If a Taxable Person is carrying a provision (e.g. a provision for doubtful debts) in their accounts prior to the effective Corporate Tax date, what will be the tax treatment if the provision is released after the effective Corporate Tax date? Will the credit to the P&L be subject to Corporate Tax?

If a Taxable Person is carrying a provision (e.g. a provision for doubtful debts) in their accounts prior to the effective Corporate Tax date, what will be the tax treatment if the provision is released after the effective Corporate Tax date? Will the credit to the P&L be subject to Corporate Tax?

No particular modifications are stipulated concerning the release of a provision established before the effective Corporate Tax commencement date. Consequently, any associated credit recorded in the Profit and Loss statement will be liable to Corporate Tax.

CONTACT US FOR TAX CONSULTANCY

Master UAE Corporate Tax: Explore our course!

Related Content for UAE Corporate Tax

Are Free Zone companies in UAE liable to Corporate Tax ?

Free Zone has distinct taxation system based on Qualifying Income and Excluded Income. It is therefore essential to know the kind of income taxable under UAE Corporate Tax Law for Free Zone companies.

Can you Split up your Business to claim Small Business Relief in the UAE?

If your business exceeds the Revenue Threshold limit for Small Business Relief, can you split up your business to claim Small Business Relief as per UAE Corporate Tax Law or will it constitute a Tax Crime punishable under the UAE Tax Procedures Law?

Who is a Taxable Person under UAE Corporate Tax Laws?

Are you a Taxable Person liable for Corporate Tax under the UAE Corporate Tax Law? Can an Exempt Person be considered as a Taxable Person?

50% Discount on our  UAE Corporate Tax Course