Everything you know about how Corporate Tax(CT) applied for Foreigners, Exempted Income, Free Zones, Industry Sectors and Group of Companies.
CORPORATE TAX FOR FOREIGNERS:
- Foreign entities and individuals will be subject to UAE CT only if they conduct a trade or business in the UAE in an ongoing or regular manner.
- UAE CT will generally not be levied on a foreign investor’s income from dividends, capital gains, interest, royalties and other investment returns.
INCOME EXEMPT FROM CT:
- Dividends and capital gains earned by a UAE business from its qualifying shareholdings will be exempt from UAE CT.
- A qualifying shareholding refers to an ownership interest in a UAE or foreign company that meets certain conditions in the UAE CT law.
- Qualifying intra-group transactions and reorganizations will not be subject to UAE CT provided the necessary conditions are met.
CT FOR FREEZONES:
- Free zone businesses will be subject to UAE CT, but the UAE CT regime will continue to honour the CT incentives currently being offered to free zone businesses that comply with all regulatory requirements and that do not conduct business with mainland UAE.
- A business established in a free zone will be required to register and file a CT return.
- The UAE CT treatment that will apply to businesses in free zones will be the same across all free zones.
CT FOR INDUSTRY SECTORS:
- Businesses engaged in the extraction of natural resources will remain subject to Emirate level corporate taxation and be outside the scope of the UAE CT.
- Banking operations will be subject to UAE CT.
- Businesses engaged in real estate management, construction, development, agency and brokerage activities will be subject to UAE CT.
CT FOR GROUP OF COMPANIES:
- A UAE group of companies can elect to form a tax group and be treated as a single taxable person, provided certain conditions are met.
- A UAE tax group will only be required to file a single tax return for the entire group.
FOR MORE INFORMATION, CONTACT US :
Phone : +971 52 1952 532 / +971 4 240 1110
Mail-Id : info@yugaaccounting.com
Website : www.yugaaccounting.com