1. UAE's Federal Tax Authority Unveils Corporate Tax Guide for Foreign Source Income
The United Arab Emirates’ Federal Tax Authority (FTA) has recently released a comprehensive Corporate Tax Guide, focusing on the taxation of foreign source income. The guide aims to provide clarity on various aspects, including the relevance of foreign source income under the Corporate Tax Law and its implications for taxable persons. Let’s delve into the key insights presented in the guide.
Understanding the Guide's Objectives
(a) Purpose of this guide:
The guide delineates its objectives, offering general guidance to taxpayers on taxing foreign source income under the Corporate Tax Law. It addresses crucial points such as:
- The relevance of foreign source income
- Identification of foreign source income for taxable persons
- Taxation applicability to specific taxable persons
- Timing considerations for the taxation of foreign source income
- Determination of taxable and exempt income related to foreign source income
- Insights into Foreign Tax Credit and its computation
(b) Who should read this guide?
The guide is explicitly designed for taxable persons receiving or deriving income from sources outside the UAE, including Qualifying Free Zone Persons. The FTA recommends reading the guide in conjunction with the Corporate Tax Law, implementing decisions, and other relevant guidance.
2. Norway's Move Toward a Global Minimum Tax for Multinational Enterprises
In a significant development, the Norwegian Government has proposed a Bill to introduce global minimum tax rules for large multinational enterprises. This move aligns with internationally agreed-upon rules aimed at reshaping the taxation framework for such enterprises. The proposal is rooted in the OECD Inclusive Framework’s efforts to address challenges arising from the digitalization of the economy.
Key Points from the Proposal
