XYZ Inc. earns UAE-sourced income but doesn’t have a PE in the UAE. Is it required to register for UAE Corporate Tax?
- Yes
- No
Answer
Answer: No
XYZ Inc. has established a management office, QRS LLC in the UAE for the supervisory work. Would this office constitute as PE in the UAE?
- Yes
- No
Answer
Answer: No
ABC FZ-LLC, a Qualifying Free Zone Person, is deriving income from QRS LLC, its domestic Permanent Establishment. Will it be considered as foreign source income?
- Yes
- No
Answer
Answer: No
ABC LLC, a Mainland entity is earning income from QRS FZ-LLC, a free zone entity from sale of electronic goods. Will such an income be considered as foreign-sourced income?
- Yes
- No
Answer
Answer: No
The period for which — is required to be filed under the UAE CT Law is called the Tax Period under UAE Corporate Tax Law?
- Financial Statement
- Tax Return
- Transfer Pricing Documentation
- Balance Sheet
Answer
Answer: Tax Return
XYZ Inc., is engaged in the business of sale of electronic components around the world. It has a branch in the UAE which is used solely for the purpose of storing some of the components. Will this constitute PE of XYZ Inc. in the UAE?
- Yes
- No
Answer
Answer: No
Emily operates a small advertising agency, and her company was fined for violating certain regulations. She is preparing her Tax Return for the Tax Period. Will she be able to claim Deduction for such fine under UAE CT Law?
- Yes
- No
Answer
Answer: No
ABC LLC, engaged in software developing, is incorporated in the UAE. QRS Inc. is incorporated in the US but has a branch office in the Free Zone in UAE. Which of these is considered as Resident under UAE CT Law?
- ABC LLC
- QRS Inc.
- Both of them
- None of them
Answer
Answer: (1) ABC LLC
XYZ LLC operates a clothing business in Mainland UAE and is required to prepare Local File that includes information about transactions with Related Parties and Connected Persons. The transactions with which of the following should be included?
- ABC LLC, the Non-Resident Person
- QRS LLC, the Exempt Person
- Both of them
- None of them
Answer
Answer: (3) Both of them
ABC FZ-LLC is engaged in reinsurance services subjected to regulatory oversight. QRS FZ-LLC undertakes manufacturing of electronic components in the free zone. Which of these entities engage in Qualifying Activities?
- ABC FZ-LLC
- QRS FZ-LLC
- Both of them
- None of them
Answer
Answer: (3) Both of them
ABC LLC is a Qualifying Free Zone Person in the UAE & certain Non-Qualifying Income for the Tax Period. ABC LLC’s total revenue for the current Tax Period is AED 9 million. Has ABC LLC satisfied the de minimis requirements under the UAE CT Law?
- Yes
- No
Answer
Answer: (1) Yes
XYZ LLC is a Qualifying Public Benefit Entity in the UAE. It ceases to exercise the conditions for being a QPBE from March 1st, 2024. Who will notify of such a change to the FTA?
- XYZ LLC
- FTA will enquire itself
- Government Entity
- Government Controlled Entity
Answer
Answer: (3) Government Entity
Income from wholesale distribution of goods from a designated Zone is exempt only when the customer is a
- Domestic business
- Foreign business
- Either or both of the two
- None of the two
Answer
Answer: (3) Either or both of the two
RIAZ LLC has the revenue threshold of AED 2 million and is a constituent company of an MNE group, ZLC Ltd. Can RIAZ LLC elect to apply the Small Business Relief under UAE CT Law ?
- Yes
- No
Answer
Answer: (2) No
ABC LLC is a Mainland entity operating in the UAE. It had revenue of AED 1 million for the previous and present year. It wants to elect for the Small Business relief for the Tax Period starting from January 1st, 2027. Will it be able to avail the relief?
- Yes
- No
Answer
Answer: (2) No
ABC LLC is a business operating in the Mainland UAE. What is the revenue threshold limit that it has to ensure to claim Small Business Relief under UAE CT Law?
- Less than AED 1 million
- Less than AED 2 million
- Less than AED 3 million
- Less than AED 4 million
Answer
Answer: (3) Less than AED 3 million
Which income of a Free Zone contract manufacturers be considered as qualifying income?
- Income from another Free Zone Person
- Income from mainland company
- Income from a foreign entity
- All of the above
Answer
Answer: (4) All of the above
Sarah operates a chain of clothing stores in the UAE. Sarah decides to explore if she could change her Tax Period from 1 January 2024 to 1 July 2024. Which condition does Sarah need to fulfill in order to change her Tax Period?
- Obtain permission from her competitors
- Pay a fee to the Tax Authority
- Meet conditions established by the FTA
- Provide proof of personal income
Answer
Answer: (3) Meet conditions established by the FTA
John is a business owner who operates a food chain in the UAE. He wants to ensure that he complies with all tax obligations as per the law. Which authority is responsible for specifying the form and manner in which John must file his Tax Return?
- The Cabinet
- John’s personal financial advisor
- The Federal Tax Authority
- The local tax collectors
Answer
Answer: (3) The Federal Tax Authority
XYZ LLC, a company operating in UAE, is engaged in the business of beverages and having a Tax Registration Number. However, due to changing market conditions and internal factors, XYZ LLC is considering discontinuing its operations. What is XYZ LLC required to do in the event of cessation of business?
- Cease all communications with the Authority
- Transfer their tax obligations to another business
- File a Tax Deregistration application with the Authority
- Continue operations until the Authority instructs otherwise
Answer
Answer: (3) File a Tax Deregistration application with the Authority
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ABC LLC is a successful corporation operating in a country governed by the UAE Corporate Tax Law. As the end of the tax year approaches, ABC LLC is preparing to calculate and settle its corporate tax liability. What is the primary obligation of ABC LLC as a Taxable Person in this case?
- To request an extension for filing the corporate tax return
- To settle the Corporate Tax Payable within 9 months
- To pay taxes but may or may not file Tax Return
- To dissolve the company and not pay taxes
Answer
Answer: (2) To settle the Corporate Tax Payable within 9 months
ABC LLC is a mainland entity established in UAE. It has earned a revenue of AED 65 million in the FY 2024. Is it required to prepare and maintain audited financial statements , based solely on the requirements under the UAE CT Law?
- Yes, since the threshold limit is AED 50 million
- No, only Free Zone entities are required to prepare and maintain Audited FS
- Yes, since the threshold limit is AED 10 million
- No, since the threshold limit is AED 100 million
Answer
Answer: (1) Yes, since the threshold limit is AED 50 million
RIAZ LLC is engaged in trade of goods within and outside the UAE. Under the UAE Corporate Tax Law, certain businesses are required to maintain both a master file and a local file for Transfer Pricing purposes. When will Riaz LLC be required to maintain the master file and local file?
- If their revenue in the relevant Tax Period is AED 200 million or more
- If they are a Constituent Company with a total consolidated group Revenue of AED 3,150 billion or more
- If they have any transactions with Related Parties and Connected Persons
- Both 1) and 2)
Answer
Answer: (4) Both 1) and 2)
Nooran LLC has a revenue of AED 5 billion and wants to understand the transfer pricing documentation required to be maintained for compliance for UAE CT Law purposes. Which of the following documents are not considered as transfer pricing documentation?
- Master File
- Local File
- Country-by-Country Report
- Advance Pricing Agreement
Answer
Answer: (4) Advance Pricing Agreement
Which of the following entities may not be able to get Small Business Relief under the UAE Corporate Tax Law?
- XYZ FZ-LLC, a Qualifying Free Zone Person, deriving Qualifying Income
- ABC LLC, a Mainland entity, having revenue threshold of AED 2 million
- QRS LLC, a Mainland entity, having revenue threshold of AED 4 million
- Both 1) and 3)
Answer
Answer: (4) Both 1) and 3)
Mr. Amir is a Non-Resident Natural Person conducting business activity in UAE Mainland. Mr. Amir will be subject to the UAE Corporate Tax if the total turnover from such business activity is more than:
- AED 1 million
- AED 2 million
- AED 3 million
- AED 4 million
Answer
Answer: (1) AED 1 million
Mr. Riaz is a UAE Resident conducting business activity in UAE Mainland. His turnover is AED 5 million. Is he required to register for the UAE Corporate Tax?
- Yes
- No
Answer
Answer: (1) Yes
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