{"id":377,"date":"2023-03-27T11:12:53","date_gmt":"2023-03-27T11:12:53","guid":{"rendered":"https:\/\/bathootha.com\/audit\/?page_id=377"},"modified":"2023-06-19T06:32:09","modified_gmt":"2023-06-19T06:32:09","slug":"faq","status":"publish","type":"page","link":"https:\/\/bathootha.com\/audit\/faq\/","title":{"rendered":"Faq"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"377\" class=\"elementor elementor-377\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-35f40c3 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"35f40c3\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;gradient&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-65d279fb\" data-id=\"65d279fb\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-79314ac elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"79314ac\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-21ed035c\" data-id=\"21ed035c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5367a890 elementor-widget__width-initial elementor-widget elementor-widget-heading\" data-id=\"5367a890\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.14.0 - 18-06-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">One-Stop Corporate<br>\nTax & Audit Solution<br>\nProvider<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1944eef0 elementor-widget elementor-widget-text-editor\" data-id=\"1944eef0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.14.0 - 18-06-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>We provide exceptional and high-quality corporate tax and auditing services across UAE.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e4e219b elementor-widget elementor-widget-button\" data-id=\"e4e219b\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Discover More<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-70acf625\" data-id=\"70acf625\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c07d236 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c07d236\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;gradient&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0eea5f3\" data-id=\"0eea5f3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-68213b4 elementor-section-content-middle elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"68213b4\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-7908343\" data-id=\"7908343\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1806fc1 elementor-widget__width-auto elementor-widget elementor-widget-heading\" data-id=\"1806fc1\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">FAQ<\/h5>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0f2d14d elementor-widget elementor-widget-heading\" data-id=\"0f2d14d\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Frequently asked questions<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3fedc05 elementor-widget__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"3fedc05\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>We\u2019re passionate about helping our clients achieve financial success.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b286430 elementor-widget elementor-widget-jkit_accordion\" data-id=\"b286430\" data-element_type=\"widget\" data-widget_type=\"jkit_accordion.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<div  class=\"jeg-elementor-kit jkit-accordion style-default jeg_module___6a14c19b9531a\" ><div class=\"card-wrapper expand\">\n                <div class=\"card-header\">\n                    <a href=\"#expand-c0008f7\" class=\"card-header-button\" aria-expanded=\"false\" data-target=\"#expand-c0008f7\" aria-controls=\"expand-c0008f7\">\n                        <span class=\"title\">When will the UAE corporate tax regime become effective?<\/span><div class=\"right-icon-group\">\n                <div class=\"normal-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n                <div class=\"active-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n            <\/div>\n                    <\/a>\n                <\/div>\n                <div class=\"card-expand\" id=\"expand-c0008f7\" style=\"display:block\"><div class=\"card-body\"><p data-ogsc=\"rgb(33, 37, 41)\">The regime will become effective for financial years starting on or after 1 June 2023.<\/p><p data-ogsc=\"rgb(33, 37, 41)\">By way of an example, a business with a financial starting on 1 July 2023 and ending on 30 June 2024 will be subject to the new regime from 1 July 2023, as its financial year commences after 1 June 2023.<\/p><p data-ogsc=\"rgb(33, 37, 41)\">In contrast, a business whose financial year aligns with the calendar year will become subject to the corporate tax regime on 1 January 2024.<\/p><p>We also offer customised ERP software solutions to help companies streamline operations, increase efficiency and improve profitability. Our team offers services to diverse industries and delivers timely and accurate advice on financial information.\u00a0<\/p><p>At Bathootha, we work closely with you to understand the unique requirements of your business. Based on a deep understanding of your business requirements, we share adequate resources and support for your business.<\/p><\/div><\/div>\n            <\/div><div class=\"card-wrapper \">\n                <div class=\"card-header\">\n                    <a href=\"#expand-9d5ce83\" class=\"card-header-button\" aria-expanded=\"false\" data-target=\"#expand-9d5ce83\" aria-controls=\"expand-9d5ce83\">\n                        <span class=\"title\">What will the corporate tax rates be?<\/span><div class=\"right-icon-group\">\n                <div class=\"normal-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n                <div class=\"active-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n            <\/div>\n                    <\/a>\n                <\/div>\n                <div class=\"card-expand\" id=\"expand-9d5ce83\" style=\"display:none\"><div class=\"card-body\"><p data-ogsc=\"rgb(33, 37, 41)\">The corporate tax rates for taxable income will be as follows:<\/p><ul data-ogsc=\"rgb(33, 37, 41)\"><li>0% for income up to AED375,000<\/li><li>9% for income above AED375,000<\/li><li>A different rate will soon be implemented for large multinationals that meet specific criteria set by the Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) project. A \u2018large\u2019 multinational corporation is defined as one that has consolidated global revenues of more than \u20ac750m (c. AED3.15bn).<\/li><\/ul><\/div><\/div>\n            <\/div><div class=\"card-wrapper \">\n                <div class=\"card-header\">\n                    <a href=\"#expand-d4bc511\" class=\"card-header-button\" aria-expanded=\"false\" data-target=\"#expand-d4bc511\" aria-controls=\"expand-d4bc511\">\n                        <span class=\"title\">How do you determine the taxable income that will be subject to UAE corporate tax?<\/span><div class=\"right-icon-group\">\n                <div class=\"normal-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n                <div class=\"active-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n            <\/div>\n                    <\/a>\n                <\/div>\n                <div class=\"card-expand\" id=\"expand-d4bc511\" style=\"display:none\"><div class=\"card-body\"><p data-ogsc=\"rgb(33, 37, 41)\">The taxable income subject to UAE corporate tax will be the accounting net profit of a business, as reported in financial statements prepared in accordance with internationally accepted accounting standards, after adjustments for certain items specified under the UAE Corporate Tax Law (unrealised gains\/losses, entertainment, interest, donations, and other items specified in the Law).<\/p><p data-ogsc=\"rgb(33, 37, 41)\">Dividends and capital gains earned by a UAE business from its qualifying shareholdings will be exempt from UAE corporate tax, as will qualifying intra-group transactions and reorganisations that meet certain conditions.<\/p><\/div><\/div>\n            <\/div><div class=\"card-wrapper \">\n                <div class=\"card-header\">\n                    <a href=\"#expand-a4fd525\" class=\"card-header-button\" aria-expanded=\"false\" data-target=\"#expand-a4fd525\" aria-controls=\"expand-a4fd525\">\n                        <span class=\"title\">Will any income be exempt from UAE corporate tax?<\/span><div class=\"right-icon-group\">\n                <div class=\"normal-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n                <div class=\"active-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n            <\/div>\n                    <\/a>\n                <\/div>\n                <div class=\"card-expand\" id=\"expand-a4fd525\" style=\"display:none\"><div class=\"card-body\"><p data-ogsc=\"rgb(33, 37, 41)\">Dividends and capital gains earned by a UAE business from its qualifying shareholdings will be exempt from UAE corporate tax.<\/p><p data-ogsc=\"rgb(33, 37, 41)\">Qualifying intra-group transfers will not be subject to UAE corporate tax provided the necessary conditions are met.<\/p><p data-ogsc=\"rgb(33, 37, 41)\">Dividends and capital gains earned by a UAE business from its qualifying shareholdings will be exempt from UAE corporate tax, as will qualifying intra-group transactions and reorganisations that meet certain conditions.<\/p><\/div><\/div>\n            <\/div><div class=\"card-wrapper \">\n                <div class=\"card-header\">\n                    <a href=\"#expand-4c5238b\" class=\"card-header-button\" aria-expanded=\"false\" data-target=\"#expand-4c5238b\" aria-controls=\"expand-4c5238b\">\n                        <span class=\"title\">Who will be subject to the UAE corporate tax?<\/span><div class=\"right-icon-group\">\n                <div class=\"normal-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n                <div class=\"active-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n            <\/div>\n                    <\/a>\n                <\/div>\n                <div class=\"card-expand\" id=\"expand-4c5238b\" style=\"display:none\"><div class=\"card-body\"><p data-ogsc=\"rgb(33, 37, 41)\">UAE corporate tax will apply to UAE companies and other juridical persons that are incorporated or effectively managed and controlled in the UAE. This includes natural persons (individuals) who conduct business or business activities in the UAE, as specified in a Cabinet decision to be issued in due course, and non-resident juridical persons (foreign legal entities) that have a permanent establishment in the UAE<\/p><\/div><\/div>\n            <\/div><div class=\"card-wrapper \">\n                <div class=\"card-header\">\n                    <a href=\"#expand-fa99442\" class=\"card-header-button\" aria-expanded=\"false\" data-target=\"#expand-fa99442\" aria-controls=\"expand-fa99442\">\n                        <span class=\"title\">How do you determine whether an individual has a business that will be within the scope of UAE corporate tax?<\/span><div class=\"right-icon-group\">\n                <div class=\"normal-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n                <div class=\"active-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n            <\/div>\n                    <\/a>\n                <\/div>\n                <div class=\"card-expand\" id=\"expand-fa99442\" style=\"display:none\"><div class=\"card-body\"><p data-ogsc=\"rgb(33, 37, 41)\">To determine this, reference will be made to whether they have, or are required to obtain, a business licence or permit to carry out commercial, industrial and\/or professional activities in the UAE.<\/p><p data-ogsc=\"rgb(33, 37, 41)\">Under the new regime, businesses will be categorised as \u2018Taxable\u2019, \u2018Exempt\u2019 or \u2018Qualifying Free Zone Persons\u2019 (QFZP) and must assess if they fall under these categories and register accordingly. Certain exempt entities must still apply and receive approval.<\/p><\/div><\/div>\n            <\/div><div class=\"card-wrapper \">\n                <div class=\"card-header\">\n                    <a href=\"#expand-4804c5f\" class=\"card-header-button\" aria-expanded=\"false\" data-target=\"#expand-4804c5f\" aria-controls=\"expand-4804c5f\">\n                        <span class=\"title\">What is a &#039;taxable person&#039;?<\/span><div class=\"right-icon-group\">\n                <div class=\"normal-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n                <div class=\"active-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n            <\/div>\n                    <\/a>\n                <\/div>\n                <div class=\"card-expand\" id=\"expand-4804c5f\" style=\"display:none\"><div class=\"card-body\"><p data-ogsc=\"rgb(33, 37, 41)\">A taxable person shall be either a resident or non-resident person:<\/p><p data-ogsc=\"rgb(33, 37, 41)\">Resident person:<\/p><ul data-ogsc=\"rgb(33, 37, 41)\"><li>A resident person is a juridical person incorporated\/established\/recognised in the state, including a free zone person, or of a foreign jurisdiction that is effectively managed and controlled in the state<\/li><li>A natural person who conducts a business or business activity in the state.<\/li><\/ul><p data-ogsc=\"rgb(33, 37, 41)\">Non-resident person:<\/p><ul data-ogsc=\"rgb(33, 37, 41)\"><li>A non-resident person that either has a permanent establishment in the state, derives state-sourced income or has a nexus in the state as per Cabinet Decision.<\/li><\/ul><p data-ogsc=\"rgb(33, 37, 41)\">A branch in the state of a resident person shall be treated as one and the same taxable person.<\/p><\/div><\/div>\n            <\/div><div class=\"card-wrapper \">\n                <div class=\"card-header\">\n                    <a href=\"#expand-548519c\" class=\"card-header-button\" aria-expanded=\"false\" data-target=\"#expand-548519c\" aria-controls=\"expand-548519c\">\n                        <span class=\"title\">Which business entities be categorised as &#039;exempt&#039; from UAE corporate tax?<\/span><div class=\"right-icon-group\">\n                <div class=\"normal-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n                <div class=\"active-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n            <\/div>\n                    <\/a>\n                <\/div>\n                <div class=\"card-expand\" id=\"expand-548519c\" style=\"display:none\"><div class=\"card-body\"><p data-ogsc=\"rgb(33, 37, 41)\">Certain exemptions are made automatically, via cabinet decision or upon application, as follows:<\/p><p data-ogsc=\"rgb(33, 37, 41)\">Automatically exempt:<\/p><ul data-ogsc=\"rgb(33, 37, 41)\"><li>Government entities and government-controlled entities to be specified in a cabinet decision (yet to be published)<\/li><li>Exempt upon notification to the UAE Ministry of Finance \u2013 extractive and non-extractive natural resource businesses<\/li><li>Exempt, if listed in a cabinet decision (yet to be published) \u2013 Qualifying Public Benefit entities.<\/li><\/ul><p>\u00a0<\/p><p data-ogsc=\"rgb(33, 37, 41)\">Exempt, if applied to and approved by the Federal Tax Authority:<\/p><ul data-ogsc=\"rgb(33, 37, 41)\"><li>Public or private pension and social security funds<\/li><li>Qualifying investment funds<\/li><li>Wholly owned and controlled UAE subsidiaries of exempt persons.<\/li><\/ul><\/div><\/div>\n            <\/div><div class=\"card-wrapper \">\n                <div class=\"card-header\">\n                    <a href=\"#expand-816a0b3\" class=\"card-header-button\" aria-expanded=\"false\" data-target=\"#expand-816a0b3\" aria-controls=\"expand-816a0b3\">\n                        <span class=\"title\">Will a free zone business be subject to UAE corporate tax?<\/span><div class=\"right-icon-group\">\n                <div class=\"normal-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n                <div class=\"active-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n            <\/div>\n                    <\/a>\n                <\/div>\n                <div class=\"card-expand\" id=\"expand-816a0b3\" style=\"display:none\"><div class=\"card-body\"><p data-ogsc=\"rgb(33, 37, 41)\">Free zone (FZ) entities will be subject to UAE corporate tax, but will continue to have corporate tax incentives as long as they comply with all applicable regulatory requirements.<\/p><\/div><\/div>\n            <\/div><div class=\"card-wrapper \">\n                <div class=\"card-header\">\n                    <a href=\"#expand-c2d5e07\" class=\"card-header-button\" aria-expanded=\"false\" data-target=\"#expand-c2d5e07\" aria-controls=\"expand-c2d5e07\">\n                        <span class=\"title\">What are the tax rates for free zone entities?<\/span><div class=\"right-icon-group\">\n                <div class=\"normal-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n                <div class=\"active-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n            <\/div>\n                    <\/a>\n                <\/div>\n                <div class=\"card-expand\" id=\"expand-c2d5e07\" style=\"display:none\"><div class=\"card-body\"><p data-ogsc=\"rgb(33, 37, 41)\">Free zone entities that meet conditions to benefit from the free zone corporate tax regime \u2013 qualifying free zone persons (QFZPs) \u2013 will have to pay tax at the following rates:<\/p><ul data-ogsc=\"rgb(33, 37, 41)\"><li>0% on qualifying income<\/li><li>9% on taxable income that does not meet the qualifying income definition.<\/li><\/ul><\/div><\/div>\n            <\/div><div class=\"card-wrapper \">\n                <div class=\"card-header\">\n                    <a href=\"#expand-2ef5fb2\" class=\"card-header-button\" aria-expanded=\"false\" data-target=\"#expand-2ef5fb2\" aria-controls=\"expand-2ef5fb2\">\n                        <span class=\"title\">What are the conditions of qualifying income for QFZPs?<\/span><div class=\"right-icon-group\">\n                <div class=\"normal-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n                <div class=\"active-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n            <\/div>\n                    <\/a>\n                <\/div>\n                <div class=\"card-expand\" id=\"expand-2ef5fb2\" style=\"display:none\"><div class=\"card-body\"><p data-ogsc=\"rgb(33, 37, 41)\">A QFZP should meet the following conditions to benefit from the 0% corporate tax rate:<\/p><ul data-ogsc=\"rgb(33, 37, 41)\"><li>Maintain adequate substance in the UAE<\/li><li>Derives qualifying income (as to be specified in a cabinet decision yet to be made)<\/li><li>Has not elected to be subject to 9% CT<\/li><li>Complies with transfer pricing provisions (as applicable).<\/li><\/ul><\/div><\/div>\n            <\/div><div class=\"card-wrapper \">\n                <div class=\"card-header\">\n                    <a href=\"#expand-9e1b12e\" class=\"card-header-button\" aria-expanded=\"false\" data-target=\"#expand-9e1b12e\" aria-controls=\"expand-9e1b12e\">\n                        <span class=\"title\">Will foreign corporate tax paid on UAE taxable income be recognised under the UAE corporate tax regime?<\/span><div class=\"right-icon-group\">\n                <div class=\"normal-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n                <div class=\"active-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n            <\/div>\n                    <\/a>\n                <\/div>\n                <div class=\"card-expand\" id=\"expand-9e1b12e\" style=\"display:none\"><div class=\"card-body\"><p data-ogsc=\"rgb(33, 37, 41)\">Foreign corporate tax paid on UAE taxable income will be allowed as a tax credit against the UAE corporate tax liability. The UAE corporate tax regime will allow a business to use losses incurred from the effective date of the regime to offset taxable income in subsequent financial periods.<\/p><\/div><\/div>\n            <\/div><div class=\"card-wrapper \">\n                <div class=\"card-header\">\n                    <a href=\"#expand-b2f6640\" class=\"card-header-button\" aria-expanded=\"false\" data-target=\"#expand-b2f6640\" aria-controls=\"expand-b2f6640\">\n                        <span class=\"title\">Will transfer pricing rules be applicable to UAE businesses?<\/span><div class=\"right-icon-group\">\n                <div class=\"normal-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n                <div class=\"active-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n            <\/div>\n                    <\/a>\n                <\/div>\n                <div class=\"card-expand\" id=\"expand-b2f6640\" style=\"display:none\"><div class=\"card-body\"><p data-ogsc=\"rgb(33, 37, 41)\">UAE will also have transfer pricing rules to ensure that the price of a transaction is not influenced by the relationship between the parties involved. Businesses will be required to apply the internationally recognized \u2018arm\u2019s length\u2019 principle to transactions and arrangements between related parties and connected persons.<\/p><p data-ogsc=\"rgb(33, 37, 41)\">If relevant, businesses will also need to submit a disclosure containing information regarding their transactions with related parties and connected persons and maintain a master and local file (with format and content consistent with the requirements prescribed under OECD BEPS Action 13) where the arm\u2019s length value of their related party transactions exceeds a certain threshold in the relevant tax period.<\/p><\/div><\/div>\n            <\/div><div class=\"card-wrapper \">\n                <div class=\"card-header\">\n                    <a href=\"#expand-61dda89\" class=\"card-header-button\" aria-expanded=\"false\" data-target=\"#expand-61dda89\" aria-controls=\"expand-61dda89\">\n                        <span class=\"title\">What are the penalties for failing to comply with the corporate tax regime?<\/span><div class=\"right-icon-group\">\n                <div class=\"normal-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n                <div class=\"active-icon\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n            <\/div>\n                    <\/a>\n                <\/div>\n                <div class=\"card-expand\" id=\"expand-61dda89\" style=\"display:none\"><div class=\"card-body\"><p>The UAE cabinet decision on penalties for late submission of corporate tax information is yet to be published. They are expected to include significant fines and may include the risk of imprisonment for non-compliance.<\/p><\/div><\/div>\n            <\/div><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>One-Stop Corporate Tax &#038; Audit Solution Provider We provide exceptional and high-quality corporate tax and auditing services across UAE. Discover More FAQ Frequently asked questions We\u2019re passionate about helping our clients achieve financial success. When will the UAE corporate tax regime become effective? The regime will become effective for financial years starting on or after [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"footnotes":""},"class_list":["post-377","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/bathootha.com\/audit\/wp-json\/wp\/v2\/pages\/377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bathootha.com\/audit\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/bathootha.com\/audit\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/bathootha.com\/audit\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/bathootha.com\/audit\/wp-json\/wp\/v2\/comments?post=377"}],"version-history":[{"count":9,"href":"https:\/\/bathootha.com\/audit\/wp-json\/wp\/v2\/pages\/377\/revisions"}],"predecessor-version":[{"id":1005,"href":"https:\/\/bathootha.com\/audit\/wp-json\/wp\/v2\/pages\/377\/revisions\/1005"}],"wp:attachment":[{"href":"https:\/\/bathootha.com\/audit\/wp-json\/wp\/v2\/media?parent=377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}