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Corporate Tax Services in the UAE

Indeed, profits and net income of corporations fall under the purview of corporate taxation. Specifically, corporate profits are commonly taxed through Corporate Income Taxes (CIT).

It is noteworthy that, there will be a UAE Corporate Tax for all UAE businesses, except for natural resource extraction, which will continue to be a matter of Emirate taxation. 

To be subject to Corporate Tax in the UAE, foreign entities and individuals must engage in ongoing or regular business activities within the country.

Furthermore, in the UAE, there is currently no federal corporate tax system. Instead, each emirate relies on a tax decree to enforce corporate taxes (CT).

Who All Need To Avail Corporate Tax Service in the UAE

With unequivocal clarity, the Federal Tax Authority has mandated that all businesses operating in the UAE must register for corporate tax in 2024. This directive applies universally, encompassing enterprises regardless of their profitability or the duration of their establishment. Consequently, every business, whether newly founded or long-established, must comply with this registration requirement.

Looking to secure Corporate Tax Services in the UAE?  Look no further. Come to us and receive expert advice tailored to your needs. 

Our Corporate Tax Service in the UAE Includes

Corporate Tax Registration

A business subject to CT will need to register with the FTA and obtain a Tax Registration Number within a prescribed period.

Corporate Tax Registration

A business subject to CT will need to register with the FTA and obtain a Tax Registration Number within a prescribed period.
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Corporate Tax Filing

For every tax period, businesses will need to prepare and file a tax return along with other related schedules.

Corporate Tax Filing

For every tax period, businesses will need to prepare and file a tax return along with other related schedules.
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Corporate Tax Refund

Our advisors will assist you every step of the way through VAT implementation, thereby preventing you from incurring penalties.

Corporate Tax Refund

Conduct of a health check to review the current tax position of your business and provide relevant VAT advice.
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Corporate Tax Advisory

Businesses crossing the defined annual turnover threshold are liable to register under VAT.

Corporate Tax Implementation

VAT Implementation in UAE made it mandatory for the businesses to keep a full record of their accounts & daily transactions.
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Corporate Tax Review

Checks how accurately your business processes VAT transactions,can highlight opportunities for savings & identifies risks.

Corporate Tax Review

With our extensive experience, we specialize in conducting reviews of tax compliance for local entities, ensuring the integrity and accuracy of a company's tax systems and processes.
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Corporate Tax De-registration

When a business ceases to be subject to the CT, the CT registration must be deregistered within 3 months.

Corporate Tax De-registration

When a business ceases to be subject to the CT, the CT registration must be deregistered within 3 months.
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Points To Be Noted on Corporate Tax in UAE

Corporate Tax in the UAE

In the United Arab Emirates, businesses and individuals with commercial licenses must acquire a license. However, for free zone businesses that comply with all regulatory requirements and refrain from operating in the UAE’s mainland, will continue to enjoy the existing corporate tax incentives.

Moreover, foreign entities and individuals are obligated to obtain a license only if they engage in ongoing or regular trade or business activities within the UAE. This requirement extends to banking operations and businesses involved in real estate management, construction, development, agency, and brokerage activities.

CT will be levied on a business’s annual taxable income according to the following structure:

  • For taxable income not exceeding AED 375,000, the rate is 0%.
  • For taxable income exceeding AED 375,000, the rate is 9%.
  • Additionally, a distinct tax rate (yet to be specified) will apply to large multinationals meeting specific criteria outlined in reference to Pillar II of the OECD BEPS. Given the Consultation Document’s emphasis on the UAE’s commitment to implementing BEPS 2.0 measures, it is anticipated that this rate will align with the one ultimately determined by the OECD.

In UAE VAT, any person conducting business is not allowed to have more than one Tax Registration Number (TRN), unless otherwise prescribed in the UAE Executive Regulation. Thus, even if you are operating via branches in more than one Emirate, only one VAT registration is required. With a similar objective, if two or more persons are related or associated parties in the businesses, they are allowed to apply for VAT group registration.

VAT-registered businesses collect the amount on behalf of the government; consumers bear the VAT in the form of a 5 per cent increase in the cost of taxable goods and services they purchase in the UAE.

UAE imposes VAT on tax-registered businesses at a rate of 5 per cent on a taxable supply of goods or services at each step of the supply chain.

Tourists in the UAE also pay VAT at the point of sale. 

VAT applies equally on tax-registered businesses managed on the UAE mainland and in the free zones. However, if the UAE Cabinet defines a certain free zone as a ‘designated zone’, it must be treated as outside the UAE for tax purposes. The transfer of goods between designated zones are tax-free.

At the end of each tax period, VAT registered businesses or the ‘taxable persons’ must submit a ‘VAT return’ to Federal Tax Authority (FTA).

A VAT return summarises the value of the supplies and purchases a taxable person has made during the tax period, and shows the taxable person’s VAT liability.

Our Corporate Tax Service Procedure

Moreover, when strategizing for corporate income tax management, it is essential to stay abreast of the latest advancements in tax legislation, rules, and international tax agreements. Ensuring compliance with regulations not only enhances tax planning approaches but is also vital. Similarly, the diligent upkeep of accurate and comprehensive records for all business transactions and expenses associated with tax matters is crucial. In this regard, we stand ready to support you in rectifying your accounting records, ensuring their accuracy, and preparing your company for corporate taxation in the UAE.

The company should provide its employees with training on tax laws, regulations, and compliance requirements regarding corporate income tax. Consequently, this training can facilitate a comprehensive understanding of the new tax system, enabling employees to comply with the stipulated requirements.

To achieve effective implementation and compliance with corporate income tax in the UAE, companies must proactively engage in tax planning, meticulous documentation, and strict adherence to tax laws and regulations.

Moreover, companies may opt for professional assistance from audit firms in Dubai, accountants, and legal experts to ensure seamless compliance with tax laws and regulations.