Business Setup Consultant in UAE

  ​​​​​​​ On Jan 14 th  of 2025, Federal Tax Authority (FTA) have issued VAT public clarification (VATP039) on VAT implication on Crypto Currency Mining. As we all witnessing rise of popularity of crypto currency, FTA have given the clarification on the  VAT  treatment on Crypto currency mining. Crypto mining is the process by which individuals or businesses use specialized equipment, known as mining rigs, to validate blockchain transactions and earn cryptocurrency rewards. The tax treatment of these activities in the UAE depends on whether the mining is done for personal use or as a service provided to others. Here’s an overview of how VAT applies to crypto mining in the UAE: Mining for a person’s own account : When a person mines cryptocurrency for their own account, person is not guaranteed a reward if he successfully solves the cryptographic equation, as the reward does not solely depend on the person solving the equation, but also on being the first to solve it....

  On Apr 14 th  of 2025, Federal Tax Authority (FTA) have issued VAT public clarification (VATP041) on VAT implication on Swift Message replacing the previous VATP036. UAE Banks and exchange houses (“Financial Institutions” or “FI”) FI incur international bank charges from banks outside the UAE as a result of using the Society for Worldwide Interbank Financial Telecommunications (“SWIFT”) communication system with these banks. The provision of the right to use the SWIFT communication service constitutes a Service for  VAT  purposes.where such Service is received from outside the UAE, it constitutes a Concerned Service for UAE VAT purposes and covered under RCM on import of services. Financial Institutions that are registered for  VAT in the UAE  are required to issue and deliver an original Tax Invoice to the recipient of taxable services supplied by the Financial Institution. Since the Financial Institution is regarded as supplying the Concerned Service to...

  A REIT that meets all the legal conditions under Article 10(1) of the  UAE Corporate Tax Law  and Cabinet Decision No. 34 of 2025 can apply to be exempt from Corporate Tax as a Qualifying Investment Fund. If granted, this exemption applies from the specified tax period. However, from  1 January 2025 , corporate (juridical) investors in such exempt REITs must pay Corporate Tax on  80% of the REIT’s prorated immovable property income , unless they no longer hold any ownership and did not receive a dividend distribution within  9 months  after the REIT’s financial year-end. Purpose The purpose of this public clarification is to clarify the following: The income that will be taxed in the hands of juridical persons that are investors in a REIT. The relevant Tax Period in which the income shall be taxed for such investors. The compliance obligations of the REIT and the investors and other related matters. Clarification Taxable Income in the Hands of Juridi...

  As part of the UAE’s evolving tax framework, the  Federal Tax Authority (FTA)  has released detailed guidance on the  tax treatment of Family Foundations  under the  Corporate Tax Law  (Federal Decree-Law No. 47 of 2022) . This is a significant development for high-net-worth families, estate planners, and legal advisors seeking to manage wealth across generations while remaining compliant with UAE tax laws. What is a Family Foundations? A  Family Foundation , as defined in the Corporate Tax Law, refers to any  foundation, trust, or similar entity  established for the benefit of specific individuals or public benefit entities. It is primarily used for asset protection, succession planning, and charitable giving. Importantly, it can be  domestically or internationally established , as long as it meets the criteria under  Article 17(1)  of the Corporate Tax Law. These entities are often formed under free zones like  DI...

In 2025, the UAE’S business regulations represent a flexible and continuously developing legal system aimed at drawing international investors while promoting transparency and legal compliance. Companies are require to follow essential regulatory guidelines in areas such as business licensing, corporate taxation and digital regulations. The introduction of corporate tax and enhancement of VAT enforcement mark a shift toward greater fiscal accountability. Additionally, businesses are required to maintain proper records under Economic Substance Regulations and Ultimate Beneficial Ownership rules under the guidance of regulatory compliance services in UAE . With this blog we will safely navigate and follow the UAE’s business regulations and laws in 2025. Familiarizing with Licensing Regulations Navigating licensing regulations in the UAE is the crucial step for any business whose goal is to operate legally and efficiently. Entrepreneurs must choose the appropriate jurisdiction - Mainland...

On 28 th  April 2025, Federal Tax Authority (FTA) have issued VAT public clarification (TAXP042) on value of supply under Barter Transactions Barter Transactions:  Taxable persons receive monetary consideration for the supplies they make but consideration may also be received in the form of goods or services, i.e. non-monetary consideration. Transactions which involve the exchange of goods and/or services, are known as barter transactions. Barter transactions involve at least two supplies, i.e. each party makes a supply to the other. Such supplies are subject to the general VAT rules, nevertheless, special valuation rules apply Public clarification TAXP042 :  Underlying clarification explains the principles to determine the value of supply for the non-monetary part of the consideration. The following principles apply The market value of a supply of goods or services is the monetary consideration the supply would generally achieve if supplied in similar circumstances at th...

  Issued by: Federal Tax Authority (FTA), United Arab Emirates Purpose of the Initiative To support the UAE business sector by offering relief from administrative penalties. Encourages timely compliance with Corporate Tax registration and filing obligations. Waiver Conditions Taxable persons  must  submit their Corporate Tax registration application  within  7 months  from the end of their  first tax period . Exempt persons  must  submit their annual declaration  within  7 months  from the end of their  first financial year . Who Is Eligible? Businesses  required to register  for Corporate Tax but have  not yet submitted  their registration application. Businesses that  incurred a penalty  due to  late registration  submission. How to Apply Submit the required registration application and tax return (or annual declaration for exempt entities) via the  EmaraTax platform . Ensure ...