UAE Corporate Tax. Am I liable?

[Peter2023]

Hi all, this new corporate tax is getting quite complicated.

I own a holding company in a Dubai free zone that owns properties in my home country in Western Europe.

The UAE company currently pays 25% tax on these rents in my home country. Is it also liable now to a further 9% tax in Dubai?

 

[troubled soul]

no......

 

[lacomaco]

MFA Q&A
111. Is a credit available for foreign tax paid on income that is also subject to UAE CT?

Yes. Foreign tax paid on income that is also subject to UAE CT can be deducted as a foreign tax credit from the UAE CT payable. The maximum foreign tax credit is the lower of the foreign tax paid and the UAE CT payable on the relevant income. Any excess foreign tax credit cannot be carried forward or back to a different Tax Period.

 

[JustAnotherNomad]

But your company may have to register for CIT and then claim the credit for the tax paid in Europe.

 

[lacomaco]

But your company may have to register for CIT and then claim the credit for the tax paid in Europe.

Yes, I see no problem with it...