22/05/2026
Acquisory Consulting LLP, we are pleased to share this short broadcast by Hany Elnaggar, CA, M.Sc هاني النجار, 𝗼𝘂𝗿 𝗧𝗮𝘅 & 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗟𝗲𝗮𝗱𝗲𝗿 𝗳𝗼𝗿 𝗠𝗘 & 𝗚𝗖𝗖, discussing the recent 𝗨𝗔𝗘 𝗙𝗲𝗱𝗲𝗿𝗮𝗹 𝗧𝗮𝘅 𝗔𝘂𝘁𝗵𝗼𝗿𝗶𝘁𝘆 (𝗙𝗧𝗔) Public Clarification concerning the definition of “𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿” and “𝗢𝗳𝗳𝗶𝗰𝗲𝗿” under the UAE Corporate Tax Law.
In this broadcast, Hany shares practical insights on 𝗵𝗼𝘄 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 𝘀𝗵𝗼𝘂𝗹𝗱 𝘀𝘁𝗮𝗿𝘁 𝗿𝗲𝗮𝘀𝘀𝗲𝘀𝘀𝗶𝗻𝗴 𝗱𝗶𝗿𝗲𝗰𝘁𝗼𝗿 𝗮𝗻𝗱 𝘀𝗲𝗻𝗶𝗼𝗿 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 arrangements, especially where 𝘀𝗵𝗮𝗿𝗲𝗵𝗼𝗹𝗱𝗲𝗿𝘀, 𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲𝘀, 𝗮𝗻𝗱 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗳𝘂𝗻𝗰𝘁𝗶𝗼𝗻𝘀 𝗼𝘃𝗲𝗿𝗹𝗮𝗽 𝘄𝗶𝘁𝗵𝗶𝗻 𝘁𝗵𝗲 𝘀𝗮𝗺𝗲 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲.
The clarification is particularly important as it confirms that the 𝗙𝗧𝗔’𝘀 𝗮𝘀𝘀𝗲𝘀𝘀𝗺𝗲𝗻𝘁 𝘄𝗶𝗹𝗹 𝗻𝗼𝘁 𝗱𝗲𝗽𝗲𝗻𝗱 𝗺𝗲𝗿𝗲𝗹𝘆 𝗼𝗻 𝗷𝗼𝗯 𝘁𝗶𝘁𝗹𝗲𝘀, but rather on the actual authority, decision-making power, and practical role performed within the business. This means that individuals who 𝗺𝗮𝘆 𝗻𝗼𝘁 𝗳𝗼𝗿𝗺𝗮𝗹𝗹𝘆 𝘀𝗶𝘁 𝗼𝗻 𝘁𝗵𝗲 𝗯𝗼𝗮𝗿𝗱 could still fall within the scope of “𝗼𝗳𝗳𝗶𝗰𝗲𝗿” for UAE Corporate Tax purposes if they exercise strategic or managerial authority.
As the 𝗨𝗔𝗘 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗧𝗮𝘅 𝗿𝗲𝗴𝗶𝗺𝗲 continues moving into a 𝗺𝗼𝗿𝗲 𝗺𝗮𝘁𝘂𝗿𝗲 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗮𝗻𝗱 𝗮𝘂𝗱𝗶𝘁 𝗽𝗵𝗮𝘀𝗲, businesses should 𝗽𝗿𝗼𝗮𝗰𝘁𝗶𝘃𝗲𝗹𝘆 𝗿𝗲𝘃𝗶𝗲𝘄 𝗴𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 𝗳𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸𝘀, 𝗿𝗲𝗺𝘂𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗺𝗼𝗱𝗲𝗹𝘀, 𝗮𝗻𝗱 𝘀𝘂𝗽𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗱𝗼𝗰𝘂𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 to mitigate future tax risks and ensure alignment with the FTA’s expectations.
We hope you find the discussion insightful and useful.
