When will revenue from Participating Interests “substantially” comprise a holding company’s interests? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course If a holding company’s average income throughout the relevant Tax Period and the Tax Period prior to it consisted of 50% or more of dividends, capital gains, and other income … Read more
When will a holding company satisfy the condition that the “principal objective and activity of the Participation is the acquisition and holding of shares or equitable interests”? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course When all of the following elements are met, the Participation will satisfy the criterion that … Read more
Will a person be able to exchange my ownership interest as part of a business reorganization for another ownership interest and still meet the conditions of the Participation Exemption? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course Yes. The newly acquired ownership interest will be treated as the same continuous … Read more
Can anyone also be benefited from the Participation Exemption if that person owns Islamic financial instruments? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course In accordance with Shariah principles, a financial instrument may also avail itself of the Participation Exemption, provided that it qualifies as equity under the accounting standards … Read more
Whether the option rights will fall within the scope of the Participation Exemption? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course For the purposes of the Participation Exemption, option rights shall be considered ownership interests if, in accordance with International Financial Reporting Standards (IFRS), the option holder has both beneficial … Read more
Whether a branch can claim the participation exemption? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 Yes, however provided that the branch satisfies all other requirements to qualify for the exemption in relation to an ownership interest in a Participation that may be traced to the branch and is … Read more
What does the Participation Exemption regime mean by a “ownership interest”? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 The ownership interests include: Ordinary shares, Preferred shares, Redeemable shares, Membership and partner interests, and Other types of securities, capital contributions and rights that entitle the owner to receive profits … Read more
What criteria will be used to establish the minimum needed ownership interest? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 If a Taxable Person has either: a 5% or more ownership interest in the Participation; or an acquisition cost of its ownership interest in the Participation that is at … Read more
For the purposes of the Participation Exemption regime, how does the “subject to tax” test function for a Foreign Company? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 For the purposes of the Participation Exemption, a foreign company that is resident in a nation with a corporate income tax … Read more
Do profits received from businesses with UAE residents qualify for the Participation Exemption? Contact us for UAE Corporate Tax Advise Check our UAE Corporate Tax Course https://www.youtube.com/watch?v=UuYSOpakKR8 According to Article 22 of the Corporate Tax Law, dividends received from a firm with a UAE resident is immediately exempt. Dividends received from firms based in the … Read more