UAE: Corporate tax guide on taxation of extractive businesses and non-extractive natural resources businesses

Corporate tax guide providing guidance and examples

Extractive businesses and non-extractive natural resources businesses

The UAE federal tax authority on 12 December 2023 released a guide—the Corporate Tax Guide on the Taxation of Extractive Business and Non-Extractive Natural Resources Business—that includes guidance regarding:

  • Definitions of natural resources, extractive business and non-extractive natural resource business
  • Conditions to qualify as an exempt person under the corporate tax law
  • Directly or indirectly holding or having an interest in a right, concession, or license
  • Contractors, subcontractors, and suppliers
  • Exceptional cases of failure to meet conditions of an exempt person
  • The approach to identifying “other business” and exemptions for other business
  • Determining taxable income of other business
  • Compliance requirements

The corporate tax guide also provides several examples of the following:

  • Directly or indirectly holding or having an interest in a right, concession, or license
  • Contractor, subcontractors, and suppliers
  • Ancillary or incidental test
  • Treatment as a separate entity

Read a January 2024 report prepared by the KPMG member firm in the UAE



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