Definition

Tax Relief is a reduction or exemption in the amount of Corporate Tax payable by a UAE business, offered under specific conditions such as losses, restructuring, or foreign income relief.

Key points

• Common reliefs include Business Restructuring Relief, Tax Loss Relief, and Foreign Tax Credit.
• Reliefs prevent double taxation and support business continuity.
• Must be properly disclosed in the Corporate Tax Return.

Practical example

A company merges two subsidiaries and applies Business Restructuring Relief to defer tax on asset transfers.

Why it matters

Using available tax reliefs helps businesses optimize tax efficiency and stay compliant with UAE regulations.