Article 1 – Definitions – Corporate Tax – UAE / Dubai

Article 1 – Let’s Understand the Meaning of each word

For the purposes of this Decree-Law, the following terms are defined as follows, unless otherwise indicated by the context:

1. State: United Arab Emirates.
2. Federal Government: The government of the United Arab Emirates.
3. Local Government: The government of any of the UAE’s Member Emirates.
4. Ministry: Ministry of Finance.
5. Minister: Minister of Finance.
6. Authority: Federal Tax Authority.
7. Corporate Tax: Tax imposed on juridical persons and Business income by this Decree-Law.
8. Business: Any ongoing and independent activity conducted in any location, including industrial, commercial, agricultural, vocational, professional, service, excavation, or other activities related to tangible or intangible properties.
9. Qualifying Income: Income earned by a Qualifying Free Zone Person, subject to the Corporate Tax rate per Clause 2(a) of Article 3.
10. Government Entity: Federal or Local Governments, ministries, departments, agencies, authorities, and public institutions.
11. Government-Controlled Entity: A juridical person wholly owned and controlled by a Government Entity, as specified by Cabinet decision.
12. Person: A natural or juridical person.
13. Business Activity: Any transaction or series of transactions conducted by a Person within their Business operations.
14. Mandated Activity: Activities conducted by a Government-Controlled Entity as established by legal mandate, specified by Cabinet decision.
15. State’s Territory: Includes UAE lands, territorial sea, and airspace.
16. Natural Resources: Non-renewable, non-living resources, such as water, oil, gas, coal, and naturally formed minerals.
17. Extractive Business: Activities involving exploration, extraction, or exploitation of the State’s Natural Resources.
18. Non-Extractive Natural Resource Business: Activities related to treating, processing, or distributing the State’s Natural Resources.
19. Qualifying Public Benefit Entity: Entity meeting the conditions in Article 9 and listed in a Cabinet decision.
20. Qualifying Investment Fund: Entity that raises or pools funds for investment purposes as per Article 10.
21. Exempt Person: A Person exempt from Corporate Tax per Article 4.
22. Taxable Person: A Person subject to Corporate Tax in the UAE under this Decree-Law.
23. Licensing Authority: Competent authority for licensing Businesses in the UAE.
24. Licence: Document from the Licensing Authority allowing Business operations.
25. Taxable Income: Income subject to Corporate Tax under this Decree-Law.
26. Financial Year: Period as defined in Article 57.
27. Tax Return: Information filed with the Authority for Corporate Tax purposes.
28. Tax Period: Duration covered by the Tax Return.
29. Related Party: Person associated with a Taxable Person as per Article 35(1).
30. Revenue: Gross income during a Tax Period.
31. Recognised Stock Exchange: Licensed stock exchange within or outside the UAE.
32. Resident Person: Taxable Person defined in Article 11(3).
33. Non-Resident Person: Taxable Person defined in Article 11(4).
34. Free Zone: Designated geographic area within the UAE, per Cabinet decision.
35. Free Zone Person: Juridical person registered in a Free Zone, including branches of Non-Resident Persons.
36. Unincorporated Partnership: Contract-based relationship between two or more Persons.
37. Permanent Establishment: Business presence in the UAE of a Non-Resident Person, per Article 14.
38. State Sourced Income: Income from the UAE as specified in Article 13.
39. Qualifying Free Zone Person: Free Zone Person meeting Article 18 conditions.
40. Investment Manager: Licensed provider of investment services.
41. Corporate Tax Payable: Due Corporate Tax for one or more Tax Periods.
42. Foreign Partnership: Contract-based association of two or more Persons in a foreign jurisdiction.
43. Foreign Tax Credit: Deductible foreign tax, per Article 47(2).
44. Family Foundation: Foundation or similar entity as defined in Article 17.
45. Interest: Payment for the use of money or credit, excluding principal amounts.
46. Accounting Income: Net profit or loss per financial statements, as per Article 20.
47. Exempt Income: Corporate Tax-exempt income under this Decree-Law.
48. Connected Person: Affiliated Person as per Article 36(2).
49. Tax Loss: Negative Taxable Income for a Tax Period.
50. Qualifying Business Activity: Activity specified by Cabinet decision.
51. Foreign Permanent Establishment: Business presence outside the UAE for a Resident Person, as per Article 14.
52. Market Value: Price in an arm’s-length free-market transaction.
53. Qualifying Group: Taxable Persons meeting conditions in Article 26(2).
54. Net Interest Expenditure: Interest expenditure exceeding Interest income under this Decree-Law.
55. Bank: Licensed financial institution as defined in UAE legislation.
56. Insurance Provider: Licensed entity accepting insurance risks.
57. Control: Direction or influence over one Person by another per Article 35(2).
58. Tax Group: Taxable Persons treated as a single Taxable Person under Article 40.
59. Withholding Tax Credit: Deductible withholding tax per Article 46(2).
60. Withholding Tax: Corporate Tax on State Sourced Income per Article 45.
61. Tax Registration: Corporate Tax registration with the Authority.
62. Tax Registration Number: Unique number issued by the Authority.
63. Tax Deregistration: Corporate Tax deregistration with the Authority.
64. Tax Procedures Law: Federal law governing UAE tax procedures.
65. Administrative Penalties: Penalties imposed under this Decree-Law or the Tax Procedures Law.