In the application of the provisions of this Decree-Law, the following words and expressions shall have the meanings assigned against each, unless the context otherwise requires:

State	:	United Arab Emirates.
Federal Government	:	The government of the United Arab Emirates.
Local Government	:	Any of the governments of the Member Emirates of the Federation.
Ministry	:	Ministry of Finance.
Minister	:	Minister of Finance.
Authority	:	Federal Tax Authority.
Corporate Tax	:	The tax imposed by this Decree-Law on juridical persons and Business income.
Business	:	Any activity conducted regularly, on an ongoing and independent basis by any Person and in any location, such as industrial, commercial, agricultural, vocational, professional, service or excavation activities or any other activity related to the use of tangible or intangible properties.
Qualifying Income	:	Any income derived by a Qualifying Free Zone Person that is subject to Corporate Tax at the rate specified in paragraph (a) of Clause 2 of Article 3 of this Decree-Law.
Government Entity	:	The Federal Government, Local Governments, ministries, government departments, government agencies, authorities and public institutions of the Federal Government or Local Governments.
Government Controlled Entity	:	Any juridical person, directly or indirectly wholly owned and controlled by a Government Entity, as specified in a decision issued by the Cabinet at the suggestion of the Minister.
Person	:	Any natural person or juridical person.
Business Activity	:	Any transaction or activity, or series of transactions or series of activities conducted by a Person in the course of its Business.
Mandated Activity	:	Any activity conducted by a Government Controlled Entity in accordance with the legal instrument establishing or

		regulating the entity, that is specified in a decision issued by the Cabinet at the suggestion of the Minister.
State’s Territory	:	The State’s lands, territorial sea and airspace above it.
Natural Resources	:	Water, oil, gas, coal, naturally formed minerals, and other non-renewable, non-living natural resources that may be extracted from the State’s Territory.
Extractive Business	:	The Business or Business Activity of exploring, extracting, removing, or otherwise producing and exploiting the Natural Resources of the State or any interest therein as determined by the Minister.
Non-Extractive Natural Resource Business	:	The Business or Business Activity of separating, treating, refining, processing, storing, transporting, marketing or distributing the Natural Resources of the State.
Qualifying Public Benefit Entity	:	Any entity that meets the conditions set out in Article 9 of this Decree-Law and that is listed in a decision issued by the Cabinet at the suggestion of the Minister.
Qualifying Investment Fund	:	Any entity whose principal activity is the issuing of investment interests to raise funds or pool investor funds or establish a joint investment fund with the aim of enabling the holder of such an investment interest to benefit from the profits or gains from the entity’s acquisition, holding, management or disposal of investments, in accordance with the applicable legislation and when it meets the conditions set out in Article 10 of this Decree-Law.
Exempt Person	:	A Person exempt from Corporate Tax under Article 4 of this Decree-Law.
Taxable Person	:	A Person subject to Corporate Tax in the State under this Decree-Law.
Licensing Authority	:	The competent authority concerned with licensing or authorising a Business or Business Activity in the State.
Licence	:	A document issued by a Licensing Authority under which a Business or Business Activity is conducted in the State.
Taxable Income	:	The income that is subject to Corporate Tax under this Decree-Law.
Financial Year	:	The period specified in Article 57 of this Decree-Law.
Tax Return	:	Information filed with the Authority for Corporate Tax purposes in the form and manner as prescribed by the Authority, including any schedule or attachment thereto, and any amendment thereof.
Tax Period	:	The period for which a Tax Return is required to be filed.
Related Party	:	Any    Person    associated    with    a   Taxable   Person    as

		determined in Clause 1 of Article 35 of this Decree-Law.
Revenue	:	The gross amount of income derived during a Tax Period.
Recognised Stock Exchange	:	Any stock exchange established in the State that is licensed and regulated by the relevant competent authority, or any stock exchange established outside the State of equal standing.
Resident Person	:	The Taxable Person specified in Clause 3 of Article 11 of this Decree-Law.
Non-Resident Person	:	The Taxable Person specified in Clause 4 of Article 11 of this Decree-Law.
Free Zone	:	A designated and defined geographic area within the State that is specified in a decision issued by the Cabinet at the suggestion of the Minister.
Free Zone Person	:	A juridical person incorporated, established or otherwise registered in a Free Zone, including a branch of a Non- Resident Person registered in a Free Zone.
Unincorporated Partnership	:	A relationship established by contract between two Persons or more, such as a partnership or trust or any other similar association of Persons, in accordance with the applicable legislation of the State.
Permanent Establishment	:	A place of Business or other form of presence in the State of a Non-Resident Person in accordance with Article 14 of this Decree-Law.
State Sourced Income	:	Income accruing in, or derived from, the State as specified in Article 13 of this Decree-Law.
Qualifying Free Zone Person	:	A Free Zone Person that meets the conditions of Article 18 of this Decree-Law and is subject to Corporate Tax under Clause 2 of Article 3 of this Decree-Law.
Investment Manager	:	A Person who provides brokerage or investment management services that is subject to the regulatory oversight of the competent authority in the State.
Corporate Tax Payable	:	Corporate Tax that has or will become due for payment to the Authority in respect of one or more Tax Periods.
Foreign Partnership	:	A relationship established by contract between two Persons or more, such as a partnership or trust or any other similar association of Persons, in accordance with laws of a foreign jurisdiction.
Foreign Tax Credit	:	Tax paid under the laws of a foreign jurisdiction on income or profits that may be deducted from the Corporate Tax due, in accordance with the conditions of Clause 2 of Article 47 of this Decree-Law.
Family Foundation	:	Any foundation, trust or similar entity that meets the

		conditions of Article 17 of this Decree-Law.
Interest	:	Any amount accrued or paid for the use of money or credit, including discounts, premiums and profit paid in respect of an Islamic financial instrument and other payments economically equivalent to interest, and any other amounts incurred in connection with the raising of finance, excluding payments of the principal amount.
Accounting Income	:	The accounting net profit or loss for the relevant Tax Period as per the financial statements prepared in accordance with the provisions of Article 20 of this Decree-Law.
Exempt Income	:	Any income exempt from Corporate Tax under this Decree- Law.
Connected Person	:	Any Person affiliated with a Taxable Person as determined in Clause 2 of Article 36 of this Decree-Law.
Tax Loss	:	Any negative Taxable Income as calculated under this Decree-Law for a given Tax Period.
Qualifying Business Activity	:	Any activity that is specified in a decision issued by the Cabinet at the suggestion of the Minister.
Foreign Permanent Establishment	:	A place of Business or other form of presence outside the State of a Resident Person that is determined in accordance with the criteria prescribed in Article 14 of this Decree-Law.
Market Value	:	The price which could be agreed in an arm’s-length free market transaction between Persons who are not Related Parties or Connected Persons in similar circumstances.
Qualifying Group	:	Two or more Taxable Persons that meet the conditions of Clause 2 of Article 26 of this Decree-Law.
Net Interest Expenditure	:	The Interest expenditure amount that is in excess of the Interest income amount as determined in accordance with the provisions of this Decree-Law.
Bank	:	A Person licensed in the State as a bank or finance institution or an equivalent licensed activity that allows the taking of deposits and the granting of credits as defined in the applicable legislation of the State.
Insurance Provider	:	A Person licensed in the State as an insurance provider that accepts risks by entering into or carrying out contracts of insurance, in both the life and non-life sectors, including contracts of reinsurance and captive insurance, as defined in the applicable legislation of the State.
Control	:	The direction and influence over one Person by another Person in accordance with the conditions of Clause 2 of Article 35 of this Decree-Law.

Tax Group	:	Two or more Taxable Persons treated as a single Taxable Person according to the conditions of Article 40 of this Decree-Law.
Withholding Tax Credit	:	The Corporate Tax amount that can be deducted from the Corporate Tax due in accordance with the conditions of Clause 2 of Article 46 of this Decree-Law.
Withholding Tax	:	Corporate Tax to be withheld from State Sourced Income in accordance with Article 45 of this Decree-Law.
Tax Registration	:	A procedure under which a Person registers for Corporate Tax purposes with the Authority.
Tax Registration Number	:	A unique number issued by the Authority to each Person who is registered for Corporate Tax purposes in the State.
Tax Deregistration	:	A procedure under which a Person is deregistered for Corporate Tax purposes with the Authority.
Tax Procedures Law	:	The federal law that governs tax procedures in the State.
Administrative Penalties	:	Amounts imposed and collected under this Decree-Law or the Tax Procedures Law.

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