CA Nirav Shah
Published: 2024-08-07
Total Pages: 38
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This book aims to analyse and elucidate the intricacies of United Arab Emirates (UAE) Corporate Tax [Federal Decree-Law No. 47 of 2022 as amended by Federal Decree-Law No. 60 of 2023] and its practical applications. It addresses the challenges for tax practitioners in understanding the law and its applications. It does so by providing an article-wise commentary on the UAE Corporate Tax along with the following: • Relevant Cabinet and Ministerial Decisions • Case Studies • Illustrations • FAQs • Charts & Tables • Guide on Free Zone Taxation Beyond its immediate utility, the book is designed to serve as a comprehensive reference tool. It stands as a valuable resource for professionals dealing with tax, yet its scope is not confined to experts alone. The content is approachable and engaging for anyone interested in the tax environment of the UAE, whether they are practitioners, scholars, or laypersons. The Present Publication is the 2nd Edition and is updated till 31st May 2024. This book is authored by CA Nirav Shah, with the following noteworthy features: • [Clear & Example Driven Format] has been followed in this book to present the analysis and make complex tax concepts more accessible to the readers • [Discussion on Implementation of UAE Corporate Tax] involving Decrees and Cabinet Decisions • [Highly Structured Contents to Present the Legal Framework and Real-world Application] The book's structure is thoughtfully organised to provide a lucid explanation, where it not only clarifies legal jargon but also bridges the gap between theory and practice, offering readers a well-rounded understanding of the subject matter The book contains twenty chapters, each including an analysis of the Articles of the UAE Corporate Tax. The appendix to the book includes Federal Decree Law 47 of 2022, as amended by Federal Decree Law 60 of 2023, and all Cabinet and Ministerial Decisions. The structure of the book is as follows: • [Introduction] Provides an overview of the UAE Corporate Tax and important definitions • [Imposition of Corporate Tax and Applicable Rates] This chapter analyses Articles 2 and 3 of the UAE Corporate Tax dealing with the obligation to pay UAE Corporate Tax and the applicable tax rate. • [Exempt Persons] This chapter analyses Articles 4 to 10 of the UAE Corporate Tax. These Articles exempt various entities: government entities, government-controlled entities, public benefit entities, investment funds, extractive businesses, etc. This chapter also includes the Corporate Tax Guide issued by the UAE FTA on Free Zone Persons. • [Taxable Person and Corporate Tax Base] This chapter analyses Articles 11 to 17 of the UAE Corporate Tax. These Articles provide the basis of charge, scope of taxable state-sourced income, meaning of permanent establishment (PE), taxability of family foundation, etc. • [Free Zone Person] This chapter contains an analysis of Article 18 of the UAE Corporate Tax dealing with taxation of free zone persons. • [Calculating Taxable Income] This chapter analyses Articles 20 and 21 of the UAE Corporate Tax. These Articles provide the basis for the computation of taxable income and the reliefs allowed to small businesses. • [Exempt Income] This chapter contains an analysis of Articles 22 to 25 of the UAE Corporate Tax that includes the provisions for the exemptions for certain incomes, participating exemptions, Foreign PE exemptions and exemptions to non-resident operating aircraft and ships in international transportation. • [Reliefs] This chapter contains an analysis of Articles 26 and 27 of the UAE Corporate Tax that provides relief for transfers within qualifying groups and business restructuring. • [Deductions] This chapter analyses Articles 28 to 33 of the UAE Corporate Tax. These Articles contain the provisions for deductible and non-deductible expenditures. • [Transactions with Related Parties and Connected Persons] This chapter analyses Articles 34 to 36 of the UAE Corporate Tax that, explains the arm's length principle and meaning of related parties and covers payments made to connected persons. • [Tax Loss Provisions] This chapter contains an analysis of Articles 37 to 39 of the UAE Corporate Tax dealing with the treatment of tax losses. • [Tax Group Provisions] This chapter analyses Articles 40 to 42 of the UAE Corporate Tax. These Articles allow the taxable persons to constitute a tax group and offer taxable income at the consolidated group level. • [Calculation of Corporate Tax Payable] This chapter analyses Articles 43 to 47 of the UAE Corporate Tax. These Articles guide the computation of tax liability, withholding tax, foreign tax credit, etc. • [Payment and Refund of Corporate Tax] This chapter contains an analysis of Articles 48 and 49 of the UAE Corporate Tax that deals with the timelines for making corporate tax payments and the provisions to claim a corporate tax refund. • [Anti-Abuse Rules] Article 50 of the UAE Corporate Tax contains the general anti-abuse rule. This chapter explains this Article along with BEPS and examples. • [Tax Registration and De-Registration] This chapter analyses Articles 51 and 52 of the UAE Corporate Tax. Article 51 deals with the registration of taxable and exempt persons. Article 52 deals with the time limit and conditions for de-registration. • [Tax Returns and Clarifications] This chapter analyses Articles 53 to 59 of the UAE Corporate Tax. These Articles deal with the compliance obligations of taxable persons, including filing tax returns, preparing financial statements, transfer pricing documentation, record keeping, etc. • [Violations and Penalties] This chapter contains an analysis of Article 60 of the UAE Corporate Tax that provides the penalties for various violations. • [Transitional Rules] This chapter analyses Article 61 of the UAE Corporate Tax. • [Closing Provisions] This chapter analyses Articles 62 to 70 of the UAE Corporate Tax. These Articles define the Federal Tax Authorities, their powers, international agreements, etc.