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 earning of business before interest, tax, depreciation, and amortization (EBITDA), as to … Read more
Introduction – Chapter 10 – Transactions with Related Parties and Connected Persons under the UAE Corporate Tax Law The term “Transfer Pricing” refers to the process of determining the price of an international transaction between two or more Related Parties. For example, when a subsidiary company sells goods, or provides services to its holding company … 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. Further, it is quintessential for every economy to create a framework for the correct determination of tax liability of various taxpayers in … Read more
Taxation of UAE companies depend on whether they are domestic companies or foreign companies. Besides companies, it also covers certain other form of legal person. Let us look at these in detail Which all Legal persons are covered under UAE Corporate Tax ? UAE CT will apply to the following categories of legal person : … Read more
Introduction – Chapter 3 Exempt Persons under UAE Corporate Tax Law A person who is exempt under the UAE Corporate Tax Law is not liable to pay Corporate Tax. This can be because of automatic exemption or by exemption through an application by the Taxable Person. Further, the provision details who can automatically be considered … 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 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
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 The UAE Corporate Tax Law exempts a Qualifying Public Benefit Entity from Corporate Tax if it fulfills certain conditions. The Cabinet Decision has brought forth certain guidelines for Qualifying Entities. Which entities are Qualifying Public Benefit Entities? The Schedule annexed to the decision identifies the entities that are considered Qualifying Entities as per Article … Read more
Introduction to Accounting Standards The United Arab Emirates (UAE) has recently introduced significant updates to its Corporate Tax law, aiming to enhance transparency, standardize accounting practices, and promote economic growth. These changes have a profound impact on businesses operating in the UAE and require a comprehensive understanding of accounting standards. Preparation of Financial Statements … Read more