Decision No. 35 of 2025: Taxable Nexus Rules for Non-Residents By promulgating Cabinet Decision No. 35 of 2025 on 27 March 2025, the UAE Cabinet has expressly delineated the circumstances under which a non‑resident juridical person may be regarded as possessing a taxable nexus within the United Arab Emirates, in accordance with Federal Decree‑Law No. 47 of 2022 on Corporate Taxation….
Cabinet Decision No. 34 of 2025: Exemptions & Compliance for QIFs, QLPs, and REITs On 27 March 2025, the UAE Cabinet issued Decision No. 34 of 2025, updating and replacing the earlier Decision No. 81 of 2023 under Federal Decree‑Law No. 47 of 2022 on Corporate Tax. This latest directive clarifies which collective investment vehicles – namely Qualifying Investment Funds, Qualifying Limited Partnerships and Real…
The UAE Ministry of Finance, through Ministerial Decision No. 173 of 2025, has introduced rules for applying depreciation on investment properties held at fair value under the Corporate Tax Law. This move provides clarity on how businesses can adjust their taxable income when electing to recognise gains and losses on a realisation basis. This Decision…
UAE Waives AED 10,000 Penalty for Late Corporate Tax Registration With the implementation of the UAE Corporate Tax Law through Federal Decree-Law No. 47 of 2022, businesses across the Emirates are now mandated to register for corporate tax. To support businesses during this transition, the Federal Tax Authority (FTA) has introduced a vital initiative—a waiver…
Introduction As part of the UAE’s continuing effort to reinforce fiscal transparency and align with global corporate tax governance, the Ministry of Finance has issued Ministerial Decision No. 84 of 2025. The New UAE Corporate Tax Audit Rules 2025 introduce updated requirements for the preparation and maintenance of audited financial statements under the Federal Decree-Law…
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 blog, we simplify the Interest…
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 Federal Decree-Law No. 47 of…
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 for taxpayers. By establishing clear…
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 are Permitted The FTA may…
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 lacked a structured framework for…
