What is important to know?

- In addition to the Corporate Tax Law, more than 30 Cabinet of Ministers, Ministry of Finance, and UAE Federal Tax Authority resolutions have already been issued in the UAE concerning the application of the Law

- These regulatory acts establish exemptions and rules for recognising income and expenses. In particular, they provide for:

• tax exemption for small companies with revenue of up to AED 3 million (Small Business Relief) until 31.12.2026, subject to certain conditions;

• financial thresholds for recognising interest amounts as deductible expenses for corporate tax purposes;

• special conditions for recognising interest in respect of loan agreements;

• concluded before 9 December 2022;

• conditions for carrying forward losses to future periods;

- It is important to pay attention to the provisions relating to the First Tax Period. For example, for tax accounting purposes of certain types of unrealised gains/losses, it is necessary to choose an accounting method, which cannot be changed in subsequent tax periods (Unrealised Gains and Losses Rule, Transitional Rule)

- This applies to asset classes such as real estate held for sale, intangible assets, and financial assets.

What do we offer?

• Analysis of the company’s/group’s current assets and liabilities structure in the UAE. Development of recommendations regarding the accounting methods to be selected and applied in the First Tax Period in order to lawfully optimise the tax burden.

• Analysis of the current income/expense structure, identification of the amounts of expenses that cannot be recognised for tax purposes.

• Development of an accounting policy for UAE tax accounting purposes.

• Preparation of tax registers for the purpose of calculating corporate tax in the First Tax Period.