UAE Announces Amendments to Corporate and Business Tax Law

The United Arab Emirates has announced key amendments to its Corporate and Business Tax Law under Federal Decree Law No. 47 of 2022, aiming to clarify tax calculations, credits, incentives, and relief mechanisms. According to the state news agency WAM, the revised framework introduces a structured sequence for applying tax credits when determining payable corporate tax.Under the amendments, withholding tax credits will be applied first, followed by foreign tax credits, and then any additional incentives or relief approved by the Cabinet. If tax liability remains, payment will proceed under existing provisions.A major addition is a new article allowing taxpayers to claim refunds for unused tax credits, subject to conditions and procedures approved by the Cabinet. The Federal Tax Authority has also been empowered to settle approved refunds through corporate tax revenues, enhancing transparency and efficiency in the tax system.