MP ELITES KNOWLEDGE CENTER
UAE Business & Tax Glossary
Understand the UAE terms that shape company decisions, tax filings, governance and cross-border risk. Each definition gives the operational meaning, the concepts it is often confused with and the guide to use when the facts become case-specific.
The glossary covers the concepts most often needed to read the MP Elites strategic guides. It does not replace those guides: each term stays concise, cites official sources and points to the deeper decision framework.
Live glossary terms
50 terms shown
AML
Anti-Money Laundering is the risk-based legal and control framework used to prevent, detect, document and report money laundering, terrorist financing and proliferation-financing risks.
02ComplianceAudit
An audit is an independent examination performed under an applicable assurance framework to support an auditor’s opinion on specified financial statements or other subject matter.
03ComplianceBeneficial Owner
A Beneficial Owner is the natural person who ultimately owns, controls or benefits from a legal person, customer or legal arrangement under the specific corporate, AML, tax or reporting rule…
04ComplianceBoard Resolution
A board resolution is a formally recorded decision of a company’s board or equivalent governing body, adopted within its legal authority and the entity’s constitutional documents.
05StructuresBranch
A branch is a registered presence through which an existing company conducts approved activity in another jurisdiction, commonly without creating a separate legal person from its parent.
06ComplianceCabinet Decision
A Cabinet Decision is an official instrument issued by the UAE Cabinet under constitutional or statutory authority to implement legislation, set detailed rules or determine matters delegated to the Cabinet.
07StructuresCapital Contribution
A capital contribution is money, property or another permitted asset provided to a company as owner funding in exchange for, or credited toward, an equity interest under the applicable rules.
08ComplianceCompliance
UAE business compliance is the continuing process of identifying, completing and evidencing the legal, licensing, tax, accounting, ownership, employment and sector obligations that apply to a specific entity and its…
09TaxCorporate Tax
UAE Corporate Tax is a federal direct tax applied to the Taxable Income of Taxable Persons under the Corporate Tax Law, after accounting profit is adjusted for the law’s specific…
10TaxCorporate Tax Return
A Corporate Tax Return is the Taxable Person’s period-specific self-assessment of taxable income, adjustments, reliefs, credits and tax payable submitted to the FTA.
11ComplianceDeregistration
Deregistration is the formal removal of a person from a specific tax, licence or official register after the relevant eligibility, filing, payment and evidence requirements are satisfied.
12StructuresDirector
A director is a person formally appointed to participate in a company's governance and decision-making under its applicable law and constitutional documents; the title does not alone prove where management…
13TaxDividends
A dividend is a distribution of company profit or reserves to a shareholder in that capacity, authorised under the applicable company documents and law; it is not salary, an expense…
14Cross-BorderDouble Tax Treaty
A Double Tax Treaty is an agreement between two jurisdictions that allocates taxing rights and provides mechanisms to relieve qualifying double taxation under its exact terms.
15ComplianceEconomic Substance
Economic substance means the real people, premises, expenditure, assets, decision-making and activities supporting an entity's stated role; it is broader than the UAE's former standalone ESR reporting regime.
16ComplianceFinancial Statements
Financial statements are a structured period-end presentation of an entity’s financial position, performance and cash flows, prepared from accounting records under an applicable reporting framework.
17StructuresFoundation
A UAE foundation is a separate legal person under its applicable foundation regime, governed by constitutional documents and a Council to hold or administer assets for stated purposes or beneficiaries.
18Company FormationFree Zone
A UAE Free Zone is a defined jurisdiction with its own licensing authority and rules; it does not by itself determine Corporate Tax, VAT, banking approval or unrestricted market access.
19TaxFTA
The Federal Tax Authority is the UAE government entity responsible for administering, collecting and enforcing federal taxes and operating the related taxpayer services and compliance systems.
20Company FormationFZCO
Free Zone Company is a company-form label offered by certain UAE Free Zone authorities, often for multiple shareholders, with exact rules set by the relevant authority.
21Company FormationFZE
Free Zone Establishment is a legal-form label used by certain UAE Free Zone authorities, commonly for a single-shareholder entity; the relevant authority’s current rules define it.
22StructuresHolding Company
A UAE holding company is an entity used primarily to own shares or other assets and coordinate governance; “holding” can describe its function rather than a universal legal form or…
23ComplianceLiquidation
Liquidation is the formal process of winding up a dissolved company by identifying assets and liabilities, settling claims and distributing any lawful remainder before final cancellation.
24Company FormationLLC
A Limited Liability Company is an incorporated legal person whose members’ liability is generally limited to their capital contributions, subject to the applicable law, documents and exceptions.
25Company FormationMainland
A UAE mainland company is licensed by the competent emirate-level economic authority under the applicable company and licensing framework; the label does not itself decide tax, activity scope or banking.
26ComplianceManagement Accounts
Management accounts are periodic internal financial reports designed for decisions, control and forward planning rather than a fixed statutory filing or independent audit opinion.
27TaxManagement Fees
Management fees are charges for genuine management or support services, often between related entities, whose deductibility and pricing depend on benefit, evidence, business purpose and arm’s-length conditions.
28ComplianceMinisterial Decision
A Ministerial Decision is an official instrument issued by the competent UAE minister under lawful authority to implement, specify or administer matters within an enabling law or Cabinet framework.
29TaxMoF
The UAE Ministry of Finance is the federal ministry responsible for fiscal policy, federal financial management, tax policy and legislation, and international financial and tax relations within its mandate.
30CompliancePayroll
UAE payroll is the controlled process that converts approved employment data into pay calculations, authorised wage payments, accounting entries and reconciled employee records under the applicable employment regime.
31Cross-BorderPermanent Establishment
A Permanent Establishment is a taxable nexus through which a non-resident business can become subject to tax in another jurisdiction, commonly through a fixed place or qualifying dependent-agent activity.
32Cross-BorderPlace of Effective Management
Place of Effective Management identifies where the highest-level strategic and commercial decisions necessary for an entity’s business are made in substance, based on all relevant facts.
33TaxQFZP
A QFZP is a Free Zone Person that satisfies every current Corporate Tax condition for the period and may apply 0% only to Qualifying Income, not automatically to all profit.
34ComplianceRelated Party
A Related Party is a person connected to another person through the ownership, control, family, partnership, trust, foundation, branch or other relationships specified by the UAE Corporate Tax Law.
35Cross-BorderRoyalty
A royalty is consideration for the use of, or right to use, specified intellectual property, information or similar rights under the applicable contract, tax law and treaty definition.
36ComplianceService Agreement
A service agreement is a contract defining work, responsibilities, consideration, evidence and risk allocation between a provider and recipient; it does not override licensing, tax or actual conduct.
37StructuresShare Capital
Share capital is the registered nominal equity represented by issued shares or ownership stakes under a company’s governing law and constitutional documents.
38StructuresShareholder
A shareholder is a person recorded as holding shares or an ownership interest in a company, with rights and obligations determined by the applicable law, legal form, constitutional documents and…
39StructuresSPV
A Special Purpose Vehicle is a legally separate entity formed for a defined, limited purpose, commonly to hold a specific asset, investment, financing or project risk rather than conduct a…
40StructuresSubsidiary
A subsidiary is a separately incorporated entity controlled by another person, usually a parent company, while retaining its own legal personality, obligations and records.
41TaxTax Assessment
A Tax Assessment is a formal FTA decision determining payable tax, refundable tax or another matter in circumstances specified by the Tax Procedures Law and applicable tax law.
42TaxTax Group
A UAE Corporate Tax Group is an FTA-approved grouping in which an eligible parent and subsidiaries are treated as a single Taxable Person for Corporate Tax while remaining separate legal…
43TaxTax Penalty
A tax penalty is a statutory financial or other consequence imposed for a specified tax violation, separate from the underlying tax and determined under the current applicable law and decision.
44Cross-BorderTax Residence
UAE tax residence is a status determined under domestic residence rules for individuals or juridical persons and, when relevant, under the exact applicable double tax treaty; a visa alone is…
45ComplianceTransfer Pricing
Transfer pricing is the UAE Corporate Tax framework requiring transactions and arrangements between Related Parties and Connected Persons to reflect arm’s-length outcomes supported by facts and evidence.
46StructuresTrust
A trust is a legal relationship in which a trustee holds and administers property under a specific trust law and trust instrument for beneficiaries or a permitted purpose; it is…
47ComplianceUBO
An Ultimate Beneficial Owner is the natural person who ultimately owns or controls a legal person or arrangement, directly or through a chain, or on whose behalf a transaction is…
48VATVAT
UAE VAT is a transaction-based indirect tax charged on taxable supplies and relevant imports, with registered businesses accounting for output tax and eligible input tax under the VAT rules.
49VATVAT Return
A VAT Return is the periodic self-assessment submitted to the FTA reporting output tax, recoverable input tax, adjustments and the resulting net VAT position for the assigned period.
50Cross-BorderWithholding Tax
Withholding tax is tax collected at source by requiring a payer or intermediary to deduct an amount from a payment and remit it to the relevant tax authority.
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Move from a definition to the complete decision framework.
UAE Corporate Tax Guide
Scope, rates, registration, Free Zones, filing and common mistakes.
VATUAE VAT Guide
Supplies, registration, rates, place of supply, recovery and returns.
FORMATIONUAE Company Formation
Jurisdiction, activity, banking and operational-readiness decisions.
STRUCTURESUAE Foundation Guide
DIFC, ADGM, governance, assets, tax and succession questions.
CROSS-BORDERCross-Border Structuring
Residence, permanent establishment, transfer pricing and treaties.