UAE’s Corporate Tax Law – An Update

In the earlier article published in BCAJ February, 2023, authors had provided an overview of the United Arab Emirates’ [UAE] newly introduced Corporate Tax Law [CT Law]. In this article, the authors endeavor to cover further developments in this respect of the CT Law since the issue of Federal Decree Law No. 27 of 2022 on 9th December, 2022. Since the CT Law has become effective for financial years starting on or after 1st June, 2023, these developments assume lot of significance. A. RECENT DEVELOPMENTS RELATED TO CT LAW The Federal Decree Law No. 27 of 2022 on Taxation of Corporations and Businesses was signed on 3rd October, 2022 and was published in Issue #737 of the Official Gazette of the UAE on 10th October, 2022. The UAE CT Law can be found at the link https://mof.gov.ae/corporate-tax/. FAQs The law has been supplemented with FAQs originally released on 9th December, 2022 comprising of 158 questions and answers, by the Ministry of Finance [Ministry]. The FAQs have been updated and the current Corporate Tax FAQs contain 209 questions and answers that provide guidance on the UAE CT Decree-Law. The FAQs on the CT Law can be found at the link https://mof.gov.ae/corporate-tax-faq/. ‘EXPLANATORY GUIDE’ ON CT LAW The UAE’s Ministry has on 11th May, 2023 issued the ‘Explanatory Guide on Federal Decree-Law No. 47 of 2022 on the ‘Taxation of Corporations and Businesses’