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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