The Federal Tax Authority (FTA) has published a tax guide designed to provide general guidance on Business Restructuring Relief available under Article 27 of the UAE Corporate Tax Law and provides clarification on the following aspects:
- the transactions covered within the scope of the relief;
- the conditions to be eligible for the relief;
- the consequences of electing the relief;
- the circumstances in which the relief will be clawed back;
- the consequences of clawback of the relief;
- the compliance requirements; and
- the interaction with other provisions of the UAE Corporate Tax Law.
The Corporate Tax on business has been introduced by Federal Decree-Law No. 47 of 2022 on the taxation of corporations and businesses issued on 3 October 2022 and applicable to tax periods commencing on or after 1 June 2023.
Source: IBFD Tax Research Platform news