Dubai Land Department Dubai has asked owners to refer to the approved list of licensed companies and valuation offices in the emirate on its official website dubailand.gov.ae and on the Dubai Rest app, to ensure their compliance with the requirements for the application of corporate tax in accordance with Decree Law No. 47 of 2022.
These directives aim to help companies avoid falling into any legal liability and financial violations, and support them in continuing to grow and contribute to the development and prosperity of Dubai's real estate sector.
These directives aim to help companies avoid falling under any legal liability or financial penalties, and support them to continue to grow and contribute to the development and prosperity of Dubai's real estate sector.
It also aims to ensure that these parties take a fair and transparent approach to the assets and liabilities held, and facilitate the process of determining the opening balance sheet before the new system comes into effect.
DLD advises companies to follow the guidelines in order to avoid any legal liability and financial irregularities. The Department advises that reference should be made to Ministerial Decision No. 120 of 2023 regarding the transitional provisions of corporate tax, specifically Article 2, Item 3 of the decision (the amount used as the market value of qualifying immovable property shall be determined by the competent government entity in the country).
The Department advises that reference should be made to Ministerial Decision No. 120 of 2023 regarding the transitional provisions of corporate tax, specifically Item 3 of Article 2 of the decision.
Smooth transition for owners
DLD Dubai pointed out that referring to this decision ensures owners a smooth transition from the pre-Corporate Tax Law period and facilitates the process of determining the opening budget. The Ministerial Decision will apply to certain assets and liabilities, such as immovable property, intangible assets, financial assets, and financial liabilities held by businesses prior to the entry into force of the Corporate Tax Law regime.
Dubai
The Ministerial Decision is said to ensure a smooth transition from the pre-Corporate Tax Law period.
The resolution provides more flexibility for the real estate sector, as businesses with immovable property accounted for on a historical cost basis have the option to determine the basis of the facility, using either the time apportionment method or the valuation method, allowing groups to determine their most favorable outcome on the immovable property for each asset.
The resolution is said to provide more flexibility for the real estate sector, as businesses with immovable property accounted for on a historical cost basis have the option to determine the basis of the facility.
