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UAE Corporate Tax Updates

Stay informed with the latest UAE corporate tax updates. This concise overview provides essential information on recent changes and developments in corporate taxation laws in the United Arab Emirates (UAE). Stay ahead of the curve, understand the implications, and ensure compliance for your business. <br><br>Link: https://sortingtax.com/courses/uae-corporate-tax-course/<br><br><br>

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UAE Corporate Tax Updates

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  1. UAE CORPORATE TAX UPDATES

  2. SortingTax RELIEF FROM UAE CORPORATE TAX 20-05-2023 1 +91-9810319335 https://sortingtax.com/uae-corporate-tax-course Instructor – CA Arinjay Jain courses. sortingtax.com | +91-9667714335 sortingtax.com

  3. THRESHOLD FOR SMALL BUSINESS RELIEF AND ADDITIONAL CONDITIONS SortingTax SortingTax Revenue Threshold for previous and relevant year will be AED 3,000,000 each Tax Period Applicable from Tax Period starting on or after June 1, 2023 Apply till Tax Periods ending on or before December 31, 2026 Small Business Relief If in any previous or relevant year the revenue increases the threshold, the relief will not be applicable Revenue to be determined as per Accounting Standards in the State Small Business Relief cannot be undertaken by : a. Constituent Company of a Multinational Enterprise b. Qualifying Free Zone Person 20-05-2023 20-05-2023 2 2 Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com

  4. PROVISIONS FOR TAX LOSS, NET INTEREST EXPENDITURE, ARTIFICIALLY SEPARATED BUSINESS AND PUBLICATION SortingTax SortingTax Article 4 Article 6 Artificially separate business for small business relief ? No Tax Losses carry forward Article 7 Article 5 Net Interest Expenditure cannot be carried forward. The decision will be applicable from 15 days of publicationof decision. https://courses.sortingtax.com/learn/uae-corporate- tax-course 20-05-2023 20-05-2023 3 3 Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com

  5. SortingTax TAX REGISTRATION UNDER UAE CORPORATE TAX 19-05-2023 1 +91-9810319335 https://sortingtax.com/uae-corporate-tax-course Instructor – CA Arinjay Jain contact@sortingtax.com | +91-9667714335 sortingtax.com

  6. SortingTax EXCEPTION FROM REGISTRATION FOR CORPORATE TAX 03 02 04 Person engaged in Extractive Business Government Controlled Entity Person in Non-Extractive Natural Business (Article 8) engaged (Article 7) 01 05 Non-Resident deriving sourced income and don't have PE in UAE Government Entity UAE 19-05-2023 2 +91-9810319335 https://sortingtax.com/uae-corporate-tax-course Instructor – CA Arinjay Jain contact@sortingtax.com | +91-9667714335 sortingtax.com

  7. SortingTax QUALIFYING PUBLIC BENEFIT ENTITY – UAE CORPORATE TAX LAW 20-05-2023 1 Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com

  8. QUALIFYING PUBLIC BENEFIT ENTITY, AMENDMENTS, AND REQUEST FOR INFORMATION SortingTax A. Specified Entities in Schedule to Decision No. 37 of 2023 to be considered as QPE B. Government Entities to notify MOF of any change in meeting conditions within 20 business days QUALIFYING PUBLIC BENEFIT ENTITY C. Government entity to file application with MOF for any amendment to the Schedule with relevant documents, etc. D. Cabinet (on suggestion from Minister) to amend the Schedule E. Qualifying Public Benefit Entity has to provide information as required by MOF and FTA to verify eligibility F. MOF and FTA can exchange data, etc. of Qualifying Public Benefit Entity for implementing provisions 20-05-2023 2 Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com

  9. SortingTax CONDITIONS FOR CHANGE IN TAX PERIOD UNDER UAE CORPORATE TAX LAW – FTA DECISION NO. 5 OF 2023 20-05-2023 1 +91-9810319335 https://sortingtax.com/uae-corporate-tax-course Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com

  10. SortingTax CHANGE IN TAX PERIOD – ARTICLE 58 OF DECREE The decision will be implemented from June 1st, 2023. Application can be made by the Taxable Person to FTA for : Changing the start dateand end date of Tax Period Using a different Tax Period 01 02 20-05-2023 2 Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com

  11. SortingTax PERMISSIBLE REASON FOR CHANGE IN TAX PERIOD Permissible reason for Change in Tax Period Valid commercial, economic or legal reason Aligning Financial Year of a Resident Taxable Person is Liquidated 20-05-2023 3 Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com

  12. ALIGNING FINANCIAL YEAR OF A RESIDENT SortingTax Aligning Financial Year Resident with its domestic or foreign HO for Financial Reporting One Resident with another Resident for joining existing Tax Group Resident with Subsidiary, Parent or Ultimate parent for Financial Reporting Benefit of Foreign Tax Relief 20-05-2023 4 Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com

  13. SortingTax CHANGE IN TAX PERIOD Application shortening Period should not be for prior or current Tax Period for Tax Application made before 6 months from end of original Period is Taxable has not filed Tax Return Person Change in Tax Period is : Tax Extension ofcurrent Tax Period for maximum 18 months Decreasing next Tax Period between 6 to 12 months Important : - Contrary or inconsistent provisions to this Decision shall be abrogated. 20-05-2023 5 Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com

  14. SortingTax UAE TAX DEREGISTRATION - – FTA DECISION NO. 6 OF 2023 20-05-2023 1 Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com

  15. TIMELINE FOR DEREGISTRATION FROM CORPORATE TAX – ARTICLE 52 SortingTax SortingTax Application for Deregistration from Corporate Tax is to be made to FTA after discharging all CT dues, penalties etc. Within 3 months of cessation of business Natural Person Within 3 months from : a. Cessation of business ; b. Cessation of judicial person c. Dissolution, d. Liquidation, e. Any other reason Juridical Person 20-05-2023 2 Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com

  16. SortingTax CATEGORIES OF TAXABLE PERSONS REQUIRED TO PREPARE AND MAINTAIN "AUDITED FINANCIAL STATEMENT” – DECISION NO 82 OF 2023 19-05-2023 1 +91-9810319335 https://sortingtax.com/uae-corporate-tax-course Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com

  17. PERSONS REQUIRED TO PREPARE AND MAINTAIN AUDITED FINANCIAL STATEMENT – ARTICLE 54(2) SortingTax Audited Financial - Mandatory for following Taxable Person deriving revenue above AED 50 million during relevant Tax Period Qualifying Free Zone Person 19-05-2023 2 Instructor – CA Arinjay Jain courses.sortingtax.com | +91-9667714335 sortingtax.com

  18. SortingTax REQUIREMENT FOR MAINTENANCE OF TRANSFER PRICING DOCUMENTATION IN THE UAE "MINISTERIAL DECISION NO. 97 OF 2023" 20-05-2023 1 +91-9810319335 https://sortingtax.com/uae-corporate-tax-course Instructor – CA Arinjay Jain contact@sortingtax.com | +91-9667714335 sortingtax.com

  19. CONDITIONS FOR MAINTAINING MASTER FILE AND LOCAL FILE – ARTICLE 2 SortingTax Maintain Master + Local File – TP meets either Relevant Tax Period - Constituent Company of MNE Group Revenue is AED 200 million or more 20-05-2023 2 +91-9810319335 https://sortingtax.com/uae-corporate-tax-course Instructor – CA Arinjay Jain contact@sortingtax.com | +91-9667714335 sortingtax.com

  20. TRANSACTIONS COVERED UNDER LOCAL FILE SortingTax SortingTax Non-Resident Person Exempt Person Transactions with the Related Parties or Connected Persons Resident claiming election and eligible under Article 21 (Small Business Relief) Resident whose income is taxed at different CT rate 20-05-2023 20-05-2023 3 3 Instructor – CA Arinjay Jain contact@sortingtax.com | +91-9667714335 sortingtax.com Instructor – CA Arinjay Jain contact@sortingtax.com | +91-9667714335 sortingtax.com

  21. SortingTax SortingTax TRANSACTION NOT COVERED UNDER LOCAL FILE Resident other than : - a. Exempt Person b. Small Business Relief Cases c. Income taxable at different CT rate 1 Natural Person acting independently 2 Juridical Person considered as Related Party by being Partner in Unincorporated Partnership and acting independently 3 4 PE of NR in UAE whose income is subjected to CT 20-05-2023 4 Instructor – CA Arinjay Jain contact@sortingtax.com | +91-9667714335 sortingtax.com

  22. SortingTax WHAT IS “ACTING INDEPENDENTLY”? When both of these conditions are met: • Transaction taken in ordinary course of business 01 • Parties are not exclusively or almost exclusively transacting with each other 02 Exception: If activity of one person is subject to detailed instruction or comprehensive control of another person in same transaction, they will not be considered independent. 20-05-2023 5 Instructor – CA Arinjay Jain contact@sortingtax.com | +91-9667714335 sortingtax.com

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