UAE Federal Tax Authority Clarifies Corporate Tax Treatment of Payments Made in Respect of Additional Tier 1 Instruments by Banks

The UAE Federal Tax Authority (FTA) recently issued Corporate Tax Public Clarification - CTP012, which clarifies the Corporate Tax treatment of payments made in respect of Additional Tier 1 (AT1) instruments by banks. In particular, the CTPO12 clarifies whether payments made by banks on AT1 Instruments are deductible in determining their Taxable Income. The issue and summary are as follows. See the full public clarification for a detailed analysis.

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Issue

Banks operating in the UAE ar…