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Facilities for Small Projects Subject to Corporate Tax

23/12/2022

The Ministry of Finance revealed its intention to offer facilities for small projects subject to corporate and business tax, noting that details of these facilities will be announced during the first half of next year.

The Ministry confirmed, during a workshop, it organized in Dubai for journalists, yesterday, that donations and allocations for expenses related to social responsibility will be taken into account from the taxable profits, which will be applied for the fiscal years that will start on or after the first of next June, at a rate of 9% on the taxable income that It exceeds the amount of 375 thousand dirhams.

The Ministry indicated that the corporate tax law provides a number of facilities that customers can benefit from according to specific conditions, explaining that among these facilities is what is related to tax losses, as this facility allows tax losses to be deducted from taxable income, during subsequent periods, up to Up to 75% of taxable income, and tax losses can be carried forward without any restrictions, provided that certain conditions are met. Also, the facilities also include the transfer of tax losses, so that companies residing in the country can transfer tax losses to another person subject to tax, in the event of joint ownership of 75%, with the fulfilment of the specified conditions.

The Ministry stated that the facilities also include business restructuring, indicating that gains or losses arising from business mergers, legal mergers, restructuring of entity divisions, and other eligible restructurings can be exempted from taxable income when specific conditions are met.

In addition, the Ministry stated that it will launch a program for public awareness of the corporate and business tax during the next month, pointing out that the first session of the public awareness program about the tax will take place on the ninth of January in Abu Dhabi, to be followed by the organization of more sessions in person in the various emirates of the country. Virtually through the digital awareness platform.

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