Latest news with #CorporateTaxLaw
Al Etihad
6 days ago
- Business
- Al Etihad
Aldar welcomes new UAE tax depreciation decision as a positive step for real estate sector
18 July 2025 15:15 ABU DHABI (ALETIHAD)Aldar has welcomed the UAE Ministry of Finance's new Ministerial Decision on Depreciation Adjustments for Investment Properties held at Fair Value, calling it a positive and progressive development for the real estate sector under the UAE Corporate Tax decision, issued under Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses, allows taxpayers who elect the realisation basis to deduct tax depreciation from their taxable income on investment properties held at fair value. The depreciation amount permitted will be the lower of the tax written down value or 4% of the original cost of the property per 12-month tax period, or prorated for shorter Ministry's move ensures tax neutrality by aligning deductions with those available to businesses using historical cost accounting, thereby promoting equity across different reporting standards. The decision also clarifies the application of tax depreciation in various scenarios including property transfers between related or third parties, developments, and claw-back events. This is expected to support clearer compliance planning and improved financial foresight for Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, praised the decision, saying: 'Aldar expresses its gratitude for the UAE Ministry of Finance for this progressive and well-calibrated step, which reflects a deep commitment to fairness, clarity, and international best practices in the implementation of the Corporate Tax Law. By enabling depreciation deductions for investment properties held at fair value, this decision creates parity between different accounting treatments, helping companies plan long-term capital deployment more effectively. It will also reinforce investor confidence, attract institutional capital, and enhance the UAE's standing as a transparent, competitive, and globally integrated investment destination—particularly for the real estate sector.' Aldar, which operates through two primary divisions—Aldar Development and Aldar Investment—holds a significant income-generating property portfolio across commercial, retail, residential, and logistics segments. As of 31 December 2024, Aldar Investment's portfolio had a gross asset value of Dh25.8 billion and generated Dh2.5 billion in EBITDA for the year.
Zawya
6 days ago
- Business
- Zawya
Aldar welcomes new UAE tax depreciation decision as positive step for the real estate sector
Aldar has welcomed the UAE Ministry of Finance's new Ministerial Decision on Depreciation Adjustments for Investment Properties held at Fair Value, under Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. The decision allows taxpayers, who elect the realization basis, to deduct tax depreciation from their taxable income for investment properties held at fair value. The tax depreciation amount will be the lower of the tax written down value or 4% of the original cost of the property for each 12-month tax period or prorated for shorter periods. This treatment ensures tax neutrality and equity with deductions available to businesses that hold investment properties on a historical cost basis. The decision also provides clarity on how tax depreciation applies in cases of property transfers (between related or third parties), developments, and claw-back scenarios—ensuring businesses have a clear view of their compliance obligations and financial planning. Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, said: 'Aldar expresses its gratitude for the UAE Ministry of Finance for this progressive and well-calibrated step, which reflects a deep commitment to fairness, clarity, and international best practices in the implementation of the Corporate Tax Law. By enabling depreciation deductions for investment properties held at fair value, this decision creates parity between different accounting treatments, helping companies plan long-term capital deployment more effectively. It will also reinforce investor confidence, attract institutional capital, and enhance the UAE's standing as a transparent, competitive, and globally integrated investment destination—particularly for the real estate sector.' Aldar operates two core business divisions: Aldar Development and Aldar Investment. Aldar Investment holds a substantial portfolio of income-generating properties across key asset classes, including commercial, retail, residential, and logistics. As of 31 December 2024, the portfolio had a gross asset value of AED 25.8 billion and delivered EBITDA of AED 2.5 billion in 2024. About Aldar Aldar is the leading real estate developer, manager, and investor in Abu Dhabi, with a growing presence across the United Arab Emirates, the Middle East North Africa, and Europe. The company has two core business segments, Aldar Development and Aldar Investment. Aldar Development is a master developer of a 62 million sqm strategic landbank, creating integrated and thriving communities across Abu Dhabi, Dubai, and Ras Al Khaimah's most desirable destinations. The delivery of Aldar's developments is managed by Aldar Projects, which is also a key partner of the Abu Dhabi government in delivering housing and infrastructure projects across the UAE's capital. Internationally, Aldar Development wholly owns UK real estate developer London Square, as well as a majority stake in leading Egyptian real estate development company, SODIC. Aldar Investment houses a core asset management business comprising a portfolio of more than AED 46 billion worth of investment grade and income-generating real estate assets diversified across retail, residential, commercial, logistics, and hospitality segments. It manages four core platforms: Aldar Investment Properties, Aldar Hospitality, Aldar Education, and Aldar Estates.
Sharjah 24
24-06-2025
- Business
- Sharjah 24
FTA urges businesses to register promptly for corporate tax
Nationwide educational efforts to continue through 2025 In a press statement issued today, the FTA confirmed that this workshop is part of a broader series of awareness events—delivered both virtually and in person across all emirates—which will continue throughout 2025. Thousands benefit from previous workshops The FTA reported that over 2,300 participants have attended the three recent workshops held in Dubai, Abu Dhabi, and RAK. These included representatives from business sectors and stakeholders from both public and private entities involved in taxation. Urgent call for prompt registration During the workshop, the FTA stressed the importance of prompt registration for Corporate Tax. Entities subject to the tax who have not yet registered were urged to submit their applications promptly to benefit from a Cabinet decision exempting them from administrative penalties for late registration. Conditions to qualify for exemption from penalties The FTA clarified that to benefit from the exemption initiative, registered entities must submit their tax returns (or annual declarations) within seven months from the end date of their first tax period. This is a key condition to qualify for penalty exemption under the Cabinet decision. Rule applies to first tax period only The FTA further specified that the condition of submitting tax returns within the seven-month window applies exclusively to the first tax period—regardless of whether the return is due before or after the decision's effective date. Commitment to enhancing compliance support The Authority reaffirmed its commitment to continuously enhancing the services it provides to support business sectors. This includes a range of ongoing awareness initiatives aimed at fostering a tax environment conducive to voluntary compliance, with information presented clearly and accessibly. Interactive Q&A session with stakeholders The workshop in RAK saw participation from around 440 stakeholders involved in Corporate Tax implementation, including officials from various public and private sector entities. FTA representatives responded to participant questions during the session. In-depth guidance on corporate tax law During the session, FTA representatives delivered a comprehensive explanation of the Corporate Tax Law and related regulations. They covered compliance requirements, registration via the 'EmaraTax' platform, criteria for identifying taxable persons, applicable rates and tax periods, and the overall implementation mechanism under the law.
Gulf Insider
18-06-2025
- Business
- Gulf Insider
UAE Offers Corporate Tax Fine Waiver — but Deadline Looms
The Federal Tax Authority (FTA) is urging corporate taxpayers across the UAE to register for corporate tax and file returns within the legal deadline to avoid administrative penalties, under a limited-time waiver introduced by Cabinet Decision. The waiver applies to both taxable entities and exempt persons required to register, provided they submit their corporate tax registration and file their first tax return or annual declaration within seven months from the end of their first tax period. The FTA clarified that the exemption from late registration fines only applies to the first tax period, regardless of whether the due date falls before or after the decision came into effect. The Authority emphasised that this grace period offers businesses a valuable opportunity to ensure full compliance without incurring fines — but warned that delays beyond the 7-month deadline will trigger penalties under the UAE's Corporate Tax Law. Key waiver conditions: Entities must register for corporate tax through the FTA's EmaraTax platform First tax return or declaration must be filed within seven months from the end of the entity's first tax period Applies to both taxable businesses and exempt persons required to register The waiver campaign forms part of the FTA's wider drive to support businesses in meeting their tax obligations, while building a culture of voluntary compliance in line with international best practices. Campaign outreach includes: Nationwide in-person and online workshops to educate businesses Clarifications on taxable income, accounting standards, compliance rules, and registration processes In one such workshop recently held in Abu Dhabi, 940 business representatives attended to better understand the implications of the Corporate Tax Law and the conditions tied to the penalty exemption. FTA experts explained how to determine and calculate taxable income, comply with accounting standards, and register via the EmaraTax digital platform. A Q&A session followed, addressing specific concerns from participants. The Authority concluded by urging businesses in the UAE to review the Corporate Tax Law, Executive Decisions, and user guides available on the FTA's website to ensure they make full use of the exemption and avoid unnecessary financial penalties. Also read: UAE Launches Emergency Airport Plan Amid Travel Disruption
Hi Dubai
18-06-2025
- Business
- Hi Dubai
Federal Tax Authority Urges Swift Registration as Corporate Tax Workshops Draw Strong Turnout
The Federal Tax Authority (FTA) has intensified its push for corporate tax compliance, drawing nearly 940 business representatives and stakeholders to a recent workshop held in Abu Dhabi. The event is part of a nationwide initiative to educate businesses and encourage timely registration to avoid penalties. The workshop series is designed to support entities in understanding and meeting obligations under the UAE's Corporate Tax Law. A key focus was the Cabinet Decision offering exemption from administrative fines to corporate taxpayers and exempt persons who submit their registration applications within the legally stipulated period. FTA officials reiterated that to qualify for the exemption, registrants must file their tax returns or annual declarations within seven months from the end of their first tax period. The exemption applies solely to the first tax period, regardless of when the return is due in relation to the decision's effective date. During the session, experts provided detailed guidance on determining income subject to tax, accounting standards, and financial reporting requirements. Topics included the accrual basis of accounting, recognition of income and expenses, and the treatment of financial assets and liabilities in line with IFRS. The FTA also demonstrated how to register through EmaraTax, the Authority's digital services platform, and outlined key provisions of the Corporate Tax Law, including applicable rates, tax periods, and compliance mechanisms. This workshop is part of the FTA's broader campaign, launched in 2023, to roll out educational sessions across the UAE, both in-person and online. The Authority emphasised its commitment to fostering voluntary compliance through accessible, technology-driven outreach and urged taxpayers to consult its official website for updated guides and decisions. News Source: Emirates News Agency
