DAY |
CHAPTERS |
TOPIC |
Reference |
1 |
Introduction |
Preface |
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What is corporate income tax |
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How corporate tax works |
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Rationale behind implementation of UAE CT |
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Timeline of taxation in UAE |
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Other regulations to consider and to comply |
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Key principles of UAE CT regime |
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Chapter 1 |
1. General Provision of the Law |
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1.1 Mastery of basic definitions |
Article 1 |
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Chapter 2 |
2.1 Imposition of Corporate Tax and Applicable Rates |
Article 2 |
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2.1.1 Imposition of Corporate Tax |
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2.1.2 Who are liable to UAE CIT Law |
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2.2 Corporate Tax Rate |
Article 3 |
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2.2.1 Mainland and free zone for VAT purposes |
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2.2.2 Mainland and free zone for UAE under CIT Law |
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2.3 Standard UAE CIT tax rate |
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2.3.1 Qualifying free zone tax rate |
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Chapter 3 |
3. Exempt Person |
Article 4 |
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3.1 Who are considered as exempt persons |
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3.2 Exemption to a juridical person from UAE CIT Law |
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3.3 Inherently exempted from CIT |
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3.4 Exemption by application to a tax period |
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3.5 Exemption application |
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3.6 Cessation of exemption |
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3.7 Government entities |
Article 5 |
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3.7.1 Government entities exemptions |
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3.7.2 Government conducting business activities |
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3.7.3 Government and related parties transactions |
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3.7.4 Government entities application as a single person |
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3.8 Government controlled entities |
Article 6 |
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3.8.1 Government controlled entities exemptions |
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3.8.2 Government conducting business activities |
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3.8.3 Government controlled entities application as a single person |
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3.9 Extractive business |
Article 7 |
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3.9.1 What is extractive business under CIT Law? |
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3.9.2 Meaning of income from extractive business |
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3.9.3 Natural resources covered for extractive business |
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3.9.4 Taxability of income from extractive business |
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3.9.5 Person carrying extractive business and other taxable business |
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3.9.6 Person carrying extractive business and other business |
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3.9.7 Calculation of taxable income of Other business |
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3.9.8 Transactions between extractive business and other business to be considered as related party transactions |
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3.9.9 Non-applicability of exemption |
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3.10 Non extractive business |
Article 8 |
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3.10.1 Meaning of income from non extractive business |
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3.10.2 Taxability of income from non extractive business |
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3.10.3 Person carrying non-extractive business and other taxable business |
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3.10.4 Carrying non-extractive business and other business |
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3.10.5 Calculation of taxable income of ‘Other Business’ under UAE Corporate tax of non-extractive business |
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3.10.6 Transactions between non-extractive business and other business on related party transactions |
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3.10.7 Non-applicability of exemption under article 8 |
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3.11 Qualifying Public Benefit Entity |
Article 9 |
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3.11.1 Conditions to meet the exemption |
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3.11.2 Affectivity of exemptions |
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3.11.3 Monitoring by the Authority |
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3.12 Qualifying Investment Fund |
Article 10 |
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3.12.1 Conditions to meet the exemption |
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3.12.2 Monitoring by the Authority |
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Chapter 4 |
4. Taxable person and Corporate tax base |
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4.1 Coverage of Taxable Person |
Article 4 |
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4.2 What is a tax base and how it works |
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4.3 Taxable person |
Article 11 |
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4.4 Who are resident person? |
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4.4.1 Coverage of incorporated in the UAE |
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4.4.2 Incorporated outside the UAE but effectively managed and controlled in UAE |
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4.4.2 .1 Discussion of effective management |
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4.4.2 .2 Discussions on control |
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4.5 Who are non-resident person? |
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4.6 What is a Tax Base |
Article 12 |
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4.6.1 Which income is taxable for resident or non-resident? |
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4.7 Meaning and coverage of UAE sourced income |
Article 13 |
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4.8 UAE sourced income – Payment attributable to UAE PE of a foreign company |
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4.9 UAE sourced income – Activities or contracts performed in the UAE |
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4.10 UAE sourced income – Income from the sale of goods in the state |
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4.11 UAE sourced income – Provision of services that are rendered or utilized or benefitted from in the state |
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4.12 UAE sourced income – Income from contract wholly or partly performed or benefitted from in the state |
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4.13 UAE sourced income – Movable or immovable property in the state |
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4.14 UAE sourced income – Income from disposal of shares or capital of a resident person |
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4.15 Rights to use intangible or intellectual property in UAE |
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4.16 Interest paid to a non-resident |
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4.17 Insurance or reinsurance premiums |
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4.18 Permanent establishment |
Article 14 |
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4.19 What constitutes as permanent establishment (PE)? |
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4.19.1 Fixed Place PE and Agency PE |
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4.20 Fixed or permanent place of business |
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4.21 Specific activities exempted from constituting a PE |
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4.22 Non applicability of exclusion |
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4.23 Authority on behalf of a non-resident person |
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Independent agent |
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4.24 Conditions imposed by Minister of finance |
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4.25 Investment manager exemption |
Article 15 |
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4.26 When would an investment manager not be considered as a PE |
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4.27 Conditions for claiming non permanent establishment status for investment manager |
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4.28 Meaning of transaction for the purpose of Investment manager PE exemption |
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4.29 Unincorporated partnership |
Article 16 – |
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4.29.1 Definition of Unincorporated partnership |
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4.29.2 Treatment of unincorporated partnership as a taxable person |
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4.29.3 Treatment of partner in unincorporated partnership |
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4.29.4 Allocation of the assets, liabilities, income and expenditure of unincorporated partnership |
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4.29.5 Computing taxable income of a partner in an unincorporated partnership |
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4.29.6 Treatment of interest paid by inincorporated partnership to a partner on their capital account |
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4.29.7 Treatment of foreign tax incurred by the unincorporated partnership |
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4.29.8 Conditions for treating foreign partnership as unincorporated partnership |
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4.29.9 Application to authority to treat unincorporated partnership as taxable person |
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4.29.10 Effect of approval of application |
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4.29.11 Effective period for treatment of UIP as a taxable person after approval of application |
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4.30 Family Foundation |
Article 17 |
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4.30.1 Application for exemption |
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Chapter 5 |
5. Free Zone Person |
Article 18 |
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5.1 UAE Corporate Tax on Free zone entities |
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5.2 Definition of free zone person under UAE Corporate Tax? |
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5.3 Taxability of UAE Free zone Entities |
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5.4 Taxation of a qualifying free zone |
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5.5 Free zone CIT impact as per CT Public Consultation Document |
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5.5.1 Income from other another company within the same free zone |
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5.5.2 Income from other another company from another free zone |
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5.5.3 Income from a regulated financial service directed at foreign markets |
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5.5.4 Income from outside UAE |
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5.5.5 Branch of Free Zone entity in mainland UAE |
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5.5.6Passive income from mainland source wherein the Free zone person do not have a Branch in the mainland |
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5.5.7 Transactions of the Free zone entity with their group companies located in mainland UAE |
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5.5.8 Income from the sale of goods to UAE by a Free Zone person located in Designated zone |
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5.5.9 Any other mainland sourced income made by the Free Zone Person |
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5.6 Election to pay UAE Corporate Tax by a qualifying free zone person |
Article 19 |
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5.7 Effectiveness date of the election to be subjected to regular corporate tax rate |
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5.8 Pros and cons of free zone persons |
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Chapter 6 |
6. Calculating Taxable Income |
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6.1 General rules for determining taxable income |
Article 20 |
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6.2 Determination of taxable income |
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6.3 Adjustment to taxable income |
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6.4 Accounting on accrual basis – Gains and losses that can be considered on realisation basis |
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6.5 Assets held on capital account |
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6.6 Liabilities held on capital account |
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6.7 Assets and liabilities held on revenue account |
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6.8 Provision for minister to provide directions |
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6.9 Application to authority for change in accounting basis – From cash basis to accrual basis |
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6.10 Conflict between provision of decree law and accounting standards |
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6.11 Small business relief |
Article 21 |
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6.12 Small business relief – Definition |
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6.13 Small business relief possible conditions |
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6.14 Provisions not applicable on person eligible for small business relief |
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6.15 Compliance regulations on small business relief |
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Chapter 7 |
7. Exempt Income |
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7.1 General rules for determining taxable income |
Article 20 |
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7.2 Exempt income covered |
Article 22 |
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7.3 Participation exemption |
Article 23 |
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7.4 Conditions for participation income exemption |
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7.5 Establishing participation definition |
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7.6 Establishing participation interest under tax laws |
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7.7 Participation interest in qualifying free zone person and exempt person |
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7.8 Types of income exempted after fulfilling participation income exemption conditions |
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7.9 Other conditions and regulations on participation exemption |
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7.10 Foreign permanent establishment exemption |
Article 24 |
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7.11 Income exemption on foreign permanent establishment |
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7.12 Other provisions on income exemption rule for foreign PE |
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7.13 Non-resident income from operating aircrafts or ships in international traffic |
Article 25 |
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7.14 Non-resident specified business |
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Chapter 8 |
8. Reliefs |
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8.1 Transfers Within a Qualifying Group |
Article 26 |
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8.2 Transfer of assets and liabilities between two taxable members of a qualifying group |
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8.3 Conditions to claim exemption on transfer of assets or liabilities within a qualifying group |
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8.4 Impact of meeting conditions |
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8. 5 Withdrawal of exemption under Article 26.2 on transfer of assets or liabilities |
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8.6 Business restructuring relief |
Article 27 |
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8.7 When is business restructuring relief available |
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8.8 Conditions for claiming business restructuring relief |
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8.9 Non-applicability of Article 27.1 |
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Chapter 9 |
9. Deductions |
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9.1 Expenditure deductible |
Article 28 |
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9.2 Expenditure not allowed as deduction |
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9.3 Expenditure incurred for more than one purpose |
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9.4 Interest deductible |
Article 29 |
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9.5 General interest deduction limitation |
Article 30 |
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9.6 Examples of general interest deduction limitation |
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9.7 Non applicability of interest deduction limitation |
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9.8 Specific Interest Deduction Limitation Rule |
Article 31 |
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9.9 Taxable person and consolidation of accounts |
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9.10 Deductibility of entertainment expenditure |
Article 32 |
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9.11 Example of entertainment expenditure |
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9.12 Non-deductible expenditure |
Article 33 |
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Chapter 10 |
10.1 Transactions with Related Parties and Connected Persons |
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10.2 Arm’s Length Principle |
Article 34 |
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10.3 Applicability of ALP on related party transaction |
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10.4 Different methods to determine ALP |
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10.5 Application of non-prescribed methods to determine ALP |
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10.6 Factors to be considered for application of TP methods to determine ALP |
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10.7 Other provisions on ALP : |
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10.8 Adjustments by federal tax authority |
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10.9 Corresponding adjustments by federal tax authority to related party |
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10.10 Adjustments made by foreign competent authority |
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10.11 Related Parties and Control |
Article 35 |
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10.12 Taxation of Connected person |
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10.13 Payments to connected person |
Article 36 |
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10.14 Who are connected person under UAE Corporate Tax ? |
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10.15 Owner of a connected person under UAE Corporate Tax |
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10.16 Connected person of a partner in unincorporated partnership |
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10.17 How would market value be determined |
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10.18 Payments to connected person – Exemption |
Article 36 |
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10.19 Related parties and control |
Article 35 |
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10.20 Transactions covered under UAE Tranfer Price Law |
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10.21 Transactions covered under UAE Tranfer Price Law – Person and its permanent establishment |
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10.22 Two ore more person partner in unincorporated partnership |
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10.23 Trustee etc of a trust or foundation |
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10.24 What is the meaning of control under article 35 to determine related party relationship? |
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10.25 Control to determine related party relationship – Control Exercise 50% or more of voting rights |
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10.26 Control to determine related party relationship – Determine composition of 50% or more of board of directors |
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10.27 Control to determine related party relationship – Determine – Control – Receives 50% or more of the profits |
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10.30 Arm’s length principle |
Article 34 – |
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10.31 Applicability of arm’s length principles on related party transaction |
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10.32 Different methods to determine arm’s length principles |
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10.33 Application of non-prescribed methods to determine ALP |
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10.34 Factors to be considered for application of TP methods to determine arm’s length principles |
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10.35 Other provisions on arm’s length principles |
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10.36 Corresponding adjustments to related party |
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10.37 Adjustments made by foreign competent authority |
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Chapter 11 |
11. Tax Loss Provisions |
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11.1 Treatment of tax losses |
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11.2 Maximum tax losses that can be carried forward and period of carry forward of tax losses |
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11.3 Brought forward tax losses which are not allowed to be set off |
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11.4 Set off and carry forward of tax losses under UAE Corporate Tax – Practical Examples |
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11.5 Ownership conditions for set off and carry forward of tax losses |
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Chapter 12 |
11. Tax Loss Provisions |
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11.1 Tax group |
Article 40 – |
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11.2 Parent company to form a tax group with subsidiary company |
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11.3 Conditions necessary for parent company to form a tax group with subsidiary company |
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11.4 Formation of tax group in case of government entity |
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11.5 Implications & duties of the company in a tax group |
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11.6 Obligation of the parent company and subsidiary company |
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11.7 Circumstances under which subsidiary can the tax group |
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11.8 Circumstances under which tax group will cease to exist |
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11.9 Circumstances under which parent company can make an application to be replaced by another parent company w/o discontinuing tax group – |
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11.10 Date of formation and cessation of a tax group |
Article 41 |
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11.11 Computing taxable income of a tax group |
Article 42 |
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11.12 Computing taxable income of a UAE tax group |
Article 42 |
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11.13 Unutilised tax losses |
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13.14 Cessation of a tax group |
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Chapter 13 |
13. Calculation of Corporate Tax Payable |
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13.1 Calculation of corporate tax payable |
Chapter 13 |
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13.2 Currency for calculating UAE Corporate tax |
Article 43 |
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13.3 Calculation and settlement of Corporate tax |
Article 44 |
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13.4 Withholding tax under UAE Corporate tax |
Article 45 |
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13.5 Withholding tax on Non PE income of Foreign company |
Article 45 |
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13.6 Withholding tax credit |
Article 46 |
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13.70 Foreign tax credit |
Article 47 |
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Chapter 14 |
14 Payment and Refund of Corporate Tax |
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14.1 Tax payment – Article 48 |
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14.2 Tax refund – Article 49 |
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Chapter 15 |
15. Anti-Abuse Rules |
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15.1 Anti abuse rules |
Article 50 – |
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15.2 General anti-abuse rule |
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15.3 What is corporate tax advantage? |
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15.4 Determination by federal tax authority if there is corporate tax advantage |
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15.5 The Authority to issue assessment |
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15.6 Authority to issue assessment if determination is made |
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15.7 Determining transactions or arrangements on which anti-abuse law applies |
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Chapter 16 |
16. Tax Registration and Deregistration |
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16.1 Tax Registration |
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16.1.1 requirements |
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16.1.2 Ste-by-step procedures |
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16.2 Tax Registration – |
Article 51 |
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Deregistration from UAE Corporate Tax |
Article 52 |
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Chapter 17 |
17 Tax return |
Article 53 |
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17.1 Important points applicable in a tax return |
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17.2 Financial Statement |
Article 54 |
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17.3 Transfer pricing documentation |
Article 55 |
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17.4 Record Keeping |
Article 56 |
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17.5 Tax Period |
Article 57 |
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17.6 Change of Tax Period |
Article 58 |
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17.7 Clarifications from FTA |
Article 59 |
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Chapter 18 |
18 Violations and Penalties |
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18.1 Corporate tax assessment and penalties |
Article 60 |
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Chapter 19 |
19 Transitional Rules |
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19.1 Transitional rules |
Article 61 |
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19.1.2 Opening balance sheet and financial year of the taxable person |
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19.1.3 Opening balance sheet and arm’s length principle |
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Chapter 20 |
20 Closing provisions |
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20.1 Delegation of power |
Article 62 |
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20.2 Administrative policies and procedures on requirements imposed on person |
Article 63 |
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20.3 Cooperating with the authority |
Article 64 |
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20.4 Revenue sharing |
Article 65 |
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20.5 International agreements |
Article 66 |
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20.6 Implementing decisions |
Article 67 |
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20.7 Cancellation of Conflicting Provisions |
Article 68 |
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20.8 Application of this Decree-Law to Tax Periods |
Article 69 |
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20.9 Commencement date of the law |
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20.20 Publication and Application of this Decree-Law |
Article 70 |
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20.21 Effectively date of the Law |
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Chapter 22 |
22 Overview of articles of OECD BEPS |
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22.1 Introduction to BEPS and its Action Plans |
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22.2 An Overview of Transfer Pricing |
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22.3 Development of UAE CT Transfer Pricing Regulations |
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22.4 Comparability Analysis |
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22.5 Selection or rejection of comparable |
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22.6 Timing issues in comparability |
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22.7 Arm’s length range |
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22.8 Selection of most appropriate method |
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22.9 Transfer Pricing Study Report |
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22.10 BEPS requirements Action Plan 13 – Concept of 3 tiered system |
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22.10.1 master File |
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22.10.2 Local file maintenance |
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