On 6 November 2023, the Federal Tax Authority (FTA) of the United Arab Emirates (UAE) released the Corporate Tax Guide on Taxation of Foreign Source Income – CTGFSI1.

The guide includes:

  • Definition and examples of foreign source income
  • Identifying taxpayers subject to tax on foreign source income
  • Exploring the timing of taxation for foreign source income
  • Determining taxable and exempt income related to foreign source income
  • Explaining the concept of foreign tax credit and its applicability
  • Analyzing tax scenarios for individuals and permanent establishments (PEs)
  • Examining foreign source income from transactions with related parties
  • Calculating foreign source income
  • Exploring different methods of calculating and utilizing foreign tax credits

This guide is essential for anyone conducting business or receiving foreign income from the UAE.