UAE issues law on taxation of corporations, businesses

UAE issues law on taxation of corporations, businesses

Local News, Uncategorized















ABU DHABI / WAM

The Ministry of Finance (MoF) 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.

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 Ministry of Finance’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,” added Al Khouri.

The decision on Transfers within a Qualifying Group provides further details on how to claim Corporate Tax relief on transferring assets and liabilities between members of a Qualifying Group.

The decision clarifies that an