The corporate tax regulations in the UAE are constantly evolving, and can be challenging to navigate. We offer personalized corporate tax solutions for Small & Medium Enterprises to Larger Corporations, built around their specific needs and help them meet their corporate tax obligations efficiently.
Since we have deep expertise, extensive knowledge in local and international tax practices, we offer clear, practical, and personalized guidance on all aspects of the corporate tax landscape. Our tax professionals work closely with our clients to make them understand the corporate tax regulations and give them the confidence that their tax compliance is in the right hands.
We make sure that your business pays the right amount of taxes because we have worked with clients from various industries and are focused on obtaining results. As an FTA-approved tax consultant, we can also help you fulfill the regulatory obligations set by the FTA and represent tax-related matters of your business.
We can guide you with every aspect of UAE corporate tax, such as:
- Assisting on Corporate Tax Registration & De-registration
- Preparation and filing of corporate tax returns.
- Reviewing your business activity and ensuring your business is fully compliant with UAE corporate tax law.
- Identifying corporate tax relief opportunities and deductions that are available to reduce your corporate tax liabilities.
- Guidance on tax group structuring that are suitable for your business activity.
- Preparing tax return filing related tax files, disclosures, and documentation.
- Guidance on transfer pricing rules and international tax standards & regulations for the avoidance of double taxation.
- Assistance with FTA queries, reviews, and tax disputes.
We act as your in-house tax team and work with you to identify opportunities, improve tax efficiency, and strengthen your tax framework for long-term growth. Whether you’re seeking expert tax guidance or assistance for registration or filing returns, we are always here to support you.
What is Corporate Tax & What to Expect from Corporate Tax in the UAE?
A recent government announcement revealed that a new corporate tax will be imposed beginning with the fiscal year that begins on June 1, 2023. The tax regime has been designed in accordance with global best practises, with the goal of reducing the compliance burden on businesses. Continue reading to learn what the end of the ‘no corporate tax policy’ means for businesses operating in the UAE.
The application of Corporate tax in the UAE has been discussed in financial circles for some time, so the announcement came as no surprise. Authorities will begin taxing business and commercial activities on June 1, 2023. This tax will be levied on all profits made by the company and reported in its financial statements. Companies must produce the statement in accordance with internationally accepted accounting standards, with only minor exceptions or adjustments. The Federal Tax Authority (FTA) will oversee corporate tax payments.
What is the rate of corporate tax?
Profits will be taxed at a standard statutory rate of 9%. The tax rate on taxable profits up to AED 375,000, on the other hand, will be 0%. This action is intended to encourage small businesses and startups in the area. Slab rates have yet to be determined. This could change in the future. Having said that, the UAE corporate tax rate will begin as one of the most competitive in the world.
Will there be any exceptions?
The enterprises that deal in the extraction of natural resources might, in fact, avoid paying the tax. These types of companies will still be subject to taxation on an Emirate level. In addition, residents of the UAE will no longer be required to pay taxes on dividends and capital gains derived from eligible shareholdings. If a corporation produces profits outside the United Arab Emirates and pays taxes in that nation on those profits, the company will not be required to pay corporate tax on such profits in the United Arab Emirates since foreign taxes will be credited against the UAE corporate tax payable.
Will it be possible for many corporations to file as a single tax entity under certain circumstances?
The corporation tax code of the UAE will have loss utilisation regulations that are very lenient. This paves the way for companies based in the UAE to be able to file their taxes as a single entity. In the case of a loss and/or in regard to intragroup transactions, they have the ability to submit a relief claim on their own behalf as a group (units).