Analytics and brochures

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 the bought goods to an Indian customer for subsequent resale. The goods do not enter the UAE and its free zone (designated zones). On 27 October 2023, the MoF issued Decision No. 265, replacing Decision  No. 139 with a list of Qualifying and Excluded Activities. The rules concerning distribution from or in a designated zone haven’t been substantially changed. Does such distribution of goods outside of the UAE qualify for 0% Corporate Income Tax (CIT)? Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.

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, Senior Partner.

E-commerce has not only many advantages, but also entails the risk of counterfeit goods being sold. The state and business are making joint efforts to protect the interests of right holders and consumers. Elena Sokolovskaya, Partner and a head of antitrust practice at Pepeliaev Group will tell about the measures taken in terms of sufficiency and effectiveness.

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 or alters such goods or materials or parts thereof for the purposes of sale or resale’. Read more in the article of Andrey Nikonov, Senior Partner.

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.