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CA Juraij Pulkuzhiyil - Adzum Global

Sept. 27, 2023

UAE Corporate Tax and Freelancers: What You Need to Know

Introduction

The United Arab Emirates (UAE) is well-known for its business-friendly environment and low tax rates, making it an attractive destination for freelancers. However, recent changes in the tax landscape have raised questions about the tax implications for freelancers. In this article, we will break down UAE corporate tax rules in simple terms and explain how they apply to freelancers.

Understanding UAE Corporate Tax

Traditionally, the UAE did not impose corporate t Read More

CA Juraij Pulkuzhiyil - Adzum Global

Sept. 24, 2023

Permanent Establishment in the context of UAE Corporate Tax

Permanent Establishment

Permanent Establishment (PE) is an important concept in international taxation because it determines whether a foreign company or individual is liable to pay tax in a particular country. It is a taxable presence that a foreign entity has in a country other than its own.

PE is important because it allows countries to tax the profits of foreign entities that conduct business within their borders. Without PE rules, foreign entities could easily avoid paying tax Read More

CA Juraij Pulkuzhiyil - Adzum Global

Sept. 19, 2023

Entertainment Expenditure in the Context of UAE Corporate Tax

Introduction

In today's globalized business landscape, companies often invest in various forms of entertainment to foster relationships, build rapport with clients and stakeholders, and create a positive corporate image. However, it is crucial for businesses operating in the United Arab Emirates (UAE) to navigate the realm of entertainment expenditure with utmost diligence, considering the implications it may have on their corporate tax obligations. This article aims to shed light on Read More

CA Juraij Pulkuzhiyil - Adzum Global

Sept. 16, 2023

Interest Limitation Rules And Thin Capitalisation In The Context Of UAE Corporate Tax

What is Thin Capitalisation?

Thin Capitalization Norm, as recommended by the OECD's BEPS Action Plan 4, is a set of guidelines aimed at preventing multinational companies from excessively using debt to reduce their taxable profits and shift income to low-tax jurisdictions. It focuses on the balance between debt and equity in a company's capital structure.
In simple terms, thin capitalization occurs when a company relies heavily on debt financing compared to equity financing. Read More

CA Juraij Pulkuzhiyil - Adzum Global

Sept. 6, 2023

Taxation of Unincorporated Partnership in UAE Corporate Tax

Introduction
Internationally, partnerships are diverse legal arrangements where two or more parties collaborate for mutual interests, often involving business activities. They come in various forms, such as general partnerships with joint liability and limited partnerships with limited liability. The taxation of partnerships varies across countries due to differences in legal systems, with some recognizing partnerships as legal entities and others not. Additionally, there is a distinction be Read More

CA Juraij Pulkuzhiyil - Adzum Global

Aug. 23, 2023

Tax Loss Relief under Corporate Tax

Tax Loss Relief

Relevant Article: Article 37 of the Decree Law

Tax loss refers to a situation in which a taxpayer's deductible expenses or allowable losses exceed the total taxable income in a given tax period. In such cases, the taxpayer may not have to pay taxes for that period, but they may be able to carry forward the losses to offset future taxable income.

Tax loss relief refers to the provision that allows taxpayers to offset their current or future taxable income Read More

CA Juraij Pulkuzhiyil - Adzum Global

June 16, 2023

Accounting Standards and Methods Of Accounting

An analysis of Ministerial Decision No. 114 of 2023 dated 09 May 2023

This decision clarifies three important aspects
1. Preparing Financial Statements Using the Cash Basis of Accounting
2. Applicable Accounting Standards and
3. Preparation of Financial Statement of Tax Groups

Let us discuss each of the above in detail

Preparing Financial Statements Using the Cash Basis of Accounting
paragraph (a) of Clause (5) of Article (20) of the Corporate Tax law says Minist Read More

CA Juraij Pulkuzhiyil - Adzum Global

June 16, 2023

Are you liable for Audit under Corporate Tax Regime? Ministerial Decision No. 82 of 2023

Introduction:

The United Arab Emirates (UAE) has recently issued Ministerial Decision No. 82 of 2023, which outlines the categories of taxable persons required to prepare and maintain audited financial statements. This decision aims to enhance transparency and accountability within the business sector, while promoting compliance with the Corporate Tax Law. In this article, we will delve into the details of the decision and its implications for qualifying entities.

Category 1: Reven Read More

CA Juraij Pulkuzhiyil - Adzum Global

June 16, 2023

Who is Qualifying Public Benefit Entity, is their income exempted from Corporate Tax?

A Qualifying Public Benefit Entity (QPBE) in the United Arab Emirates (UAE) refers to an organization that meets specific criteria and is established for the purpose of promoting public benefit rather than generating profits. QPBEs play a significant role in advancing social welfare, cultural development, education, healthcare, or other areas of public interest within the UAE. Recognizing their importance, the UAE government provides certain exemptions and benefits to QPBEs, including exemption Read More

CA Juraij Pulkuzhiyil - Adzum Global

June 16, 2023

Exemption from Registration for Corporate Tax for Certain Class of Persons - Ministerial Decision

The Ministry of Finance has issued Ministerial Decision No. 43 of 2023 on Exception from Tax Registration for the purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (the “Corporate Tax Law”).

The decision is issued in accordance with Article 51 of the Corporate Tax Law which requires taxable persons to register for Corporate Tax with the Federal Tax Authority, except in certain circumstances.

The Ministerial Decision on the Exception from T Read More

CA Juraij Pulkuzhiyil - Adzum Global

June 16, 2023

Ministry of Finance Issues Decision on Small Business Relief for Corporate Tax Purposes

Abu Dhabi, UAE- 06 April 2023: The Ministry of Finance has issued Ministerial Decision No. 73 of 2023 on Small Business Relief for the purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (the “Corporate Tax Law”).

The decision is issued in accordance with Article 21 of the Corporate Tax Law, which treats the taxable person as not having derived any taxable income in a given tax period where the revenue did not exceed a certain threshold.

Sma Read More

CA Juraij Pulkuzhiyil - Adzum Global

June 16, 2023

Corporate tax in UAE - Who has to Register for Corporate Tax in UAE

Tax registration

Corporate tax registration is mandatory to ensure that all businesses subject to corporate tax are registered with the relevant tax authorities and are paying their taxes in a timely and accurate manner. It is a legal requirement for businesses to register for corporate tax, and failure to do so can result in penalties, fines, and legal action.

Registration for corporate tax allows the tax authorities to keep track of the businesses operating in their jurisdiction Read More
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