'UAE CT: Foreign Income, Tax Credits & Withholding Tax Made Simple'

In this video, we break down everything you need to know about UAE Corporate Tax (CT) related to foreign income, tax credits, and withholding tax. Whether you're a business owner, investor, or tax consultant, understanding these key concepts can help you maximize your savings and compliance.Are you navigating the complexities of UAE Corporate Tax (CT)? This video is your ultimate guide to understanding how foreign income, tax credits, and withholding tax impact businesses and individuals operating in the UAE.
We’ve made this video to help you simplify complicated tax concepts so you can make smarter financial decisions, remain compliant, and optimize your tax planning strategies.

🔍 What You'll Learn:

1️⃣ What is UAE Corporate Tax (CT) and how it applies to foreign income.
2️⃣ Understanding foreign tax credits and how they reduce your tax liability.
3️⃣ What is withholding tax and how it affects your international transactions.
4️⃣ The role of Double Taxation Treaties (DTT) in avoiding double taxation.

🌍 Why It Matters:

Foreign income and taxes can be complex, but with the right knowledge, you can simplify the process and benefit from UAE's favorable tax regime. Stay informed and ensure you're compliant with the latest regulations.

💡 Why Watch This Video?

🌍 Whether you're a business owner, tax consultant, or an investor with international dealings, mastering these tax essentials is critical to your financial success.

📈 With UAE's growing emphasis on corporate tax compliance, staying ahead is more important than ever.

📌 Topics Covered in This Video:

✅ Foreign Income: Learn how foreign income is taxed under UAE CT and what exemptions might apply.
✅ Foreign Tax Credits: Discover how you can reduce your overall tax liability by claiming credits for taxes paid abroad.
✅ Withholding Tax: Understand withholding tax obligations on cross-border transactions and how to calculate them.
✅ Double Taxation Treaties (DTT): Learn how UAE’s extensive network of DTTs helps avoid double taxation and enhances global business operations.

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In this video, we break down everything you need to know about UAE Corporate Tax (CT) related to foreign income, tax credits, and withholding tax. Whether you're a business owner, investor, or tax consultant, understanding these key concepts can help you maximize your savings and compliance.To prevent double taxation, UAE law permits UAE companies to claim a Foreign Tax Credit (FTC), even in the absence of a Double Tax Treaty (DTT) with another country.
The FTC is applicable only for taxes similar to corporate tax imposed on taxable income in foreign jurisdictions. It does not apply to taxes such as VAT, excise tax, property tax, customs duties, estate tax, inheritance tax, stamp duty, and capital duty. The FTC is limited to the lower of the amount of tax paid or committed to be paid and the tax due under UAE tax law. The tax due is calculated using the weighted average method like tax due as per UAE law* foreign source income/total income. If a taxable person has multiple sources of foreign income, any excess FTC from one source cannot offset the corporate tax due from another. Additionally, if a taxable person's taxable income is negative (indicating a loss), there is no corporate tax payable, and therefore, the FTC is not available. For timing differences, the credit for foreign tax paid will be allowed in the tax period when the foreign source income is included in taxable income under corporate tax law. By considering these general provisions of the FTC, the company should assess the amount of FTC available and the period during which the UAE company can claim the FTC.

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