Tag: Downloads

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.

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:

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:

This guide serves as the definitive resource on Corporate Tax Refund, thoroughly addressing Article 49 of corporate tax law. It outlines scenarios where a taxable person may have paid more corporate tax than required under the law to the FTA, either through withholding or direct payment. In such cases, the taxable person is eligible to claim a corporate tax refund.

The guide also details the process for applying to the FTA for a refund in accordance with the Tax Procedures Law. Notable instances include situations where withholding tax credits exceed the corporate tax payable or where the corporate tax paid exceeds the amount actually due.

Additionally, the guide provides comprehensive information on circumstances when a refund of corporate tax is not available, the revision process for refund applications, and includes a case study and answers to frequently asked questions.

For a thorough understanding, please read the full guide.

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.  

A tax group is a special arrangement in which two or more resident companies can come together to operate as a single taxable entity, subject to the conditions of Article 40 of the Corporate Tax Law.

This means if the companies meet the requirements to form a Tax Group, and the Federal Tax Authority approves their application to form a Tax Group, they can file a single UAE CT return covering all the members of the Tax Group.

With this guide, we would like to provide you with the information regarding:

• Who can form a UAE corporate tax group
• Conditions need to be fulfilled to form a UAE corporate group
• Pros and cons of forming a corporate tax group

For an in-depth exploration of the UAE corporate tax group, please refer to the comprehensive guide available for detailed insights and information.