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3 UAE TAX UPDATES
3.2 UAE Corporate Tax – Common ownership and/or Control through a Government Entity
The Federal Tax Authority (FTA) has issued public clarification to elucidate specific aspects of the Federal Decree
Law No. 47 of 2022 concerning the Taxation of Corporations and Businesses.
The clarification particularly focusses on the definition of ‘Related Parties’ where there is a common ownership and/
or Control through a Government Entity.
Common ownership and/or Control by a Federal Government or a Local Government is not in itself a basis for being
Related Parties for the purpose of the Corporate Tax Law.
Taxable Persons whose only common ownership of at least 50% or Control is through the Federal Government or
Local Government, are not Related Parties for the purposes of Article 35 of the Corporate Tax Law.
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