DLD 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.
Property owners are encouraged to refer to the official list of accredited companies and valuation offices, available on the DLD’s official website (dubailand.gov.ae) and the Dubai REST app. These accredited entities comply with the prerequisites outlined in Decree Law No. 47 of 2022, aimed at guiding companies to avoid potential legal or financial issues and contributing to the growth of Dubai’s real estate industry.
To facilitate a smooth transition and establish an initial budget under the new system, the DLD recommends consulting Ministerial Resolution No. 120 of 2023, particularly Clause 3 of Article Two. This clause specifies that the market value of eligible immovable funds will be determined by relevant government entities in the UAE.
By adhering to this decision, businesses can ensure fairness and transparency in assessing assets and liabilities. The Ministerial Decision applies to various elements, including immovable funds, intangible assets, financial assets, and financial liabilities held by businesses before the implementation of the Corporate Tax Law.
Significantly, the decision grants flexibility to the real estate sector. Businesses with immovable funds calculated based on historical cost can determine the basis of the facility using either the time division method or the evaluation method. This flexibility allows businesses to choose the approach that best suits their needs for each asset, facilitating a seamless transition into the corporate tax law era.