UAE Corporate Tax – Taxation of Non Residents Introduction Non – Resident’s income will be subject to corporate tax in UAE, only if : – Income of Non – Resident which is sourced in the UAE. ; or Non – Resident have a Permanent establishment in UAE and the income is derived from such Permanent … Read more
Introduction – Chapter 6 – Calculating Taxable Income under the UAE Corporate Tax Law Chapter 6 of the UAE Corporate Tax Law, details the rules and regulations for Calculating Taxable Income of a Taxable Person for determining the Corporate Tax Payable under the Law. The rules and regulations aim to reduce administrative complexity as well … Read more
Introduction – Chapter 16 Tax Registration and Deregistration Chapter 16 of the UAE Corporate Tax Law mandates Taxable Persons, to register themselves under the corporate taxation regime. It provides the procedure for Tax Registration (if engaged in active business in the UAE) and Tax Deregistration (if business operations cease). Let’s take a look at them. … Read more
Introduction – Chapter 14 Payment and Refund of Corporate Tax under the UAE Corporate Tax Law At the end of every Tax Period, Corporate Tax under the UAE Corporate Tax Law becomes due for a Taxable Person. This is called Corporate Tax Payable. It can also become due for payment for one or more Tax … Read more
UAE Economic Substance Regulation UAE Economic Substance Regulations are applicable from 01 January 2019. The Economic Substance Regulations in UAE is applicable to UAE mainland companies, UAE free zone companies and other UAE business forms that carry out any of the following ‘Relevant Activities’. UAE economic substance rules are designed to ensure that companies which … Read more
Introduction The UAE Government recently issued a Cabinet Resolution detailing guidelines for determining tax residency of natural and legal persons in the UAE. Prior to the Resolution, there was no statutory definition for UAE Tax Residency. However, in order to adapt to the international taxation regime and the dynamic global economy, the UAE drafted the … Read more
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