Tax, Accounting & Auditing

In recent times, the business landscape in the UAE has undergone a transformative shift with the implementation of corporate tax challenging its traditional status as a tax haven. In this blog post, we’ll delve into the anticipated implications before the corporate tax laws were announced, the current state of foreign investments, and strategic approaches for mitigating potential impacts.

The Corporate Tax Law (‘CT Law’) introduced in the UAE comes with a bundled package along with the Transfer Pricing provisions also being introduced in the UAE along with the CT Law. Transfer Pricing provisions play a significant role in the tax system and have a significant impact on the tax liability of a company or a group. Transfer Pricing provisions are complex and are often litigative and debatable.

There is a lot of buzz in businesses and industries in UAE with the introduction of Corporate Tax Law (‘CT Law’) in the country. The CT Law when introduced, had prima facie cleared the buzz on the applicability of the Corporate Tax provisions for Natural Persons wherein it was clarified that CT Law will be applicable to natural persons only if they conduct business or business activities in the UAE and the gross turnover from such activities conducted in UAE exceed AED 1 million in a calendar year.

The provisions of Corporate Tax Law (‘CT Law’), introduced in the UAE, defines ‘Taxable Persons’ for the purpose of Corporate Tax (‘CT’). As per the provisions of CT Law, CT in UAE is applicable not only to a Resident person in the UAE but also to specific Non-Resident Persons subject to certain conditions being satisfied.

In the complex world of international finance, the UAE plays a pivotal role for many multinational corporations. Its strategic location and business-friendly environment make it an attractive hub for companies looking to expand their global footprint. However, navigating transfer pricing rules in the UAE is crucial for multinational companies to ensure they comply with tax regulations and maintain transparency in their financial dealings. In this blog post, we’ll delve into the key considerations and requirements for transfer pricing in the UAE.

Cabinet Decision No. 91 of 2023, which was officially announced in Gazette Issue No. 758 dated August 30, 2023, has introduced a specialized reverse charge mechanism for local electronic device transactions. This newly enacted decision outlines the specific criteria and prerequisites necessary for applying Value Added Tax (VAT) through this reverse charge method. This measure will come into effect 60 days after its publication in the official gazette – effective on October 29, 2023, in this case.

As globalization intensifies, so does the complexity of international taxation rules. The Organization for Economic Co-operation and Development (OECD) is at the forefront of addressing these complexities, especially with the implementation of the two-pillar approach. In this article, we will delve deeply into the OECD’s Pillar Two framework and demonstrate why AKW Consultants is best suited to help businesses navigate this complex landscape.

The United Arab Emirates is renowned for its favorable tax environment, and in 2023, corporations operating within its borders have an array of opportunities for efficient corporate tax planning. To embark on this journey, it is essential to comprehend the intricacies of the UAE’s tax structure and the dynamic landscape it presents. In this blog entry, we will delve into the foundations of UAE tax structure and explore various considerations for crafting effective corporate tax management strategies.

The UAE Ministry of Finance made a breakthrough announcement in January 2022 that it will introduce federal Corporate Tax (‘CT’) in UAE post which it introduced the Federal Decree Law No. 47 of 2022 on the Taxation of Corporations and Businesses (‘CT Law’) by virtue of which Corporate Tax has been introduced in UAE making a landmark change the taxation system of UAE.