Ministry of Finance issues new corporate tax decisions on intra-group transfers, determination of taxable income and restructuring relief

Ministry of Finance issues new corporate tax decisions on intra-group transfers, determination of taxable income and restructuring relief

- Clarifying conditions for carrying out business restructuring without causing corporate tax liabilities.

- Streamlining the process of calculating taxable income for UAE businesses.

Abu Dhabi, UAE: The UAE 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. These include Ministerial Decision No 132 of 2023 on Transfers within a Qualifying Group, Ministerial Decision No 133 of 2023 on Business Restructuring Relief, and Ministerial Decision No 134 of 2023 on the General Rules for Determining Taxable Income.

His Excellency Younis Haji Al Khouri, Undersecretary of the Ministry of Finance, said: "The new decisions issued today 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 organizational restructuring. This reflects the Ministry of Finance's commitment to ease the burden of compliance on taxpayers based on international best practice to maintain the UAE's favorable business environment and drive economic growth."

Transfers within a Qualifying Group

The decision on Transfers within a Qualifying Group provides further details on how to claim Corporate Tax relief on transfer of