Analytics and brochures

We elaborate on some controversial issues pertinent to the short-term presence of the Recipient of a Service in the UAE. How could presence of 1.5 months not exceed the threshold of 1 month? Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.

A share premium in the UAE mainland and a free zone is researched in this study. There is no special rule to deal with it in the Corporate Tax Law. Neither is there any direct guidance from either the FTA or the Minister of Finance. International experience and the interpretation of the general rules has been collected to fill the gap. Read more in the article of Andrey Nikonov, Senior Partner.

Investment funds in the UAE may be exempt from the Corporate Income tax. This study focuses on the taxation of UAE investments in foreign investment funds. Funds may be structured as companies or partnerships. This affects their investors. The zero rate for the investors from UAE free zones and (or) participation exemption for a distribution is addressed. We examine tax ramifications in the UAE with examples of the funds in the UK, US, Ireland and the Cayman Islands. At the end, we address profit-sharing arrangements that are not registered in a state and operate without creating any entity. Read more in the article of Andrey Nikonov, Senior Partner.

A resale from a free_zone is zero-rated only if this zone is designated. This case study illustrates that alternatives exist where a designated zone is not required. A regular zone works as well. Moreover, this alternative covers services, intangibles, leases, etc. One downside: this option is circumscribed by sales to group customers. Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.

Intra-group loans are widespread all over the world. Tax rules require taxing interest Arm's Length. But does the provision of a loan require a special financial license? Do you need to expand your trading or other license? How the UAE federal rules and the rules established in the free_zone are combined. We face these issues regularly. Some considerations on them are given in this Case Study. Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.

A company is operating in a UAE free zone. Upon agreement with a bank, the latter invests in shares and other securities on behalf of the Company to earn income associated with the holding and sale of these securities. Does income earned on securities purchased to be held for over 12 months qualify for the 0% Corporate Tax rate in the UAE? Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.