We are FTA Certified Tax Agent & Tax Agency in UAE

VAT BOX is a leading Tax Agency (TAN 30001614) & Tax Agents (TAAN 20049185 &20008256) by the Federal Tax Authority (FTA) with 4 branches: Dubai, Abu Dhabi, Sharjah, and Ajman in the UAE. Our team is here and ready to accelerate your UAE VAT/TRN Registration within a time frame in a professional manner.

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Corporate Tax Compliance Review

Corporate Tax Compliance Services in UAE

VAT BOX is an FTA-registered tax agency with extensive experience in tax planning and corporate tax compliance. Our corporate tax compliance review services help businesses in the UAE prepare for FTA tax audits.

With years of experience in the UAE tax rules and regulations, VAT BOX can help you stay on top of your corporate tax affairs. We conduct a thorough review of the financial situation of a business to ensure CT compliance.

Our corporate tax compliance experts have a great eye for details. We look at your corporate compliance status from all angles to ensure that there are no loopholes in your tax compliance outlook.

What is Corporate Tax Compliance and Why It Matters?

The UAE has introduced a corporate tax law for corporations established in the UAE which will be effective from 1 June 2023. Companies are advised to register for the CT and meet the compliance requirements for the corporate tax.

This is where corporate tax compliance services come in! We offer corporate tax compliance review services to businesses who want to make sure that they meet the CT compliance requirements, to avoid corporate tax penalties.

Professional Corporate Tax Experts in Dubai, UAE

Being the leading tax consultancy firm in UAE, we have the tools, knowledge, and experience required to make your compliance review a success. We can help you determine potential tax compliance issues that you need to deal with. We can also offer you strategies you can deploy to ensure consistent compliance with the changing UAE corporate tax laws.

Importance of Corporate Tax Compliance

Corporate tax compliance review and audit is a great tool for optimizing your corporate tax affairs. An in-depth review of the corporate tax structure helps you learn areas where you can improve your tax performance.

Also, non-compliance in the corporate tax domain can result in penalties from the Federal Tax Authority.

VAT BOX can help you mitigate the risk of non-compliance in terms of corporate tax. Our tax experts can guide you into each step of the compliance process to ensure that your tax affairs stay in order amidst the changing local tax environment.

How Can VAT BOX Help With Tax Compliance Review?

Accounting and Operational Software System Review

Proper accounting software is mandatory in an organization to ensure that it complies with the UAE VAT law which will result that there is no discrepancy during a tax audit by a tax auditor. We check whether the accounting software used in the company is capable of handling:

  1. Proper Tax Invoice
  2. Proper Tax Credit Note
  3. Proper Accounting on Reverse Charge (RCM while importing goods/services into the UAE)
  4. Calculation of Output Tax
  5. Recording of Input Tax

Review of compliance with Output Tax

A review of the calculation of Output Tax includes the following:

  1. Whether all taxable supplies at standard rated are charged at the respective tax rate. (as of now 5%).
  2. Ensure that only eligible zero-rated supplies are charged as zero-rated and proper supporting documents are maintained.
  3. Ensure that out-of-scope supplies if any are accounted for properly.
  4. To check whether the goods imported into the UAE through UAE customs are recorded under Reverse Charge Mechanism.
  5. To reconcile the amount shown in FTA records as the value of goods imported and the output liability on such imports with the records shown under the books of accounts.
  6. To check whether the services if any imported from outside the UAE are recorded under Reverse Charge Mechanism.
  7. To check whether only the eligible input credit is taken against such import of materials or goods under the reverse charge mechanism.
  8. To check whether exempted supplies if any are recorded and reported properly.

Review of Compliance with the Input Tax

Input tax claimed by the taxable person has to be properly reviewed to ensure that no discrepancies are detected during the tax audit. We exercise verification such as:

  1. Whether only eligible input credits on purchases and expenses are claimed.
  2. In the case of mixed supplies (exempted and zero-rated/standard rated) whether the input credit is calculated as per the formula provided under the law.
  3. Whether input credit on import of goods and services is calculated and claimed properly.

Review of Periodical VAT Returns

Our tax experts will review the Vat return files to be submitted to the authority and make sure that:

  1. The entire output tax payable to the authority is recorded properly.
  2. Only the eligible amount is claimed as input credit.
  3. The reporting of output tax under reverse charge is recorded properly.
  4. Zero-rated supplies and exempted supplies are recorded separately.
  5. Additional reporting such as profit margin schemes, etc., are reported properly.

Payment of Tax Due Amount

To check whether the due tax amount is paid to the tax authority before the due date periodically.

If Federal Tax Authority (FTA) finds out about a Tax Violation then the penalties will be:

  1. A penalty of AED 10,000 will implement for not maintaining financial records.
  2. Submission of an Incorrect Tax return by the Registrant will be AED 3,000 for the first time and then AED 5,000 in case of repetition.
  3. Failure of the person conducting business to facilitate the work of the Tax Auditor will be AED 20,000.
  4. Failure of the taxable person to submit a registration application within the time frame specified in the tax law will be AED 20,000.
  5. Tax Violations in UAE will also lead to the shutting down of the business entirely and the cancellation of the Trade license.

Professional Corporate Tax Compliance Review Services in UAE

VAT BOX is the top-rated tax consultancy company in the UAE with vast experience in handling tax compliance reviews for large-scale corporations. We can help you learn about the potential issues in your tax compliance that you need to address to ensure compliance with corporate tax obligations.

Get in touch with us for the best corporate tax compliance review services in UAE.

FAQs

  1. What is a tax compliance service?

Tax compliance services are about helping taxable persons meet the compliance requirements for individual and corporate taxes. These include registering for taxes, filing returns, meeting deadlines, etc.

  1. Why is it important for a business to be tax compliant?

Being tax compliant offers you many benefits as per the local compliance guidelines. Plus, non-compliance with the tax can result in penalties.

  1. Why is the UAE introducing corporate tax?

UAE is introducing corporate tax in an attempt to further the economic growth of the country. The tax is also going to help reduce the country’s reliance on natural resources.

  1. How much do tax compliance services cost?

The cost of tax compliance services depends on the nature and complexity of the audit process.

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