What is the general anti-abuse rule in Corporate Tax?

Article 50 – General Anti-abuse Rule 1. This Article applies to a transaction or an arrangement if, having regard to all relevant circumstances, it can be reasonably concluded that: a. the entering into or carrying out of the transaction or arrangement, or any part of it, is not for a valid commercial or other non-fiscal reason which reflects economic reality; and b. the main purpose or one of the main purposes of the transaction or arrangement, or any part of it, is to obtain a Corporate Tax advantage that is not consistent with the intention or purpose of this Decree-Law. 2. For the purposes of this Article, a Corporate Tax advantage includes, but is not limited to the following: a. A refund or an increased refund of Corporate Tax. b. Avoidance or reduction of Corporate Tax Payable. c. Deferral of a payment of Corporate Tax or advancement of a refund of Corporate Tax. d. Avoidance of an obligation to deduct or account for Corporate Tax. 3. Where the provisions of this Article apply to a transaction or arrangement, the Authority may make a determination that one or more specified Corporate Tax advantages obtained as a result of the transaction or arrangement are to be counteracted or adjusted. 4. If a determination is made under Clause 3 of this Article, the Authority must issue an assessment giving effect to the determination, which may include: a. allowing or disallowing any exemption, deduction or relief in calculating the Taxable Income or the Corporate Tax Payable, or any part thereof; b. allocating any such exemption, deduction or relief, or any part thereof, to any other Persons; c. recharacterising for the purposes of this Decree-Law the nature of any payment or other amount, or any part thereof; or d. disregarding the effect that would otherwise result from the application of other provisions of this Decree-Law, Federal Decree-Law No. 47 of 2022 and its amendments – Unofficial translation (as published by the Ministry of Finance) 53 and can make compensating adjustments to the Corporate Tax liability of any other Person affected by the determination made by the Authority. 5. For the purpose of determining whether this Article applies to a transaction or arrangement, the following must be considered: a. The manner in which the transaction or arrangement was entered into or carried out. b. The form and substance of the transaction or arrangement. c. The timing of the transaction or arrangement. d. The result of the transaction or arrangement in relation to the application of this Decree-Law. e. Any change in the financial position of the Taxable Person that has resulted, will result, or may reasonably be expected to result, from the transaction or arrangement. f. Any change in the financial position of another Person that has resulted, will result, or may reasonably be expected to result, from the transaction or arrangement. g. Whether the transaction or arrangement has created rights or obligations which would not normally be created between Persons dealing with each other at arm’s length in respect of the relevant transaction or arrangement. h. Any other relevant information and circumstances. 6. In any proceeding concerning the application of this Article, the Authority must demonstrate that the determination made under Clause 3 of this Article is just and reasonable. Chapter Sixteen – Tax Registration and Deregistration

Article 14 – Applicability of Certain Provisions of Corporate Tax Law 14.1 The following provisions of Federal Decree-Law No. 47 of 2022 referred to above shall apply to this Decision: (a) Article 50 – General Anti-abuse Rule. (b) Article 56 – Record Keeping. (c) Article 59 – Clarifications. (d) Article 60 – Assessment of Corporate Tax and Penalties. 14.2 For the purposes of Article 14.1 the following applies: (a) Reference to a Taxable Person shall include reference to a Constituent Entity and Parent Entity, as applicable. (b) Reference to Corporate Tax shall include reference to taxes imposed under Cabinet Decision No. 142 of 2024 – As published in the Official Gazette 69 the provisions of this Decision. (c) Reference to Tax Period shall include reference to Fiscal Year. 14.3 For purposes of Article 14.1(d), during the Fiscal Year beginning on or before 31 December 2026 but not including a Fiscal Year that ends after 30 June 2028, no penalties or sanctions shall apply in connection with the filing of a Top-up Tax Return or the Pillar Two Information Return where the Federal Tax Authority considers that an MNE Group has taken reasonable measures to ensure the correct application of the provisions of this Decision. 14.4 The Minister may determine how other provisions of Federal Decree-Law No. 47 of 2022 referred to above may apply to this Decision.

Article 56 – Record Keeping 1. Notwithstanding the provisions of the Tax Procedures Law, a Taxable Person shall maintain all records and documents for a period of (7) seven years following the end of the Tax Period to which they relate that: a. Support the information to be provided in a Tax Return or in any other document to be filed with the Authority. b. Enable the Taxable Person’s Taxable Income to be readily ascertained by the Authority. 2. Notwithstanding the provisions of the Tax Procedures Law, an Exempt Person shall maintain all records that enable the Exempt Person’s status to be readily ascertained by the Authority for a period of (7) seven years following the end of the Tax Period to which they relate.