Guide on treatment of unrealized gains and losses under UAE Corporate Tax provides you the complete knowledge on the topic. For calculating taxable income under the UAE Corporate Tax law (the CT law), general rules for determining taxable income- defined under Article 20 of the Corporate Tax Law (CT law) are to be considered.
According to Article 20 (2) of the CT law – taxable income for a tax period shall be calculated by considering accounting income and making specific adjustments defined under Article 20 (2); the first adjustment is for- any unrealised gains or losses under UAE Corporate Tax.
We first explained about the realisation principle and when the income is realised. Then, we shed light on what are the unrealised gains or losses under UAE corporate tax.
This guide also highlights how unrealised gains and losses are treated and how they impact the computation of Taxable income and how the adjustments are made. We have also included case study for better understanding. For thorough understanding of treatment of unrealised gains and losses, checkout the guide.
