Staff Report,
Dubai, UAE
Dubai Land Department (DLD) has asked property owners to consult with accredited valuation offices to ensure a seamless transition before the implementation of corporate tax law’s legislation. The official list of accredited companies and valuation offices is available on DLD’s official website (dubailand.gov.ae) and the Dubai REST app, all compliant with the prerequisites for implementing corporate tax per Decree Law No. 47 of 2022. These directives are thoughtfully designed to guide companies to avoid potential legal or financial violations, thereby supporting continuous growth and contributing to the development and prosperity of Dubai’s real estate sector.
To ensure transparency concerning assets and liabilities and to streamline the determination of the initial budget ahead of the new system’s implementation, DLD advises referring to 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. The Ministerial Decision will apply to specific assets and liabilities, including immovable funds, intangible assets, financial assets, and financial liabilities held by businesses before implementing the Corporate Tax Law.
Notably, the decision provides more flexibility to the real estate sector, as businesses with immovable funds calculated based on historical cost can determine the basis of the facility, either using the time division method or the evaluation method. This allows groups to select the approach that best suits their needs for each asset.
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