April 2024 / United Arab Emirates

17 Aprile 2024

Federal Tax Authority Publishes Tax Guide on Business Restructuring Relief

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