In brief The UAE Ministry of Finance (“MoF”) yesterday announced the introduction of a corporate tax (“CT”) regime that will apply to businesses. It will become effective for financial years starting on or after 1 June 2023. The headlines are that the tax rate will be 0% for taxable income up to AED 375k and 9% on taxable income above AED 375k. Large businesses (expected to be those with revenue above EUR 750m) may be…
In brief Across the globe, transfer pricing disputes have increased following a waterfall of changes, e.g., BEPS, increased transparency, global compliance obligations, intangibility of value creation and digitized taxation. The pandemic added its synchronized impact by provoking countless economic and social ripples on the already turbulent waters. Against this backdrop, the Middle Eastern economies are battling lower oil prices and budget deficits, which in turn increase the pressure for fiscal receipts. In the last couple…
In brief Our Middle East Tax Newsletter aims to provide you with regular updates, insights and practical guidance on the tax implications of doing business in the region. In this issue, we provide a roundup of the current status of Value Added Tax (VAT) and the most recent tax related developments across the Gulf Cooperation Council (GCC), as well as their implications on the financial position of businesses. Oman VAT On 12 October 2020, it…
In brief The United Arab Emirates (UAE) has made significant changes to its Economic Substance regime, with the UAE Cabinet of Ministers recently issuing Cabinet Decision No. (57) of 2020 (the new ESR Resolution). The new ESR Resolution repeals and replaces Cabinet Resolution No. (31) of 2019, as amended, and Cabinet Resolution No. (58) of 2019, which was published in June 2019. The Ministry of Finance also updated its Guidance via Ministerial Decision No. (100)…
Recap Licensees with a financial year-end (“FYE”) of 31 December 2019 were required to submit the economic substance notification pursuant to the Economic Substance Regulations (Cabinet Resolution No. 31 of 2019 or “ESR”) before 30 June 2020[1]. The submission of the economic substance notification is only the first step in complying with the ESR. The next, and most comprehensive, step is the submission of the economic substance report. This needs to be done by 31 December…