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Corporate Tax Services in Dubai

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 resources extraction, which will continue to be a matter of Emirate taxation. In order to be subject to Corporate Tax, foreign entities and individuals must conduct ongoing or regular business in the UAE.

In accordance with international accounting standards, UAE Corporate Tax will apply equally to financial statements that report profits and other (net) income.

Currently, the UAE does not have a federal CT 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 Dubai 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

Only those businesses crossing the defined annual aggregate turnover threshold are liable to register under VAT. Based on the registration threshold, a business will either be mandated to register or as an option, a business can apply for registration or can seek exemption from VAT registration

On this basis, VAT registration in UAE can be classified into the following:

  • Mandatory VAT Registration
  • Voluntary VAT Registration
  • Exemption from VAT Registration

In UAE VAT, businesses whose annual turnover exceeds the mandatory registration threshold of AED 375,000 and the voluntary registration threshold of AED 187,500 are allowed to apply for VAT registration. Therefore, it is crucial for businesses to understand what type of supplies are considered in deriving the annual supplies turnover and how to calculate the VAT turnover for registration in UAE.

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.

Taxable businesses must file VAT returns with FTA on a regular basis and usually within 28 days of the end of the ‘tax period’ as defined for each type of business. A ‘tax period’ is a specific period of time for which the payable tax shall be calculated and paid. The standard tax period is:

  • quarterly for businesses with an annual turnover below AED150 million
  • monthly for businesses with an annual turnover of AED150 million or more.

Our Corporate Tax Procedure

VAT Dubai

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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