On Friday, October 4, 2024, the Federal Tax Authority (FTA) released the English version of Cabinet Decision No.
Starting from financial years on or after June 1, 2023, the United Arab Emirates (UAE) has implemented a Corporate Tax (CIT) as a strategic move to help the nation’s development as well as consolidate its position as a leading jurisdiction for business and investment.
Starting June 2023, businesses in the UAE are subject to Corporate Income Tax (CIT). UAE CIT applies at the rate of 9% or 0% on Qualifying Income if businesses are Qualifying Free Zone Persons (QFZPs) and provided other criteria relating to the activity carried out are fulfilled. A UAE business may also be liable to a Top-up Tax if it qualifies as a Multinational Enterprise (MNE) under the OECD Pillar 2 Solution once a Cabinet Decision is issued to confirm the entry of force in the UAE of the GloBE rules (the Ministry of Finance (MoF) launched a Public Consultation on Implementation of Global Minimum Tax in the UAE in March-April 2024).
Ramadan is regarded as a time of piety, charity, and blessings. Charities and foundations are noticeably more active during the Holy Month, providing assistance to those in need. In a spirit of generosity, meals are provided at mosques, malls, and other public places.
This is Aurifer’s reply to the Public Consultation initiated by the UAE Ministry of Finance (MoF)
regarding the implementation of potential measures favoring Research and Development (“R&D”)
embedded in the UAE Corporate Income Tax framework.
In the evolving landscape of UAE Corporate Income Taxation (“UAE CIT”), the intricacies surrounding family foundations stand out as an area of significant interest as well as complexity.
The UAE Pillar Two Public Consultation document was initially issued by the UAE Ministry of Finance as part of their groundwork for Pillar Two implementation. Aurifer has integrated its responses within the document and our firm views do not necessarily reflect the views of our clients, nor of the individuals employed by the firm.
Check your business eligibility for foreign business refund via the Business Visitor Refund Scheme in the EU and GCC. Download our latest brochure here.
The UAE Corporate Income Tax in Articles 40-42 of the UAE Corporate Income Tax Law (Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses) contains provisions on “Tax Groups”, i.e., the situation where two or more taxable persons are allowed to form a tax group and, therefore, be treated as a single taxable person for UAE CIT purposes.
2023 has been a landmark year for international tax treaties in the GCC, particularly in the UAE and Saudi Arabia, with major agreements and amendments shaping the region’s tax landscape. Each member state has made crucial strides, reinforcing their commitment to global tax standards.
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