Corporate Tax: MoF issues 3 new decisions, includes rules for determining taxable income

Corporate Tax: MoF issues 3 new decisions, includes rules for determining taxable income

The Ministry of Finance ( ) has issued three new ‘Ministerial Decisions’ for the purposes of Federal Decree-Law No 47 of 2022 on the Taxation of Corporations and Businesses. According to the state news agency, , Younis Haji Al Khouri, Undersecretary of the Ministry of Finance, said, “The new decisions aim to simplify the process of determining taxable income in addition to providing tax relief for intra-group transfer of assets or liabilities between members of the same qualifying group or when carrying out specific organisational restructuring. “This reflects the MoF’s commitment to ease the burden of compliance on taxpayers based on international best practices to maintain the UAE’s favourable business environment and drive economic growth.” It provides further details on how to claim relief on transferring assets and liabilities between members of a qualifying group. The decision clarifies that an entity must make an election in their tax return to apply for the relief and must comply with the associated record-keeping requirements. The election to apply the relief for transfers within a qualifying group is irrevocable and will apply to all future tax periods. The decision also clarifies the implications of simultaneous asset or liability exchanges and the tax implications