The Federal Tax Authority (FTA) has issued Federal Decree Law No. 47 of 2022 on Corporate and Business Tax.
The new Federal Decree on Corporate Tax provides for the following:
- scope of business income tax;
- exclusions from scope of business income tax;
- tax rates;
- withholding taxes and double taxation relief;
- taxable person and corporate tax base;
- free zone person;
- calculating taxable income;
- transactions with related parties and connected persons;
- tax loss provisions;
- tax group provisions;
- calculation of corporate tax payable;
- anti-abuse rules;
- tax registration and deregistration;
- tax returns and clarifications;
- violations and penalties; and
- transitional rules.
The Decree-Law shall apply to tax periods commencing on or after 1 June 2023.