Latest news with #FederalDecree-LawNo.
Al Etihad
5 days ago
- Business
- Al Etihad
Aldar welcomes new UAE tax depreciation decision as a positive step for real estate sector
18 July 2025 15:15 ABU DHABI (ALETIHAD)Aldar has welcomed the UAE Ministry of Finance's new Ministerial Decision on Depreciation Adjustments for Investment Properties held at Fair Value, calling it a positive and progressive development for the real estate sector under the UAE Corporate Tax decision, issued under Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses, allows taxpayers who elect the realisation basis to deduct tax depreciation from their taxable income on investment properties held at fair value. The depreciation amount permitted will be the lower of the tax written down value or 4% of the original cost of the property per 12-month tax period, or prorated for shorter Ministry's move ensures tax neutrality by aligning deductions with those available to businesses using historical cost accounting, thereby promoting equity across different reporting standards. The decision also clarifies the application of tax depreciation in various scenarios including property transfers between related or third parties, developments, and claw-back events. This is expected to support clearer compliance planning and improved financial foresight for Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, praised the decision, saying: 'Aldar expresses its gratitude for the UAE Ministry of Finance for this progressive and well-calibrated step, which reflects a deep commitment to fairness, clarity, and international best practices in the implementation of the Corporate Tax Law. By enabling depreciation deductions for investment properties held at fair value, this decision creates parity between different accounting treatments, helping companies plan long-term capital deployment more effectively. It will also reinforce investor confidence, attract institutional capital, and enhance the UAE's standing as a transparent, competitive, and globally integrated investment destination—particularly for the real estate sector.' Aldar, which operates through two primary divisions—Aldar Development and Aldar Investment—holds a significant income-generating property portfolio across commercial, retail, residential, and logistics segments. As of 31 December 2024, Aldar Investment's portfolio had a gross asset value of Dh25.8 billion and generated Dh2.5 billion in EBITDA for the year.
Gulf Today
6 days ago
- Business
- Gulf Today
MoF issues Decision on Depreciation Adjustments for Investment Properties held at Fair Value
The UAE Ministry of Finance (MoF) has issued a new Ministerial Decision regarding Depreciation Adjustments for Investment Properties held at Fair Value for the Purposes of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. Under this decision, taxpayers (who elect for the realisation basis) can elect to deduct depreciation from their taxable income (hereafter known as 'tax depreciation') for investment properties that are held on a fair value basis. The tax depreciation deduction available will be the lower of the tax written down value of the investment property or 4 percent of the original cost of the investment property, for each 12-month tax period or otherwise prorated for part of the tax period, during which the relevant investment property is held, and will be available to taxpayers who hold investment properties prior to and/or after the introduction of corporate tax. The decision provides clarity as to the value upon which tax depreciation can be claimed depending on whether the investment property is transferred between related parties or third parties or has been constructed/developed by the taxpayer. The decision provides parity between taxpayers who hold investment properties on a historical cost basis, who can already benefit from a deduction for accounting depreciation, with those who hold investment properties on a fair value basis. To avail this benefit, this decision therefore requires taxpayers to make this irrevocable election in their first Tax Period beginning on or after 1 January 2025 in which they hold an investment property and such election will apply to all investment properties going forward. Given the realisation basis must have been elected for by taxpayers wanting to benefit from the tax depreciation election, and that the realisation basis election is generally made in the first Tax Period, the decision also allows for an exceptional window for taxpayers to opt in to elect for the realisation basis to avail the tax depreciation deduction. Finally, the decision provides guidance on when the claw-back of tax depreciation may occur in instances outside of a disposal of an investment property such that taxpayers are aware of their tax compliance obligations and are able to accurately assess their returns on investment property. The release of this decision reflects the Ministry's commitment in ensuring a level playing field for all taxpayers, thus enhancing the principles of tax neutrality and equity in the UAE Corporate Tax regime and ensuring such deductions are aligned with international best practice. WAM
Al Etihad
6 days ago
- Business
- Al Etihad
Ministry of Finance issues ministerial decision on Depreciation Adjustments for Investment Properties held at Fair Value
17 July 2025 17:02 ABU DHABI (WAM)The UAE Ministry of Finance has issued a new Ministerial Decision regarding Depreciation Adjustments for Investment Properties held at Fair Value for the Purposes of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and this decision, taxpayers (who elect for the realisation basis) can elect to deduct depreciation from their taxable income (hereafter known as 'tax depreciation') for investment properties that are held on a fair value tax depreciation deduction available will be the lower of the tax written down value of the investment property or 4 percent of the original cost of the investment property, for each 12-month tax period or otherwise prorated for part of the tax period, during which the relevant investment property is held, and will be available to taxpayers who hold investment properties prior to and/or after the introduction of corporate decision provides clarity as to the value upon which tax depreciation can be claimed depending on whether the investment property is transferred between related parties or third parties or has been constructed/developed by the decision provides parity between taxpayers who hold investment properties on a historical cost basis, who can already benefit from a deduction for accounting depreciation, with those who hold investment properties on a fair value avail this benefit, this decision therefore requires taxpayers to make this irrevocable election in their first Tax Period beginning on or after 1 January 2025 in which they hold an investment property and such election will apply to all investment properties going the realisation basis must have been elected for by taxpayers wanting to benefit from the tax depreciation election, and that the realisation basis election is generally made in the first Tax Period, the decision also allows for an exceptional window for taxpayers to opt in to elect for the realisation basis to avail the tax depreciation the decision provides guidance on when the claw-back of tax depreciation may occur in instances outside of a disposal of an investment property such that taxpayers are aware of their tax compliance obligations and are able to accurately assess their returns on investment property. The release of this decision reflects the Ministry's commitment in ensuring a level playing field for all taxpayers, thus enhancing the principles of tax neutrality and equity in the UAE Corporate Tax regime and ensuring such deductions are aligned with international best practice.
Mid East Info
26-06-2025
- Business
- Mid East Info
UAE showcases its experience in developing legislative framework for competition protection at 6th Arab Competition Forum in Iraq
The United Arab Emirates, represented by the Ministry of Economy and Tourism, participated in the 6th Arab Competition Forum held in Baghdad, Iraq, under the theme 'Competition Law Enforcement in the Arab Region.' The delegation engaged in high-level discussions aimed at strengthening collaboration with Arab competition authorities, with a particular focus on recent market developments – especially in mergers and acquisitions M&As, cross-border anti-competitive practices, and regulatory frameworks. The forum served as a significant platform to explore the pivotal role of competition policy in fostering innovation and attracting foreign investments. It underscored the importance of establishing institutions for competition and strengthening investigative capacities in line with global best practices. Through a series of engaging discussions, participants explored key topics such as the enforcement of competition law, the transformative impact of technology on markets, and strategies for improving coordination among Arab competition authorities. Additionally, the event highlighted successful experiences and best practices from member states. In his keynote address at the forum, Mohammed Sultan Janahi, Director of the Competition Department at the UAE Ministry of Economy and Tourism, highlighted the UAE's pioneering efforts in establishing a robust legislative framework to safeguard competition. 'By aligning with global best practices, this framework fosters fair business practices, drives sector-wide productivity, and reinforces the UAE's position as a highly competitive and attractive destination for both regional and international investors,' he added. The Federal Decree-Law No. (36) of 2023 on Competition Regulation marks a transformative advancement in the UAE's competition protection framework. This landmark legislation significantly strengthens the legal system's autonomy while broadening its jurisdictional reach to encompass all activities affecting UAE markets – including cross-border operations and digital marketplaces. The new law reaffirms the UAE's commitment to aligning with global best practices by limiting exemptions exclusively to fully government-owned entities that play a vital role in the national economy. To ensure effective implementation, the Ministry of Economy and Tourism, in partnership with key government stakeholders, will conduct a nationwide series of workshops in 2025, engaging judicial authorities, local economic departments, legal experts, and private sector representatives. These initiatives aim to deepen understanding of the new legislation and its compliance requirements, directly supporting the 'We the UAE 2031' vision. In this regard, Cabinet Decision No. (3) of 2025 concerning the thresholds for notification of economic concentration operations reinforces the role of the Ministry of Economy and Tourism in monitoring and supervising economic concentration activities of establishments in the country, ensuring compliance with fair competition rules. This is achieved by specifying the thresholds and controls related to dominant positions and the obligatory notification of economic concentration operations implemented under the Competition Regulation Law. These measures are designed to strengthen fair competition, ensure market stability, deter monopolistic practices, and promote market access for new entrants – an essential step given that the UAE is home to over 1.1 million companies and economic institutions. The Cabinet's decision establishes clear notification thresholds based on two key financial criteria: when the combined annual local sales of the parties in the relevant market exceed AED 300 million in the preceding fiscal year, or when their aggregate market share surpasses 40 per cent of total transactions in that market. To ensure thorough evaluation, the review period for such transactions has been extended to 90 days, allowing for comprehensive technical and economic analysis. The UAE will host the 7th Arab Competition Forum in 2026, which is one of the most important regional platforms dedicated to enhancing Arab and international cooperation in the field of competition protection and anti-monopoly efforts. This forum supports the objectives of the 'The UAE Charter of Economic Principles,' which aims to build a competitive national economy that provides a thriving business environment filled with opportunities and possibilities.
Time of India
20-06-2025
- Business
- Time of India
Rs 26 lakhs awarded to employee for not working a single day for four months. Here's what happened
A man in Abu Dhabi has been awarded AED 110,400 (approximately Rs 26 lakh) in unpaid wages, despite never having started work at the company that hired him. The decision came after a court ruled in the employee's favour, highlighting that the delay in his joining was entirely the employer's fault. Employee Signed Contract But Never Got to Work As per a report by Khaleej Times, the employee, whose identity has not been disclosed, signed a fixed-term employment contract with an Abu Dhabi-based company. The agreement promised a basic monthly salary of AED 7,200, with a total compensation package of AED 24,000. The contract covered the period from November 11, 2024, to April 7, 2025. However, despite this agreement, the individual was never actually permitted to begin work. Frustrated by repeated delays and the absence of any opportunity to start his job, the man eventually filed a lawsuit seeking his withheld salary for the contract period. The court accepted his claim and ordered the company to compensate him for four months and 18 days of unpaid wages, after deducting eight days he admitted to being on leave. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Live Comfortably: 60 m² Prefab Bungalow for Seniors in Tanza Pre Fabricated Homes | Search Ads Search Now Undo Court Places Responsibility on Employer The Abu Dhabi Labour Court held the employer accountable for the delay in onboarding. Citing Federal Decree-Law No. (33) of 2021, the court underlined that employers are legally required to pay wages on time, following standards set by the Ministry of Human Resources and Emiratisation. It also referred to Article 912 of the Civil Transactions Law, which states that a worker's right to wages cannot be denied unless the employee has formally waived that right or acknowledged non-entitlement. The court examined various documents including the wage report, employment contract, and case file, and found that the fault clearly lay with the company. The evidence confirmed that the delay was not caused by the employee, as the employer had failed to provide any proof of misconduct or absenteeism. Employer's Argument Rejected by Court In response to the lawsuit, the company argued that the employee had taken leave and never reported to duty. However, the court found no records or documentation to support this claim. No formal investigation had been conducted into the employee's alleged absence. Consequently, the court dismissed the company's justification and concluded that the employee's failure to start work was directly linked to the employer's own inaction.
