“Fiscal”: Corporate tax is calculated according to the “fiscal year” of each company

The Ministry of Finance stated that the corporate tax will be calculated on the basis of the tax period, “which extends for a full Gregorian year, starting on the first of January and ending on the 31st of December.”

And the Finance added, in its clarification, that this does not prevent companies from adopting a different 12-month period for preparing their financial statements.

And «Emirates Today» had received inquiries about the period of six months following the entry into force of the corporate tax, specifically from the date of the first of July until the 31st of December 2023, and how to calculate the tax on it, because the law specifies a period of 12 months for calculating the tax.

A tax agent told Emirates Today, who preferred not to be named: "This period is really the subject of many questions by business owners, but tax agents and the business community are awaiting the issuance of the executive regulations of the corporate tax law, to answer all questions in detail."

And the Ministry of Finance detailed in its clarification: “The corporate tax will apply in the country for the fiscal years that will start on or after June 1, 2023.”

And she explained, for example, that “business” whose fiscal year begins on July 1, 2023 and ends on June 30, 2024, will be subject to corporate tax in the country as of July 1, 2023 (which is the beginning of the first fiscal year that starts on or after June 1). 2023).

As for the “business” whose fiscal year begins on January 1, 2023 and ends on December 31, 2023, it will be subject to corporate tax in the country as of January 1, 2024 (which is the beginning of the first fiscal year that starts on or after June 1, 2023).

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