Corporate Tax Planning

Corporate Tax Planning

No UAE CT will apply to:

Income earned by individuals in a personal capacity, including employment income, real estate income, savings income, investment returns, and other non-business related income in the UAE.

Dividends, capital gains and other investment returns earned by foreign investors.

Exemption from UAE CT will be available for:

Capital gains and dividends earned from qualifying shareholdings;

Qualifying intra-group transactions and restructurings.

Interest, dividends, royalties, and other payments made domestically or internationally will not be subject to withholding tax in the UAE, and UAE businesses will be eligible for foreign tax credits on income earned outside of the country.

UAE CT will have to be filed electronically once for each financial period without a requirement for advance UAE CT payments on the basis of provisional tax returns.

UAE group companies can form a tax group and file a single tax return for the entire group, and transfer tax losses to other members of the group.

The UAE CT regime will have transfer pricing (TP) rules and documentation requirements in line with the OECD TP Guidelines.

The Federal Tax Authority will be responsible for the administration, collection, and enforcement of CT.