December 9 2022

Federal Tax Authority Publishes Federal Decree on Business Income Tax

Source: IBFD Tax Research Platform News

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;
  • exemptions;
  • 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.