UAE Corporate Tax

UAE Corporate Tax– Comply In Timely & Efficiently

In a couple of years, the UAE underwent crucial tax reforms in an effort to expand its state revenue sources, modernize its tax code, and bring it into compliance with worldwide best practices. According to the Ministry of Finance, federal corporation tax on UAE business profit will now be 9% with an AED 375,000 threshold.

June 1, 2023, marks the implementation of this new corporate tax reform in Dubai. UAE Corporate Tax is among the most competitive in the world and the lowest in the GCC. Since it is a federal tax the UAE corporate tax (CT) will be levied across all Emirates including Dubai, Abu Dhabi, Sharjah, and more. The Ministry of Finance (MoF) will be held responsible for administrating, collecting, and enforcing corporate tax in Dubai.

Avyanco is one of the trusted corporate service providers in UAE envisioned assisting you in complying with the UAE corporate tax laws, avoiding any hefty fines and penalties, and meeting your business’s goals seamlessly.

Corporate Tax Registration

What Is Corporate Tax in UAE – Expert Assistance

Corporate Tax laws in Dubai will undergo a number of changes in 2023. To implement a new corporation tax (CT) system in the UAE, the UAE Ministry of Finance published Federal Decree-Law No. 47 of 2022 on December 9, 2022.

Starting with their first fiscal year that begins on or after June 1, 2023, all companies and businesses will be subject to UAE Corporate Tax. Corporate Tax (CT) is a direct tax levied on companies and businesses’ net income or profits.

UAE Corporate Tax: Scope

Banking activities

All companies and investors performing activities under a UAE trade license will be eligible for UAE corporate tax

Foreign organizations and investors that conduct trade or commerce on a regular basis in the UAE are eligible for UAE CT

Businesses involved in development, construction, real estate management, agency, and brokerage in UAE

UAE Corporate Tax: Exemptions

Pension or social security funds

Qualifying public benefit entities

Qualifying investment fund Subject to regulatory oversight

Charities and public benefit organizations

Government and Government-controlled entities

Interest and other income derived from bank deposits or savings plans by an individual

Dividends received by a foreign investor within UAE will be fully exempt from corporate tax.

How to Prepare For Corporate Tax?

Before preparing for corporate tax law in UAE, make sure to assess whether or not you are applicable for it. It is always recommended to consult with an expert corporate tax service in Dubai who can assist you regarding the CT laws.

Avyanco is all and well capable of providing informed assistance to businesses in various industries to help them regulate their accounting and bookkeeping and comply with corporate reforms.

Understand the requirements for your business

Whether and by when your company needs to register for Corporate Tax;

What is the Accounting / Tax Period for your business;

When your business would need to file a Corporate Tax return in Dubai;

What applications your business may or should make for Corporate Tax purposes;

What financial information and records your business will need to keep for Corporate Tax purposes?

Consult with an Experienced Corporate Tax Consultant

It is better to consult with an experienced corporate tax consultant in UAE who can help you understand further development incorporate tax rules, regulations, circulars, and notifications from the Ministry of Finance and the Federal Tax Authority. Avyanco will help you understand every aspect of the CT law and comply with it efficiently.

Corporate Tax Services In UAE To Excel Your Business

Timely planning for corporate tax compliance will help businesses save higher costs and relieve internal teams of the strain to finish these preparations by a short deadline. Avyanco keeps an in-depth knowledge and understanding of the latest corporate tax laws in Dubai. Our experience powered by expertise will ensure that your business will make a humble transition into the era of Corporate Tax. Comply with the tax rules in Dubai hiring the best corporate tax services in Dubai and growing seamlessly.

Impact Assessment

Initial assessment of the anticipated impact of the introduction of CT and TP: (Transfer pricing) based on the group structure and solo entity

Assess the decision related to Foreign Direct Investment (FDI) and cost-benefit analysis of pre-tax and post-tax return on FDI

Detailed analysis based on legislation

Identify restructuring and optimization opportunities and required system changes by reviewing contracts with suppliers and customers

Dividend distribution decisions on cross-border investments

Merger and Acquisition decision due to huge loss incurred by one of the group companies

Implementation

Assist in implementing necessary changes to legal documents according to the requirement of Corporate Laws

Designing TP policies, legal structure, operating model, capital structure, tax function, etc

Continuous coordination with management to have the best possible outcomes of tax structuring

Post Implementation

Assist with CT registrations and applications for tax groups

Preparation and submission of CT return, and TP documents

Obtaining tax clarification and tax exemptions from tax authorities

Appearing before the tax authorities to accomplish the tax assessment initiated by the Federal Tax Authorities

Benefits of Corporate Tax Consultants in Dubai

Choosing the best corporate tax services in Dubai is a win-win for small to medium to large-scale companies. We will help you remain aware of the taxation policies and latest reforms in the country. We make sure to deliver quality and real-time tax assistance to add value to your business