[World Tax News] UAE Corporate Tax Losses and More

Editorial Team – [2026] 188 taxmann.com 63 (Article)

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happenings in the world this week:

1. UAE releases Basic Tax Information Bulletin on Corporate Tax Losses

The UAE Federal Tax Authority (FTA) has issued a Basic Tax Information Bulletin on Corporate Tax Losses, explaining the treatment of Tax Losses under the Corporate Tax regime. A Tax Loss arises when deductible expenses exceed income subject to Corporate Tax, resulting in negative Taxable Income after making adjustments under the Corporate Tax Law. However, losses incurred before 1 June 2023, before a person became a Taxable Person, or from activities that do not generate Taxable Income are not treated as Tax Losses. The bulletin also clarifies that Taxable Persons may carry forward Tax Losses indefinitely and offset them against future Taxable Income, subject to a maximum of 75% of the Taxable Income of a Tax Period before Tax Loss relief.

The bulletin further explains that the carry forward and utilisation of Tax Losses may be restricted where there is a change in ownership of more than 50%, unless the Taxable Person continues to carry on the same or a similar Business or Business Activity. These restrictions do not apply to entities whose shares are listed on a Recognised Stock Exchange. It also highlights that Tax Losses may be forfeited in specified circumstances, such as a qualifying change in ownership followed by a change in business activity or upon deregistration for Corporate Tax.

2. Spain amends forms and procedures for Non-Resident Income Tax compliance

Spain has issued an order amending Order EHA/3316/2010, which governs self-assessment Forms 210, 211 and 213 for the Non-Resident Income Tax. These forms are used to declare income earned without the mediation of a permanent establishment, the withholding on the acquisition of real estate from non-residents without a permanent establishment, and the special tax on real estate owned by non-resident entities. The order also updates the general conditions, filing procedure, and other rules relating to the taxation of non-residents.

The Order further amends Order EHA/3290/2008, which approves Form 216 for reporting withholdings and payments on account relating to income earned by non-residents without the mediation of a permanent establishment, and Form 296, the annual declaration of such withholdings and payments on account.

In addition, the order modifies Order EHA/1658/2009, revising the procedure and conditions for the direct debit of payment of certain tax debts managed by the State Tax Administration Agency. The amendments were published in the Official State Gazette (BOE) on 23 June 2026.

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