Introduction – Chapter 10 – Transactions with Related Parties and Connected Persons under the UAE Corporate Tax Law The term “Transfer Pricing” refers to the process of determining the price of an international transaction between two or more Related Parties. For example, when a subsidiary company sells goods, or provides services to its holding company … Read more
Introduction – Chapter 14 Payment and Refund of Corporate Tax under the UAE Corporate Tax Law At the end of every Tax Period, Corporate Tax under the UAE Corporate Tax Law becomes due for a Taxable Person. This is called Corporate Tax Payable. It can also become due for payment for one or more Tax … Read more
Introduction – Chapter 16 Tax Registration and Deregistration Chapter 16 of the UAE Corporate Tax Law mandates Taxable Persons, to register themselves under the corporate taxation regime. It provides the procedure for Tax Registration (if engaged in active business in the UAE) and Tax Deregistration (if business operations cease). Let’s take a look at them. … Read more
Assessment Procedure, Assessment Order and Appeal under UAE Corporate Tax Self-assessment principle – Business should ensure correctness of tax return and any supporting schedules submitted to the FTA FTA may review a CT return and may issue an assessment Taxpayer may challenge an amended assessment Processes and procedures for challenging on order to be outlined … Read more
Advance ruling and Clarifications from FTA under UAE Corporate Tax Where there is uncertainty in relation to a proposed arrangement or transaction, a business may apply to the FTA for a clarification A Inc USA can seek clarification from FTA for clarification from the FTA Subsequent Years applicability ? More about “Advance ruling and Clarifications … Read more
Documentation to be maintained for Corporate Tax Maintain financial and other records to explain information in CT return and documents submitted to the FTA Audit requirement – Mandatory or optional under UAE Corporate Tax Transition Rules under UAE Corporate Tax More about “Documentation to be maintained for Corporate Tax” – Subscribe UAE Corporate Tax Course
Limitation of Deduction of Interest under UAE CT Tax Base Erosion Deductible interest payments, where the recipient of the interest income is not taxed (e.g., an individual shareholder or a Free Zone Person) Net interest expense can be deducted to 30% of a business’s earnings before interest, tax, depreciation, and amortization (EBITDA), as adjusted for … Read more
Taxation of Unrealised Gains or Losses under UAE Corporate Tax Article 20(3) deals with the taxation of unrealized gains and losses, which appear in the financial statements. Before understanding the tax provisions, we first need to understand, what are unrealized gains and Loss. Unrealized Gain An unrealized gain is an increase in the value of … Read more
Introduction – Chapter 7 – Exempt Income under the UAE Corporate Tax Law Any portion of income which is not taxed according to a country’s Income Tax law is termed as Exempt Income. Such incomes are not included in the calculation of Total Income on which tax is payable. Let us look at the provisions … Read more
Introduction – Chapter 6 – Calculating Taxable Income under the UAE Corporate Tax Law Chapter 6 of the UAE Corporate Tax Law, details the rules and regulations for Calculating Taxable Income of a Taxable Person for determining the Corporate Tax Payable under the Law. The rules and regulations aim to reduce administrative complexity as well … Read more