Here we will discuss the concept of tax groups in the UAE CT (corporate tax) regime as explained in the consultation document, released by the MOF.

The concept of tax group is essential for companies with multiple licenses in the UAE. Many companies operate as a group of companies as a single unit, having the option to be a tax group not only reduces the complaice cost but also helps reduce the effective tax rate of the company.

We have discussed the basis of the taxable income calculation earlier, now we can get into what income can be exempt from this calculation on the basis of the consultation document released by the MOF.

It is important to understand the exempt income for corporate taxation to correctly reduce the tax liability.

Here we will discuss how you can calculate your tax liability or the amount of tax payable to the authorities. The UAE UAE CT (corporate tax) regime as explained in the consultation document, released by the MOF has made attempt to make the calculation as simple as possible.

The corporate tax payable calculation and reporting obligations is simplified because the authorities wanted to reduce the administrative burden on small and medium sized businesses.

Here we will discuss the aspects of the CT (corporate tax) consultation document, released by the MOF that discusses, non-deductible expenses, offsetting losses, and the interest capping rules. The objective of these restrictions in reducing the tax liability is to make sure that no taxable person takes undue advantage of the CT regime or makes excessive deductions.

If non-deductible expenses are wrongly deducted in the taxable income calculation, the tax liability will reduce and we can be fairly confident that there will penalties for the same.

The corporate taxation public consultation document has been released by the Ministry of Finance. This document will have details that will show us what direction the Corporate Tax regulations are headed. This can be used to prepare ourselves for the upcoming Corporate Tax Regulations. After VAT  this is the next tax that is being implemented in the UAE. This is a direct taxation system that will tax the taxable income directly.

9% Corporate Tax is an added compliance requirement in the UAE and will change the way business is done here. Businesses must update their systems and processes to accommodate this new regulation. Although the law is not published yet, we can use the public consultation document to get an idea of where the regulation is headed.

From the consultation document released by the MOF, we have been given a basic understanding of the calculation of the taxable income. We need to keep in mind that this is yet to be finalized however from this we can use the current information we have to be prepared for when the law is implemented

Corporation tax is a new concept in the UAE, we need to be well prepared to calculate the taxable income. This will give us enough time to optimize the tax liability.

We have discussed earlier the different options to have a licensed company, mainland, freezone, offshore. Now what is this designated Zone? How does it differ from the others? Here we will also get into the list of designated zones.

Being a company in UAE, it is important to follow the local laws, which include the tax laws. If the special tax laws are not followed within a designated zone properly then it will attract penalties. This will impact the company’s performance.

The corporate tax public consultation document provides details on the basis of the taxation. 9% corporation taxation is something we expect to come into effect mid of 2023. We will discuss resident and non-resident persons, we will also understand concepts relating to the permanent establishment and what UAE sourced income is.

It is important to understand what the basis of taxation is for both resident and non-resident persons in the UAE. It is only after understanding this concept can the calculation of taxable income be understood.

Corporate tax impact on Freezone companies will need a lot of discussions. There are many Free zone entities in the UAE as stand-alone companies and as part of group companies. It is very relevant to how their transactions impact their tax liability.

Freezones jurisdictions have always advertised that companies in the Freezones will not be taxed. It is important to now understand what are the specific regulatory requirements the corporate tax regime has in place for Freezone companies, to ensure proper compliance.

The Public consultation document discusses who are the proposed taxable persons for the new 9% Corporate Taxation in the UAE.

Understand who is a taxable person and who is exempt from taxation is essential to understand if you need to meet the compliance requirements for corporate taxation and pay 9% on the taxable income.