FTA Decisions

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FTA Decisions on Corporate Tax (CT) in the UAE

FTA Decisions on Corporate Tax (CT) in the UAE are issued by the Federal Tax Authority (FTA) to provide detailed guidance on the implementation of the UAE Corporate Tax Law (No. 47 of 2022). These decisions focus on administrative aspects of the law, such as tax administration, compliance procedures, and enforcement mechanisms, ensuring businesses can effectively adhere to tax obligations.

Key Aspects of FTA Decisions on Corporate Tax:

Tax Registration and Filing:

- FTA decisions outline the process for tax registration, including requirements for businesses to register for corporate tax and file their tax returns electronically.
- They provide guidance on filing deadlines, the format of tax returns, and the required information businesses must submit.

Transfer Pricing Documentation:

- Clear instructions on how businesses should maintain and submit transfer pricing documentation to ensure compliance with the arm’s length principle in transactions between related parties.

VAT and Corporate Tax Interaction:

- FTA decisions clarify how Value Added Tax (VAT) interacts with corporate tax, including how businesses should handle VAT on transactions subject to corporate tax and vice versa.

Audit and Inspection:

- Guidelines for tax audits conducted by the FTA, outlining the process for assessing compliance, reviewing financial records, and investigating potential discrepancies.
- FTA decisions explain the penalties for non-compliance, including fines for late filings, incorrect reporting, or failure to provide requested documentation.

Tax Assessments and Refunds:

- Procedures for businesses to follow if they disagree with an FTA tax assessment. It also covers how to apply for tax refunds under certain conditions.

Economic Substance:

- Instructions on the economic substance requirements for businesses operating in specific sectors, ensuring compliance with the rules designed to prevent profit shifting and base erosion.

Penalties and Dispute Resolution:

- Specific penalties for failure to comply with the corporate tax rules, including fines and interest. The decisions also provide information on the process for appealing tax assessments or decisions made by the FTA.