Corporate Tax Compliance – What are the important administrative requirements?
CT registration/deregistration, Tax return and Payments Every Taxable Person will be required to electronically register for UAE CT with the Authority before applicable tax period and obtain a Tax Registration Number. The registration would need to be undertaken even if the Taxable Person has already been registered for VAT purpose. In order to keep the […]
Do individuals have to pay Corporate Tax?
General rule As per Cabinet Decision No. (49) of 2023, business owners in the country will be subject to corporate tax only if their combined turnover in a calendar year exceeds Dh1 million (around $272,294). The aim of the decision is to clarify how the corporate tax regime will apply to UAE residents and non-residents. For instance, […]
Adjustments to Taxable income – Explained
Summary on calculation of taxable income Set out below is an illustrative/indicative summary of how Taxable Income will generally be computed for UAE CT purposes: Net accounting profit/(loss) before tax Fair value accounting and capital asset adjustments (subject to election) less/add: unrealised gains/losses less/add: foreign exchange gains/losses Exempt income less: Dividends and profit distributions received […]
Is Corporate Tax applicable on Freezone Persons?
In the UAE, a Free Zone Person is defined as an individual or corporate entity that is licensed to conduct business activities in the UAE free zones. Free zones are designated areas in the UAE that offer a multitude of incentives to foreign investors, including 100% foreign ownership, tax exemptions, and more. These free zones […]
What taxes are applicable in UAE?
Corporate Tax (CT) In January 2022, the UAE Ministry of Finance announced the implementation of Corporate Tax all over the United Arab Emirates. As per the Ministry, the Corporate Tax law will be effective from the 1st of June 2023. The Corporate Income Tax will be applicable on or after 1st June 2023, depending on […]
Understanding how partnerships and family foundations are taxed in UAE
Limited and general partnerships Limited and general partnerships and other unincorporated joint ventures and association of persons will be treated as “transparent” for UAE CT purposes. A flow-through entity – also known as a “pass-through entity” or “fiscally transparent entity” – is a legal business entity where its profits flow directly to the investors/owners, and […]
Complete guide on income determination
Under the UAE CT Law, the accounting net profit (or loss) as stated in the standalone financial statements of a business is taken as the starting point for determining its taxable income. The law prescribes a number of key adjustments to the accounting net profit (or loss) in order to compute the taxable income. The […]
How is income in taxed under Corporate Tax?
Corporate Tax is imposed on Taxable Income earned by a Taxable Person in a Tax Period. Corporate Tax would generally be imposed annually, with the Corporate Tax liability calculated by the Taxable Person on a self-assessment basis. This means that the calculation and payment of Corporate Tax is done through the filing of a Corporate […]
What is Corporate Tax? – All you need to know about corporate tax in UAE
According to the UAE Federal Decree-Law No. 47 of 2022 on taxation of corporations and businesses (the “Corporate Tax Law”), businesses will become subject to UAE Corporate Tax from the beginning of their first financial year that starts on or after 1 June 2023. What is Corporate tax (CT)? Corporate tax is a form of direct tax […]
CT & EmaraTax Update
