The UAE Ministry of Finance has clarified some issues regarding the application of the Corporate Tax Law.
The UAE Ministry of Finance has adopted Resolution No. 73 on the Small Business Relief (SBR) program under Federal Law No. 47 on the taxation of corporations and enterprises (the "Corporate Tax Law" or CIT).
Details:
1. Resident taxpayer enterprises will be eligible for SBR if their income for the tax period and previous periods does not exceed 3 million AED.
2. The 3 million AED threshold comes into effect on June 1, 2023, and will be applied until December 31, 2026.
3. Income is determined in accordance with applicable accounting standards adopted in the UAE.
4. SBR is not available for Qualifying Free Zone Persons and members of Multinational Enterprise Groups (MNE Groups) with consolidated group income exceeding 3.15 billion AED.
5. If SBR is not applied, enterprises will be able to carry forward losses and disallowed interest expenses to future tax periods.
6. Splitting businesses to obtain tax advantages is not allowed.
The UAE Ministry of Finance has adopted Resolution No. 73 on the Small Business Relief (SBR) program under Federal Law No. 47 on the taxation of corporations and enterprises (the "Corporate Tax Law" or CIT).
Details:
1. Resident taxpayer enterprises will be eligible for SBR if their income for the tax period and previous periods does not exceed 3 million AED.
2. The 3 million AED threshold comes into effect on June 1, 2023, and will be applied until December 31, 2026.
3. Income is determined in accordance with applicable accounting standards adopted in the UAE.
4. SBR is not available for Qualifying Free Zone Persons and members of Multinational Enterprise Groups (MNE Groups) with consolidated group income exceeding 3.15 billion AED.
5. If SBR is not applied, enterprises will be able to carry forward losses and disallowed interest expenses to future tax periods.
6. Splitting businesses to obtain tax advantages is not allowed.
