Analytics and brochures
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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% Corporate Tax rate, while interest on deposit in an independent bank does not. In some financial periods, interest added to some occasional non-qualifying income received may increase to 5% of the total revenues or 5,000,000 AED. The question: is there any option to apply the 0% Corporate Tax rate to interest paid to deposit account holders? Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.
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 rules of a particular transaction differ from the rules established for tax purposes. Read more in the article of Andrey Nikonov, Senior Partner.