The update regarding UAE Corporate Tax’s Transitional Rules lists the various adjustments that need to be made to the Taxable Income of a Taxable Person with regard to losses or gains incurred on various assets and liabilities. One must be aware of these adjustments while preparing the financial statements for the relevant Tax Period as … Read more

Introduction to Participation Exemption The UAE has introduced a new corporate tax regime that applies to corporations and businesses operating in the country. This article will explain the main aspects of the Participation Exemption and its implications for taxpayers. We will discuss the ownership interests, aggregation of ownership interests, transfer of ownership interests, treatment of … Read more

Introduction  A Non-Resident is one who has a Permanent Establishment in the UAE or derives UAE-sourced income or has a nexus in the UAE as per the Cabinet under the UAE Corporate Tax Law. In furtherance of that, the Cabinet has issued a decision regarding what will constitute as nexus with the UAE under the … Read more

Background and Synopsis  The UAE Corporate Tax Law is a significant development in the taxation system. It was implemented to establish a comprehensive framework for corporate taxation, ensuring fairness, transparency, and compliance in the business sector. The law aims to promote economic stability and align the UAE with international taxation standards.  Under the UAE Corporate … Read more

Introduction  Private Pension and Social Security Funds play a crucial role in ensuring financial security for individuals and their families. The Ministerial Decision outlines the requirements and conditions for these funds to enjoy certain exemptions from Corporate Tax. By understanding the provisions and implications of this decision, individuals and organizations can make informed decisions regarding … Read more

Introduction There is a significant development in the realm of taxation in relation to unincorporated partnerships, foreign partnerships, and family foundations. In this article, we will delve into the key aspects of the Ministerial decision and explore its implications.  Unincorporated Partnerships not to be considered as a Taxable Person in its Own Right  Article 2 … Read more

INTRODUCTION   UAE Corporate Tax Law specifies the conditions for Qualifying Income (“QI”) of Qualifying Free Zone Person (“QFZP”) which is exempted from taxation. Firstly, a Free Zone is a geographic area which is defined and decided by the Cabinet. A Free Zone Person is any legal person that is incorporated, established or registered in the … Read more

Introduction: Incorporating a company in the United Arab Emirates (UAE) involves several steps and considerations. The UAE is known for its business-friendly environment, tax benefits, and strategic location, attracting many entrepreneurs and investors. Steps for Incorporating a Company in UAE: Determine the type of company: The UAE offers various types of business entities, including mainland … Read more

Introduction  UAE MOF has come up with an update helping in framing guidelines for Business Restructuring as per Article 27 of the UAE Corporate Tax Law.  What is Transfer in Exchange for Shares and Other Forms of Consideration?  A transfer takes place when the market value received in addition to the shares or interest does … Read more

Introduction  The Ministerial Decision provides direction for the application of transfer within the same Qualifying Group under the UAE Corporate Tax Law. In this regard, the policies and processes for transfers within a Qualifying Group are described.   What is an Ownership Interest for Transfer within the same Qualifying Group?  Taxable Person holding any one … Read more