FAQ – Article 46 Witholding Tax Credit
Source: https://mof.gov.ae/corporate-tax-faq/
- Is a credit available for foreign tax paid on income that is also subject to UAE CT?
Yes. Foreign tax paid on income that is also subject to UAE CT can be deducted as a foreign tax credit from the UAE CT payable. The maximum foreign tax credit is the lower of the foreign tax paid and the UAE CT payable on the relevant income. Any excess foreign tax credit cannot be carried forward or back to a different Tax Period.
- What foreign taxes can be credited against UAE CT?
Withholding tax and other forms of foreign taxes on income or profits can be offset against the UAE CT liability, subject to any conditions as may be set out in an applicable agreement or treaty made between the UAE and the foreign country or territory.
