In an effort to strengthen market transparency and encourage compliance with the relevant regulations and laws, the Dubai Land Department (DLD) has encouraged property owners to work with recognized valuation agencies for the application of corporation tax legislation.
The Dubai REST app and DLD’s official website, dubailand.gov.ae, both have the official list of accredited businesses and valuation offices that meet the requirements to administer corporate tax under Decree Law No. 47 of 2022. These guidelines are intended to assist businesses in avoiding possible financial or legal violations, which will help Dubai’s real estate market grow.
DLD suggests consulting Ministerial Resolution No. 120 of 2023, specifically Clause 3 of Article Two, where the relevant government entities in the UAE determine the market value of eligible immovable funds, in order to ensure a fair and transparent approach concerning assets and liabilities and to expedite the determination of the initial budget prior to the new system’s implementation.
Consultation of this decision facilitates the process of creating the first budget and guarantees a smooth transition from the pre-implementation period of the business tax law. The Ministerial Decision will cover some assets and liabilities that firms owned prior to the implementation of the Corporate Tax Law, such as immovable funds, intangible assets, financial assets, and financial liabilities.
Notably, the ruling gives the real estate industry more options because companies with immovable funds based on historical cost can use the evaluation method or the time division approach to evaluate the facility’s foundation. This enables groups to choose the strategy for each asset that best fits their needs.
