Salman Sajid Rathore

Experts say grey areas like the availability of 0% corporate tax benefit on high sea sales, and investment in cryptocurrencies addressed in the new FTA guide

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UAE Introduces New Tax Exemption Rules for Free Zone Companies 👇🏻 Experts note that the new FTA guidelines clarify ambiguous areas such as the availability of 0% corporate tax benefits on high sea sales and investments in cryptocurrencies. Companies operating in UAE free zones must meet specific criteria to qualify for a 0% corporate income tax rate and be recognized as a Qualifying Free Zone Person (QFZP), as outlined in the latest Federal Tax Authority (FTA) guide. The disqualification criteria explained, stating: "If a free zone entity earns non-qualifying income exceeding Dh5 million or 5 percent of its total income, then the entire income of the free zone entity becomes disqualified." For more such updates.. Stay tuned 😊

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UAE's New Corporate Tax: A Strategic Move for Economic Growth In October 2021, 136 countries agreed to implement a new global minimum tax. Consequently, in 2022, the UAE announced the introduction of a 9% corporate tax, to be implemented by June 2023. This announcement elicited mixed reactions from individuals and entrepreneurs, as many were concerned about the impact on the tax-free climate that had been a major selling point for businesses migrating to the UAE. Initially, I was also worried about this development. However, upon deeper investigation, I discovered that this move had numerous positive aspects and was, in fact, a strategic decision by the UAE government. Allow me to explain why: The new tax laws introduced improved compliance and anti-money laundering measures, which are crucial for any vibrant and global economy, especially for the UAE as the major trading hub in the Middle East. We can already see positive outcomes from this initiative, as the UAE has been removed from the Financial Action Task Force (FATF) Grey List. This further strengthens its efforts to shed the perception of being merely a tax haven, as often viewed by Western countries. These developments are likely to attract many foreign multinational financial companies to expand their operations in the UAE, which will enhance the current banking climate. There are already reports of Revolut considering expanding its digital banking license to the UAE, and we can expect more companies to follow suit. You might be thinking, "But I still have to pay 9% tax instead of 0%." To this, I would say two things: It's likely much lower than what you're paying in your home country. Who says you have to pay the 9% tax? To determine if you qualify for this tax rate, feel free to book a consultation using the link below. https://lnkd.in/gRuki3EC

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Tax Times– Insights into the Saudi Tax Scene #3 -Tax considerations for non-resident contractors engaged in construction projects in Saudi Arabia. As the Kingdom of Saudi Arabia (KSA) continues to attract non-resident contractors for its construction and large-scale projects, it's crucial to understand the intricate tax landscape that awaits them. This landscape is characterized by various issues, including Zakat as applicable to Saudi/GCC held entities, withholding tax (WHT), the establishment of a Permanent Establishment (PE), inbound Tax structuring options, specific VAT guidance for the construction sector and the implications of subcontractor and EPC contractual arrangements. WHT in KSA applies to several types of outbound payments, such as consulting service fees, management fees and interest, which can increase transaction costs for contractors. To mitigate these costs, contractors may leverage double tax treaties, provided they manage the risk of creating a taxable PE in KSA. A PE is established when service providers have a physical presence in the country, which could lead to significant taxation issues given the manner in which the KSA tax authorities interpret a PE risk in certain instances. Review of contractual arrangements especially with regard to proper classification of payments, employee secondments, subcontractor arrangements, tax gross up clauses, in addition to reporting and filing obligations are crucial to manage potential tax risks. Contractors should also consider the tax efficiency of their operational and holding structures, including profit repatriation and exit strategies. Joint ventures and fund structures come with their own tax implications, necessitating thorough analysis. Transfer pricing rules applicable to all tax and zakat entities in KSA have heightened scrutiny on transactions between related entities, making risk management and efficiency crucial. For those seeking government contracts, compliance with KSA's Regional Headquarters (RHQ) rules is essential, and understanding the evolving tax implications is key. Additionally, the possible introduction of special tax rules in some of the new economic zones and cities may affect tax considerations for contractors in these zones. Customs duties relief is another area where contractors can find advantages through KSA regulations, including temporary relief regimes. It's important to ensure consistency between the arm’s length price used in transfer pricing and the values declared for customs purposes. Upcoming: The conversation will continue next with a focus on key areas to focus on while undertaking a tax and zakat due diligence in Saudi Arabia. #sauditax #zakat #transferpricing #internationaltax #corporatetax #bepspillar2 #taxplanning #saudiarabia #uae #megaprojects #construction #zatca #taxincentives #taxtreaties #vat #duediligence

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Our GCC IPO+ Watch for Q1 2024 is out now! In Q1 of 2024 IPO, proceeds reached $1.2bn with 10 IPOs across the GCC. The IPO landscape in the Middle East is poised for continued strength in 2024, with a robust pipeline of IPOs, including private sector companies looking for liquidity and access to capital. Read more here: https://pwc.to/3JEk2dg  #IPO #CapitalMarkets

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Attention: Qatar Moves Ahead with Global Minimum Tax – Key Changes Coming Soon Qatar has made further progress towards formalizing the introduction of the Global Minimum Tax. Following the amendments in February 2023, which underscored Qatar's commitment to this global initiative, the Council of Ministers has now approved a draft law amending certain provisions of the Income Tax Law issued by Law No. (24) of 2018. The proposed amendments have been referred to the Shura Council and should be subsequently published in the official gazette. It is expected that the Shura Council will approve these amendments during its December session, allowing the effective date to be set prospectively to 1 January 2025, in line with discussions during the public consultation stage. #Qatar #GlobalMinimumTax #OECD #CorporateTax #TaxReform #Business #G20 #InternationalTax PwC Middle East

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The Privatisation and Corporatisation Board’s Q1 2024 review of state-owned enterprises (SOEs) report shows profits have declined, while revenue and assets have grown, and some companies face liquidity and economic challenges. Read More: https://lnkd.in/dPyJdshT

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UAE to Introduce 15% Corporate Tax for Large Multinationals The UAE has taken a significant step by announcing a new 15% corporate tax for large multinational companies, effective January 1, 2025. The reform represents a substantial change in the UAE’s corporate tax landscape from the current rate of 9%. It is consistent with the OECD’s two-pillar program to set up a global minimum corporate tax and will apply to multinationals with global revenues exceeding €750 million ($793 million) or more in at least two of the four financial years immediately preceding the financial year in which the tax applies. This move reflects the UAE’s commitment to fostering a fair and transparent global tax system in a world increasingly shaped by digitalization and globalization. It also underscores the nation’s proactive approach to aligning with international standards, complementing its broader initiatives to enhance economic competitiveness and sustainability. For businesses, this development calls for a closer look at their tax structures, compliance mechanisms, and long-term planning. With economic policies evolving globally, companies must adapt and ensure adherence to regulatory requirements. As the UAE seeks to combine its position as a business-friendly hub with its global commitments, this policy shift ushers in a new era of regional corporate taxes.

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This morning UAE FTA has published Free Zone Corporate Tax guide. This is a non-binding document but it illustrates some key elements that aid interpretation and transparency. Free Zones in the UAE represent the backbone for the economy, thus I’m sure good news is about to uncover. Stay tuned or get in touch in case of your business queries. Alliance Prime Accounting and Tax Consultancy #fta #corporatetax

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"UAE Corporate Tax Registration: Deadline Approaching! 🕒 Ensure Timely Compliance by May 31, 2024 📝 Avoid Penalties and Protect Your Business Interests 🚫 Register Now and Maintain Regulatory Alignment 💼 Stay Proactive and Mitigate Potential Risks ⚠️" #UAECorporateTax #BusinessRegistration #DeadlineAlert"

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MENA IPOs shows resilience despite elevated uncertainty and market volatility. The broadening of IPO sectors is opening doors to more diverse investor opportunities. See detail finding in MENA IPO EYE Q3 2024 report. #IPO #MarketTrends #Investment #EYMENA

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The UAE has announced the implementation of a 15% domestic minimum top-up tax for multinational companies starting in 2025. This policy targets corporations with consolidated revenues exceeding €750 million (AED 3.15 billion) and aligns with the OECD’s global tax framework. The aim is to ensure fair tax contributions from large enterprises while reinforcing the UAE’s commitment to international tax standards. Despite this reform, the UAE maintains its reputation as a pro-business destination, balancing global compliance with its low-tax appeal. Businesses operating in the region are encouraged to reassess their financial and tax strategies, enhance compliance measures, and seek expert advice to align with these upcoming regulations. This move reflects the UAE’s strategic approach to remaining competitive on the global stage while addressing evolving international tax policies. It’s a significant step in ensuring sustainable growth and equitable contributions from multinational enterprises. For more information: #UAE #TaxReforms #BusinessGrowth #GlobalCompliance #Sustainability

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The discussion on UAE Corporate Tax on Asianet Plus today at 9:30 UAE time, featuring Mr. Dulkifil Abdul Rasheed, will likely cover several key aspects of the new tax regime implemented by the UAE. Starting from June 1, 2023, the UAE introduced a federal Corporate Tax (CT) applicable to businesses across all emirates. The tax is set at 9% for taxable income above AED 375,000, with a 0% rate for income up to that threshold. This move is part of the UAE’s strategy to align with international standards, enhance its business environment, and ensure tax transparency. #asianet #uaetax #corporatetax #asianetplus #uaecorporatetax

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The FTA has just released the comprehensive UAE Corporate Tax (CT) Return Guide (176 pages). This guide outlines the structure of the CT return, which will consist of 9 sections, 20 schedules, and approximately 555 questions/data inputs (depending on applicability). This is set to be one of the most detailed data capture exercises by the FTA as part of the CT return submission process. Key Observations: Q 4.4.1 - This question refers to the MNE group, AED 3.15bn revenue threshold. Could this be linked to Pillar 2 identification? Q 9.3.9 - This section addresses connected party/transfer pricing applicability threshold of AED 500k. The related party schedule introduces a new AED 40m aggregated related party transaction threshold and a AED 4m disclosure threshold (TP Form), which is welcome news. Q 9.5.1 - This appears to allow for adjustments to prior-year inaccuracies where the tax impact is AED 10k or less, which can be corrected in the current return. Overall Considerations: Filing the CT return will be a complex task if all schedules are applicable to your business. It will require significant planning, data gathering, and coordination. Start your preparation 😁

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The UAE continues to lead as a global economic hub by aligning with international tax standards. Starting January 1, 2025, the UAE will implement a 15% Domestic Minimum Top-up Tax (DMTT) on multinational enterprises with global revenues exceeding €750 million. This move supports the OECD’s Global Minimum Tax (GMT) framework, which ensures fair taxation across borders and curbs tax base erosion. By adopting GMT, the UAE reinforces its position as a transparent, globally integrated economy while safeguarding its appeal as a destination for international businesses. This follows the successful introduction of a 9% corporate tax in 2023, reflecting the nation’s focus on strengthening non-oil revenues and enhancing its fiscal sustainability. As the global economy evolves, the UAE’s proactive approach ensures it remains a competitive and compliant leader in fostering responsible business practices. https://lnkd.in/ddtmU8Zs

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In a landmark move to address the evolving needs of the UAE’s dynamic business landscape, leading accounting and advisory firms have formed a strategic alliance. This collaboration unites Ahmad Alagbari Chartered Accountants, two associated audit firms led by Syed Asif Zaman, and Firm Harbour Aegis, an alliance of three advisory firms headed by Salman Sajid Rathore. https://shorturl.at/raRIH

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Clearly articulated

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All Gulf Cooperation Council (GCC) states are set to implement a minimum corporate income tax rate of 15%, aligning with the OECD's Inclusive Framework on Base Erosion and Profit Shifting (BEPS). This initiative follows recent announcements from the UAE, Bahrain, Qatar, and Kuwait, marking a pivotal shift in the region's tax policies aimed at enhancing transparency and combating tax base erosion. Key Details of the New Tax Regime Global Minimum Tax Implementation: The GCC countries are adopting a Global Minimum Tax (GMT) of 15%, which will apply to multinational enterprises (MNEs) with consolidated revenues exceeding EUR 750 million. This includes mechanisms like the Qualified Domestic Minimum Top-Up Tax (QDMTT) and the Pillar Two Income Inclusion Rule (IIR) to ensure compliance146. Current Tax Rates: Oman already has a corporate tax rate of 15%. Saudi Arabia maintains a corporate tax rate of 20%, with an additional 2.5% zakat for GCC shareholders in Saudi companies. The implications of zakat under the new tax regime are still being clarified24. Implications and Next Steps The introduction of this corporate tax rate represents a commitment from GCC states to international tax reforms. While this move may pose challenges, it also opens avenues for MNEs to improve compliance frameworks and develop sustainable tax strategies. Businesses are encouraged to prepare strategically to navigate this evolving landscape effectively356. Conclusion The GCC's collective decision to implement a minimum corporate income tax reflects a broader trend towards standardized international taxation practices. This transition is expected to reshape the region's economic environment significantly, particularly for large multinationals operating within these jurisdictions. #beps #pillar2 #gcc #saudiarabia #uae #qatar #oman #bahrain #qatar #kuwait #zakat #oecd #tax #internationaltax #globalminimumtax

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A well summarised analysis of Transfer Pricing impact on Shared Services and Intra Group Services

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