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 – Anti-Abuse Rules under UAE Corporate Tax 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 … Read more

Reliefs under UAE’s Corporate Tax Law – Introduction There are certain reliefs provided to Taxable Persons under the UAE Corporate Tax Law for transfer of assets and liabilities between a Qualifying Group and for transfer of shares and ownership interest in case of Business Restructuring. After fulfilling the requisite conditions to meet the criterion, the … Read more

Introduction – Chapter 18 Violations and Penalties under the UAE Corporate Tax Law Article 60 of the UAE Corporate Tax Law provides for the assessment of Corporate Tax. Assessment of tax refers to the reviewing and evaluation of information filed in the Tax Return by the Taxable Person. This is done to ensure that the … Read more

Introduction – Transitional Rules under UAE Corporate Tax Transitional Rules provide guidance for transitioning from the existing legal system to the new legal framework. The Transitional Rules set here enlist the provisions that are required to be implemented to transition smoothly from the pre-UAE Corporate Tax Law system to post UAE Corporate Tax Law regime. … Read more

Introduction – Closing Provisions under UAE Corporate Tax The closing provisions details the supplementary part of a legislation and addresses the miscellaneous aspects of a legislation such as publication of the Act, administrative policies, delegation of powers and so on. Article 62: Delegation of Powers under UAE Corporate Tax Law Delegation of powers means to … Read more

Introduction – Chapter 5 – Free Zone Persons under the UAE Corporate Tax Law Free Zones, referred to as Free Trade Zones, are created to facilitate single-window- administration for the convenience of foreign investors while promoting global trade. Free Zones in the UAE are either associated with ports or are industry specific. The UAE has … Read more

Introduction – Chapter 4 Taxable Person and Corporate Tax Base under UAE’s Corporate Tax Law The quintessence of a taxation regime is to determine its applicability. It is important to determine who is a Taxable Person under the UAE Corporate Tax Law because Corporate Tax is to be paid by a person recognised as a … Read more

Introduction – Chapter 2 – Imposition of UAE Corporate Tax and Applicable Tax Rates  One of the most important provisions in the UAE Corporate Tax Law is the rate of Corporate Tax to be levied on Taxable Persons and its respective applicability to various entities operating in the UAE. According to the UAE Corporate Tax … Read more

Chapter 1: General Definitions under the UAE Corporate Tax Law As per Article 1 of Chapter 1 of the UAE Corporate Tax Law provides the definitions of terms used in it so as to aid in its better understanding and effective implementation and application of its provisions. Some of these are: Term Definitions Authority The … Read more