Interest Deduction Rules under UAE Corporate Tax – What Businesses Must Know
Introduction Interest expenditure is a routine cost for many businesses. However, when it comes to UAE Corporate Tax, deducting such interest isn’t as straightforward. The Federal Tax Authority (FTA) UAE has issued detailed guidance to ensure that interest deductions do not result in base erosion or profit shifting. In this
Participation & Foreign Permanent Establishment Exemptions under Ministerial Decision No. 302 of 2024
Participation & Foreign PE Exemptions – UAE Corporate Tax MD 302/2024 The Ministry of Finance of the United Arab Emirates (UAE) issued Ministerial Decision No. 302 of 2024, which became effective on December 11, 2024. This decision provides comprehensive guidelines on the Participation Exemption and Foreign Permanent Establishment Exemption under
Decision No. 2 of 2025: The Authority’s Policy on Issuing Clarifications and Directives
Introduction The Federal Tax Authority Decision No. 2 of 2025, effective from 1 March 2025, introduces a structured framework for issuing tax clarifications and directives in the UAE. This decision serves as a crucial regulatory update aimed at enhancing legal certainty, ensuring consistency in tax interpretation, and improving administrative efficiency
Extension of Deadlines for Tax Assessment Review and Reconsideration Requests: FTA Decision No. 1 of 2025
Introduction The Federal Tax Authority (FTA) of the United Arab Emirates (UAE) has issued Decision No. 1 of 2025, outlining the circumstances under which deadlines for submitting Tax Assessment Review Requests or Requests for Reconsideration may be extended. This decision is effective from March 01, 2025. Cases Where Deadline Extensions
UAE VAT Update: Reverse Charge Mechanism for the Supply of Precious Metals and Precious Stones
Introduction The UAE Cabinet has enacted Cabinet Decision No. 127 of 2024, establishing a Reverse Charge Mechanism (RCM) for transactions involving precious metals and precious stones among VAT-registrants. This regulatory amendment, issued on December 16, 2024, will come into force on February 15, 2025. The objective of this legislative measure
Transfer Pricing in UAE Corporate Tax: Compliance, Challenges & Best Practices
Introduction In May 2018, the UAE joined the OECD Inclusive Framework on BEPS, reinforcing its commitment to preventing profit shifting to low-tax jurisdictions. A key aspect of this commitment was the introduction of Transfer Pricing in UAE Corporate Tax regulations to ensure fair transactions between related parties. Initially, the UAE
