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tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (46) Exempted Supply The following supplies shall be exempted from the Tax: 1. The supply of financial Services as specified in the Executive Regulations of this Decree- Law. 2. The supply of residential buildings through selling or leasing the same, except for those zero- rated, in accordance with Cl...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (47) Supply Composed of more than one Component The Executive Regulations of this Decree -Law shall establish the controls for determining Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 29 the tax treatment of any supply composed of more than one component for a single price, if each com...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (48) Reverse Char ge 1. If the Taxable Person imports the relevant Goods or relevant Services for the purposes of the Business thereof, such Person shall be deemed to have made a taxable supply by himself and shall be responsible for all the Tax obligations and calculating the Due Tax thereon. 2. Notwith...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (49) Importation of Relevant Goods The person other than the registrant shall pay the due tax on the importation of relevant goods from outside the applying states at the date of importation according to the payment mechanism specified by the Executive Regulations of this Decree -Law. Chapter Five ...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (50) Designated Area The "Designated Area" that meets the conditions established in the Executive Regulations of this Decree- Law shall be treated as being outside the State.
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (51) Transfer of Goods in Designated Areas 1. Goods may be transferred from one designated area to another designated area without any tax due thereon. 2. The Executive Regulations of this Decree -Law shall determine the procedures and conditions for the transfer of goods from and to a designated area an...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (52) Exceptions for Designated Areas Notwithstanding the provisions of article (50) of this Decree -Law, the Executive Regulations of this Decree -Law shall establish the conditions under which the business practiced in the designated areas shall be deemed to be practiced inside the State. Federal...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (53) Calculation of the Payable Tax The payable tax for any tax period shall be calculated as being equal to the total output tax payable in accordance with the provisions of this Decree -Law, made during the tax period less the total refundable input tax by the taxable person during the same tax period. ...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (54) Refundable Input Tax 1. The input tax that is refundable by the taxable person for any tax period shall be the total sum of the input tax paid for goods and services used or intended to be used for making any of the following: a. Taxable Supplies; b. Supplies to be made outside the State when bei...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (55) Refund of Refundable Input Tax in the Tax Period 1. Subject to the provisions of article (56) of this Decree -Law, the Refundable Input Tax may be deducted under the Tax Return relating to the first Tax Period in which the following conditions are met: a. Where any of the following cases are fulfil...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (56) Input Tax Paid before the Tax Registration 1. The registrant may recover the refundable input tax paid before the tax registration under the tax return submitted for the first Tax Period following the tax registration, paid for all of the following: a. Supply of goods and services made to him prior...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (57) Refund of Tax by Government Agencies and Charities 1. "Without prejudice to the general provisions o input tax r efund, a Cabinet resolution, to be issued upon the proposal of the Minister, shall determine the Government Agencies and Charities entitled to recover the full amount of the input Tax acco...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (58) Calculating the Refundable Input Tax The Executive Regulations of this Decree -Law shall specify the method in which the refundable input tax is calculated, if the input tax is paid for goods or services during a specific tax period to make supplies that give the right to refund pursuant to the provis...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (59) Conditions and Mechanism of Input Tax Adjustment The Executive Regulations of this Decree -Law shall determine the conditions and mechanism for adjusting the input tax in the following cases: 1. If the taxable person attributes the Input Tax, either fully or partially, to make Taxable Supplies, but...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (60) Capital Assets Scheme 1. If a capital asset is supplied or imported by a taxable person, the latter shall assess the period of use of such asset and make the necessary adjustments to the Input Tax paid pursuant to the Capital Assets Scheme. 2. A taxable person shall keep the records related to capi...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (61) Cases and Conditions for Output Tax Adjustments "The Registrant shall adjust the output Tax after the date of supply in any of the following cases: a. If the supply is cancelled. b. If the Tax treatment of the supply is changed due to a change in the nature of the supply. c. If the previously agr...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (62) Mechanism for Output Tax Adjustment The output tax shall be adjusted according to the following: 1. If the output Tax due for the supply exceeds the output Tax calculated by the Registrant, the Registrant shall issue a new Tax Invoice and shall calculate the additional amount of the Payable Tax dur...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (63) Adjustment due to the Issuance of Tax Credit Notes Without prejudice to Clause (2) of article (62) of this Decree -Law, if the registrant issues a Tax Credit Note to correct output tax charged to the recipient of goods or recipient of Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 38 ...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (64) Adjustment of Bad Debts 1. The registered supplier may reduce the output tax in a current tax period to adjust the output tax paid for any previous tax period if all of the following conditions are met: a. Goods and services are supplied and the due tax is charged and paid. b. the consideration for...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (65) Conditions and Requirements for Issuing Tax Invoices 1. "The Registrant shall, when making a Taxable Supply, issue an original Tax Invoice and deliver it to the Recipient of Goods or Services. 2. The Registrant shall, when making a Deemed Supply, issue an original Tax Invoice and deliver it to the ...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (66) Document of Supply to an Applying State Subject to the provisions of article (65) of this Decree -Law, each registrant who supplies goods or services considered to be supplied in any of the applying states, shall deliver to the recipient of goods and services a document containing all the information...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (67) Date of Issuance of Tax Invoices 1. The Registrant shall issue the Tax Invoice within (14) days as of the date of the supply set forth in article (25) and (26) of this Decree -Law. 2. The Executive Regulations of this Decree -Law shall identify the cases that are subject to time limits other than t...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (68) Rounding in Tax Invoices For the purposes of determining the tax stated in the tax invoice, the Executive Regulations of this Decree -Law shall define the method of calculation and the total value to be paid if the tax is less than one fils of a UAE Dirham.
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (69) Currency Used in Tax Invoices For the purposes of the tax invoice, if the supply is made in a currency other than the UAE Dirham, the amount stated in the tax invoice shall be converted into the UAE Dirham according to the exchange rate approved by the Central Bank in the State at the date of the su...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (70) Conditions and Requirements for Issuing Tax Credit Notes 1. The Registrant shall issue an original tax credit note when there is a reduction of the Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 41 output tax on any supply made thereby pursuant to the provisions of Clause (2) of art...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (71) Duration of the Tax Period The Executive Regulations of this Decree -Law shall determine the tax period for which the taxable person shall calculate and pay the tax and the exceptional cases in which the Authority may amend the tax period. Federal Decree- Law No. (8) of 2017 on Value -Added T...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (72) Submission of Tax Returns 1. The taxable person shall submit to the Authority the tax return at the end of each tax period, within the time limits and in accordance with the procedures determined by the Executive Regulations of this Decree -Law to declare all the supplies made or received during suc...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (73) Payment of the Tax The Executive Regulations of this Decree -Law shall determine the time limits and procedures for payment of the tax shown in the tax return as payable in accordance with the provisions of this Decree -Law. Chapter Three Carrying forward the Excess of Refundable Tax and Tax R...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (74) Excess Refundable Tax 1. Notwithstanding the provisions of the Executive Regulations of this Decree -Law, the taxable person shall carry forward any excess of the refundable tax to the subsequent tax periods and offset such excess against the payable tax or any administrative fines imposed pursuant ...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (75) Tax Refund in Special Cases The Authority may, according to the conditions, rules and procedures set forth in the Executive Regulations of this Decree -Law, refund the tax paid for any supply or importation made by any of the following: 1. A national of the State with regard to the goods and servic...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (76) Administrative Fine Assessment Without prejudice to the provisions of the Tax Procedures Law, the Authority shall issue an Administrative Fine Assessment to the Person and notify him thereof within five (5) working days as of the date of issuance, in any of the following cases: 1. Failure by the Ta...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (77) Tax Evasion Without prejudice to the Tax Evasion cases set forth in the Tax Procedures Law, if it is proved that a Person who is not a Registrant acquires Goods in accordance with Clause (3) of Article (48) of this Decree -Law, and claims that he is a Registrant, he shall be deemed to have committed...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (78) Record Keeping Without prejudice to the provisions related to record keeping contained in any other law, every taxable person shall keep the following documents: a. Records of all supplies or importation of goods and services; b. All tax invoices and substitute documentation related to the receipt...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (79) Tax Registration Number The taxable person or any person authorized in writing thereby shall mention the Tax Registration Number in each tax return, notice, tax invoice, tax credit note, any other document related to the tax and any correspondences set forth in this Decree -Law or Federal Law No. (7)...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (80) Transitional Provisions 1. If the supplier receives the Consideration or any part thereof or issues an invoice for Goods or Services prior to the date of entry into force of this Decree -Law, the date of supply shall be the same as the date of entry into force of the provisions of this Decree- Law in...
tax
Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (81) Revenue Sharing The tax revenues and administrative fines to be collecte d in accordance with the provisions of this Decree- Law shall be subject to sharing between the Federal Government and the Emirates Governments, pursuant to the provisions of Federal Decree- Law No. (13) of 2016 on the Establis...
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (82) The Executive Regulations The Cabinet shall, upon the proposal of the Minister, issue the Executive Regulations of this Decree- Law.
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (83) Matters not stipulated herein shall be subject to the provisions of the Tax Procedures Law. Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 49
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (84) Repeal of Conflicting Provisions Any text or provision inconsistent or discrepant with the provisions of this Decree -Law is hereby repealed.
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Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT)
Article (85) Publishing and Entry into Force This Decree -Law shall be published in the Official Gazette and shall enter into force as of 1st January 2018. Khalifa bin Zayed Al Nahyan President of the United Arab Emirates Issued by us in the Presidential Palace, Abu Dhabi On: 01 Dhul Hijjah 1438 AH. ...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (1) Definitions In the application of the provisions of this Decree -Law, the following words and expressions shall have meanings assigned against each, unless the context otherwise requires: State : United Arab Emirates. Federal Government : The government of the United Ar ab Emirates. Local ...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (2) Imposition of Corporate Tax Corporate Tax shall be imposed on Taxable Income, at the rates determined under this Decree- Law, and is payable to the Authority under this Decree -Law and the Tax Procedures Law. Federal Law No. (47) of 2022 on Corporate and Business Tax 9
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (3) Corporate Tax Rate 1. Corporate Tax shall be imposed on the Taxable Income at the following rates: a. 0% (zero percent) on the portion of the Taxable Income not exceeding the amount specified by virtue of a resolution to be issued by the Cabinet at the suggestion of the Minister. b. 9% (nine perce...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (4) Exempt Person 1. The following Persons shall be exempt from Corporate Tax: a. A Government Entity. b. A Government Controlled Entity. c. A Per son engaged in an Extractive Business, that meets the conditions of Article 7 of this Decree- Law. d. A Person engaged in a Non- Extractive Natural Reso...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (5) Government Entity 1. A Government Entity shall be exempt from Corporate Tax and the provisions of this Decree- Law shall not apply thereto. 2. Notwithstanding Clause 1 of this Article, a Government Entity shall be subject to the provisions of this Dec ree-Law if it conducts a Business or Business Act...
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (6) Government Controlled Entity 1. A Government Controlled Entity shall be exempt from Corporate Tax and the provisions of this Decree -Law shall not apply thereto . 2. Notwithstanding Clause 1 of this Article, a Government Controlled Entity shall be subject Federal Law No. (47) of 2022 on Corporate an...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (7) Extractive Business 1. A Pers on shall be exempt from the Corporate tax and the provisions of this Decree -Law shall not apply to its Extractive Business if it meets all of the following conditions : a. The Person directly or indirectly holds or has an interest in a right, concession or License issue...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (8) Non -Extractive Natural Resource Business 1. A Person shall be exempt from Corporate tax and the provisions of this Decree -Law shall not apply to its Non -Extractive Natural Resource Business where all of the follo wing conditions are met: a. The Person directly or indirectly holds or has an interes...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (9) Qualifying Public Benefit Entity 1. A Qualifying Public Benefit Entity shall be exempt from Corporate Tax if all of the Federal Law No. (47) of 2022 on Corporate and Business Tax 16 following conditions are met: a. It is established and operated for any of the following: i. Exclusively for reli...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (10) Qualifying Mutual Fund 1. A mutual fund may apply to the Authority to be exempt from Corporate Tax as a Federal Law No. (47) of 2022 on Corporate and Business Tax 17 Qualifying Mutual fund where all of the following conditions are met: a. The mutual fund or the mutual fund's manager is subject...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (11) Taxable Person 1. Corporate Tax shall be imposed on a Taxable Person at the rates determined under this Decree- Law. 2. For the purposes of this Decree -Law, a Taxable Person shall be either a Resident Person or a Non -Resident Person. 3. A Resident Person is any of the following Persons: a. A j...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (12) Corporate Tax Base 1. A Resident Person, which is a juridical person, is subject to Corporate Tax on its Taxable Income derived fr om the State or from outside the State, in accordance with the provisions of this Decree -Law. 2. The Taxable Income of a Resident Person, who is a natural person, is t...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (13) State Sourced Income 1. Income shall be considered a State Sourced Income in any of the following cases: a. Where it is derived by a Resident Person. b. Where it is derived by a Non -Resident Person and the income received has been paid or accrued in connection with, and attributable to, a Permanen...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (14) Permanent Establishment 1. A Non -Resident Person shall be deemed to hav e a Permanent Establishment in the State in any of the following cases: c. If it has a fixed or permanent place in the State through which the Business of the Non -Resident Person, or any part thereof, is conducted. b. If a ...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (15) Investment Manager Exemption 1. For the purposes of Clause 6 of Article 14 of this Decree -Law, an Investment Manager shall be considered an independent agent when acting on behalf of a Non -Resident Person, if all of the following conditions are met: a. The Investment Manager is engaged in the bu...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (16) Partners in an Unincorporated Association 1. For the purposes of this Decree -Law, unless an application is made under Clause 8 of this Article, and subject to any conditions the Minister may prescribe, the Unincorporated Association itself shall not be considered a Taxable Person, and Persons cond...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (17) Family Foundation 1. A Family Foundation may submit an application to the Authority to be treated as an Unincorporated Association for the purpose s of this Decree -Law if all of the following conditions are met: a. The Family Foundation was established for the benefit of identified or identifiable...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (18) Qualifying Free Zone Person 1. A Qualifying Free Zone Person is a Free Zone Person that meets all of the following conditions: a. Maintains actual and sufficient existence in the State. b. Derives Qualifying Income as specified in a resolution issued by the Cabinet at the suggestion of the Minist...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (19) Election to be Subject to Corporate Tax 1. A Qualifying Free Zone Person may elect to be subject to Corporate Tax at the rates specified under Clause 1 of Article 3 of this Decree -Law. 2. The election under Clause 1 of this Article shall be effective from either of: a. The commencement of the Tax...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (20) General Rules for Determining Taxable Income 1. The Taxable Income of each Taxable Person shall be determined separately, on the basis of adequate, standalone financial statements pr epared for financial reporting purposes in accordance with the accounting standards accepted in the State. 2. The Taxa...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (21) Small Business Relief 1. A Taxable Person that is a Resident Person may elect to be treated as not having derived any Taxable Income for a Tax Period where: a. the Revenue of the Taxable Person for the relevant Tax Period and previous Tax Periods does not ex ceed a threshold to be set by the Minist...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (22) Exempt Income Federal Law No. (47) of 2022 on Corporate and Business Tax 30 The following income and related expenses shall not be taken into account in determining the Taxable Income: 1. Dividends and other profit distributions received from a juridical person that is a Residen t Person. 2. ...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (23) Participation Exemption 1. Income from an equity participation shall be exempt from Corporate Tax, subject to the conditions of this Article. 2. A Equity participation means, owning equity at 5% (five percent) or more of the shares or capital of a juridical person, referred to as a "Participation" fo...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (24) Foreign Permanent Establishment Exemption 1. A Resident Person may elect to not take into account the income, and associated expenses, of its Foreign Permanent Establishments in determining its Taxable Income. Federal Law No. (47) of 2022 on Corporate and Business Tax 33 a. Where Clause 1 of th...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (25) Non -Resident Person Operating Aircraft or Ships in International Transportation Income derived by a Non -Resident Person from the operation of aircraft or ships in international transportatio n shall not be subject to Corporate Tax where all of the following conditions are met: 1. The Non -Reside...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (26) Transfers Within a Qualifying Group 1. No gain or loss needs to be taken into account in determining the Taxable Income in relation to the transfer of one or more assets or liabilities between two Taxable Persons that are members of the same Qualifying Group. 2. Two Taxable Persons shall be treate...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (27) Business Restructuring Relief 1. No gain or loss needs to be taken into account in determining Taxable Income in any of the following circumstances: a. A Taxable Person transfers its entire Business or an independent part of its Business to another Person who is a Taxable Person or will become a Ta...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (28) Deductible Expenses Federal Law No. (47) of 2022 on Corporate and Business Tax 38 1. Expenses incurred wholly and exclusively fo r the purposes of the Taxable Person's Business that are not capital in nature shall be deductible in the Tax Period in which they were incurred, subject to the provisi...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (29) Interest Expense Notwithstanding paragraph (b) of Clause 2 of Article 28 of this Decree -Law, Interest Expense shall be deductible for the Tax Period in which it is incurred, subject to the other provisions of Article 28 and Articles 30 and 31 of this Decree -Law.
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (30) General Interest Deduction Limitation Rule 1. A Taxable Person's Net Interest Expense shall be deductible up to 30% (thirty percent) of the Taxable Person's accounting earnings before interest, taxes, depreciation and amortization (EBITDA) for the relevant Tax Period, excluding any Exempt Income under...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (31) Special Interest Deduction Limitation Rule 1. No deduction shall be allowed for Interest Expense incurred on a loan obtained, directly or indirectly, from a Related Party in respect of any of the following transactions: a. A dividend or profit distribution to the Related Party. b. A redemption, re...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (32) Entertainment Exp enses 1. Subject to Article 28 of this Decree -Law, a Taxable Person shall be allowed to deduct 50% (fifty percent) of any entertainment, amusement, or recreation expenses incurred during a Tax Period. 2. Clause 1 of this Article applies to any expenses incurred for the purposes of...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (33) Non -deductible Expenses No deduction is allowed for: Federal Law No. (47) of 2022 on Corporate and Business Tax 41 b. Donations, grants or gifts made to an entity that is not a Qualifying Public Benefit Entity. 2. Fines and penalties, other than the amounts awarded as compensation for damages...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (34) Arm's Length Principle 1. In determining the Taxable Income, transactions and arrangements between Related Parties shall meet the arm's length standard as specified in Clauses 2, 3, 4 and 5 of this Article and any conditions that may be prescribed in a decision issued by the Authority. 2. A transacti...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (35) Related Parties and Controls 1. For the pu rposes of this Decree -Law, "Related Parties" means any of the following: a. Two or more natural persons who are related up to the fourth degree of kinship or affiliation, including by way of adoption or guardianship. b. A natural person and a juridical per...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (36) Payments to Connected Persons 1. Without prejudice to the provisions of Article 28 of this Decree -Law, a payment or benefit provided by a Taxable Person to its Connected Person shall be deductible only if and to the exten t that the payment or benefit corresponds with the Market Value of the servic...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (37) Tax Loss Relief 1. A Tax Loss can be offset against the Taxable Income of subsequent Tax Periods to arrive at the Taxable Income for those subsequent Tax Periods. 2. The amount of Tax Loss used to reduce the Taxable Income for any subsequent Tax Period cannot exceed 75% (seventy -five percent) or a...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (38) Transfer of Tax Loss 1. A Tax Loss or a portion thereof may be offset against the Taxable Income of another Taxable Person where all of the following conditions are met: a. Both Taxable Persons ar e juridical persons. b. Both Taxable Persons are Resident Persons. c. Either Taxable Person has a d...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (39) Limitation on Tax Losses Carryforward 1. Tax Losses can only be carried forward and utilized in accordance with the provision of Clause 2 of Article 37 of this Decree -Law provided that: a. From the beginning of the Tax Period in which the Tax Loss is incurred to the end of the Tax Period in which t...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (40) Tax Group 1. A Resident Person, which for the purposes of this Decree -Law shall be referred to as a "Parent Company", can make an application to the Authority to form a Tax Group with one or more other Resident Persons, each referred to as a "Subsidiary" for the purposes of this Chapter, where all ...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (41) Date of Formation and Cessation of a Tax Group 1. For the purposes of Art icle 40 of this Decree- Law, a Tax Group shall be formed, or a new Subsidiary shall join an existing Tax Group from the beginning of the Tax Period specified in the application submitted to the Authority, or from the beginning o...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (42) Taxable Income of a Tax Gro up 1. For the purposes of determining the Taxable Income of a Tax Group, the Parent Company shall consolidate the financial results, assets and liabilities of each Subsidiary for the relevant Tax Period, eliminating transactions between the Parent Company and each Subsidi...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (43) Currency For the purposes of this Decree -Law, all amounts shall be quantified in the United Arab Emirates dirham. Any amount quantified in another currency shall be converted at the applicable exchange rate set by the Central Bank of the United Arab Emirates, subject to any conditions that may be ...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (44) Calculation and Settlement of Corporate Tax The Corporate Tax due under this Decree -Law shall be settled in the following order: 1. First, by using the Taxable Person's available Withholding Tax Credit, as deter mined under Article 46 of this Decree -Law. 2. To the extent that there is a residual...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (45) Withholding Tax 1. The following income shall be subject to Withholding Tax at the rate of 0% (zero percent) or any other rate as spe cified in a resolution issued by the Cabinet at the Federal Law No. (47) of 2022 on Corporate and Business Tax 53 suggestion of the Minister: a. The categories o...
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Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (46) Withholding Tax Credit 1. If a Person becomes a Taxable Person in a Tax Period, t he Person's Corporate Tax due under Article 3 of this Decree -Law can be reduced by the amount of the Withholding Tax Credit for that Tax Period. 2. The maximum Withholding Tax Credit under this Decree -Law is the lo...
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (47) Foreign Tax Credit 1. Corporate Tax due under Article 3 of this Decree -Law can be reduced by the amount of Foreign Tax Credit for the relevant Tax Period. 2. The Foreign Tax Credit under this Decree -Law cannot exceed the amount of Corporate Tax due on the relevant income. Federal Law No. (47) ...
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (48) Corporate Tax Payment A Taxable Person shall settle the Corporate Tax Payable under this Decree -Law within (9) nine months from the end of the relevant Tax Period, or by such other date as determined by the Authority.
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (49) Corporate Tax Refund 1. A Taxable Person may submit an application to the Authority for a Corporate Tax refund in accordance with the provisions of the Tax Procedures Law in the following circumstances: a. The Withho lding Tax Credit available to a Taxable Person exceeds the Taxable Person's Corpora...
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (50) General Anti- abuse Rule Federal Law No. (47) of 2022 on Corporate and Business Tax 55 1. This Article applies to a t ransaction or an arrangement if, having regard to all relevant circumstances, it can be reasonably concluded that: a. the entering into or carrying out of the transaction or arr...
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (51) Tax Registration 1. Any Taxable Person shall register for Corporate Tax with the Authority in the form and manner and within the timeline prescribed by the Authority and obtain a Tax Registration N umber, except in circumstances prescribed by the Minister. 2. For the purposes of an exemption from C...
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (52) Tax Deregistration 1. A Person with a Tax Registration Number shall file a Tax Deregistration ap plication with the Authority where there is a cessation of its Business or Business Activity, whether by dissolution, liquidation, or otherwise, in the form and manner and within the timeline prescribed ...
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (53) Tax Returns 1. Subject to Article 51 of this Decree -Law, a Taxable Person shall file a Tax Return, as Federal Law No. (47) of 2022 on Corporate and Business Tax 58 applicable, to the Authority in the form and manner prescribed by the Authority no later than (9) nine months from the end of the ...
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (54) Financial Statements 1. The Authority may, by notice or through a de cision issued by the Authority, request a Taxable Person to submit the financial statements used to determine the Taxable Income for a Tax Period in the form and manner and within the timeline prescribed by the Authority. 2. The ...
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (55) Transfer Pricing Documentation 1. The Authority may, by notice or through a decision issued by the Authority, require a Taxable Person to file together with their Tax Return a disclosure containing information regarding the Taxable Person's transactions and arrangements with its Related Parties and C...
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (56) Record Keeping 1. Notwithstanding the provisions of the Tax Procedures Law, a Taxable Person shall maint ain all records and documents for a period of (7) seven years following the end of the Tax Period to which they relate that: a. Support the information to be provided in a Tax Return or in any o...
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (57) Tax Period 1. A Taxable Person's Tax Period is the Fiscal Year or part thereof for which a Tax Return is required to be filed. 2. For the purposes of this Decree -Law, the Fiscal Year of a Taxable Person shall be the Gregorian calendar year, or the (12) twelve -month period for which the Taxable Per...
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (58) Change of Tax Period Notwithstanding Article 57 of this Decree -Law, a Tax able Person can make an application to the Authority to change the start and end date of its Tax Period, or use a different Tax Period, subject to the conditions to be set by the Authority. Federal Law No. (47) of 2022 on C...
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (59) Clarifications 1. A Person may make an application to th e Authority for a clarification regarding the application of this Decree -Law or the conclusion of an advance pricing agreement with respect to a transaction or an arrangement proposed or entered into by the Person. 2. The application under C...
tax
Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax
Article (60) Assessment of Corporate Tax and Fines 1. A Person may be subject to a Corporate Tax assessment in accordance with the Tax Procedures Law and the decisions issued in the implementation of its provisions. 2. Notwithstanding the provisions of the Tax Procedures Law and the resolutions issued for the im...