Will transfer pricing rules apply to both domestic and cross border transactions? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 Yes. Transfer pricing rules apply to UAE businesses that have transactions with Related Parties and Connected Persons, irrespective of whether the Related Parties or Connected Persons are located in … Read more
What are transfer pricing rules? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 Transfer pricing rules seek to ensure that transactions between Related Parties are carried out on an arm’s length basis, as if the transaction was carried out between independent parties. To prevent the manipulation of Taxable Income, … Read more
If a Taxable Person’s Net Interest Expenditure is greater than AED 12 million and their adjusted EBITDA is negative for a Tax Period, how much of their Net Interest Expenditure may they deduct? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 If a Taxable Person’s adjusted EBITDA is negative … Read more
Will I be able to deduct interest incurred in relation to loans from Related Parties? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 In cases where a loan is procured from a Related Party, the Interest associated with that loan becomes non-deductible if the loan is utilized to facilitate … Read more
Will the interest General Interest Deduction Limitation Rule apply to Tax Groups? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 A Tax Group’s deductible Net Interest Expenditure will be limited where the Net Interest Expenditure is greater than AED 12 million or the greater of 30% of the Tax … Read more
Will there be any exemptions from the General Interest Deduction Limitation Rules? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 Banks, Insurance Providers, and individual taxpayers are exempt from the provisions of the General Interest Deduction Limitation Rule. Consequently, these entities are not obliged to take into account the … Read more
How are Islamic Financial Instruments treated under the General Interest Deduction Limitation Rules? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 Should an Islamic Financial Instrument incorporate an element analogous to Interest, this component will be deemed economically similar to Interest and consequently subjected to the General Interest Deduction … Read more
What is the treatment of disallowed Interest expenditure? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 Any Net Interest Expenditure exceeding 30% of a Taxable Person’s adjusted earnings before Interest, taxes, depreciation, and amortization (EBITDA) for a given Tax Period, and thus ineligible for deduction in that period, can … Read more
Is there a de minimis threshold for the General Interest Deduction Limitation Rule? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 Certainly, the threshold is set at AED 12 million. Consequently, if a Taxable Person’s Net Interest Expenditure, which is the difference between Interest expenditure incurred and Interest income … Read more
Will my interest expenditure be fully deductible? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 The UAE Corporate Tax Law incorporates measures to regulate the deductibility of interest expenditure with the aim of discouraging excessive reliance on debt financing and ensuring that interest incurred on debt arising from specific … Read more