DLD calls for proper channels to be used for corporate tax compliance
DLD calls for proper channels to be used for corporate tax compliance
To enhance market transparency and encourage compliance with relevant rules and laws, the Dubai Land Department (DLD) has encouraged property owners to collaborate with recognized valuation agencies to apply corporate tax laws.
The Dubai REST app and the official website of DLD dubailand.gov.ae contain the official list of accredited businesses and assessment offices that meet the requirements for corporate tax administration under Decree-Law No. 47 of 2022. These guidelines are intended to assist businesses. to avoid possible financial or legal irregularities, which will help the Dubai real estate market to grow.
DLD invites you to review Ministerial Decree No. 120 of 2023, in particular Article 2(3), whereby the relevant government authorities in the UAE determine the market value of the relevant real estate assets in order to ensure a fair and transparent treatment of assets and liabilities, and to expedite the determination initial budget before implementing the new system.
Negotiating this decision will facilitate the process of creating the first budget and ensure a smooth transition from the period leading up to the implementation of the business tax law. The Minister's decision will cover certain assets and liabilities that firms held before the Corporation Tax Act came into force, such as property, intangible assets, financial assets and financial liabilities.
It is worth noting that the ruling gives the real estate industry more options, as companies with real estate assets based on historical cost can use the valuation method or time division approach to value the foundation of a property. This allows teams to choose the strategy for each asset that best suits their needs.
