Only corporate profits will be chargeable to tax as provided in tax law, not the gross revenue earned.

UAE being signatory to the OECD’s global tax deal have no choice but to impose corporate tax. Objective of introducing corporate tax regime is to discourage tax evasion and avoid double taxation further it is an affirmation of UAE’s commitment to transparency & avoidance of harmful tax practices.

Free zone companies will continue to enjoy tax holidays provided they continue to operate in UAE through local agents and subject to specified conditions. Freezone companies which are operating like mainland entities will be subject to tax in the like manner and tax holidays will not be available to them.

Such practices in all tax regimes across the world, meant to avoid tax are under close monitoring of tax authorities & regulated by appropriate tax legislation. It is expected that such payments/expenses will be regulated by pertinent tax legislation and let businesses use it as an avoidance tool.

Tax laws clearly delineate rates and methods of depreciation/amortization leaving a little or no space for creative accounting.

Tax laws usually allow companies or business under common control to be taxed as a group.

On the basis of information available until now, there will not be a withholding regime.

Tax planning is a technique where knowledge of existing tax laws can be used to manage business affairs in a tax efficient manner, aimed to minimize the chargeability of tax and tax liability, using available tax concessions, credits, rebates and other reliefs provided the tax law itself. Tax avoidance is legal; however, tax evasion is illegal and bears legal repercussions for the perpetrator.

Dividends and capital gains earned by a UAE business from its qualifying shareholdings will be exempt from UAE CT. A qualifying shareholding refers to an ownership interest in a UAE or foreign company that meets certain conditions to be specified in the UAE CT law. Certain qualifying intra-group transactions and corporate reorganisations will not be subject to UAE CT provided the necessary conditions are met.