This Decision explains conditions for Federal and Local Government Entities to have their businesses treated as a single Taxable Person under Article 5 of the Corporate Tax Law. The application, made by a designated Representative Entity, must cover all licensed business activities. It outlines procedures for notifying the Authority of the representative, their replacement, and circumstances where this treatment ceases. The Decision mandates the financial consolidation of all included businesses to determine the single entity's taxable income, streamlining tax compliance for government operations. The rules are effective 15 days after publication.
This is not an Official Translation:
Treatment of all Businesses and Business Activities Conducted by a Government Entity as a Single Taxable Person
Ministerial Decision No. 68 of 2023
Issued 29 Mar 2023 – (Effective 15 days after publishing in the Official Gazette)
[GTL Notes]
The Minister of State for Financial Affairs has decided:
Having reviewed the Constitution,
Federal Law No. 1 of 1972 on the Competencies of Ministries and Powers of the Ministers and its amendments,
Federal Decree-Law No. 13 of 2016 on the Establishment of the Federal Tax Authority and its amendments,
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses,
Federal Decree-Law No. 28 of 2022 on Tax Procedures,
Cabinet Decision No. 36 of 2017 on the Executive Regulation of Federal Law No. 7 of 2017 on Tax Procedures and its amendments,
Article 1 - Definitions
In the application of the provisions of this Decision, the following words and expressions shall have the meanings assigned against each, unless the context otherwise requires:
Federal Government Entity
:
The Federal Government, ministries, government agencies, authorities and public institutions of the Federal Government.
Local Government Entity
:
The Local Governments, government departments, government agencies, authorities and public institutions of the Local Governments.
Representative Federal Government Entity
:
The Federal Government Entity that is mandated by the Federal Government to represent the Federal Government Entities that are treated as a single Taxable Person in accordance with the provisions of Article 2 of this Decision.
Representative Local Government Entity
:
The Local Government Entity that is mandated by the Local Government to represent the Local Government Entities that are treated as a single Taxable Person in accordance with the provisions of Article 3 of this Decision.
Other words and expressions in this Decision shall have the same meanings specified in the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (referred to in this Decision as the “Corporate Tax Law”) unless the context requires otherwise.
Article 2 - Conditions to treat the Federal Government’s Businesses and Business Activities as a Single Taxable Person
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