1. Glossary
Accounting Standards: The accounting standards specified in Ministerial Decision No. 114 of 2023.
Administrative Penalties: Amounts imposed and collected under the Corporate Tax Law or the Tax Procedures Law.
AED: The United Arab Emirates dirham.
Aircraft: Any machine that can derive support in the atmosphere from the reactions of the air other than the reactions of the air against the surface of the earth.
Beneficial Recipient: For the purposes of Article 3 of Cabinet Decision No. 100 of 2023 in relation to determining if income is derived from transactions with a Free Zone Person, it shall mean a Person who has the right to use and enjoy the service or the Good and does not have a contractual or legal obligation to supply such service or Good to another person.
Business: Any activity conducted regularly, on an ongoing and independent basis by any Person and in any location, such as industrial, commercial, agricultural, vocational, professional, service or excavation activities or any other activity related to the use of tangible or intangible properties.
Business Activity: Any transaction or activity, or series of transactions or series of activities conducted by a Person in the course of its Business.
Business Restructuring Relief: A relief from Corporate Tax for Business restructuring transactions, available under Article 27 of the Corporate Tax Law and as specified under Ministerial Decision No. 133 of 2023.
Cash Basis of Accounting: An accounting method under which the Taxable Person recognises income and expenditure when cash payments are received and paid.
Commercial Property: Immovable Property or part thereof used exclusively for a Business or Business Activity and not used as a place of residence or accommodation including hotels, motels, bed and breakfast establishments, serviced apartments and the like.
Competent Authority: The Central Bank of the United Arab Emirates, the Dubai Financial Services Authority of the Dubai International Financial Centre (“DFSA”), the Financial Services Regulatory Authority of the Abu Dhabi Global Market (“FSRA”), and the Securities and Commodities Authority (“SCA”) as applicable.
Connected Person: Any Person affiliated with a Taxable Person as determined in Article 36(2) of the Corporate Tax Law.
Controlled Transactions: Transactions or arrangements between two parties that are Related Parties or Connected Persons.
Download the complete Free Zone Persons Corporate Tax Guide | CTGFZP here