vat and corporation tax

---

As the UAE continues to solidify its position as a global business hub, the landscape of corporate taxation is undergoing significant changes. With increasing scrutiny from regulatory authorities and evolving tax policies, navigating the intricacies of corporate tax compliance is essential for businesses operating in the UAE.

Corporate tax is a form of direct tax levied on the net income or profit of corporations and other entities from their business. Corporate tax is governed by Federal Decree-Law No.60 of 2023 Amending Certain Provisions of the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. 

CT will apply to:

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 Rate

As per Ministry of Finance, CT rates are:

• 0 per cent for taxable income up to AED 375,000
• 9 per cent for taxable income above AED 375,000 and
• a different tax rate for large multinationals that meet specific criteria set with reference to 'Pillar two' of the OECD Base Erosion and Profit Shifting Project.

Our team of experienced tax professionals possesses extensive knowledge of vat and corporation tax in UAE, enabling us to offer a wide range of corporate tax services customized to your specific needs

1. Year-End Tax Planning: Maximizing deductions and credits before the fiscal year ends.
2. Capital Expenditure Planning: Leveraging deductions on capital investments.
3. Income Shifting: Strategic allocation of income across fiscal periods to optimize tax liabilities.
4. Utilizing Tax Credits: Exploring available tax credits to reduce tax burdens.
5. International Tax Planning: Navigating complexities of global operations and cross-border taxation.

1. Compliance Requirements: Fulfilling tax obligations in accordance with International, local and federal regulations.
2. Record-Keeping Best Practices: Maintaining accurate financial records for tax reporting purposes.
3. Tax Reporting Software: Leveraging technology for streamlined tax preparation and filing.
4. FTA Audits: Preparing for and navigating Federal Tax Authority audits effectively.

Tax Reform Updates and Implications:

• Impact of Legislative Changes: Analyzing recent tax updates, reforms and their effects on corporate taxation in U.A.E.
• Opportunities and Challenges: Identifying potential benefits and drawbacks of tax reform policies.
• Adjusting Strategies: Adapting financial strategies in response to evolving tax laws and regulations.

Mitigating Risks and Ensuring Compliance:

• Tax Risk Management: Identifying and mitigating potential tax risks within the organization.
• Compliance Audits: Conducting internal audits to ensure adherence to tax laws and regulations.
• Professional Consultation: Seeking expert advice from tax professionals and consultants for optimal tax planning and compliance.

Resources and Tools for Corporate Tax Management:

• Online Tax Calculators: Accessing user-friendly tools for estimating tax liabilities and deductions.
• Tax Planning Software: Utilizing advanced software solutions for comprehensive tax planning and analysis.
• Professional Networks: Engaging with industry peers and tax experts for insights and best practices.

We are committed to delivering reliable, efficient, and Corporate Tax services to support your business growth and success in the UAE. Contact us today to schedule a consultation and discover how we can be your trusted partner for all your Corporate Tax needs.