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Corporate Tax Services in the UAE

Profits and net income of corporations are subject to corporate taxation. Generally, corporate profits are taxed as Corporate Income Taxes (CIT).

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 conduct ongoing or regular business in the country.

As of right now, there is no federal corporate tax system in the UAE. To establish a CT, each emirate uses a tax decree.

Currently, only oil and gas companies and foreign banks are subject to UAE corporate taxes. Additionally, the UAE has more than 40 free zones, each with its own rules and regulations.  As a result of such zones, UAE companies generally receive considerable tax benefits, making it a tax-friendly jurisdiction. Additionally, employment-based income is not taxed in the UAE. As of now, only oil and gas companies and foreign banks are subject to corporate taxes in the UAE. Are you looking for Corporate Tax Services in the UAE?  Come to us and take advice.

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 guide you at every step of the VAT so that you don't incur the 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

Implementation of VAT laws in UAE made it mandatory for the businesses to keep a complete record of their accounts & daily transactions.
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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
  1. In the United Arab Emirates, all businesses and individuals with commercial licenses are required to obtain a license

  2. Free zone businesses (The UAE CT regime will continue to honour the CT incentives currently being offered to free zone businesses that comply with all regulatory requirements and that do not conduct business set up in the UAE’s mainland.)
  3. Foreign entities and individuals only if they conduct a trade or business in the UAE in an ongoing or regular manner
  4. Banking operations
  5. Businesses engaged in real estate management, construction, development, agency and brokerage activities.

CT will be charged on the annual taxable income of a business as follows:

  • 0%, for taxable income not exceeding AED 375,000;
  • 9%, for taxable income exceeding AED 375,000; and
  • a different tax rate (not yet specified) for large multinationals that meet specific criteria set with reference to Pillar II of the OECD BEPS. In light of the Consultation Document’s emphasis on the UAE’s commitment to implementing the BEPS 2.0 measures, we expect that the rate will be fixed with reference to the rate finally 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

In addition, when strategizing for corporate income tax management, staying abreast of the most recent advancements in tax legislations, rules, and international tax agreements is crucial. This guarantees both adherence to regulations and the enhancement of tax planning approaches. Equally vital is the meticulous maintenance of precise and comprehensive records for all business dealings and expenditures linked to tax affairs. We are poised to assist you in rectifying your accounting records, ensuring their accuracy, and preparing your company for corporate taxation in the UAE.

The company should provide training to its employees on the tax laws, regulations, and compliance requirements related to corporate income tax. This training can help ensure that the employees understand the new tax system and can comply with the requirements.

Effective implementation and compliance with corporate income tax in the UAE require companies to be proactive in their tax planning, documentation, and adherence to tax laws and regulations.

Companies may seek professional assistance from professional audit firms in Dubai, accountants, and legal experts to ensure compliance with tax laws and regulations.

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