Corporate Tax Consultants and Advisory Services in Dubai

Corporate Tax

The UAE Ministry of Finance introduced a corporate tax on business profits in financial years starting on or after June 1, 2023. The Ministry also confirmed that there will be no tax on profits of up to AED 375,000, a move that will help small businesses. No corporate tax will apply to personal income from employment, real estate, and other investments, or any other income earned by individuals that do not arise from business or other forms of commercial activity, licensed or otherwise.

Highlights of UAE Corporate Tax:
1. Corporate tax will be applicable for financial years starting on or after June 1, 2023.
2. Corporate tax rates are expected to be as follows:

0% for taxable income not exceeding AED 375,000
9% for taxable income exceeding AED 375,000

A different tax rate for large multinationals (with consolidated turnover exceeding AED 3.15 billion) that meet specific criteria set with reference to the Global Anti-Base Erosion Model Rules (Pillar Two) of the OECD Erosion and Profit Shifting project
The corporate tax regime will honor the tax incentives currently being offered to free zones. A clarification as to whether the passive income and sale of goods exclusions also apply to intergroup transactions is required.
Corporate tax will not be levied on a foreign investor’s income from dividends, capital gains, interest, royalties, and other investment returns.
The consultation document proposes the introduction of a transfer pricing regime in line with the internationally recognized “arm’s length” principle. The proposed transfer pricing regulations would be applicable for transactions between related parties and connected persons. Taxpayers to whom the transfer pricing provisions apply would be required to submit a disclosure containing information regarding their transactions with related parties and connected persons. Also, taxpayers would be required to prepare and maintain a master file and a local file if the transactions met the prescribed thresholds.
Presently, a 0% withholding tax is proposed to apply to all types of domestic and cross-border payments. UAE businesses will not need to deduct taxes while making payments. Further, there will be no obligation to file withholding tax returns.

We as corporate tax consultants or corporate tax specialists, are highly skilled professionals who provide specialized guidance and assistance to businesses in managing their corporate tax obligations in the UAE. We offer tailored solutions and expert advice to ensure that companies in Dubai can make informed decisions regarding their corporate taxes and achieve their financial goals.

Corporate Tax Advisory Services in Dubai

When it comes to corporate tax advisory services in Dubai, businesses can rely on the expertise of our corporate tax advisors and experts to navigate the intricate tax landscape.
With a deep understanding of Dubai’s tax laws and regulations, as corporate tax advisors in Dubai, we assist businesses in optimizing their tax strategies, minimizing tax liabilities, and ensuring compliance. By partnering with our corporate tax experts in Dubai, we can offer valuable support and advice to help you make informed decisions and achieve your financial objectives while adhering to the complexities of corporate taxation in the city.

HOW CAN WE HELP?

Phase 1 – Impact Assessment

1. Evaluate the present financial accounting, reporting, internal control, systems, and documentation processes.
2. Examine the current company model, organizational structure, revenue streams, costs, and assets.
3. Perform a gap analysis to find any flaws and offer suggestions for how to improve the procedures so that they are in line with corporate tax standards.
4. Examine the effects of cross-border transactions and transfer pricing to determine any potential tax repercussions.
5. Determine the level of tax expertise that the companies’ resource planning needs should include.

Phase 2 – Implementation and Transition Support

1. Develop policies and procedures to ensure compliance with corporate tax regulations.
2. Design an implementation plan to include training, establishing systems, reporting, and process changes.
3. Revise accounting policies to reflect cut-off procedures with respect to revenue, cost, losses, and depreciation.
4. Recommend changes to documentation and reporting, including invoices, purchase orders, and delivery notes.
5. Ensure a smooth transition and compliance with other applicable UAE laws, including Economic Substance Regulation, Country-by-Country Reporting, Ultimate Beneficial Owner Declaration, Anti-Money Laundering, and Value Added Tax.

Phase 3 – Annual Corporate Tax Filing (Post Implementation Support)

1. Tax registration for companies, forming tax groups, where applicable, and obtaining a Tax Registration Number
2. Prepare tax accounts and calculate the taxable income and tax payable.
3. Scrutinize and validate deductible expenses and prepare and submit tax returns before the due date.
4. Conduct a transfer pricing assessment and analyse the transactions.

Coordinate with the UAE Federal Tax Authority to seek clarifications and respond to queries and notices on tax filing.

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