UAE Corporate Tax Quiz

Which of the statement is correct

• The Federal Decree Law on Corporate Tax is applicable to all UAE sourced income from 1 June 2023

• The Federal Decree Law on Corporate Tax is applicable to all income earned by taxable person in the UAE from 1 June 2023

• The Federal Decree Law on Corporate Tax is applicable to the income for taxable periods commencing on or after 1 June 2023

• The Federal Decree Law on Corporate Tax is applicable to income for taxable periods commencing on or after 1 January 2024

Corporate Tax Registration is applicable for

• All taxable persons

• Only the taxable persons whose income exceeds AED 375,000

• Only for taxable persons not claiming Small Business Reliefs

• All taxable persons except free zone persons

Which of the statement is correct?

• A Free Zone Person is automatically subject to 0% tax w.r.t all its income

• All Free Zone Persons can unconditionally elect to 0% tax w.r.t all its income

• A Qualifying Free Zone Person would automatically be subject to 0% Corporate Tax

• A Qualifying Free Zone Person would be subject to 0% Corporate Tax only if specified conditions are met and if election is made for 0% Corporate Tax

Can natural person take advantage of Qualifying FreeZone benefit?

• Yes

• No

• Partially yes

• Partially No

For how many years, you need to keep or maintained the books of Accounts

• 3 Years

• 4 Years

• 5 Years

• 7 Years

What is the extent to which Foreign Tax Credit can be claimed under the UAE Corporate Tax

• Full Tax Amount

• As per the discretion of FTA

• As per the discretion of the Tax Payer

• The foreign tax credit cannot exceed the amount of corporate tax due on the relevant income under this decree law

With reference to a DTAA, Capital Gains of immovable property is generally taxed

• The country where the gain arises

• The country where the capital gain recipient resides

• The country where the situs of the capital asset is situated

• None of the above

Which international organization initiated the BEPS project?

• World Trade Organization

• Organization for Economic Cooperation and Development

• International Monetary Fund

• International Monetary Fund

What is the tax rate for Free Zone Persons?

• 0%

• 10%

• 20%

• 30%

What is the tax rate on non Qualifying income earned under Free Zone.

• 0%

• 10%

• 11%

• 9%