June 2023  The UAE Cabinet has issued Cabinet Decision No. 100…

Overview Federal Decree-Law No. 47 of 2022 on Corporations and Businesses (“Corporate Tax Law”) was issued on 3 October 2022 and published on 10 October 2022 in Issue #737 of the Official Gazette of the United Arab Emirates (“UAE”).  The…

Cabinet Decision No. 75 of 2023 and Amendments: Administrative Penalties for Corporate Tax Violations (Effective from 1 August 2023, Updated 1 March 2024)  Date of Issue: 10 July 2023 (Amended on 22 February 2024)  Effective Date: 1 August 2023 (Amendments…

While COVID-19 may have slowed down certain activities, as well as inadvertent breakdowns in financial reporting matters. Consequently, global regulators and watchdogs have issued reports and standards to address these concerns. In this edition of the Audit & Accounting Alert,…

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…

Note: This blog is prepared on the basis of The UAE  Corporate Tax Law and its relevant CD and MD is released by MOF.  This is only for informative purposes and should not be used or relied upon to make individual…

The Hamriyah Free Zone (HFZ), located in the emirate of Sharjah, is a manufacturing hub and one of the best free zones in the UAE due to its favourable business policies, connectivity to the other six emirates, and effective regulatory…

The registered audit firms in the Dubai Airport Free Zone are required to audit the books of accounts of all businesses operating there. Audit organisations that are not registered with the Dubai Airport Free Zone Authority (DAFZA) are not permitted…

The Dubai International Financial Centre (DIFC) Free Zone is located in the city’s financial centre. More than 25,600 professionals operating across more than 2,500 active registered firms comprise the region’s broad pool of industry talent, and DIFC is a globally…

The Dubai Multi Commodities Center Authority is known as DMCC. DMCC: In accordance with the implementing regulations, a DMCC Member Company is required to submit the auditor’s signed and stamped Audited Financial Statements Summary Sheet and the Audited Financial Statements…

JAFZA, one of the world’s largest free zones, is ideally placed in Dubai, United Arab Emirates. JAFZA was founded in 1985 and has grown from 19 firms to over 10,700, including more than 100 Fortune Global 500 organisations. The free…

Top Audit Firms in Dubai, UAE 2023: The requirement for auditors is one of the most important aspects of international business transactions. It gives you confidence that you are doing business with trustworthy companies, and it gives potential business partners…

Businesses are constantly under pressure to perform better and develop original solutions due to shifting stakeholder expectations and dynamic market patterns. Internal audit is an excellent tool for assessing the overall performance of any firm or organization. Regulation compliance, data…

Penalties for Failure to Comply with Economic Substance Regulation, UAE The Cabinet Resolution No. 57 of 2020 established administrative fines for numerous Economic Substance Regulations infractions (ESR). The number of fines for infractions committed by both Licensees and Exempted Licensees…

A new resolution lists the breaches as those that fall under the definition of the Cabinet Resolution No. 21 of 2020 governing service charges and administrative fines by the ministry and its amendments. The violations are defined in a newly…

UAE’s National ICV Program In the UAE, obtaining an In-Country Value (ICV) certification has grown to be one of the most crucial requirements for operating a successful business. The Abu Dhabi National Oil Company (ADNOC) introduced the ICV programme for…

By evaluating the effectiveness and consistency of their best practices, firms can achieve their corporate objectives by consistently doing internal audits. An internal audit seeks to guarantee that corporate policies and processes are carefully followed, as opposed to an external…

Emphasis on Risk Approach  The primary role of internal audit function is to  support an organization in achieving its  objectives. By definition, the internal audit  function provides a systematic approach to  evaluate and improve the effectiveness of risk  management and…

The 5th Branch Office of KGRN Chartered Accountants has been established with great success in Melbourne, Australia. Victoria’s capital city, Melbourne, is located on the coast of the state of Victoria in the southeastern part of Australia. The Southbank neighbourhood…