Introduction
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (“Corporate Tax Law”) was signed on 3 October 2022 and was published in Issue #737 of the Official Gazette of the United Arab Emirates (“UAE”) on 10 October 2022.
The Corporate Tax Law provides the legislative basis for imposing a federal tax on corporations and business profits (“Corporate Tax”) in the UAE. It comprises 20 Chapters and 70 Articles, covering, inter alia, the scope of Corporate Tax, its application, and rules pertaining to compliance and the administration of the Corporate Tax regime.
This Explanatory Guide has been prepared by the Ministry of Finance (the “Ministry”) and provides an explanation of the meaning and intended effect of each Article of the Corporate Tax Law. It may be used in interpreting the Corporate Tax Law and how particular provisions of the Corporate Tax Law may need to be applied.
This Explanatory Guide must be read in conjunction with the Corporate Tax Law and the relevant decisions issued by the Cabinet, the Ministry and the Federal Tax ...