Tax Loss Relief and Transfer | UAE Corporate Tax

UAE Corporate Tax Law has been released on 9^th December 2022. MCA is planning to release insights into the various key aspects of the new UAE Corporate Tax Law for the benefit of its clients. The second snippet which is being released is on “Tax Loss Relief” and “Tax Loss Transfer”.

Corporate Tax Law provisions relating to “Tax Loss Relief” and “Tax Loss Transfer” are very useful for Tax Payers. Tax Loss Relief gives an opportunity to a Tax Payer to offset tax loss of a particular tax period against taxable income of subsequent tax period and thereby reducing the Corporate Tax liability. UAE Corporate Tax Law has a good feature of allowing the Taxpayer to offset tax loss over the entity lifetime. Unlike in other countries, the UAE Corporate Tax Law also allows offset of tax loss of one Taxable Person against Taxable Income of another Taxable Person. Benefit of these provisions can be availed, only upon fulfilment of applicable conditions.

Please find enclosed our note on these provisions.