April 2024 / United Arab Emirates

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