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Corporate Tax Services in the UAE

Corporate Tax is a direct tax levied on the net income and profits of corporations and other entities. In some jurisdictions, Corporate Tax is also known as Corporate Income Tax (CIT) or Business Profits Tax.

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.

Currently, the UAE does not have a federal Corporate Tax regime.  By tax decrees, CT is determined for each Emirate.  In the UAE, corporate tax is only imposed on oil and gas companies and foreign banks’ branches.  Moreover, the UAE is home to more than 40 free zones, each with its own rules and regulations.  In general, such zones offer significant tax benefits to companies incorporated therein, making the UAE an attractive jurisdiction in terms of taxes.  Furthermore, the UAE does not tax employment-based income. 

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 Implementation

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. All businesses and individuals conducting business activities under a commercial licence in the UAE
  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

Business Impact Assessment, review of key documents like existing contracts and incorporation of VAT clauses in the existing and new contracts and related documents.

Advise, develop and assist in restructuring transactions, supply chain and other related processes, Advise and support for requisite changes in the IT systems and applications.

Assist in VAT registrations and in the preparation and filing of VAT returns. Align compliance practices with VAT requisites.

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