VAT & TAX
Frequently Asked Questions
What are you wondering?
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Tax losses from one group company may be used to offset taxable income of another group company, provided certain conditions are met
Further information on the group loss utilisation rules will be provided in due course
A UAE group of companies can elect to form a tax group and be treated as a single taxable person, provided certain conditions are met
A UAE tax group will only be required to file a single tax return for the entire group
Withholding tax is tax collected at source by the payer on behalf of the recipient of the income
Withholding taxes exist in many tax systems and are typically used in respect of dividends, interest, royalties and similar payments
UAE withholding tax will not be applicable on domestic and cross-border payments of any nature under the UAE CT regime
Foreign CT paid on UAE taxable income will be allowed as a tax credit against the UAE CT liability
Transfer pricing rules seek to ensure that transactions between related parties are carried out on arm’s length terms (i.e. as if the transaction was carried out between independent parties)
UAE businesses will need to comply with transfer pricing rules and documentation requirements set with reference to the OECD Transfer Pricing Guidelines
More information on the registration process and ongoing compliance obligations for businesses will be provided in due course
Only one CT return will need to be filed per financial period. No provisional or advance CT filings will be required
A financial period is generally a year
The CT return will need to be filed electronically. Further guidance will be issued in this regard in due course
UAE businesses will not be required to make advance UAE CT payments
Similar to other taxes in the UAE (e.g. VAT), businesses will be subject to penalties for non-compliance with the CT regime. Further information on the UAE CT compliance obligations and applicable penalties will be released in due course
The EmaraTax system is in the final stages of readiness. The exact launch date will be announced soon.
EmaraTax will significantly enhance the way that taxpayers can access the FTA’s services, pay their taxes and obtain refunds. The new platform also greatly enhances the ability of the FTA to administer taxes in the UAE, enables better, faster decision-making and earlier engagement with taxpayers that need support.
Your account history will be automatically transferred to EmaraTax when the system launches.
No, EmaraTax will include all of the functions that are currently available on the legacy system.
Whilst a number of important improvements have been made to the way you will access and use our systems, we are striving to limit the impact on users. We would expect that most current users will need to spend approximately 3 hours in preparing for the new system including, updating user account details; watching “how to” videos and reading user manuals.
If you are a registered user, you will be notified via your registered email on the next steps. Meanwhile, you can follow us on social media to stay up to date with EmaraTax developments.
Over the course of the next few weeks, the FTA will release more information about the features of EmaraTax and how to transition to the new system.