Ministry of Finance: Decision of the Council of Ministers on determining the relationship of non-resident businesses in the UAE

Abu Dhabi: “The Gulf”
Today, the Ministry of Finance in the United Arab Emirates issued Federal Decree-Law No. of 2022. 47 issued Cabinet Resolution No. 56 of 2023 for the purposes of s. (the “Corporate Tax Act”).
Undersecretary of the Ministry of Finance, Younis Haji Al Quri, said: The corporate tax system’s treatment of income derived from real estate in the UAE and other immovable funds owned by foreign legal entities is in line with international best practices. Property generated from immovable funds is taxable in the country of residence.
This naturally ensures that the corporate tax law in the UAE incorporates aspects that respect international tax principles and ensures neutrality and equality between local and foreign companies deriving income from immovable funds in the UAE.
Foreign companies and other non-resident legal entities are subject to UAE corporate tax on income derived from real estate and other immovable property located in the country and therefore must be registered in the UAE for corporate tax purposes. This applies to immovable funds held or used in business and immovable funds held for investment purposes in the country.
Non-resident legal entities owning immovable property in the UAE are subject to corporate tax based on net income, which allows deduction of relevant expenses that meet the conditions set out in the Corporate Tax Law when calculating taxable income.
In general, real estate investment income derived from immovable property owned by foreign individuals or residents of the country – directly or through a trust, a trust or other means deemed financially transparent for the purposes of corporate tax in the UAE – is not subject to the formal general corporate tax and is a licensed business activity. Not. Also, REITs and other qualified investment funds may be exempt from corporate tax on income earned by investing in immovable funds if relevant conditions are met.

See also  Saudi Arabia seeks to build a global logistics base by boosting industrial exports
  • Bill Dittman

    "Freelance alcohol fan. Coffee maven. Musicaholic. Food junkie. Extreme web expert. Communicator."

    Related Posts

    How to Choose the Right Mattress: Find the Best Fit for You

    Quality sleep is something that many people aren’t getting enough of nowadays. There are sleep disorders such as sleep apnea and insomnia that can negatively affect your health.  Your busy…

    Forex Brokers Review: Is ITBFX A Safe Broker?

    What Is the ITB Broker? ITB Broker has established itself as a reputable forex broker in the dynamic world of trading. Inspired by the star Brachium, which symbolizes justice in…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    How to Choose the Right Mattress: Find the Best Fit for You

    How to Choose the Right Mattress: Find the Best Fit for You

    Emils Kerimovs on Wealthtech Revolution: Investing in the Middle East and Africa

    Emils Kerimovs on Wealthtech Revolution: Investing in the Middle East and Africa

    Forex Brokers Review: Is ITBFX A Safe Broker?

    Forex Brokers Review: Is ITBFX A Safe Broker?

    Best Kitchen Renovation Ideas to Upgrade Your Space

    Best Kitchen Renovation Ideas to Upgrade Your Space

    Where to Get a Professional Massage in Dubai

    Where to Get a Professional Massage in Dubai

    Dog Spay Surgery 101: Benefits, Risks, Cost, and Aftercare

    Dog Spay Surgery 101: Benefits, Risks, Cost, and Aftercare