The FTA has published the Corporate Tax Guide ‘Determination of Taxable Income’

The FTA has published the Corporate Tax Guide ‘Determination of Taxable Income’ where it provides guidance on taxable income and corporate tax due calculation.

Calculation of Taxable Income

Accounting Income* (or loss) before tax – as per Financial Statements prepared on accrual basis:

• Any unrealised gain or loss (if election made)
• Exempt Income (loss)
• Reliefs
• Non-deductible expenditure
• Non-arm’s length Related Party/Connected Party transactions
• Other adjustments specified in a Ministerial Decision No. 134

Taxable Income:
– before Tax Loss relief
– Tax Loss carry forward (limited to 75% of Taxable Income)

Taxable Income:
0% – First AED 375,000
9% – Taxable Income above AED 375,000

Businesses electing Small Business Relief are treated as having no Taxable Income for the relevant Tax Period

Corporate Tax Liability
-Withholding Tax Credit / Foreign Tax Credits

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