In order to apply some of the provisions in the Corporate Tax Law, Taxable Persons will need to make the relevant elections or applications.

Elections can be applied unilaterally by Taxable Persons, and do not require an approval from the FTA to give effect to the Corporate Tax treatment. In order for an election to become effective, it is only necessary for a Taxable Person to inform the FTA of their decision. No action or confirmation from the FTA is needed. Taxable Persons can elect to:

372 Ministerial Decision No. 114 of 2023. 373 Article 54(1) of the Corporate Tax Law. 374 Article 54(3) of the Corporate Tax Law. 375 Article 54(2) of the Corporate Tax Law.
376 Article 2 of Ministerial Decision No. 82 of 2023.
377 Ministerial Decision No. 82 of 2023.

• Benefit from the small business relief;378
• Exempt their Foreign Permanent Establishment income;379
• Account for gains and losses on a realisation basis;380
• Be subject to Corporate Tax at the general rate, if they are a Qualifying Free Zone Person; 381
• Apply the relief in relation to transfers in a Qualifying Group;382
• Apply the business restructuring relief;383 and
• Apply Transitional Relief.384

Unlike elections, applications require approval by the FTA. For example, a group of companies cannot form a Tax Group without having made an application and received an approval from the FTA.385 Provisions which require a Taxable Person to make an application cannot take effect until the FTA has approved the application.

Taxable Persons will be required to demonstrate that they meet any necessary criteria, and the FTA can ask for any additional information it requires to make its decision. The following is a non-exhaustive list of aspects of the Corporate Tax Law which require an application from a Taxable Person to the FTA:

• To be exempt from Corporate Tax, if the Person is a public pension fund or a public social security fund, a private pension fund or a private social security fund that meet the relevant conditions, or a Qualifying Investment Fund;386
• To be exempt from Corporate Tax, if they are a juridical person that is wholly owned and controlled by certain types of Exempt Persons387 and meet the relevant condition (e.g. used exclusively for holding assets or investing funds for the benefit of the Exempt Person);388
• To continue to be exempt from Corporate Tax if the Person temporarily fails to meet the conditions of exemption;389
• To treat a Government Entity’s taxable Businesses as a single Taxable Person;390
• To treat an Unincorporated Partnership as a single Taxable Person;391
• To treat a Family Foundation as an Unincorporated Partnership;392
• To request a clarification from the FTA;393
• To request a refund from the FTA;394
• To adjust Taxable Income following an adjustment by a foreign tax authority;395
• To move from the Cash Basis of Accounting to Accrual Basis of Accounting;396
• To form, join or leave a Tax Group, replace a Parent Company in a Tax Group, or cease to be a Tax Group;397
• To deregister for Corporate Tax;398 and
• To change their Tax Period.399