Tax Exemption for Qualifying Public Benefit Entities Under UAE Corporate Tax

To qualify for Corporate Tax (CT) exemption, these entities shall comply with Article (9) of the Corporate Tax Law and adhere to all relevant federal and local regulations. Organizations engaged in social, cultural, religious, charitable, or other public benefit activities can apply for a corporate tax exemption. If approved, they will be listed in a cabinet decision requested by the Minister of Finance. Only public benefit entities listed by the Cabinet are eligible for the tax exemption.  

This e-book covers: 

  • What are Qualifying Public Benefit Entities? 
    • In this section, the entities that qualify as a Public Benefit Entity are listed based on the exclusive operative activity they are established. 
       
  • Conditions for Qualifying Public Benefit Entities to be Exempt from Corporate Tax 
    • The eBook details the conditions needed to be satisfied by the qualifying public benefit entities to be exempt from corporate tax. 
  •  Implication of Breach in Conditions 
    • This section of the booklet explains the temporary failures led by breaches of the above-mentioned conditions and the failures led by the objective of corporate tax advantage. Their implications on a QPBE’s qualifying status are mentioned as well. 
       
  • Seeking Professional Help for Registering Qualifying Public Benefit Entity 
    • Here, the advantages under the guidance of experienced tax consultants, like FAME Advisory, for registering a Qualifying Public Benefit Entity are stated. 

While a Qualifying Public Benefit Entity may qualify for exemption from corporate tax, it would still be required to maintain financial records and follow prescribed guidelines and compliance requirements. 

 

Tax Exemption for Qualifying Public Benefit Entities under UAE Corporate Tax

Executive Regulations of UAE VAT Law – Amendments 

Executive Regulations of UAE VAT Law

The FTA released cabinet decision no. 100 of 2024, amending cabinet decision no. 52 of 2017. This amended the executive regulations of the UAE VAT Law. 

These changes were made effective from 15th November 2024 (unless otherwise specified in the article of this decision)  

Key Amendment’s and their implications impact: 

  • Financial Services 

These amendments affect; Definition of virtual Assets, Tax Treatment of Financial Services, Exemptions for Government Transactions, Exception for Deemed Supply, Tax Deregistration, and Profit Margin Scheme. 

  • Proof for Export of Goods 

This section of the booklet discusses the Zero-Rating of the Export of goods under the Executive Regulations of UAE VAT Law. This includes meaning of Zero-Rating of Exports, clarification on acceptable documentation, types of official evidence, types of commercial evidence, and clarification on shipping certificate. 

  • Input VAT Recovery on Health Insurance for dependent 

Here, the amendments are made to non-recoverable Input Tax, apportionment of Input Tax, adjustments under the Capital Assets Scheme, Tax Invoices, and Foreign Governments. 

These changes enhance clarity and flexibility for businesses across various sectors. It is an ideal time to review your VAT practices and ensure compliance with the new regulations.  

 

Executive Regulations of UAE VAT Law – Amendments 

Tax Loss Relief under UAE Corporate Tax Law

Tax Loss Relief under UAE Corporate Tax Law

Introducing Our Guide to Tax Loss Relief Under UAE Corporate Tax Law 

Businesses in the UAE may encounter losses during their operations, and the UAE Corporate Tax Law provides a structured approach to managing such losses. This guide offers a comprehensive overview of tax loss relief provisions, which allow businesses to offset losses against future taxable income. 

In this booklet, you’ll learn about: 

  • What constitutes Tax Loss and Tax Loss Relief 
  • Key limitations and conditions on utilizing tax loss relief 
  • Special rules for transferring tax losses between related companies 
  • How to comply with ownership and business continuity requirements 

The Guide, “Tax Loss Relief under UAE Corporate Tax Law” will help you understand how to maximize tax loss relief and comply with UAE regulations. For businesses looking to make the most of these provisions, seeking professional advice is highly recommended. 

Explore this eBook today and gain a clearer understanding of how tax loss relief can benefit your business under UAE Corporate Tax Law. 

 

Tax Loss Relief under UAE Corporate Tax Law

Tax Procedures for Private Clarifications: UAE Corporate Tax 

Tax procedures for private clarification under UAE Corporate Tax

The Federal Tax Authority (FTA) published a Corporate Tax Guide on “Tax Procedures for Private Clarifications” on the 18th of November 2024. The objective of this guide is to provide taxpayers with general guidance on when and how to file for a Private Clarification to the FTA. 

The ground of this booklet covers: 

  • What are Private Clarifications? 

Here, the meaning and specifications of a Private Clarification and the portal for filing such Private Clarifications is mentioned and explained. 

  • Eligibility Criteria 

The eligibility criteria cover two crucial aspects; Eligibility of the person filing for the Private Clarification and Eligibility of the subject of the request filed. 

  • Grounds for Rejection 

Grounds for Rejection spans out the cases under which request for a Private Clarification can be rejected by the FTA. 

  • Clarification Process 

The process includes essential subjects such as submission of the Private Clarification request, withdrawal of a request, and finally issuance of a Private Clarification. 

Our booklet is designed to deliver clarity on the means and ways to file for a Private Clarification. It also elaborates on the conditions under which the FTA might reject an application for a Private Clarification. 

 

Tax Procedures for Private Clarifications: UAE Corporate Tax 

A Guide to Distribution of DIFC Foundation Wealth

A Guide to Distribution of DIFC Foundation Wealth

The concept of foundation was introduced in the civil law jurisdiction, putting forward a similar legal framework for GCC nations with comparable histories. These Foundations function as separate legal entities from their Founders. This separates a Foundation from a Trust. This separation aids the protection of the Founder’s personal assets. In this way the Foundation’s holding remains discrete from the said founder’s personal assets.

This booklet delves into the nuances of wealth distribution from the perspective of Foundations. The aspects covered here include:

  • What is a DIFC Foundation?
  • Letter of Wishes: Non-Binding Expressions of Intent
  • Legal Directives for DIFC Foundation Wealth Distribution
  • A Case Study
  • FAME Advisory’s provision for DIFC Foundation Wealth Distribution
  • FAQs

Allocation of Foundation riches requires careful considerations. The Founders can utilize the Charters and Letters of Wishes within the DIFC’s legal framework to make sure their philanthropic or wealth distribution objectives are successfully matched at the dissolution of the Foundation by carefully

All the practical topics in relation to foundation wealth management are summed up in this booklet. This resource serves as a reference for any future wealth distribution plans you may have in relation to your individual foundation or foundations.

 

A Guide to the Distribution of DIFC Foundation Wealth 

A Guide on Manpower vs. Visa Facilitation Services: Public Clarification No. 38

Public Clarification No. 38 Manpower vs Visa facilitation services

The eBook “Manpower vs. Visa Facilitation Services: Public Clarification No. 38” addresses the complexities of VAT implementation in the UAE. This comprehensive resource examines the recent FTA public clarification regarding significant challenges faced by companies in the region.

It provides an in-depth analysis of the VAT treatment applicable to two distinct types of supplies: manpower services and visa facilitation services. Given the FTA’s latest guidance, it is imperative for businesses to accurately identify these supplies to ensure compliance and optimize tax outcomes.

The content includes a detailed exploration of the criteria that classify a supply as manpower services, outlining the obligations of the supplier and the methodology for calculating the value of supply. It also examines the conditions under which a supply qualifies as visa facilitation services, highlighting the requisite criteria for accurate classification. A thorough discussion on the variations in the value of supply between manpower services and visa facilitation services is provided, along with special valuation rules applicable to related parties.

Real-world case studies elucidate the differences between these two service types, demonstrating the practical application of VAT treatment. Additionally, the eBook offers strategies to avoid common pitfalls in VAT treatment, ensuring alignment with current regulations.

This resource is essential for finance professionals, business owners, and compliance officers seeking to navigate the complexities of VAT treatment effectively. It equips organizations with the knowledge required to inform strategic decision-making and maintain compliance with regulatory requirements.

To enhance your understanding of manpower services, visa facilitation services, and the implications of Public Clarification No. 38, download the eBook. For further inquiries or assistance, please contact us.

 

Download A Guide on Manpower vs. Visa Facilitation Services: Public Clarification No. 38   

A Guide on Estate Succession for Non-Muslim Expatriates in the UAE

A Guide on Estate Succession for Non Muslim Expatriates in the UAE

Planning for the future is essential, especially when it comes to managing your estate after your passing. In the UAE, non-Muslim expatriates face unique challenges and opportunities regarding estate succession. Our comprehensive booklet, “A Guide on Estate Succession for Non-Muslim Expatriates in the UAE,” serves as an essential resource to help you understand the available options for registering your Will and ensuring your wishes are honored.

What You’ll Discover

  • Understanding Wills: Learn the significance of Wills in the UAE and how they can help you avoid the implications of Shariah law on estate distribution.
  • Registration Avenues: Explore the various platforms available for Will registration, including Dubai Courts, DIFC Wills and Probate Registry, and Abu Dhabi Judicial Department (ADJD). Each option offers distinct advantages tailored to your needs.
  • Executor Guidelines: Gain insights into the responsibilities of Executors and the step-by-step process they must follow post-demise to manage and distribute your estate.
  • Key Differences: A clear comparison matrix to help you weigh the pros and cons of each jurisdiction, ensuring you make an informed decision.

With the right planning, you can have peace of mind knowing that your estate will be handled according to your wishes. Our booklet provides a thorough understanding of the legal landscape for non-Muslim expatriates in the UAE, offering you the tools and knowledge to make informed decisions about your estate.

Whether you are new to the UAE or have been residing here for years, this guide is an invaluable resource for anyone looking to navigate the complexities of estate succession.

Download our booklet now to equip yourself with the necessary information to plan your estate effectively in the UAE. For further assistance in drafting your Will and navigating the registration process, feel free to reach out to our team at Fame Advisory. We’re here to help you every step of the way.

 

Download A Guide on Estate Succession for Non-Muslim Expatriates in the UAE 

A guide on UAE’s General Anti-Abuse Rules (GAAR)

A Guide on UAE's Genereal Anti-Abuse Rules (GAAR)

This eBook explores the implications of the newly implemented Corporate Tax in the UAE, focusing specifically on General Anti-Abuse Rules (GAAR). As businesses adjust to this new tax framework, a clear understanding of GAAR is essential for effective tax planning and compliance.

The eBook introduces UAE’s Corporate Tax system, highlighting its impact on business profitability. It then delves into the core concept of General Anti-Abuse Rules, explaining their purpose in preventing tax evasion through improper strategies. Detailed discussions of the GAAR provisions within the Corporate Tax Law clarify how these rules function.

Additionally, it examines the circumstances under which tax authorities may invoke GAAR and the key considerations they must assess. This section emphasizes the need for transparency and compliance, outlining the potential consequences for businesses that do not adhere to these regulations.

To assist businesses in mitigating risks associated with GAAR, the eBook offers practical strategies for compliance. It concludes with a comprehensive FAQ section that addresses common questions about General Anti-Abuse Rules, making it a valuable resource for any organization operating in the UAE.

This eBook is an essential guide for companies seeking to align their tax strategies with GAAR and ensure compliance within the evolving corporate tax framework.

 

Download Guide on how UAE’s General Anti-Abuse Rules can Impact Your Business

Guide on VAT Penalties and Fines in UAE

VAT Penalties and Fines in UAE

The United Arab Emirates (UAE) has published Cabinet Decision No. (49) of 2021, which amends Cabinet Decision No. (40) of 2017 on Administrative Penalties for Violations of Tax Law in the UAE. The amendments have come in effect since 28 June 2021.After the amendments, VAT penalties and fines in UAE have been reduced substantially as compared to the previous legislation.

This guide compares the penalties that were applicable previously and the new penalties.

A thorough comparison of VAT Penalties and Fines in UAE, before and after Cabinet Decision No. (49) is presented along with the implications of the amendments to VAT Penalties and Fines in UAE.

These amendments marks a significant shift in VAT penalties and fines in UAE, now aiming to foster a more supportive environment for businesses. With such a reduction in penalties across various violations, the UAE tax authority seeks to encourage compliance and promote a culture of voluntary disclosure and accurate record-keeping. Explore the subject thoroughly with our comprehensive guide:

 

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Guide on Economic Substance Regulations (ESR) Audit Intimation

Federal Tax Authority (FTA), being the National Assessing Authority, may undertake assessments to determine whether a Licensee has met the Economic substance Test or not. FTA can either send additional Information request or issue audit Notice in this regard.

As per the Economic Substance Regulation, UAE entities whose business activities meet the scope and definition of any of the nine ESR relevant activities, are required to prepare and submit Economic substance Notification and Economic Substance Report.

Such relevant activities include:

  • Banking Business
  • Insurance Business
  • Investment Fund management Business
  • Lease – Finance Business
  • Headquarters Business
  • Shipping Business
  • Holding Company Business
  • Intellectual property Business (“IP”)
  • Distribution and Service Center Business

The guide spans over:

  • How is the Economic Substance Regulations (ESR) Audit notice issued?
  • What are the details asked under Economic Substance Regulations (ESR) Audit Notice?
  • How to Submit Economic Substance Regulations (ESR) Audit Response?

This guide summarizes all the practical aspects that we have dealt with so far, while handling ESR audit process for our clients. It will help you at the time of your ESR Audit. Read the full guide for a better understanding of the subject:

 

Download Guide on Economic Substance Regulations (ESR) Audit Intimation