When did Corporate Tax start in the UAE?

This is not an official Translation: Provisions of Exemption from Corporate Tax for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses Federal Tax Authority Decision No. 7 of 2023 Issued 7 April 2023 (Effective from 1 June 2023) The Chairman of the Board of Directors of the Federal Tax Authority has decided: - Having reviewed the Constitution, - Federal Decree-Law No. 13 of 2016 on the Establishment of the Federal Tax Authority, and its amendments, - Federal Decree-Law No. 28 of 2022 on Tax Procedures, - Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, - Cabinet Decision No. 36 of 2017 on the Executive Regulation of Federal Law No. 7 of 2017 on Tax Procedures, and its amendments, - Decision of the Chairman of the Board of Directors No. 9 of 2021 on the Delegation to the Vice Chairman of the Board of Directors of the Federal Tax Authority, and - Pursuant to the approval of the Board of Directors of the tax registration policy for exempt persons, the policy on the timeline for exempt persons to apply for exemption, and the policy for determining the scenarios where the exemption is approved from an effective date other than the start date of the tax period, at the twenty-fifth meeting held on 28 February 2023. Federal Tax Authority Decision No. 7 of 2023 – Unofficial translation 1

Establishment in the UAE.8 Even though the branch was opened on 1 May لم تخضع،2023 مايو1 على الرغم من افتتاح الفرع في 2023, Company G was not subject to Corporate Tax ،2023 يونيو1 الشركة (ز) لضريبة الشركات حتى تاريخ until 1 June 2023, therefore, the Permanent يونيو1 تعتبر المنشأة الدائمة أنها قد بدأت نشاطها في،ولذلك Establishment shall be deemed to have started its .2023 activity on 1 June 2023. The existence of the Permanent Establishment will, ديسمبر1 سيكون تاريخ وجود المنشأة الدائمة في،بالتالي therefore, be on 1 December 2023, when its place عندما كان مكان األعمال الخاص بها قد أنشأ درجة،2023 of Business had established a degree of وذلك،من االستمرارية لمدة ستة أشهر في دولة اإلمارات permanence of six months in the UAE, assuming all على افتراض استيفاء كل المتطلبات األخرى لوجود منشأة the other requirements to have a Permanent .دائمة Establishment have been met. Company G is a Non-Resident Person with a 1 الشركة (ز) هي شخص غير مقيم لديه منشأة دائمة قبل Permanent Establishment prior to 1 March 2024, ولذلك يجب عليها تقديم طلب التسجيل،2024 مارس so it must submit a Tax Registration application for الضريبي لضريبة الشركات خالل تسعة أشهر من تاريخ Corporate Tax within nine months from the سبتمبر1 أي في موعد أقصاه،وجود المنشأة الدائمة existence of the Permanent Establishment, i.e. by .2024 1 September 2024. If an international agreement for the avoidance of إذا نصّ ت اتفاقية دولية لتجنب االزدواج الضريبي على مدة double taxation provides for a longer duration to ُمحددة أطول لالعتراف بمنشأة دائمة في الدولة من تلك recognise a Permanent Establishment in the UAE تكون أولوية،المنصوص عليها في قانون ضريبة الشركات than the Corporate Tax Law, the provision in the .التطبيق لالتفاقية الدولية international agreement shall prevail. )8( مثال Example 8 Company H was incorporated in the UK on 31 أغسطس31 تمّ تأسيس الشركة (ح) في المملكة المتحدة في .2019 August 2019. On 1 August 2023, Company H entered into an قامت الشركة (ح) بإبرام اتفاقية،2023 أغسطس1 في agreement and began operations to construct a 11/26