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WorksheetsCT Quiz
Total questions: 10
Worksheet time: 5mins
Company A organized year-end events inviting a few of their long-serving clientele who were served at different food counters. How will the expenses be treated for CT purposes?
Expenses will be capped at 50%
Entire expenses will be deductible in nature
Expenses must be separatly identifyable. Expenses related to staff is fully deductible where as external clientel will be subject to capping.
Traffic fines incurred on company vehicles are recorded as "RTA expenses" which includes all RTA expenses such as salik renewal, parking charges, etc. What is the treatment of parking fines?
Fully deductible
These expenses are deductible only for 50%
Non-deductible
EID gifts were given to long standing suppliers of the company, however, the expenses are booked as "Miscellaneous expenses". Are these expenses deductible?
Yes
No
ABC is a trading company. To gain favorable tenders, the company paid extra to the agents in cash and recorded in books as business promotion expenses. Are these expenses deductible?
Yes
No
ABC FZCO is a subsidiary of an Italian company. It files VAT every quarter and its only income is from export of services to its group company in Spain. They have very minimal local expenses which is VAT recoverable however, the company isnt interested to remain in a refundable position with the Authority. Hence, they never proceeded for any VAT input claims. In the books, the expenses are recognized in full. Are these expenses fully deductible
Fully deductible
Not deductible
VAT portion alone is non-deductible
Expense portion alone is not deductible
Company ABC expenses it in books medical insurance for employees and all their family members, the expenses are recorded in full without any bifucation. Are these expenses deductible?
Fully deductible
Fully non-deductible
Expenses to family non deductible
Expenses to employees not deductible
ABC LTD celebrated its 25th anniversary and gifted the longterm employees with an expensive luxury watch. Is it an deductible expenditure?
Yes, since it is relating to business
No, as it is not related to the business.
Yes but subject to capping as it is entertainment in nature.
Shareholders of ABC Ltd visit their Dubai subsidiary for AGM, however, the expenses incurred by the company as recorded as staff expenses. Are these expenses deductible?
Yes, since it is relating to business
No, as it is not related to the business.
Yes but subject to capping as it is entertainment in nature.
Employees are given monthly mobile usage allowance, however, many employees exceed their specificed limit and it was clearly identified as usage for personal purposes. In such instances, the overusage costs are deducted from the employee salary . In the books the entire expense is booked under the employee's name. Are these expenses deductible?
Yes, since it is relating to business
No, as it is not related to the business.
Yes but subject to capping as it is entertainment in nature.
Company A is situated in mainland and has a freezone branch which is a QFZP. All the income and expenses are booked along with the head office as both of them engage in trading activities, however, the branch is a QFZP as the income earned is qualified under distribution business. How should the entity maintain books?
Branch and Parent Combined
Branch and Parent Separate
Branch & Parent on an arm's length basis
