IMPORTANT ISSUES TO KNOW

- In addition to the Corporate Tax Law, the UAE has already adopted more than 30 Cabinet Decisions, Ministry Decisions and FTA decisions on CT issues.

- These regulations outline exemptions, income and expense tax accounting rules, which include:

• Tax relief for small businesses with their revenue up to 3,000,000 AED (Small Business Relief) in the period ending 31 December 2026 that meet certain conditions;

• Financial thresholds for tax accounting interest amounts as part of expenditure for corporate tax purposes;

• Special interest calculation conditions for loan agreements entered into before 9 December 2022;

• Conditions for carrying forward losses;

• Conditions for deducting dividends from

• income.

- It is important for you to pay attention to the provisions relating to the First Tax Period.

- For example, for tax purposes of certain types of unrealized gains/losses, you need to make an election of method which is irrevocable in future tax accounting periods (Unrealized Gains and Losses Rule, Transitional Rule). This also applies to such types of assets as real estate intended for sale, intangible assets, financial assets,

How can we help?

• Analysis of the current asset and liability structure of a UAE-based company/Group of companies. Preparation of recommendations regarding tax accounting methods to be selected and applied in the First Tax Period for legal optimization of the tax burden.

• Analysis of the current income/expense structure to determine expenses that should be eliminated for tax purposes.

• Creation of tax accounting policy for UAE tax purposes.

• Preparation of tax registers for corporate tax calculation purposes in the First Tax Period.