Introduction In a business environment marked by an increase in cross-border transactions, Anti-Abuse provisions are the standard mechanism used by various countries to prevent “abuse of tax regulations” by Taxable Persons. Anti-Abuse Rules also called “AAR”, measure a transaction entered into by a Taxable Person on the pedestal as to whether such a transaction can … Read more
BEPS and the UAE Corporate Tax Regime Background Part 9 of the UAE Draft Public Consultation Document outlines the country’s plans to adapt to and implement changes in international tax law. In 2015, OECD announced the 15 measures taken in response to profit shifting and tax avoidance as part of the original Base Erosion and … Read more
Introduction The UAE Government recently issued a Cabinet Resolution detailing guidelines for determining tax residency of natural and legal persons in the UAE. Prior to the Resolution, there was no statutory definition for UAE Tax Residency. However, in order to adapt to the international taxation regime and the dynamic global economy, the UAE drafted the … Read more
UAE Economic Substance Regulation UAE Cabinet introduced the UAE Economic Substance Regulations on 30 April 2019 which was with Cabinet Resolution No. 57 of 2020 on 10 August 2020 The Economic Substance Regulations are applicable retroactively from 01 January 2019. The Economic Substance Regulations in UAE is applicable to UAE mainland companies, UAE free zone … Read more
The United Arab Emirates (UAE) recently incorporated the UAE Corporate Tax regime which shall come into effect from 1st June 2023. Tax Rate 0-9% Period for which it is applicable Tax period starting on or after 1st June 2023 Who are covered Companies, individuals carrying on business in UAE Withholding Tax 0% on all income … Read more
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