• Home
  • About Us
  • TAX
    • VAT
    • Excise Tax in UAE
    • Corporate TAX
  • Services
    • Accounting
    • Audit & Assurance
    • Incorporation & Liquidation Services
    • Governance, Risk and Compliance
    • Economic Substance Regulations
    • Ultimate Beneficial Owner (“UBO”)
    • AML and CFT
    • Family Office Services
    • International Audit & Supervision
    • Outsourcing & Payroll
    • Offshores
    • Corporate Finance
    • Software Development
  • Affiliations
  • Our Team
  • Advisors
  • Blog
    • Audit & Compliance
      • Audit
      • AML
      • ESR
      • UBO
    • Finance
    • Fintech
    • Taxation
  • Career
  • Contact
    • Contact Us
    • Our Offices
    • Home
    • About Us
    • TAX
      • VAT
      • Excise Tax in UAE
      • Corporate TAX
    • Services
      • Accounting
      • Audit & Assurance
      • Incorporation & Liquidation Services
      • Governance, Risk and Compliance
      • Economic Substance Regulations
      • Ultimate Beneficial Owner (“UBO”)
      • AML and CFT
      • Family Office Services
      • International Audit & Supervision
      • Outsourcing & Payroll
      • Offshores
      • Corporate Finance
      • Software Development
    • Affiliations
    • Our Team
    • Advisors
    • Blog
      • Audit & Compliance
        • Audit
        • AML
        • ESR
        • UBO
      • Finance
      • Fintech
      • Taxation
    • Career
    • Contact
      • Contact Us
      • Our Offices
  • info@aaa-cas.com
  • +971 4228 7774
Ahmad Alagbari Chartered Accountant
Ahmad Alagbari Chartered Accountant
  • Home
  • About Us
  • TAX
    • VAT
    • Excise Tax in UAE
    • Corporate TAX
  • Services
    • Accounting
    • Audit & Assurance
    • Incorporation & Liquidation Services
    • Governance, Risk and Compliance
    • Economic Substance Regulations
    • Ultimate Beneficial Owner (“UBO”)
    • AML and CFT
    • Family Office Services
    • International Audit & Supervision
    • Outsourcing & Payroll
    • Offshores
    • Corporate Finance
    • Software Development
  • Affiliations
  • Our Team
  • Advisors
  • Blog
    • Audit & Compliance
      • Audit
      • AML
      • ESR
      • UBO
    • Finance
    • Fintech
    • Taxation
  • Career
  • Contact
    • Contact Us
    • Our Offices

CT IN UAE- TREATMENT OF TAX GROUPS, CARRIED FORWARD LOSSES, TRANSFER PRICING, AND WITHHOLDING TAXES

Ahmad Alagbari Chartered Accountant > Blogs > Taxation > CT IN UAE- TREATMENT OF TAX GROUPS, CARRIED FORWARD LOSSES, TRANSFER PRICING, AND WITHHOLDING TAXES
  • March 25, 2022
  • admin
  • Taxation
  • 0

The UAE CT regime will become effective for fiscal years starting on or after 1 June 2023 and is expected to be a federal level corporate taxation. Thus, all UAE businesses, corporations and entities engaged in and licensed to undertaken commercial activities shall be subject to the UAE CT. Businesses engaged in the extraction of natural resources will be exempt from the UAE CT and shall continue to be subject to Emirate level taxation.

Key Highlights
  • CT would apply to free zone businesses that do not comply with all regulatory requirements and conduct business with mainland UAE. Registration and filing requirements would also apply.
  • Carry forward of losses from CT effective date would be allowed. Group level tax set-off would be allowed subject to certain conditions.
  • UAE group of companies can form a tax group and select to be treated as a single taxable entity, subject to certain conditions.
  • No withholding tax on local or cross border payments.
  • Tax Credit would be allowed for foreign taxes paid on UAE taxable income.
  • Transfer pricing rules and documentation requirements would apply as per OECD Transfer Pricing Guidelines.
CORPORTAE TAX GROUPS

UAE group of companies will be able to elect to form a tax group and be treated as a single entity for taxation purposes, subject to certain conditions to be specified in the UAE CIT law. A UAE tax group will be able to file a single tax return for the entire group.

SET-OFF AND CARRY FORWARD OF LOSSES

Entities will be allowed to utilise prior period losses (from the effective date onwards) to offset taxable income. Excess losses can also be carried forward to the subsequent year, if certain conditions are met. Further details on the set-off and carry forward of tax losses will be provided in the UAE CT law.

TRANSGER PRICING RULES

The OECD Transfer Pricing Rules shall now be applicable in the UAE. All companies have to comply with the Transfer Pricing rules and documentation requirements. These transfer pricing rules will now become mandatory and may also be applicable to domestic transactions.

WITHHOLDING TAXES

Currently the UAE CT regime does not envisage withholding taxes on domestic as well as cross-border payments of dividend, interest, royalties or any other payments.

Alia Noor (FCMA, CIMA, MBA, GCC VAT Comp Dip, Oxford fintech programme, COSO Framework)

Associate Partner
Ahmad Alagbari Chartered Accountants


Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

Ultimate Beneficial Owner UAE FAQs January 16, 2023
Anti-Money Laundering FAQs January 13, 2023
New Dubai Customs duty charges 5% will now apply on Import of Goods exceeding AED 300 -effective date 01 Jan 2023 January 10, 2023
Key Features UAE Corporate Tax Law- Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses December 9, 2022
DMCC CERTIFICATE
AAA PROFILE
SAIFZONE LICENSE
ABUDHABI LICENSE
LEATAX Consultant LICENSE
ALIF TECHNOLOGIES CONSULTANTS LICENSE
AAA LICENSE
Ahmad Alagbari Chartered Accountant
Ahmad Alagbari Chartered Accountant are the Auditors and Business Consultant in Dubai. Our Firm consists of dedicated professionals who have an ability to provide industry-focused services in order to enhance value through the application of what we call "BEYOND NUMBERS".

Services

  • Accounting Services
  • Audit & Assurance
  • Incorporation & Liquidation Services
  • International Audit & Supervision
  • Ultimate Beneficial Owner (“UBO”)
  • Software Development
  • Outsourcing & Payroll

Contact Info

  • 601 Al Zarooni Building,
    Near Al Rigga Metro Station
    (Exit-2), P.O Box: 236399,
    Deira Dubai, UAE
  • +971 4228 7774
  • info@aaa-cas.com
  • 09:30am-06:30pm

Newsletter

We denounce with righteous indignation in and dislike men who are so beguiled and to demo realized.

© 2022 Ahmad Alagbari Chartered Accountants. All Rights Reserved.

  • Home
  • About Us
  • Services
  • Blog
  • Contact Us