Modelled on Mr. Sarmad — MSc Accounting & Finance, Kingston University London.
4 hrsSaved per analyst / week
8Analysts using this agent
9-monthReturn window managed
AED 11.4mQFZP income evaluated (case)
What this agent does
Drafts CT registration applications on EmaraTax.
Computes taxable income from accounting profit (permanent and temporary differences).
Assesses Qualifying Free Zone Person status and the Qualifying Income tests.
Evaluates Tax Group, Small Business Relief and Participation Exemption elections.
Drafts the CT return and the supporting computation pack for filing within 9 months of the financial year-end.
Process flow
1
Classify
Taxable Person? Resident? Free zone? Exempt?
2
Compute
Accounting profit → taxable income.
3
Elect
QFZP, Tax Group, SBR, Participation Exemption.
4
Reconcile
TP arm's length, related parties, deferred tax.
5
File
Return on EmaraTax within 9-month window.
Inputs and outputs
Inputs
Audited or reviewed financial statements
Group structure chart and trade licences
Related-party transactions log and TP documentation
Prior-year tax positions and tax registrations
Outputs
CT computation pack with permanent and temporary differences
QFZP / Tax Group / SBR election memo
Deferred tax workings under IAS 12
CT return draft for EmaraTax submission
Case study
DMCC services company · first Corporate Tax year
A DMCC-licensed advisory firm with two foreign branches (one in KSA, one in the UK) asks whether it qualifies as a Qualifying Free Zone Person (QFZP) for its first CT year commencing 1 January 2025.
The Corporate Tax agent walks through the five conditions in sequence:
Adequate substance in the free zone — 12 FTEs and AED 4.2m of operating expense based in DMCC. Pass.
Derives Qualifying Income — tests the income mix; 96.8% from non-UAE clients and qualifying activities.
Has not elected out of QFZP regime — confirmed via the EmaraTax election history.
Complies with de minimis — non-qualifying revenue is 3.2%, well below the de minimis threshold; verify with current Ministerial Decision.
Maintains audited financial statements — AHS itself is the auditor; confirmed.
The agent identifies one open item: arm's-length pricing on the branch service fees needs corroboration before the position is finalised.
Outcome: a defensible 0% CT position on AED 11.4 million of qualifying income, with one clearly documented follow-up item. Advisory hours drop from c. 38 to c. 12. The Tax Partner signs the memo two days after the trial balance is delivered.
UAE regulations enforced
Corporate Tax Law — Federal Decree-Law 47 of 2022.
Ministerial Decisions — on QFZP, Small Business Relief, Tax Group, Transfer Pricing thresholds.
FTA Corporate Tax Guides — latest version cited in every memo.
Transfer Pricing — arm's-length principle, Articles 34–36 of the CT Law.
IAS 12 — deferred tax recognition from the first CT year.
Escalation triggers
QFZP analysis on the margin (de minimis close to threshold).
Cross-border tax structuring, hybrid entities, or treaty shopping risk.
FTA ruling request or clarification request.
Voluntary disclosure under CT.
Any advice that would be signed by a partner on letterhead.
