UAE CORPORATE TAX

No. Only juridical persons can benefit from the Free Zone Corporate Tax regime. This includes any public or private joint stock company, limited liability company, limited liability partnership and other types of incorporated entities that are established under the rules and regulations of the Free Zone. A branch of a foreign or domestic juridical person that is registered in a Free Zone would also be considered a Free Zone Person.

A foreign company can become a Free Zone Person by transferring its place of incorporation to a UAE Free Zone and continue to exist as an entity incorporated or established in a Free Zone.

Yes. A foreign or mainland company that transfers its place of incorporation to a Free Zone and as a result becomes subject to the applicable laws and regulations of the Free Zone in the same manner as an entity that was incorporated in a Free Zone shall be considered a Free Zone Person.

A foreign company will not be considered a Free Zone Person solely on the basis of being considered a Resident Person for Corporate Tax purposes by virtue of being effectively managed and controlled in a Free Zone.

To benefit from the Free Zone Corporate Tax regime, a legal entity must be established or registered in one of the Free Zones eligible for the 0% Corporate Tax rate and meet the following criteria:

• maintain adequate substance in a Free Zone.
• derive Qualifying Income.
• not have made an election to be subject to the regular UAE Corporate Tax regime.
• comply with arm’s length principle and transfer pricing rules and documentation requirements.
• Prepare and maintain audited financial statements.

Yes. A Qualifying Free Zone Person that continues to meet all relevant conditions will automatically benefit from the Free Zone Corporate Tax regime. There is no need to make an election or submit an application to the Federal Tax Authority.

A Qualifying Free Zone Person that does not want to benefit from the Free Zone Corporate Tax regime can elect to apply the standard UAE Corporate Tax regime instead.

Yes. In addition to maintaining audited financial statements and adequate transfer pricing documentation, a Qualifying Free Zone Person will need to maintain all relevant documents and records to evidence its compliance with the conditions to be considered a Qualifying Free Zone Person. This includes documentation in relation to the substance maintained in a Free Zone and the types of activities performed and income earned.

Failure to meet one or more of the conditions will result in a disqualification from the Free Zone Corporate Tax regime for five (5) Tax Periods, starting from the beginning of the Tax Period in which any of the conditions are no longer met. During this period, the Free Zone Person will be subject to the standard UAE Corporate Tax regime on all its Taxable Income.

Earning non-Qualifying Income disqualifies a Qualifying Free Zone Person from the Free Zone Corporate Tax regime, unless the income is attributable to a domestic or foreign Permanent Establishment or is non-Qualifying Income earned from Immovable Property located in a Free Zone.

There are de minimis requirements that prevent a Qualifying Free Zone Person losing the benefit of the Free Zone Corporate Tax regime as a result of earning a small or incidental amount of non-Qualifying Income.

Yes. Qualifying Free Zone Persons must transact with their Related Parties and Connected Persons in the UAE and abroad on arm’s length terms and maintain appropriate transfer pricing and other supporting documentation. This requirement applies irrespective of whether the Related Party or Connected Person also benefits from the Free Zone Corporate Tax regime, is subject to the standard UAE Corporate Tax regime or is subject to the tax regime of a foreign country.

A Qualifying Free Zone Person must prepare and maintain adequate documentation to support the arm’s length pricing of transactions with related parties, in accordance with the Corporate Tax Law.

A Qualifying Free Zone Person that meets the conditions prescribed by the Ministerial Decision No. 97 of 2023 Requirements for Maintaining Transfer Pricing will also need to prepare and maintain a transfer pricing master file and local file.

Yes. A Qualifying Free Zone Person must prepare and maintain financial statements that are audited by an independent audit firm.

No. A Qualifying Free Zone Person cannot be a member of a Tax Group or be part of a Qualifying Group. A Qualifying Free Zone Person can also not transfer or receive Tax Losses or claim Small Business Relief or Business Restructuring Relief.

Yes. All Free Zone Persons will be required to register, obtain a Tax Registration Number, and file a Corporate Tax return, irrespective of whether they are a Qualifying Free Zone Person or not.

Under corporate tax regulations, there are no restrictions on cash payments; however, companies must maintain thorough records, including invoices and payment receipts.

Yes, there are no restrictions on employing any relative in the business, but arm’s length principles need to be checked for payment to relatives.

The Taxable Income for a Tax Period will be the accounting net profit (or loss) of the business, after making adjustments for certain items specified in the Corporate Tax Law and related implementing decisions.

The accounting net profit (or loss) of a business is the amount reported in its financial statements prepared in accordance with International Financial Reporting Standards (IFRS).

Adjustments to the accounting net profit (or loss) will need to be made for the following items:
1. Unrealised gains and losses (subject to the election made regarding the application of the realisation principle);
2. Exempt Income such as qualifying dividends and capital gains;
3. Gains or losses arising on transfers within a Qualifying Group;
4. Gains or losses arising on transfers arising from qualifying business restructuring transactions as per article (27) of the corporate tax law;
5. Deductions which are not allowable for Corporate Tax purposes;
6. Transactions with Related Parties and Connected Persons;
7. Transfers of Tax Losses within a group where the relevant conditions are met;
8. Incentives or tax reliefs; and
9. Any other adjustments as specified by the Minister.

Each Taxable Person will be subject to the 0% Corporate Tax rate on their Taxable Income up to and including AED 375,000, irrespective of whether they conduct one Business or multiple Businesses. This does not include Qualifying Free Zone Persons, who will be subject to the 9% Corporate Tax rate on all of their non-Qualifying Income.

Each legal entity or natural person that is subject to UAE Corporate Tax is generally considered as one Taxable Person for Corporate Tax purposes. Where multiple legal entities apply to form a Tax Group and be treated as a single Taxable Person, these entities will only benefit from one AED 375,000 threshold. In other words, the AED 375,000 threshold for a Tax Group is not increased based on the number of legal entities that are part of the Tax Group.

Where the Federal Tax Authority establishes that a Taxable Person has artificially separated its business into several separate Taxable Persons to benefit from the AED 375,000 threshold more than once, this will be considered an abusive arrangement that can result in penalties and Taxable Income adjustments.

A natural person shall be subject to UAE Corporate Tax in case they derive an annual Turnover exceeding AED 1 million from a ‘Business’ or ‘Business Activity’ in the UAE, as defined by the Corporate Tax Law and in Cabinet Decision No. 49 of 2023.

In the case where several Businesses or Business Activities are conducted by one natural person, the aggregate of all Businesses and Business Activities will be considered when determining whether it exceeds the AED 1 million annual Turnover threshold.

UAE Corporate Tax does not apply on the salary and wages derived by employees in consideration for their services under an employment contract, including all allowances and bonuses.

Yes, if the donation is made to a charity that is listed in Cabinet Decision No. 37 of 2023 or any subsequent relevant decisions as a Qualifying Public Benefit Entity.

Small Business Relief releases certain businesses from the obligation to calculate and pay Corporate Tax and from having to comply with the regular Corporate Tax reporting requirements.

An eligible Taxable Person with Revenue of AED 3 million or below in the relevant Tax Period that ends on or before 31 December 2026 and prior Tax Periods can elect to be treated as having no Taxable Income in that Tax Period and will not have to calculate its Taxable Income or file a full Corporate Tax Return.

Yes. A Qualifying Free Zone Person that continues to meet all relevant conditions will automatically benefit from the Free Zone Corporate Tax regime. There is no need to make an election or submit an application to the Federal Tax Authority.

A Qualifying Free Zone Person that does not want to benefit from the Free Zone Corporate Tax regime can elect to apply the standard UAE Corporate Tax regime instead.

Failure to meet one or more of the conditions will result in a disqualification from the Free Zone Corporate Tax regime for five (5) Tax Periods, starting from the beginning of the Tax Period in which any of the conditions are no longer met. During this period, the Free Zone Person will be subject to the standard UAE Corporate Tax regime on all its Taxable Income.

Yes. All Free Zone Persons will be required to register, obtain a Tax Registration Number, and file a Corporate Tax return, irrespective of whether they are a Qualifying Free Zone Person or not.

There are no specific rules or limitations for the deductibility of payments made to a Qualifying Free Zone person. The general rules under Corporate Tax Law will determine whether and to what extent payments made to a Qualifying Free Zone Person qualify as deductible business expenditure.

No. UAE branches of a domestic or a foreign juridical person are an extension of their “parent” or “head office” and, therefore, are not considered separate juridical persons.

UAE branches of a UAE resident juridical person are not required to separately register or file for UAE Corporate Tax.

The income of foreign branches or Foreign Permanent Establishments of a UAE business will be included in the Taxable Income and UAE Corporate Tax Return of their UAE “head office”, unless the UAE “head office” elects to claim an exemption for its foreign branch profits. This exemption is available for foreign branch profits that have already been subject to tax in the foreign jurisdiction.

A UAE branch of a foreign business will be subject to Corporate Tax and is required to register for Corporate Tax purposes if the branch constitutes a Permanent Establishment in the UAE for the foreign business under the Corporate Tax Law. The registration functionality for UAE branches of foreign businesses will be available in due course.

The Taxable Income for a Tax Period is the accounting net profit (or loss) of the business, after making adjustments for certain items as defined in the Corporate Tax Law.

The accounting net profit (or loss) would need to be adjusted for the items prescribed in the UAE Corporate Tax Law, including:

1. Unrealised gains/losses (subject to the election made regarding the application of the realisation principle);
2. Exempt Income such as dividends;
3. Gains or losses arising on transfers within a Qualifying Group;;
4. Gains or losses arising on transfers under business restructuring transactions as per article (27) of the corporate tax law;
5. Deductions which are not allowable for Corporate Tax purposes;
6. Adjustments for transactions with Related Parties and Connected Persons;
7. Transfers of Tax Losses within a group where the relevant conditions are met.
8. Any incentives or tax reliefs; and
9. Any other adjustment specified by the Minister.

The following income is exempt from UAE Corporate Tax:

1. Dividends and other profit distributions received from UAE incorporated or resident juridical persons;
2. Dividends and other profit distributions received from a Participating Interest in a foreign juridical person (see Question [200] [Are all dividends and other profit distributions from foreign juridical persons exempt from UAE Corporate Tax?]);
3. Certain other income (e.g., capital gains, foreign exchange gains / losses and impairment gains or losses) from a domestic or foreign Participating Interest (see Question [202] ‘what is the participation exemption regime’);
4. Income from a foreign branch or Permanent Establishment where an election is made to claim the “Foreign Permanent Establishment” exemption; and
5. Income earned by non-residents from the operation or leasing of aircrafts or ships in international transportation where certain conditions are met (see Question [276] ‘How will international airlines and shipping companies be taxed?’).

Subject to the Participation Exemption requirements, dividends and other profit distributions earned from a Participating Interest in a foreign juridical person are exempt from UAE Corporate Tax. A Participating Interest is a 5% or greater ownership interest or has an acquisition value of at least AED 4,000,000 in the capital or equity of the foreign juridical person that meets the conditions of the Participation Exemption regime.

Under the Participation Exemption regime, capital gains earned from a Participating Interest in either foreign and domestic juridical persons are exempt from UAE Corporate Tax. Also, there is relief from Corporate Tax for capital gains that may arise on intra-group transfers and reorganisation and restructuring transactions.

Other capital gains would be treated as ordinary income and subject to Corporate Tax.

Generally, business expenses incurred to derive Taxable Income are deductible, subject to exceptions and restrictions specified in the Corporate Tax Law. The timing of the deduction may vary for different types of expenses and the accounting method applied. For capital assets, expenditure would generally be recognised by way of depreciation or amortisation deductions over the economic life of the asset or benefit.

Expenditure that has a dual purpose, such as expenses incurred for both personal and business purposes, will need to be apportioned with the relevant portion of the expenditure treated as incurred wholly and exclusively for the purpose of the Taxable Person’s business.

Article 33 of the UAE Corporate Tax Law lists certain specific expenses for which no deduction will be allowed, such as bribes, fines and penalties, and no deduction is available for expenditure incurred in deriving income that is exempt from Corporate Tax or losses that are not connected with or arising out of a Taxable Person’s Business. Additionally, certain restrictions may apply to the deduction of Interest expenditure

The Corporate Tax Law provides for certain restrictions on the deductibility of Interest expenditure to discourage excessive debt financing, and to ensure that debt financing used or arising as a result of certain specific intra-group transactions will only be deductible if there is a valid commercial reason for obtaining the loan.

General Interest Deduction Limitation Rule
Businesses with Net Interest Expenditure above AED 12 million will be allowed to deduct Net Interest Expenditure up to the greater of 30% of their adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) or AED 12 million.

Any Net Interest Expenditure which exceeds this limit may be carried forward and utilised in the subsequent 10 Tax Periods.
Businesses with Net Interest Expenditure below AED 12 million will not be subject to the General Interest Deduction Limitation Rule.

The General Interest Deduction Limitation Rule will not apply to Banks and other finance institutions, Insurance Providers or natural persons.

Specific interest deduction limitation rule
Where a loan is obtained from a Related Party and is used to finance income that is exempt from Corporate Tax, the interest on the Related Party loan will not be deductible unless the Taxable Person can demonstrate that the main purpose of obtaining the loan and carrying out the transaction is not to gain a Corporate Tax advantage.

Where a loan is obtained from a Related Party, any Interest relating to that loan would not be deductible if the loan was used to finance any of the following transactions:

• A dividend or profit distribution to a Related Party (e.g. paying a dividend to a company’s parent).
• A redemption, repurchase, reduction or return of share capital to a Related Party (e.g. undertaking a share buyback transaction).
• A capital contribution to a Related Party (e.g. increasing investment in a subsidiary company).
• The acquisition of an ownership interest in a Person who is or becomes a Related Party following the acquisition (e.g. acquiring shares in another company, which becomes a subsidiary company after the acquisition).

The restriction is put in place to prevent financing between Related Parties from being used to shift profits. As such, if the Taxable Person can demonstrate the financing arrangement was not used to gain a Corporate Tax advantage, Interest expenditure relating to that financing arrangement may be deducted. If the Related Party is subject to Corporate Tax, or an equivalent tax, at a rate not less than 9%, there will be deemed to be no Corporate Tax advantage.

Dividends paid by UAE companies will not be deductible for Corporate Tax purposes.

Only irrecoverable input Value Added Tax may be deductible for Corporate Tax purposes. Otherwise, Value Added Tax charged and Value Added Tax incurred would not impact the calculation of Taxable Income.

Remuneration paid to the management of a business will generally be a deductible expense for Corporate Tax purposes.

There are a few specific cases that may impact on the amount of remuneration that can be deducted. These are:

1. Where the remuneration is paid to a director or owner of the business or to someone who is related to the director or the owner and considered a Connected Person, the remuneration should reflect the market rate for the relevant role and services performed. Any amount paid that is above the market rate would not be deductible.
2. Where a company pays a management fee to its parent or any other Related Party, transfer pricing rules will need to be considered to ensure that the fee is at arm’s length. Any amount paid that is above the arm’s length price would not be deductible.

Employee entertainment costs will generally be deductible for Corporate Tax purposes provided they are incurred for business purposes.

All Taxable Persons (including Free Zone Persons) will be required to register for Corporate Tax and obtain a Corporate Tax Registration Number. The Federal Tax Authority may also request certain Exempt Persons to register for Corporate Tax.

Taxable Persons are required to file a Corporate Tax return for each Tax Period within 9 months from the end of the relevant period. The same deadline would generally apply for the payment of any Corporate Tax due in respect of the Tax Period for which a return is filed.

In principle, all legitimate business expenses incurred wholly and exclusively for the purposes of deriving Taxable Income will be deductible, although the timing of the deduction may vary for different types of expenses and the accounting method applied. For capital assets, expenditure would generally be recognised by way of depreciation or amortisation deductions over the economic life of the asset or benefit.

Not allowed: –

Bribes
Fines and penalties (other than amounts awarded as compensation for damages or breach of contract)
Donations, grants or gifts made to an entity that is not a Qualifying Public Benefit Entity
Dividends and other profits distributions
Corporate Tax imposed under the Corporate Tax Law
Expenditure not incurred wholly and exclusively for the purposes of the Taxable person’s Business
Expenditure incurred in deriving income that is exempt from Corporate Tax

50% allowed: –

Client entertainment expenditure

Interest expenditure

Deduction of net interest expenditure exceeding a certain de minimis threshold

up to 30% of the amount of earnings before the deduction of interest, tax, depreciation and amortisation (except for certain activities)

Transfer pricing rules seek to ensure that transactions between Related Parties are carried out on an arm’s length basis, as if the transaction was carried out between independent parties. To prevent the manipulation of Taxable Income, various articles in the Corporate Tax Law require that the consideration of transactions with Related Parties and Connected Persons needs to be determined by reference to their “Market Value”

Yes. Transfer pricing rules apply to UAE businesses that have transactions with Related Parties and Connected Persons, irrespective of whether the Related Parties or Connected Persons are located in the UAE mainland, a Free Zone or in a foreign jurisdiction.

Generally, Related Parties of a natural person refer to the natural person’s relatives as well as companies in which the natural person, alone or together with their Related Parties, has a controlling ownership interest (typically 50% or more of shares of the company).

Similarly, Related Parties of a company refers to any other companies in which the company, alone or together with their Related Parties, has a controlling ownership interest (typically 50% or more of shares of the company), or that are have greater than 50% common ownership.

Further detail on the definition of Related Parties can be found in Article 35 of the Corporate Tax Law.

Connected Persons are different from Related Parties.

A Person will be considered “connected” to a business that is within the scope of UAE Corporate Tax if they are:

• The owner of the business;
• A director or officer of the business; or
• A Related Party of either of the above.

Generally, Taxable Persons are required to apply one or more of the following methods to determine the arm’s length prices for transfer pricing purposes:

• The comparable uncontrolled price method
• The resale price method
• The cost-plus method
• The transactional net margin method
• The transactional profit split method

Businesses will be required to maintain information regarding their transactions with Related Parties and Connected Persons, and certain businesses will be required to submit this information along with their Tax Return. Businesses that claim Small Business Relief will not have to comply with the transfer pricing documentation rules.

A master file is a report that provides an overview of a Multinational Enterprise Group’s business, including, for example, the nature of its business and economic activity in each jurisdiction it operates in and its overall transfer pricing policy(ies).

A local file provides more detailed information relating to specific transactions with a Taxable Person’s Related Parties, including, for example, showing how the arm’s length principle has been applied on these transactions.

A Taxable Person will need to maintain a master file and a local file if either:

their Revenue in the relevant Tax Period is AED 200 million or more; or
they are part of a Multinational Enterprise Group as defined in Cabinet Decision No. 44 of 2020 (which cover groups that operate in more than one country and have total consolidated group revenue of AED 3.15 billion or more in each financial period).

Yes, the arm’s length principle is a general principle and it applies to all transactions and arrangements between a Taxable Person and its Related Parties or Connected Persons regardless of the Taxable Person’s Revenue figure for a Tax Period.

No, losses incurred before the business becomes subject to Corporate Tax are not considered “Tax Losses” for Corporate Tax purposes.

Therefore, the amount cannot be used or carried forward.

Tax Losses from one UAE group company may be used to offset Taxable Income of another UAE group company where there is 75% or more common ownership and certain other conditions are met.

No Tax Loss transfers will be allowed from companies that are exempt or that benefit from the 0% Free Zone Corporate Tax regime.

The UAE companies must meet the following conditions to transfer an amount of Tax Losses from one company to another in the same Tax Period:

• Both companies are UAE resident juridical persons;
• Either owns 75% or more of the other, or a third Person owns 75% or more of both entities and this ownership existed at the start and end of the Tax Period in which the loss was incurred;
• Neither company is an Exempt Person;
• Neither company is a Qualifying Free Zone Person; and
• The financial statements must be prepared using the same accounting standards, and using the same Financial Year.

Income earned by foreign operators of aircrafts and ships will be exempt from UAE Corporate Tax in respect of:

• providing international transportation of passengers, livestock, mail, parcels, merchandise or goods by air or by sea;
• leasing or chartering aircrafts or ships used in international transportation; or
• leasing or chartering equipment which are integral to the seaworthiness of ships or the airworthiness of aircrafts used in international transportation.
• This exemption would only apply where the country of the foreign airline or shipping company would grant a similar exemption to UAE operators of aircrafts and ships.

UAE resident companies can apply to form a Tax Group and be treated as a single Taxable Person if the UAE parent company (directly or indirectly) holds at least 95% of the share capital and voting rights of each of the companies, and meet all other relevant conditions.

Example: Company A owns, 20% of company B, and 100% of Company C. Company C owns 80% of the shares of Company B. Because Company A indirectly owns 100% of the shares of Company B (80% via Company C), it can form a Tax Group with both Company B and Company C.

For this purpose, a Tax Group can only be formed between companies that are Resident Persons under the UAE Corporate Tax Law and any applicable double tax agreement the UAE has with another jurisdiction.

To form a Tax Group, neither the Parent Company nor any of the Subsidiaries can be an Exempt Person or a Qualifying Free Zone Person, and all companies must use the same Financial Year and prepare their financial statements using the same accounting standards.

Being (ultimately) owned by a foreign parent company does not preclude UAE subsidiaries from forming a Tax Group, but the UAE subsidiaries must be held by an intermediary UAE parent company that will be the “parent” of the Tax Group for UAE CT purposes.

No, unless the foreign entity is effectively managed and controlled in the UAE and considered a UAE resident entity for UAE Corporate Tax purposes. This is because only UAE resident juridical persons can form or be part of a Tax Group.

For example, a Tax Group can be formed between a UAE Parent Company and a wholly-owned subsidiary company incorporated in Singapore that is effectively managed and controlled in the UAE, provided that the subsidiary is not a tax resident in Singapore.

The foreign entity shall maintain documentation that supports the position that it is in fact considered a UAE tax resident for UAE Corporate Tax purposes and not in another country under an applicable double tax treaty. This documentation can either be a confirmation issued by the relevant tax authority of the foreign country, or a confirmation issued by the relevant competent authorities for the purposes of the application of a double tax treaty in force in the UAE (e.g. a tax residency certificate).

Yes. The AED 375,000 threshold for Taxable Income subject to the 0% Corporate Tax rate will apply to the Tax Group as a single Taxable Person, irrespective of the number of entities in the Tax Group.

Yes. To determine the Taxable Income of the Tax Group, the Parent Company will in general have to consolidate the financial accounts of each Subsidiary for the relevant Tax Period through aggregation of the financial statements of each member and eliminate transactions between the Parent Company and each Subsidiary and amongst the Subsidiaries themselves. However, there may be cases where transactions between the group may not be eliminated. This includes but is not limited to circumstances where a member of the Tax Group has pre-grouping tax losses.

A Tax Group can only be formed with companies that are resident in the UAE for Corporate Tax purposes, and are not considered tax resident in another jurisdiction under any applicable double tax treaty in force in the UAE.

Where an existing member of a Tax Group becomes a tax resident in another jurisdiction, that member shall be treated as leaving the Tax Group from the beginning of the Tax Period in which it became a tax resident in that other jurisdiction.

Further, members that may be tax resident in multiple jurisdictions should maintain documentation to support the position that they are in fact considered a UAE resident for UAE Corporate Tax purposes, and not in another country under an applicable double tax treaty. This documentation can either be a confirmation issued by the relevant tax authority of the foreign country or a confirmation issued by the relevant competent authorities for the purposes of the application of a double tax treaty in force in the UAE (e.g. a tax residency certificate).

If a member leaves a Tax Group or if a Tax Group ceases to exist when the conditions are no longer met, the Tax Group needs to notify the Federal Tax Authority within 20 business days from the date the member leaves the Tax Group or the conditions are no longer met.

Pre-Grouping Tax Losses are Tax Losses that are accrued by a Taxable Person prior to them joining or forming a Tax Group.

Pre-Grouping Tax Losses have a separate treatment as they can only be used to offset Taxable Income of a Tax Group that is attributable to that specific member.

The amount of pre-Grouping Tax Losses that can be used is either the amount of Taxable Income of the Tax Group that is attributable to the member that has any pre-Grouping Tax Losses available, or 75% of the Taxable Income of the Tax Group, whichever is lower.

Example:

A Tax Group that consists of two members A and B has a Taxable Income of AED 100,000. Member A has pre-Grouping Tax Losses of AED 40,000. In this case, the Taxable Income of the Tax Group shall be offset by the lower of either AED 40,000 (i.e. the pre-Grouping Tax Losses of member A) or AED 75,000 (i.e. 75% of the Taxable Income of the Tax Group), being AED 40,000. The Tax Group’s Taxable Income after the Tax Loss offset is therefore AED 60,000 (AED 100,000 – AED 40,000).

Assuming the other conditions of forming a Tax Group are met by these two companies, a Tax Group can only be formed if the foreign subsidiary is not also considered a tax resident in the country of incorporation under the applicable double tax treaty between the UAE and the foreign country, and the foreign company is able to provide the relevant evidence.

In this regard, the foreign-incorporated subsidiary should maintain documentation that supports the position that it is in fact only considered a UAE resident for UAE Corporate Tax purposes and not (also) in the country of incorporation. This documentation can either be a confirmation issued by the relevant tax authority of the foreign country, or a confirmation issued by the relevant competent authorities for the purposes of the application of a double tax treaty in force in the UAE (e.g. a tax residency certificate).