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.
