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
Tax Losses under UAE Corporate Tax – Set off and carry forward Section 5 of the proposed UAE corporate tax outlines, the rules and regulations relating to the treatment of tax losses under the UAE corporate tax law. By their very nature, businesses go through different cycles of profit and losses, wherein they earn profits … Read more
What is Foreign Tax Credit ? Under the proposed law, UAE resident companies , will be subject to UAE CT on their global income. In certain cases, income derived by UAE business, from overseas operations may be liable to tax, both in the country where the business operations are carried out, and the UAE. In … Read more
Group Relief under UAE Corporate Tax Groups – Transfer of Assets & Liabilities Transfer of assets and liabilities between UAE resident companies that are at least 75% commonly owned – Transfer deemed at tax net book value The assets / liabilities transferred remain within the same group for aminimum of three years – ELSE in year … Read more
Group Transfer of Losses under UAE Corporate Tax Transfer of losses amongst Group Companies – Conditions Tax losses can be transferred to UAE group company who are at least 75% commonly owned – With conditions Tax losses cannot be transferred from : – Exempt companies ; Companies benefitting from 0% Free Zone CT regime. The tax … Read more
Introduction – Chapter 13 Calculation of UAE Corporate Tax Payable One of the key provisions of the UAE Corporate Tax Law is the one laid down for the calculation of Corporate Tax Payable. It is quintessential for every economy to create a framework for the correct determination of tax liability of various taxpayers in the … Read more
Introduction – Chapter 12 – Tax Group Provisions under the UAE Corporate Tax Law Due to liberalisation and globalisation of international trade, corporate entities have expanded their business beyond domestic boundaries. also called as Multinational enterprises or MNEs. They have established business houses and operations across foreign jurisdictions, creating complex frameworks for its business activities. … Read more