The Federal Tax Authority (“FTA”) has released FTA Decision No. 1 of 2024 on Professional Standards of Tax Agents which outlines the mechanism of application of black points system to Tax Agents on violation of professional standards or code of ethics prescribed by FTA. For ease of reference, we have summarized below the key points including our comments from a practical aspect: Application of Black Points to Tax Agents: The decision of FTA regarding application of black points has been summarized as follows: Particulars Explanation Application of Black Points to Tax Agents The FTA ha ..read more

The UAE Government issues revised decisions and guidelines for availing 0% Corporate Tax benefit by ‘Qualifying Free Zone Persons’ Ministry of Finance has today released the much-awaited decisions from UAE Corporate Tax perspective with regard to Qualifying Free Zone persons (‘QFZP’). Cabinet Decision No. 100 of 2023 on Determining Qualifying Income for the QFZP for the Purposes of Federal Decree-Law 47 of 2022 on the Taxation of Corporations and Businesses; and Ministerial Decision No. 265 of 2023 Regarding Qualifying Activities and Excluded Activities for the Purposes of Federal Decree-Law ..read more

“The Federal Tax Authority (FTA) has recently issued Cabinet Decision No. 91 of 2023- Application of the Reverse Charge Mechanism on Electronic Devices among Registrants in the State for the purposes of Value Added Tax”. Summary of key points of the Ministerial Decision: Definition of Electronic Devices Mobile phones, smart phones, computer devices, tablets and pieces and parts thereof. Applicability Transaction covered: Electronic Devices supplied to a UAE VAT registered recipientof goods. Conditions:Such goods would either be resold or used in producing or manufacturing Electronic Devices ..read more

“The Federal Tax Authority (FTA) has recently released the Cabinet Decision No. (74) of 2023 on the Executive Regulation of Federal Decree Law No. (28) of 2022 on Tax Procedures (´´New Executive Regulation´´) on 28th July 2023, which hasrepealed Cabinet Decision No. (36) of 2017 on the Executive Regulation of Federal Decree Law No. (7) of 2017 on Tax Procedures and its amendments (“Previous Executive Regulation”). In relation to the amendment, the FTA has also issued public clarification “TAXP006- on Issuance of a New Tax Procedures Executive Regulation.” The new Executive Regulation was pub ..read more

Dear All, Thank you for your time to attend our recent webinar on ‘UAE Corporate Tax: Key Areas and Recent Updates’. Your active participation and questions really encourage us. Kindly find attached herewith slide-deck of today’s presentation. UAE Corporate Tax Key Areas and Recent Updates ..read more

Summary of Cabinet Decision No. 49 of 2023 The business/ business activities conducted in the UAE by a natural person (irrespective of his/her residential status) shall be subject to Corporate Tax in the UAE only where the total turnover (gross income) derived from such businesses or business activities exceed AED 1 million within a Gregorian calendar year. However, the turnover from the below activities would be excluded while computing AED 1 million threshold as above: Wage: The wage that is given to the employee in consideration of their services under the employment contract, whether in ..read more

Threshold Taxpayers meeting the following criteria need to maintain a Master File and a Local File annually: Revenue in a relevant tax period more than or equal to AED 200mn; or The taxpayer is part of a multinational group which has a consolidated turnover of more than or equal to AED 3.15bn in the relevant tax period Transactions with Related Parties and Connected Persons to be included in the local file Inclusions Non-Resident Person Exempt Person A Resident Person electing for Small Business Relief A Resident Person whose income is subject to a different Corporate Tax rate from that a ..read more

Post the release of the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (the “Corporate Tax Law”), the UAE Ministry of Finance (‘MOF’) / Federal Tax Authority (‘FTA’) has initiated issuing further guidance on the provisions of the Corporate Tax (‘CT’)Law. On clarificatory note, the MOF has issued today Ministerial Decision No. 43 of 2023concerning exceptions from tax registration for the purpose of the CT Law. The decision is issued in accordance with Article 51 of the CT Law, which requires taxable persons to register for CTLaw with the FTA, except the follo ..read more

Post the release of the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (the “Corporate Tax Law”), the UAE Ministry of Finanice (‘MOF’) / Federal Tax Authority (‘FTA’) has initiated issuing further guidances on the provisions of the Corporate Tax law. In order to support start-ups and other small or micro businesses by reducing their Corporate Tax burden and compliance cost, the Ministry of Finance has today issued Ministerial Decision No. 73 of 2023 on Small Business Relief for the purposes of the Corporate Tax Law. The decision is issued in accordance with ..read more

“The Federal Tax Authority (FTA) has recently issued VAT public clarification VATP033- Amendments to Emirates’ Reporting- Electronic Commerce Supplies by Qualifying Registrants and Ministerial decision No. 26 of 2023 on Criteria and Conditions for Electronic Commerce for Purposes of Keeping Records of the Supplies Made (w.e.f 1st July, 2023). The key areas covered in the said public clarification and ministerial decision are: Meaning of Qualifying Registrants; Provision relating to record keeping requirements for Qualifying Registrants; Meaning of E-commerce and criteria and conditions for ..read more