Corporate Tax in the UAE is regulated by Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Business and its amendments (“Corporate Tax Law”), and its implementing decisions. For the purposes of Article 61(1) of the Corporate Tax Law, a Taxable Person’s opening balance sheet shall be the closing balance sheet prepared for financial reporting purposes (under International Financial Reporting Standards, “IFRS”, or International Financial Reporting Standards for Small and Medium Enterprises, “IFRS for SMEs”, as applicable) on the last day of the Financial Year that ends immediately before their first Tax Period commences.
The transitional rules prescribe adjustments that may be made to Taxable Income in relation to gains and losses which are recognised after the start of the first Tax Period, for certain categories of assets and liabilities owned prior to the first Tax Period, as specified in Mini...