UAE corporate tax: MoF issues 3 new ministerial decisions

UAE corporate tax: MoF issues 3 new ministerial decisions

With the country preparing to welcome the new corporate tax regime from June 1, the UAE Ministry of Finance (MoF) has announced three new ‘Ministerial Decisions’ for the purposes of Federal Decree-Law No 47 of 2022 on the Taxation of Corporations and Businesses, reported the state news agency, WAM.

Younis Haji Al Khouri, Undersecretary of MoF, said, “The three new decisions aim to enhance the flexibility of UAE’s corporate tax regime and ensure a supportive business environment for all sectors.

“The decisions cover several important aspects related to private regulated pension funds and social security funds normally exempt from corporate tax in other countries.

“Designating International Financial Reporting Standards (IFRS) as the applicable accounting standards and further simplifying accounting processes for SMEs reflects the Ministry of Finance‘s commitment to imposing a minimal compliance burden for businesses in scope of the corporate tax regime.”

“In addition, the participation exemption will prevent double corporate tax on the profits of one entity and eliminate international double taxation,” he added.

These include the following:

Ministerial Decision No 114 of 2023 on the Accounting Standards and Methods

Ministerial Decision No 115 of 2023 on Pensions and Social Security Funds

Ministerial Decision No 116 of 2023 on Participation Exemption

How the decision will impact corporate