The UAE Federal Tax Authority (FTA) has released a new Corporate Tax Guide titled “Determination of Taxable Income” (CTGDTI1)”, which provides detailed guidance on calculating the taxable income base for corporate tax purposes in the UAE.
The guide is designed to provide general guidance to Taxable Persons for determining their Taxable Income and calculating their Corporate Tax Payable under the Corporate Tax Law. It provides readers with an overview of:
- The adjustments required to be made to the Accounting Income for determining the Taxable Income under the Corporate Tax Law, and
- The adjustments required to be made to the Taxable Income for calculating the Corporate Tax Payable under the Corporate Tax Law.
Specific aspects of the Corporate Tax Law, which are covered in detail in other guides, are not covered here. The FTA has published a number of subject-specific Corporate Tax guides including on Tax Groups, Unincorporated Partnerships, Small Business Relief, Free Zone Persons, Extractive Business and Non-Extractive Natural Resource Business, Qualifying Group Relief, Business Restructuring Relief, and Transfer Pricing.
The guide should be read by any person who wants to know how to determine Taxable Income and calculate the Corporate Tax Payable. It is intended to be read in conjunction with the Corporate Tax Law, the implementing decisions and other relevant guidance published by the FTA.
The relevant articles of the Corporate Tax Law and the implementing decisions are indicated in each section of the guide.
It is recommended that the guide is read in its entirety to provide a complete understanding of the definitions and interactions of the different rules. Further guidance on some of the areas covered in this guide can be found in other topic specific guides.
In some instances, examples have been used to illustrate how key elements of the Corporate Tax Law apply to a Taxable Person for determining their Taxable Income and calculating their Corporate Tax Payable. The examples in the guide show how these elements operate in isolation and do not show all the possible interactions with other provisions of the Corporate Tax Law that may occur. They do not, and are not intended to, cover the full facts of the hypothetical scenarios used nor all aspects of the Corporate Tax regime, and should not be relied upon for legal or tax advice purposes, and are only meant for providing the readers with general information on the subject matter of this guide.
They are exclusively intended to explain the rules related to the subject matter of this guide and do not relate at all to the tax or legal position of any specific juridical or natural persons.
