38 Corporate tax

Corporate tax

On 9 December 2022, the UAE Ministry of Finance (“MoF”) released Federal Decree-Law No 47 of 2022 on the Taxation of Corporations and Businesses, Corporate Tax Law (“CT Law”) to implement a new CT regime in the UAE. The new CT regime is applicable for accounting periods beginning on or after 1 June 2023.

The UAE Cabinet of Ministry (“Cabinet”) Decision No.116 of 2022 specifies the Threshold of the income over which the 9% tax rate would apply and accordingly, the law is now considered to be substantively enacted from the perspective of IAS 12 – Income taxes. Current taxes will only be payable for financial years beginning on or after 1 June 2023 so the Company will be subject to current tax for the first time during the year ending 31 December 2024.

Based on the assessment conducted by the Company, it has been determined that the CT Law does not have any effect on deferred taxes in the consolidated financial statements for the year ended 31 December 2023. Moving forward, the Group intends to continue to assess the potential influence of the CT Law on its consolidated financial statements, particularly focusing on both current and deferred tax implications, in light of any further explanations and instructions regarding the application of the CT Law.