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0% Corporate Tax for IP but 9% for embedded IP used in Qualifying Activities, and more …

In this article we address a few of the issues in the recent Decisions of the UAE’s Cabinet. Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.

Distribution outside of the UAE. Case study

A distribution company is incorporated in a designated zone in the UAE. Its facilities are located in the designated zone from where its employees buy the goods in China, resell them to Indian customers, and arrange shipment of...

IP Assets Case Study: TP, DEMPE, risks and reward + ESR on top

The UAE’s FTA issued Transfer Pricing Guide No. CTGTP1 this week. The FTA sets forth the following hierarchical algorithm... Read more in the article of Andrey Nikonov.

Place of Effective Management: vulnerable issues

Concept of POEM in the UAE Corporate Taxation. Article 11(3)(b) of the Corporate Tax Law deems as a tax resident ‘a juridical person that is incorporated or otherwise established or recognized under the applicable legislation...

How to “maintain adequate substance” in a free zone to enjoy a 0% Corporate Tax rate?

The requirement to ensure adequate substance for taxation purposes appeared in article 18(1)(a) of the Corporate Tax Law. It stipulates that taxpayers in the UAE’s free zones which “maintain adequate substance” in the UAE may apply a 0...

The FTA clarified the meaning of ‘resell’ for VAT. This may affect 0% Distributor’s 0% CT Rate.

The UAE MoF in Article 2(1)(k) of the Decision No. 139 qualified for 0% Corporate Tax rate ‘Distribution of goods or materials in or from a Designated Zone to a customer that resells such goods or materials, or parts thereof or processes...

Case Study: interest-bearing deposits and a 0% Corporate Tax rate

A holding company is registered in the UAE free zone. It earns dividends and capital gains. Every once in a while, the Company deposits money in interest bearing accounts in UAE and foreign banks. The holding of shares qualifies for a 0%...

The cash method of accounting in UAE corporate taxation

Article (20)(5)(a) of the Corporate Tax Law authorizes the MoF to ‘prescribe … the circumstances and conditions under which a Person may prepare financial statements using the cash basis of accounting’. On May 9, 2023 the...

Adjustments of accounting profit in the UAE

The UAE Corporate Tax Law does not provide for separate tax accounting. The initial basis for calculating the corporate tax base is the financial statements, i.e. accounting data. This data is subject to adjustment in cases where the accounting...