June 2023 - Sorting Tax

General Interest Deduction Limitation Rule – UAE CT Update

July 5, 2023June 28, 2023 by Team Sorting Tax

Introduction to General Interest Deduction Limitation Rule In recent years, the taxation landscape has witnessed significant developments aimed at ensuring fairness, transparency, and compliance in corporate taxation. One such development is the General Interest Deduction Limitation Rule, which imposes restrictions on the deductibility of interest expenses for tax purposes. This article provides an in-depth analysis … Read more

UAE INDIA TAX TREATY- WITHHOLDING TAX RATES

August 3, 2023June 27, 2023 by Team Sorting Tax

Overview UAE has an extensive network of taxation treaties which has grown over the years. In the UAE, there are no personal tax laws at the moment. Though, the recently implemented UAE Corporate Tax Law has significant impact on companies conducted business and commercial activities in the UAE. The domestic taxation system provides for measures … Read more

Form 26QB – Income Tax Act, 1961

July 5, 2023June 27, 2023 by Team Sorting Tax

Overview For the purpose of paying TDS (Tax Deducted at Source) on the sale of real estate, Form 26QB is a tax-related form. It is generally utilized to record and pay the TDS amount to the government for property transactions with a consideration amount being more than 50 lakhs and is applicable under Section 194IA of … Read more

General Rules for Determining Taxable Income: Necessary Adjustments

July 5, 2023June 26, 2023 by Team Sorting Tax

Introduction The UAE has introduced a corporate tax regime that applies to all resident persons, which are juridical persons that are incorporated or registered in the UAE or have their place of effective management in the UAE. If a person’s taxable income is AED 375,000 or less, they are not subject to any corporate tax. … Read more

Effect of UAE Corporate Tax Law on International Businesses

July 5, 2023June 22, 2023 by Team Sorting Tax

Impact of UAE Corporate Tax Law on international businesses

Introduction The effect of UAE Corporate Tax Law is immense on international businesses. United Arab Emirates (UAE) is a leading global hub for business and investment, with a diverse and dynamic economy that offers attractive opportunities for domestic and foreign investors. The UAE has recently introduced a Federal Corporate Tax (CT) law that will apply … Read more

TCS at 20% on Overseas Spends – New LRS Regulations

June 22, 2023 by Team Sorting Tax

TCS @ 20% on Overseas Spend- New LRS Regulations

Introduction The Indian government has recently amended the rules under the Foreign Exchange Management Act (FEMA) for international credit card spending outside India under the Liberalised Remittance Scheme (LRS). This change has led to an increase in the Tax Collected at Source (TCS) rate to 20% on overseas credit card transactions, effective from July 1, … Read more

LRS New Regulations- Critical Analysis

June 22, 2023 by Team Sorting Tax

Introduction: Regulations under the Liberalized Remittance Scheme (LRS) allow Indian citizens to remit funds abroad for various purposes, such as education, travel, medical treatment, etc. The Reserve Bank of India (RBI) has recently introduced new rules for LRS which have become a cause of concern among wealthy Indians who have been parking their funds abroad. … Read more

Section 194P of the Income Tax Act, 1961

June 22, 2023 by Team Sorting Tax

Introduction Section 194P aims to simplify the deduction of the tax compliance process for senior citizens who are 75 years or above of age and have income from a pension. What is Section 194P? Section 194P is a provision in the Income Tax Act that allows ‘specified banks will compute the total income of … Read more

Section 148 of the Income Tax Act, 1961

June 21, 2023 by Team Sorting Tax

Introduction: The Assessing Officer can assess or reassess the income of any person subject to certain conditions prescribed. The assessment or reassessment of any income is subject to the due procedure established by the Income Tax Act, 1961. The Assessing Officer must give notice to the person regarding the assessment of income which has escaped … Read more

Tax Group – UAE CT Update

June 20, 2023 by Team Sorting Tax

Introduction The Ministerial Decision by the UAE has brought forth certain guidelines regarding the Tax Groups as per Article 40 of the UAE Corporate Tax Law. What are the Ownership Requirements? It is necessary to fulfill the continuous requirements listed in Article 40(1) of the UAE Corporate Tax Law for the complete duration of the applicable … Read more