On 19 July 2023, the United Arab Emirates (UAE) Ministry of Finance (MoF) issued a Consultation Paper, that has clarified various categories of ‘qualifying activities’ and ‘excluded activities’, as set out under Ministerial Decision 139 of 2023. This is a significant step towards providing more clarity on Free Zone taxation.
The MoF is inviting businesses to contribute their perspectives on the Consultation Paper. The deadline for submissions is 2 August 2023. This engagement from the MoF represents a substantial opportunity for businesses. It allows them to voice any uncertainties they may have regarding the specified qualifying or excluded activities.
In light of this update, our Corporate Tax team held a 60-minute webinar on Tuesday, 25 July 2023. During this session, our experts provided insight into the key highlights of the Consultation Paper, its impact on free zone businesses, and the possible interpretations that businesses should consider when responding to the Consultation Paper.
Speakers
Basel Arafe
Basel is a UAE Corporate Tax Partner with a commitment to assisting entities in navigating the challenges and complexities arising from the introduction of corporate taxation in the region and the constantly evolving tax landscape. He has over 15 years of experience in primarily serving Canadian-based multinational corporations with Canadian and US tax related matters. Previously, he was a Partner in the US Tax practice at the Deloitte Montreal office, with a focus on assisting clients with US domestic corporate tax issues, relating to both federal and state level compliance and planning to ensure integration with an overall global tax-effective strategy. His knowledge and expertise also expand to income tax accounting, FATCA related matters, income tax withholding, credits and incentives, US tax reform, and taxation of pass-through entities. While he has advised clients across a variety of industries and sectors, he has extensive experience with companies in the technology, media, and telecommunication sector. Basel has completed the Canadian Institute of Chartered Accountants (CICA) In-Depth Canadian Tax Course and is an admitted member of CPA Canada (i.e., Chartered Professionals Accountants of Canada) and the American Institute of Certified Public Accountants (AICPA).
Rabia Gandapur
Rabia is a Partner in the Transfer Pricing team covering the Middle East. She has been based in the region for the last 3 years, having moved here after 10 years in the UK with a Big 4 firm. Rabia is a UK Chartered Tax Advisor and financial economist. Rabia has extensive experience advising multinationals on complex TP planning, design and documentation projects as well as supporting clients on their operational, governance and implementation strategies. She has supported various multinationals, SWFs and family groups in respect of the transfer pricing and Country-by-Country Reporting requirements. Rabia has advised on multiple Advance Pricing Agreements (APAs) and Mutual Agreement Procedures (MAP) in the UK and supports clients in the Middle East with TP audits and controversy.
