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Intra-group loans are widespread all over the world. Tax rules require taxing interest Arm's Length. But does the provision of a loan require a special financial license? Do you need to expand your trading or other license? How the UAE federal rules and the rules established in the free_zone are combined. We face these issues regularly. Some considerations on them are given in this Case Study. Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.

A company is operating in a UAE free zone. Upon agreement with a bank, the latter invests in shares and other securities on behalf of the Company to earn income associated with the holding and sale of these securities. Does income earned on securities purchased to be held for over 12 months qualify for the 0% Corporate Tax rate in the UAE? Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.

Some details related to de minimis in UAE Corporate Taxation has been addressed in this Case Study. Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.

Recent UAE Cabinet Decision introduced full employment as feature for adequate substance, requiring to enjoy 0% Corporate Tax rate in the UAE free zones. This is illustrated in the case study. Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.

On 27 October 2023, the UAE’s Minister of Finance released Decision No. 265 replacing Decision No. 139 of 1 June 2023, previously in effect, with an updated list of Qualifying Activities. The replacement shall be applied retroactively from 1 June 2023. Paragraph (с) of Cl. 1 of Art. 2 of Decision No. 265 of 27 October 2023  qualifies the ‘Trading of Qualifying Commodities’ for the 0% Corporate Tax rate. Deciphering what this trading is, para (c) of Cl. 3 of the same Article specifies: ‘Trading of Qualifying Commodities means the physical trading activities of Qualifying Commodities and associated derivative trading used to hedge against risks involved in such activities’. Article 1 of the Decision includes in Qualifying Commodities ‘Metals, minerals, energy and agriculture commodities that are traded on a Recognized Commodities Exchange Market in raw form’. The same Article defines “Recognized Commodities Exchange Market” as ‘any commodities exchange market established in the State that is licensed and regulated by the relevant Competent Authority, or any commodities exchange market established and recognized outside the State of equal standing’. Let’s determine which activity with the above Commodities is Qualified. Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.

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.
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