UAE CORPORATE TAX
REGISTER FOR CORPORATE TAX AND FILE YOUR TAX SUBMISSION
UAE CORPORATE TAX, Our team of experienced accountants and tax advisors is here to assist you in seamlessly completing your corporate tax registration and submitting your taxes on time.
In light of the UAE’s recent implementation of corporate tax regulations, many companies are facing the challenge of navigating unfamiliar processes and policies. Our team of tax experts is here to provide guidance and support, helping you determine whether corporate tax applies to your business, optimizing your eligibility for tax exemptions and reliefs, and ensuring timely compliance to avoid penalties.
From assisting with the registration of your business for corporate tax to guiding you through the process of filing your corporate tax submission, our team is dedicated to providing a seamless and efficient experience.
It is important to note that there are three key requirements for businesses in the UAE to comply with the new corporate tax scheme:
1. Register for corporate tax starting from June 2023.
2. Maintain accurate and proper accounting records.
3. Submit a corporate tax return to the Federal Tax Authority.
While not all businesses are obligated to pay corporate tax, it is still crucial for every business to complete these steps in order to verify their eligibility for tax exemption.
OUR UAE CORPORATE TAX SERVICES
Corporate tax advice
Our team of experts will provide comprehensive advice on all corporate tax considerations that may have an impact on your business. This includes identifying and explaining potential tax exemptions that your business may qualify for, as well as guiding you on how to take full advantage of these exemptions to benefit your business.
Corporate tax registration
Our team will provide full assistance in the process of registering your business for corporate tax with the Federal Tax Authority (FTA). We will ensure that all necessary documentation is prepared and submitted accurately and in a timely manner. Additionally, our experts will diligently manage and keep track of all deadlines associated with your corporate tax obligations, ensuring that you remain compliant with the regulations and avoid any penalties.
Corporate tax returns
Our team will thoroughly evaluate your corporate tax position to determine the most favorable outcome for your business. We will carefully analyze your financial information, identify available tax strategies, and implement measures to optimize your tax position. Additionally, we will handle all the necessary filings and submissions with the Federal Tax Authority (FTA) throughout the year, ensuring compliance and timely completion of all required documentation.
Corporate tax in the United Arab Emirates (UAE) is a tax imposed on the taxable income of businesses registered in the country. Starting from June 1, 2023, many businesses operating in the UAE mainland will be subject to taxation based on their annual net profit.
The UAE has been known as a favorable destination for entrepreneurs and investors due to its stable political environment, strategic location, excellent business infrastructure, and, notably, the 0% corporate tax regime. However, to diversify the economy and reduce dependency on oil revenue, the UAE government has introduced corporate tax.
It’s important to note that corporate tax is different from Value Added Tax (VAT). VAT is a consumption tax paid by customers at the time of purchase, while corporate tax is levied on businesses’ taxable income.
According to the UAE Ministry of Finance (MOF), all business entities operating within the UAE will be subject to the new tax regime starting from June 1, 2023. The tax calculation will depend on the financial reporting period of each business.
There are certain exemptions from corporate tax. Entities exempt from filing tax reports and paying taxes include governmental or public entities, businesses involved in extraction or mining of natural resources (already subject to Emirate-level taxation), charitable and social organizations (with proper registration), public or regulated private entities handling social benefit funds, real estate and regulated investment funds, and UAE companies fully owned by the UAE government with a ministry-level decision for tax exemption.
The corporate tax rates in the UAE are as follows: businesses with net yearly profit up to AED 375,000 are subject to a 0% tax rate, businesses with net yearly profit above AED 375,000 are subject to a 9% tax rate, and large multinational companies fall under a separate taxation policy called “Pillar Two” of the OECD Base Erosion and Profit Shifting project.
Businesses operating in UAE free zones are generally exempt from corporate tax, but they are still required to file a proper taxation report with 0% corporate tax to comply with government policies.
Freelancers in the UAE may fall under the tax regime if they hold a professional license and their annual income exceeds AED 375,000. Such freelancers will be subject to the 9% corporate tax.
There are also deductions and exemptions available for dividends, capital gains from subsidiary company shares, financing costs, and losses.
The Federal Tax Authority (FTA) is responsible for administering the corporate tax process and ensuring regulatory compliance. Businesses are required to file their corporate tax and financial reports with the FTA once every year.
The introduction of corporate tax in the UAE aims to diversify the economy, attract foreign investors, and bring the country in line with global taxation standards. The UAE’s corporate tax rate of 9% is still relatively low compared to many other regional and global economies.
To navigate the upcoming changes and ensure compliance, it is advisable to stay updated with the latest announcements from the UAE government and seek professional assistance from tax advisors.
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