Corporate Tax Obligations of UAE Companies
At the end of 2023, the UAE published the outcome of a public consultation on the zero rate of taxation for qualified Free Zone residents. Decisions No.55 and No.139 previously published by the Ministry of Finance have been cancelled and new decisions No.100 and No.265 have been issued. The application of tax benefits has been expanded and many points have been more fully explained.
Read MoreUAE Golden Visa: New Requirements for Foreign Investors
The Golden Visa program, initially launched in 2019, has played a major role in attracting high net worth individuals to Dubai, offering many benefits including long-term residence for 10 years, as well as the ability to sponsor family members, access to world-class medical and educational facilities, as well as freedom to conduct business in the emirate.
Read MoreOffice in the UAE: Physical vs Virtual
The type of office, virtual or physical, depends on the chosen type of business, license, number of visas and the need to have economic substance. All local companies must have a physical office in the UAE. A physical office requirement applies both to companies registered in the Mainland and in some of the UAE Free Zones.
Read MoreThe UAE Federal Tax Authority publishes a Corporate Tax Guide on Small Business Relief
As a reminder, Small Business Relief offers a several-fold increase of the tax-free income threshold, however it has a number of limitations. UAE residents are treated as not earning taxable income if their annual revenue does not exceed AED 3 million (~ USD 816,000) in each tax period from June 1, 2023 to December 31, 2026.
Read MoreEstate Planning Specifics in the UAE
Estate planning is an important aspect for those who have assets and business interests in the United Arab Emirates. Given that the UAE has its own unique rules and regulations concerning estate planning, it is necessary to think ahead and make arrangements for the estate transfer to ensure the safety and security of assets for future generations.
Read MoreThe UAE Set Penalties for Corporate Tax Law Violations
The UAE Ministry of Finance has published Cabinet of Ministers Resolution No.75 of 2023, which sets penalties for violations of Corporate Tax Law No.47 of 2022. The schedule of offenses and corresponding penalties includes 13 items.
Read MoreUAE Corporate Tax Developments Bring Relief for Commodity Traders in Free Zones
Qualifying commodities, encompassing metals, minerals, energy, and agriculture commodities traded in raw form on recognized commodities exchange markets (in the UAE or abroad), benefit from this provision. It pertains to the physical trading activities of such commodities and associated derivative trading deployed for risk hedging.
Read MoreDLD Urges Property Owners to Adhere to Corporate Tax Norms through Accredited Channels
In a bid to enhance transparency in the real estate market and ensure compliance with corporate tax legislation, the Dubai Land Department (DLD) has advised property owners to collaborate with accredited valuation offices. This move aligns with the department’s commitment to reinforcing transparency and upholding the relevant laws and regulations within the real estate sector.
Read MoreCan UAE Free Zone Logistics Firms Lose Their 0% Tax Status for Mainland Services?
A scenario discussed in the UAE corporate tax consultation document issued in August concerns free zone logistics firms performing services within a free zone but providing last-mile delivery on the mainland UAE or in a foreign country. It suggests that income attributable to activities outside the free zone might be subject to a 9% corporate tax if they create a permanent establishment or operate through a mainland branch.
Read MoreUAE Cabinet Approves Dh192 Billion Budget for 2024-2026
During the meeting at Qasr Al Watan, Abu Dhabi, Sheikh Mohammed highlighted the budget’s focus on social development and benefits, which represent 42% of the total budget. Government affairs account for 39%, while the remainder is allocated to investments in infrastructure, economic resources, financial assets, and other federal expenses.
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