Foreign Tax Credits Under Uae Corporate Tax Regime | Spectrum Accounts

 



What is the Tax Credit that will be available for the corporate tax paid in other countries on the taxable income in UAE under the UAE Corporate Tax regime? Can we carry forward the unutilized Tax Credit to next year?

UAE resident companies will be subject to Corporate tax in Dubai on their worldwide income, which includes foreign sourced income that may have been subject to tax of a similar nature to CT by another country.

To avoid double taxation, the UAE CT regime will allow a credit for the tax paid in a foreign jurisdiction against the Corporate tax in Dubai liability on the foreign sourced income that has not been otherwise exempted. This is known as “Foreign Tax Credit”.

The maximum Foreign Tax Credit available will be the lower of:

  • The amount of tax that is paid in the foreign jurisdiction; or
  • The Corporate tax in UAE payable on the foreign sourced income.

Any unutilized Foreign Tax Credit will not be able to be carried forward or back to other tax periods, nor will the FTA refund any unutilized Foreign Tax Credit.

Call us 


Comments

Post a Comment

Popular posts from this blog

How to Start New Company in Dubai, UAE - Spectrum Accounts

  Spectrum Accounts is the perfect resource for entrepreneurs looking to start a new business in Dubai, UAE. Company Formation Dubai Our team of experienced and knowledgeable experts provide a wide range of services tailored to fit your individual business needs. From setting up the right corporate structure, acquiring the required permits and visas, to managing accounting and tax filing requirements; we’ve got you covered. With us by your side, you can have the confidence to focus on growing your business, with peace of mind knowing that your back-office needs are taken care of. Contact us today to see how we can help your business succeed. When starting a business in Dubai, one of the most important steps is to create a company. Company Formation in Duba i Spectrum Accounts can help you do just that. We offer a variety of services to help you form your new company, from creating your company registration documents to providing business advice and support. We also offer a range ...
Read more

Federal Tax Authority - Introduction To Corporate Tax in UAE - Spectrum Accounts

  The Federal Tax Authority (FTA) provides Corporate Tax services in the UAE through their partnership with Spectrum Accounts . Spectrum Accounts assists organizations of all sizes with their tax and accounting needs to ensure full compliance with local regulations. Through their deep knowledge of the region and close partnerships with key stakeholders, Spectrum Accounts is well equipped to provide expertise and tailored guidance on complex financial matters. With their help, organizations in the UAE can stay informed and prepared with all of their Corporate Tax requirements. The Federal Tax Authority is the body that administers and enforces corporate taxation in the United Arab Emirates. The Authority collects corporate tax from both domestic and foreign companies operating in the UAE, and it also administers a number of other taxes, such as value-added tax, Social Security contributions, and customs duties. In addition to corporate taxation, the Federal Tax Authority is responsi...
Read more

Tax Agency in UAE | Spectrum Accounts

  You may find several   Accounting Companies in Dubai , but no other franchise can match the equality of Spectrum Accounts. Yes, the franchise is extremely strong and well-determined about its services when it involves bookkeeping and accounting. We follow all terms and conditions to make sure a company’s profit through us. Any business owners, or entrepreneurs, or managers sometimes show their accuracy on the financial numbers of their organizations. However, there’s nothing wrong with judging your conditions and making your decisions accordingly. But it’s going to take you longer to urge to the proper point and make the proper business decisions. this is often where   Spectrum Accounts  step into your world. Your business empire may have many lists associated with financial incomes and expenses but organizing them may feel impossible to you or your manager. That’s the rationale we always like better to provide you with help. you’ll understand our availability duri...
Read more