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The UAE Ministry of Finance (MoF) has released two new decisions that together specify the main features of the corporate tax regime as it applies to juridical persons operating out of free zones in the UAE. The Free Zone Corporate Tax regime is available to ‘Free Zone Persons’, which refers to a juridical person that […]

Taxable persons with annual revenues of AED 50 million and above are required to prepare and maintain audited financial statements as per Ministerial Decision No. 82 of 2023 issued by the Ministry of Finance. Audit is compulsory also for the qualifying free zone persons irrespective of annual revenue. In other words, Qualifying Free Zones can […]

UAE announces corporate tax relief for small businesses Main points: Resident taxable persons can claim Small Business Relief where their revenue in the relevant and previous tax periods is below AED3 million per year. The Relief covers the period from 1 June 2023 to 31 December 2026. Revenue can be determined based on the applicable […]

Today, November 3, citizens and residents across the UAE will mark Flag Day. Flag Day is a national occasion where people of the UAE remember the efforts of the founders of their Statement, Sheikh Zayed and Sheikh Rashid, and their brothers who sacrificed everything for the sake of their nation. It is a day when the […]

The proposed UAE Corporate Tax will have transfer pricing rules which will ensure that the price of a transaction is not influenced by the relationship between the parties involved in the transaction. In view of this, the UAE will apply the Arm’s Length principle to transactions between related parties and with connected persons. Hence the […]

Amendments in VAT Decree Law – No. 18 2022 dtd 28.09.2022 Effective date: 1 January 2023.  Major changes in simple terms: Definitions – New definitions for Tax Evasion, Tax Audit, Tax Assessment, Voluntary Disclosure etc. Supplies outside the scope of VAT – Executive Regulations may stipulate any other supplies that are explicitly considered outside the scope of […]

Introduction of New Article 79 – Statute of Limitations for VAT Key changes are listed below in simple terms. FTA can conduct a Tax Audit/ Tax Assessment after 5 years in the following exceptional cases. When FTA notifies of the Tax Audit before the 5th  year, provided that the Tax Audit/Tax Assessment is completed within 4 […]

VAT basics What is VAT? Value Added Tax (or VAT) is an indirect tax. Occasionally you might also see it referred to as a type of general consumption tax. In a country which has a VAT, it is imposed on most supplies of goods and services that are bought and sold. VAT is charged at [...]

What is a tax audit/ Vat audit? Tax Audit is conducted by FTA and is one of the compliance checks or to verify a person’s VAT liability is accurate by way of examining various records which are maintained by the taxpayer. The government assesses a company whether they are following responsibilities that apply to their […]