Compliance Briefing — November 14, 2022

Executive briefing: The UAE published Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses on November 14, 2022. Businesses exceeding the AED 375,000 taxable threshold must prepare for registration with the Federal Tax Authority and implement tax compliance processes ahead of their first affected financial year.

Immediate compliance priorities

Entity scoping. Identify UAE-resident legal entities and foreign permanent establishments within the law’s scope, including free zone entities claiming qualifying income.
Tax calculation readiness. Establish processes for determining taxable income, adjusting financial statements, and tracking available reliefs (e.g., small business relief, participation exemption).
Registration planning. Prepare documentation for Federal Tax Authority registration and assess transitional rules for pre-existing tax incentives.

Control alignment

Record keeping. Implement accounting controls to retain records for at least seven years as required by Article 54.
Transfer pricing. Develop transfer pricing documentation and policies aligned with OECD standards referenced in the law.
Governance. Assign tax governance responsibilities, including board oversight and compliance monitoring.

Enablement moves

Review Ministry of Finance and Federal Tax Authority guidance notes as they are released to clarify definitions of qualifying income and reliefs.
Evaluate ERP and reporting systems for generating corporate tax returns and supporting schedules.
Coordinate with regional finance hubs to harmonise tax compliance across GCC jurisdictions.

Sources

Zeph Tech supports UAE corporates with tax readiness diagnostics, transfer pricing frameworks, and compliance automation for the new regime.