Adjustments For Transitional Rules
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and the Modifications Made Under the Transitional Rules, Ministerial Decision No. 120 of 2023
State Minister for Financial Affairs:
• After looking over the Constitution,
• Federal Law No. 1 of 1972, as amended, on the Authority and Responsibilities of Ministries and Ministers
• Federal Decree-Law No. 13 of 2016 on the Federal Tax Authority’s Establishment and Amendments,
• Tax Procedures Federal Decree-Law No. 28 of 2022,
• The Federal Decree-Law No. 47 of 2022 Concerning the Business and Corporation Tax.
Overview
The meanings of the following terms and expressions in this decision must be the same as those found in the Federal Decree-Law No. 47 of 2022, which is referred to above as the “Corporate Tax Law,” unless the context dictates otherwise:
• Standards for Accounting
• Accounting Reports
• Tangible Assets
• What Qualifies as Moveable Property
• Intangible Property
• Eligibility for Intangible Asset
• Liabilities and Financial Assets
• Financial Asset & Liability Qualification
Adjustments to Taxable Income Associated with Gains Realized on Real Estate Held Before the First Tax Period of the Taxable Person
- A Taxable Person may choose to change its Taxable Income in order to determine the profits on any Immovable Property for the purposes of clause (i) of clause (2) of article (20) and clause (1) of article (61) of the Corporate Tax Law.
- In cases where this article’s Clause (1) is applicable, upon the sale of the qualifying immovable property
The amount utilized as the Market Value of the Qualifying Immovable Property shall be established by the applicable government responsible authority in the State for the purposes of paragraph (a) of Clause (2) of this Article.
- The election outlined in this article’s clause (1) will be made for each qualifying immovable property upon the submission of the first tax return in the format and manner approved by the Authority. Once made, it cannot be changed unless the Authority gives its approval or there are extraordinary circumstances.