UAE Corporate Tax Advisory and Planning
Corporate Tax Advisory Services in UAE
Navigate UAE Corporate Tax regulations with VATBOX Tax Agency! Discover insights on Tax rates, Compliance, and Expert guidance for UAE businesses.
VAT BOX is the leading Tax Advisory services provider in the UAE, offering a range of services aimed at helping corporations stay compliant with the country's evolving tax laws. With extensive experience in UAE's changing tax regulations, we are experts in corporate tax assessment, audit, planning, and implementation.
Starting from June 1st, 2023, the UAE government has legislated a new tax known as Corporate Tax (CT), and businesses must take the necessary steps to prepare for it and meet their compliance obligations. This is where VAT BOX can help. We offer guidance and assistance in planning and meeting CT obligations, ensuring that corporations in the UAE can seamlessly streamline their tax-related affairs. Our tax advisory services are designed to provide peace of mind and help businesses in the UAE thrive.
What is the UAE Corporate Tax?
The UAE government issued the Federal Decree-Law No. 47 of 2022 on the taxation of businesses and corporations on 09 December 2022. This is referred to as the UAE Corporate Tax Law.
The Corporate Tax or the CT in short is a form of direct tax that is levied on the net profit of corporations and businesses in the UAE. Corporations in the UAE are required to register for the corporate tax which is going to be applicable from 1 June 2023.
FTA-Registered Tax Agents in Dubai, UAE
We are an FTA-registered tax agency in UAE offering world-class quality services in the corporate tax domain including advisory, financial management, CT registration, CT implementation, bookkeeping, accounting, consultancy, CT compliance, and more.
We take pride in being the top choice for corporate tax services in Dubai, and all over the UAE. Our CT experts stay updated with the changing tax landscape to ensure that we offer you the best advisory services that minimize your tax liabilities and maximize your ROI.
Expert Tax Consultants for Corporations in UAE
We have a team of exceptional tax agents, registered with the Federal Tax Authority. Our tax agents work with corporations to handle their tax-related affairs, from planning to legal representation in front of the FTA.
Expert Corporate Tax Consultancy
Effective corporate tax consultancy is about making sure that you make the most of the financial resources available at your disposal while meeting compliance obligations at the same time. Our expert tax agents have years of practical experience in the UAE taxation space, to make it happen for you.
Ensure Your Corporate Tax Compliance
Corporate tax compliance can be tricky, especially with the implication of new tax laws by the government. We help local and foreign organizations navigate tax compliance challenges in an effective, to minimize tax liabilities.
Our services are top-of-the-line, yet affordable at the same time. We aspire to help new and established businesses understand the UAE corporate tax compliance obligations and capitalize on them to stay ahead of the competition. This is the reason why we offer our services at market competitive prices.
Our Corporate Tax Services Include
Corporate Tax Advisory
Corporate tax advisory services are essential for businesses seeking to establish their UAE operations. We offer assistance to corporations in understanding the local tax environment and help them with developing and implementing the tax compliance roadmap.
Corporate Tax Planning
Corporate tax planning is the first step in ensuring that you set your business up for success in UAE. Non-compliance with CT can result in sanctions from the UAE government. We analyze your business operations to recommend an effective CT plan that you can follow to streamline your tax-related matters.
Corporate Tax Registration
Corporations are required to register for CT before 1st June 2023. Since this is a new tax, the registration process for it can come off as overwhelming. We can assist you in registering for corporate tax in the UAE by handling the nooks and crannies of the process on your behalf.
Corporate Tax Return Filing
Filing a tax return is a periodic yet essential requirement for all businesses. If you don’t want to go through the hassle yourself and you want to ensure that there are no errors in filing your CT returns, you can hire VAT BOX for professional CT filing services.
CT Compliance Review
FTA is responsible for conducting CT compliance audits to ensure that your business meets compliance obligations. Our preliminary CT compliance review services can help you prepare for the formal review. We will look at your compliance status with a fine-tooth comb to ensure that all your financial matters are in order.
UAE Business Planning Advisory
We offer expert business planning advisory services to new startups and established businesses who want to grow in the UAE. From business strategy development to tax planning and implementation, we can help you tackle all changes in the business domain in UAE.
We Are Experts In
- CT Impact Assessment
- CT Implementation Support
- CT Compliance
- CT Review
- Legal Representation
Corporate Tax in UAE – Complete Guide for Businesses
The Corporate Tax is going to be imposed on the taxable Income, at the rates determined under this UAE Federal Decree-Law No. 47 of 2022, and payable to the Federal Tax Authority under this Decree-Law and the Tax Procedures Law.
The businesses will be subject to UAE Corporate Tax (CT) from the beginning of their first financial year, starting from 1st June 2023.
Who is Corporate Tax Applied On?
Resident person: Taxable income derived from the United Arab Emirates or from outside the state.
Natural Person (Resident): Income derived from the United Arab Emirates or from outside the state in relation to business or business activity conducted by the natural person in the United Arab Emirates
A Non-Resident Person:
- The taxable income which is attributable to the Permanent Establishment of the person in the United Arab Emirates
- The State sourced income which is not attributable to the Permanent Establishment of the person in the United Arab Emirates
- The taxable income which is attributable to the nexus of the Non-Resident Person in the state as determined in a decision by the Cabinet
Who is a Resident Person?
- Companies and other juridical persons that are incorporated or otherwise formed or recognized under the laws of the UAE will automatically be considered Resident Persons for CT purposes.
- This covers juridical persons incorporated in the UAE under either mainland legislation or applicable Free Zone regulations and would also include juridical persons created by a specific statute.
- Foreign companies and other juridical persons may also be treated as Resident Persons for Corporate Tax purposes where they are effectively managed and controlled in the UAE.
- Natural persons will be subject to Corporate Tax as a “Resident Person” on business income from both domestic and foreign sources.
- Any other income earned by a natural person would not be within the scope of Corporate Tax example, Salaries, dividends, capital gains, and other income derived in a personal capacity
Corporate Tax Exemption Rules & Regulations
The following “Tax Persons” in the UAE are exempt from Corporate Tax as per the FTA guidelines:
- A Government Entity
- A Government Controlled Entity
- A Person who owns an extractive business in the UAE, that meets the conditions of Article 7 of this Decree-Law.
- A person who owns a non-extractive natural resource business in the UAE, that meets the conditions of Article 8 of this Decree-Law
- There is also an exemption for Qualifying Public Benefit Entity under Article 9 of this Decree-Law.
- The exemption is applicable to an Investment Fund under Article 10 of this Decree-Law as well.
- A public pension or social security fund is also exempt from the CT. Some other categories of exemption include a private pension or social security fund that is subject to regulatory oversight of the competent authority in the emirates. It should also meet any other conditions that may be prescribed by the Minister.
- Also, a juridical individual in the emirates is also exempted from CT, that is wholly owned and controlled by an Exempt Person specified in paragraphs (a), (b), (f), and (g)
Corporate Tax Imposing Guidelines
Corporate Tax is applicable on a specified Taxable Income earned by a “Taxable Person” in a Tax Period in the UAE.
Corporate Tax is going to be imposed on an annual basis. The Corporate Tax liability is to be calculated by the Taxable Person using self-assessment.
The starting point for calculating CT Taxable Income is the Taxable Person’s accounting income (i.e., net profit or loss before tax) as per their financial statements. The CT Taxable Person will then be required to make required adjustments and changes to determine their Taxable Income for the tax period.
Corporate Tax Timeline
Corporate Tax (CT) shall be applicable on Businesses and Taxable persons in UAE from financial years starting on or after 1st June 2023. Hence the Effective Date on which Corporate Tax will become applicable will be different from business/taxable person to business, based on their specific financial year.
Taxable Person must file a Tax Return in applicable format by no later than nine months from the end of the relevant Tax Period. The same timeframe would be applicable for the payment of any Corporate Tax due in respect of the Tax Period for which a CT return is filed.
Corporate Tax Rate
- Corporate Tax will be imposed on the Taxable Income at the following rates:
- 0% Corporate tax would be on the portion of the CT Taxable Income not exceeding the amount specified in a decision made by the Cabinet at the suggestion of the Minister.
- 9% on corporate tax would be applied to the “taxable Income” that exceeds the amount specified in a decision made by the Cabinet at the suggestion of the Minister.
- The UAE Corporate Tax will be imposed on a Qualifying Free Zone Person at the following rates:
- 0% Corporate Tax on Qualifying Income.
- 9% CT on Taxable Income that is not Qualifying Income under Article 18 of this Decree-Law and any decision issued by the Cabinet at the suggestion of the Minister in respect thereof. Chapter Three – Exempt Person Article 4.
Corporate Tax Registration, Filing, and Payment
All “Taxable Persons” in the UAE, including Free Zone Persons, would have to register for the UAE Corporate Tax (CT) and obtain a Corporate Tax (CT)
CT Record Keeping
A Taxable Person will maintain all records and documents for a period of seven years following the end of the Tax Period. The documents should support the information to be provided in a Tax Return or in any other document to be filed with the federal tax authority.
The Federal Tax Authority may, by notice or through a decision issued by the Authority, request a Taxable Person to submit the Financial Statements. The statement would be used to determine the Taxable Income for a Tax Period.
How VAT BOX Tax Agency Can Help
- Assisting to determine whether your business will be subject to Corporate Tax and if so, from which date.
- Understand the requirements for your business under the CT Law, including:
- Whether and by when your business needs to register for CT?
- What is the accounting and Tax Period for your business will be?
- When will your business need to file a CT return?
- What procedures or applications your company may or should make for CT purposes?
- What financial information and records your business will need to keep for CT?
- CT Consultation
- To assist you in Bookkeeping, accounting, and review of awareness of CT law
- Prepare and audit financial statements
Contact VAT BOX for Professional Corporate Tax Services in UAE
VAT BOX is the best corporate tax services company in UAE with years of practical industry experience. We have helped a wide array of local and international businesses in the UAE plan and implement custom tax compliance strategies. Our qualified tax consultants can help you navigate the ever-changing tax laws while ensuring CT compliance for your business.
Get in touch with VAT BOC for professional corporate tax advisory services in UAE.
According to the Federal Tax Authority (FTA), UAE companies that are incorporated and managed in the UAE, Natural Persons, and Non-residential juridical persons are subject to pay corporate tax in the UAE.
The corporate tax rate for corporations with a profit of AED 375,000 or above is 9% under the law in UAE.
Since Corporate Tax (CR) and Value Added Tax (VAT) are two different types of taxes, both would be applied to eligible corporations.
The cost of corporate tax advisory services depends on the specific services that you are looking for, to handle tax-related affairs.