CALX International

Eid Mubarak from CALX International🌙✨

On this blessed occasion of Eid al-Fitr, we extend our warmest wishes to you and your loved ones. May this special time bring joy, peace, and prosperity to all.

Ramadan Mubarak🌙

As the blessed month of Ramadan begins, we extend our heartfelt wishes for peace, joy, and abundant blessings. Wishing you and your loved ones a month filled with reflection, gratitude, and success.✨️

✨ Happy New Year! ✨

As we step into 2026, may it bring fresh opportunities, new beginnings, and endless possibilities. Let’s continue to innovate, grow, and make a positive impact together. Wishing everyone a successful and inspiring year ahead!

UAEBusinessCommunity

Claiming the wrong expenses can cost you.
Under UAE Corporate Tax, only expenses that are “wholly and exclusively” for business purposes are deductible.

✅ Deductible items include salaries, rent, utilities, marketing, professional fees, and part of entertainment costs.
❌ Non-deductible items include fines, bribes, personal expenses, capital costs, and recoverable VAT.

Keeping clear records ensures compliance, and saves you from penalties.

Corporate tax deadlines are approaching fast.

In the UAE, tax registration and filing deadlines depend on your license issuance month and your financial year-end.
📅Example: If your license was issued in Jan–Feb, register by May 31, 2025.
📅 If your year-end is Dec 31, 2024, your first return is due by Sept 30, 2025.
👉 Payment is due at the same time as filing.

📌 Tip: Set automated reminders to ensure timely registration, filing, and payment - and avoid unnecessary penalties.

The Ministry of Finance has issued Cabinet Decisions 34 & 35 of 2025, effective for tax periods starting 1 January 2025.

The updates reshape the treatment of Qualifying Investment Funds (QIFs), Real Estate Investment Trusts (REITs), and Qualifying Limited Partnerships (QLPs), while also broadening the nexus rules for nonresident investors.

Key changes include: removal of old ownership/staffing conditions, new investor reporting duties, updated REIT listing & asset rules, and expanded taxation triggers for immovable property income.

Fund managers and investors must reassess ownership structures, dividend policies, and compliance processes to avoid unexpected liabilities.

📄 Read the official Cabinet Decisions on the Federal Tax Authority website:
[1.https://tax.gov.ae//Datafolder/Files/Legislation/2025/Cabinet-Decision-No-35-of-2025-on-Determination-of-a-Non-Resident-Persons-Nexus-in-the-State.pdf ]
[2.https://tax.gov.ae//Datafolder/Files/Legislation/2025/Cabinet-Decision-No-34-of-2025-0On-Qualifying-Investment-Funds-and-Qualifying-Limited-Partnerships.pdf ]

Transfer Pricing in the UAE: What you need to know

Under UAE Corporate Tax law, all related-party transactions must follow the arm’s-length principle. That means fair pricing, full disclosure, and proper documentation.

📂 Master File & Local File rules apply when revenue thresholds are met.
⚠ Penalties apply if documents aren’t provided within 30 days of FTA request.

Being audit-ready is the safest strategy.

The UAE is aligning with the OECD’s Pillar Two rules by introducing the Domestic Minimum Top-up Tax (DMTT), effective 1 Jan 2025.
✔️ Applies to multinational groups with €750M+ global revenues
✔️ Ensures a minimum 15% effective tax rate

A clear step toward fair and transparent taxation.

📢 Mandatory Aggregated Financial Statements for UAE Tax Groups

From 1 January 2025, all UAE Tax Groups must prepare and submit audited Aggregated Financial Statements in line with FTA Decision No. 7 of 2025.

Key Requirements:
1️⃣ Prepare Aggregated Financial Statements (not IFRS-10 consolidation) by combining each member’s standalone accounts using uniform accounting policies.
2️⃣ Have them audited as a special-purpose engagement under ISA standards.
3️⃣ File the audited statements with the FTA within 9 months of the tax period end (or as otherwise specified).

This update is designed to standardise reporting, improve transparency, and align UAE corporate tax compliance with international best practices.

📄 Full FTA guide:https://tax.gov.ae/Datafolder/Files/Legislation/2025/FTA-Decision-No-7-of-2025-for-publishing.pdf

📢 IFZA License Renewal – Financial Reporting Update
Effective 30 September 2025, audited financial reporting will be required for all IFZA trade license renewals.
Businesses meeting specific turnover and employee thresholds may submit a simplified statement.

Read the full guideline here:https://cdn.ifza.com/marketing/FAQs.pdf

The 2024 bonus landscape shows that while most organizations are settling on 1–2 month payouts, a notable share are holding back on bonuses altogether. This shift signals a blend of careful optimism and strategic decision-making across industries.