Tax law and tax disputes

The application form has been approved for excluding from the Unified State Register of Legal Entities (the “USRLE”) a legal entity classified as a small or medium entrepreneur

The Federal Tax Service has approved an application form (form р19001) for the “simplified liquidation” of some small or medium entrepreneurs.

The cash method of accounting in UAE corporate taxation

Article (20)(5)(a) of the Corporate Tax Law  authorizes the MoF to ‘prescribe … the circumstances and conditions under which a Person may prepare financial statements using the cash basis of accounting’. On May 9, 2023 the MoF exercised this authority in Decision No. 114 allowing to ‘prepare Financial Statements using the Cash Basis of Accounting, in any of the following instances: 1. Where the Person derives Revenue that does not exceed AED 3,000,000. 2. In exceptional circumstances and pursuant to an application submitted by the Person to the Authority’. What else do we know about this cash method? 

Tax reclassification of advertising and marketing services provided in favour of foreign companies The practice of conducting tax audits aimed at reclassifying advertising and marketing services provided to foreign companies has spread.

Small Business Relief for Corporate Tax in the UAE The FTA has just released a Corporate Tax Guide on Small Business Relief for taxpayers with Revenue of less than or equal to AED 3,000,000 (approx. USD 800,000).

On changes in tax monitoring Adopted and planned changes in the regulation of tax monitoring.

Distribution from a designated zone in the UAE. Case study

A distribution company (‘Distribution Co’) is incorporated in a free zone in the UAE. This zone is not included in the list of the designated zones. However, Distribution Co buys products and orders services from third parties to transport and store them in a UAE designated zone, and then distributes to the UAE mainland or abroad arranging delivery to the buyers (customers). Does this activity qualify for 0% Corporate Income Tax (CIT)?

Most of the articles of double tax treaties with ‘hostile’ states have been suspended

Pepeliaev Group advises of the implications of the Russian President’s Decree, suspending most of the articles of double tax treaties with ‘hostile’ states.

Numerous amendments to the Tax Code

Pepeliaev Group advises of the contents of amendments to the Russian Tax Code made in connection with the implementation of the main avenues of tax policy for 2024-2026.

A set of amendments have been adopted regarding the tax on excess profit

Pepeliaev Group comments on the law on the tax on excess profit and the associated amendments to the Tax Code.

On the Administrative Penalties for Violations Related to Corporate Tax PGP Tax Consultancy advises that the Prime Minister of the UAE Mohammed bin Rashid Al Maktoum has issued Cabinet Decision No. 75 of 2023 on the Administrative Penalties for Violations Related to the Application of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. This Decision came into effect on 1 August 2023.

Digital Public Consultation related to UAE Corporate Tax in Free Zones The Ministry of Finance is launching a Digital Public Consultation for Free Zone Companies. Responses should be submitted through the form by no later than 2 August 2023.

The Constitutional Court has restricted the Russian Federal Tax Service’s right to audit controlled transactions By Resolution No. 41-P dated 14 July 2023 which was adopted further to an appeal of VimpelCom PJSC, the Russian Constitutional Court held that provisions of the Russian Tax Code are inconsistent with the Constitution which relate to the calculation of the period for a controlled transaction to be audited where an updated notification has been submitted but where information regarding the transaction has already been included in the original notification.