Corporate Income Tax Training Course

Introduction

This 5-day course provides a comprehensive overview of the GCC's New Corporate Income Tax system, covering a range of topics from tax rates and exemptions to tax registration and international agreements. Day 1 focuses on the introduction of the new tax law, including the tax rate, effective date, and taxable persons, such as resident and non-resident persons. The day also explores the corporate tax base, including global and state-sourced income, and exemptions for various entities, such as government-controlled entities and qualifying investment funds. Day 2 covers free zone businesses, calculating taxable income, and tax reliefs. The session delves into qualifying free zone persons, exempt income, small business relief, and deductible and non-deductible expenses. Day 3 centers on transactions with related parties, the arm's length principle, and tax losses. It examines tax loss relief, the transfer of tax losses, and limitations on tax loss carried forward. Day 4 discusses tax groups, their formation, and cessation, as well as taxable income within a tax group. The day also covers the calculation of corporate tax payable, withholding tax, foreign tax credit, and general anti-abuse rules. Finally, Day 5 tackles tax registration and deregistration, tax returns and clarifications, record keeping, penalties, and international agreements such as Pillar 1 and Pillar 2. The course also provides an overview of the transitional rules. By the end of this course, participants will have a solid understanding of the GCC's New Corporate Income Tax system, enabling them to navigate its complexities and ensure compliance with the new regulations.

Objectives

• Analyze the GCC's New Corporate Income Tax system, including the tax rate, effective date, taxable persons, and corporate tax base, to identify the impact on various entities and businesses.
• Evaluate the tax implications for free zone businesses, calculate taxable income, and apply tax reliefs, incorporating knowledge of qualifying free zone persons, exempt income, small business relief, and deductible and non-deductible expenses.
• Assess transactions with related parties, applying the arm's length principle and managing tax losses, by understanding tax loss relief, transfer of tax losses, and limitations on tax loss carried forward.
• Synthesize information on tax groups, their formation and cessation, and taxable income within a tax group, while calculating corporate tax payable, withholding tax, foreign tax credit, and implementing general anti-abuse rules.
• Demonstrate proficiency in tax registration and deregistration, preparing and submitting tax returns and clarifications, maintaining accurate record keeping, and navigating penalties and international agreements such as Pillar 1 and Pillar 2, while adhering to transitional rules.

Training Methodology

This Training Course uses a balanced combination of expert-led discussions, interactive exercises, and real-world examples. Participants will engage in collaborative learning activities designed to link taxation concepts directly to their organizational context. This hands-on approach ensures participants not only grasp the theoretical aspects of tax law but also develop the ability to apply them effectively in daily business operations and decision-making processes.

Who Should Attend?

• Finance professionals: Accountants, auditors, tax consultants, and financial analysts who deal with corporate taxation in the GCC.
• Business owners and entrepreneurs: Individuals operating businesses within the UAE, especially those in free zones or with international transactions.
• Legal professionals: Lawyers and legal consultants specializing in tax law, corporate law, or advising clients on tax-related matters in the GCC.
• Senior management: CEOs, CFOs, and other decision-makers responsible for tax planning, compliance, and risk management within their organizations.
• Government officials: Regulators, policy-makers, and tax administrators involved in the formulation or implementation of the GCC's corporate income tax system.

Course Outline

Day 1: Corporate Income tax rate and Effective Date of the New Law

Taxable Persons

• Resident Person
• Non-Resident Person

Corporate Tax base

• Global Income

• State Sourced Income
• Permanent Establishment
• Investment Manager Exemption
• Partners in Unincorporated Partnership
• Family Foundation

Exempt Persons:

• Government Entity
• Government Controlled Entity
• Extractive Industries-Non-Extractive Natural Resources Business
• Qualifying Public Benefit Entity
• Qualifying Investment Fund
• Public Pension or Social Security Fund
• Juridical Person Wholly Owned & Controlled by an Exempt Person

Day 2: Free Zone Businesses:

• Qualifying Free Zone Person
• Qualifying Free Zone Income

Calculating Taxable Income:

• Unrealized Gains/Losses
• Exempt Income

• Participation Exemption
• Foreign Permanent Establishment
  • Small Business relief
  • Tax Reliefs
• Transfers within a Qualifying Group
• Business restructuring Relief
  • Deductible Expenses
• Wholly & Exclusively for Business
• Interest Deduction Limitation
• Entertainment Expenditure
  • Non-deductible Expenses

Day 3: Transactions with Related Parties

• Arm’s Length Principle
• Related Parties and Control
• Payments to Connected Persons

Tax Losses

• Tax Loss Relief
• Transfer of Tax Losses
• Limitations on Tax Loss Carried Forward

Day 4: Tax Groups

• Tax Group Definition
• Formation and Cessation of Tax Group
• Taxable Income of a Tax Group

Calculation of Corporate Tax Payable

• Currency
• Calculation and Settlement of Corporate Tax
• Withholding Tax
• Foreign Tax Credit

Payment & Refund of Corporate Tax

• Corporate Tax Payment
• Corporate Tax Refund

General Anti Abuse Rules

• General Anti Abuse Rule

Day 5: Tax Registration & Deregistration

• Tax Returns & Clarifications
• Tax Returns
• Financial Statements
• Transfer Pricing Documentation

• Record Keeping

Tax Period

• Change of Tax Period
• Clarifications