Analytics and brochures
Some details related to de minimis in UAE Corporate Taxation has been addressed in this Case Study. Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.
On 27 October 2023, the UAE’s Minister of Finance released Decision No. 265 replacing Decision No. 139 of 1 June 2023, previously in effect, with an updated list of Qualifying Activities. The replacement shall be applied retroactively from 1 June 2023. Paragraph (с) of Cl. 1 of Art. 2 of Decision No. 265 of 27 October 2023 qualifies the ‘Trading of Qualifying Commodities’ for the 0% Corporate Tax rate. Deciphering what this trading is, para (c) of Cl. 3 of the same Article specifies: ‘Trading of Qualifying Commodities means the physical trading activities of Qualifying Commodities and associated derivative trading used to hedge against risks involved in such activities’. Article 1 of the Decision includes in Qualifying Commodities ‘Metals, minerals, energy and agriculture commodities that are traded on a Recognized Commodities Exchange Market in raw form’. The same Article defines “Recognized Commodities Exchange Market” as ‘any commodities exchange market established in the State that is licensed and regulated by the relevant Competent Authority, or any commodities exchange market established and recognized outside the State of equal standing’. Let’s determine which activity with the above Commodities is Qualified. Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.
A distribution company is incorporated in a designated zone in the UAE. Its facilities are located in the designated zone from where its employees buy the goods in China, resell them to Indian customers, and arrange shipment of the bought goods to an Indian customer for subsequent resale. The goods do not enter the UAE and its free zone (designated zones). On 27 October 2023, the MoF issued Decision No. 265, replacing Decision No. 139 with a list of Qualifying and Excluded Activities. The rules concerning distribution from or in a designated zone haven’t been substantially changed. Does such distribution of goods outside of the UAE qualify for 0% Corporate Income Tax (CIT)? Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.
The UAE’s FTA issued Transfer Pricing Guide No. CTGTP1 this week. The FTA sets forth the following hierarchical algorithm... Read more in the article of Andrey Nikonov, Senior Partner.