FTA issues new Corporate Tax Guide

The new FTA's Guide is related to the Business Restructuring relief under Article 27 of Federal Decree Law No. 47 of 2022 on the Taxation of Corporations and Businesses (UAE Corporate Tax Law).

The new Guide provides information on:

• transactions covered in scope of Business Restructuring relief,
• conditions to qualify for Business Restructuring relief,
• the consequences of applying the relief,
• the circumstances under which the relief may be revoked, and the consequences of revoking the relief,
• the eligibility requirements for the relief,
• compliance with other provisions of the Corporate Tax Law.

The Guide is advised to be read by any taxable person who intends to transfer all or a part of the business or a part of an independent business to another taxable person; or by any person who potentially becomes a taxable person as a result of such a transfer.

Business restructuring relief is only applicable if certain conditions are met and only in case if the transferor chooses to apply for the relief. In addition, the relief is to be revoked if the transferee eventually sells the transferred business within two years, or if the ownership structure ch...