Tax Accounting Agents in UAE, Tax Consultants in Dubai, UAE

PRIVATE CORPORATE TAX CLARIFICATION

In the UAE Corporate Tax (CT) regime, through Article 59 of the Federal Decree Law No. 47 of 2022, taxpayers may seek guidance from the Federal Tax Authority (FTA) on specific queries related to tax treatment of certain transactions through the Private Clarification (“Clarification”) mechanism. UAE tax authorities allow the taxpayers to file an application on the FTA website via EMARA tax platform.

In response to the same, FTA issues “the Clarification” which aims to provide guidance on the FTA’s understanding of the tax legislation and its proper application to the facts stated in the application.

Further, to clarify procedural steps for obtaining such Clarification, the FTA has issued Decision No 4 of 2024 (effective from 1 July 2024) amending the FTA’s policy on issuing clarifications and directives and Decision no 5 of 2024 (effective from 1 August, 2024) on refund of Fees of Private Clarification Requests.

The taxpayer must file the application through the FTA web portal by completing a prescribed form, supported by the requisite information, along with the payment of the prescribed fee. "Taxinfouae" can help you navigate the challenges of submitting a UAE corporate tax clarification request to the FTA. We are a brand of "Taxinfouae", which is a registered tax agent in the UAE approved by the FTA.

What is the purpose of corporate tax clarifications ?

Through its corporate tax clarifications, the FTA aims to guide taxpayers on tax legislation and their accurate application to the facts outlined in the application. The FTA provides an answer based on the facts stated in the corporate tax clarification application, but the authority will not verify such facts and will rely solely on the information provided by the applicant.

Application of FTA’s Tax Clarifications

The FTA’s Corporate Tax clarifications apply only to the applicant and the specific transaction or transactions for which the clarification request has been submitted.

The clarification should not be applied to other persons for materially different transactions.

Disadvantages of Corporate Tax Group Formation

"Taxinfouae" experienced corporate tax consultants in Dubai can warn you about the demerits of corporate tax formation:

Triggers joint as well as several liabilities

The AED 375,000 threshold applies collectively to the group rather than to each member separately.

Joining or exiting the group will make the M&A activities complex

Once established, a corporate tax group can be disbanded under certain circumstances only

How "Taxinfouae" can Help with Corporate Tax Grouping

We are the leaders in providing the best corporate tax grouping services in the UAE. Our specialities in this regard include:

Assessment to determine the eligibility for group formation

Advice on whether the grouping is beneficial or disadvantageous to the entities

Help to register with the FTA as a corporate tax group

Support with documentation and records

Assistance in filing the corporate tax group’s tax returns in the UAE

Corporate tax group deregistration support in the UAE

Why Hire "Taxinfouae" Corporate Tax Grouping Services in UAE?

We are registered tax agents in the UAE

We provide customized corporate tax services in the UAE

"Taxinfouae" follows a customer-first approach

We have a dedicated team of tax consultants and chartered accountants

We can audit your financial statements if required

Frequently Asked Questions (FAQs)

1. Are Tax groups eligible for Small Business relief ?
As a Tax Group will be treated as a single Taxable Person, Small Business Relief applies to the Tax Group rather than to the individual members of the Tax Group.

2. Will the Tax Group get a Tax Registration Number ?
Once the application for forming a Tax Group is approved by the FTA, that Tax Group will be issued a separate Tax Registration Number (TRN).

Private Corporate Tax Clarification

PRIVATE CORPORATE TAX CLARIFICATION

What is the purpose of corporate tax clarifications ?

Application of FTA’s Tax Clarifications

Disadvantages of Corporate Tax Group Formation

How "Taxinfouae" can Help with Corporate Tax Grouping

Why Hire "Taxinfouae" Corporate Tax Grouping Services in UAE?

Frequently Asked Questions (FAQs)

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