Corporate tax services in UAE are usually framed to optimize your tax strategy and improving the economic efficiency of the businesses. Registration for UAE Corporate Tax As per the Federal Tax Authority, every taxable person including those under the Free Zone Persons category needs to register for Corporate tax, it may be subject to the authority’s discretion. Once you have done Corporate tax registration in UAE , you will receive a corporate tax registration number by which you can continue to file for Corporate tax. Filing for Corporate Tax After the registration , companies must prepared themselves for corporate tax filing within the nine months after the end of their relevant tax period. If the tax period of a company started on 1 January 2024 , then last day for filing Corporate tax return is 30 September 2025. For the companies whose tax period started on 1 June 2023, then the Corporate tax could be file till 28 February 2025.The Corporate tax returns can be filed on the website of Federal Tax Authority , where by the owned amount can be calculated correctly and hence paid timely. A perfect Corporate Tax planning in Dubai is required for this regime and the First Check Consultants can help you not only at the time of Corporate tax registration in UAE but also in preparing financial statements to support your determined taxable income and submitting your annual Corporate tax returns accurately and timely. How to compute Corporate Tax Services in UAE ? In UAE , Corporate tax is calculated at 9% of the taxable income exceeding AED 375,000 within a financial year along with the adjustments of applicable expenditures and deductions. If your enterprise has earnings below this threshold, it will be subject to a 0 % Corporate Tax rate. With the step by step procedure you can approach to the calculations of UAE Corporate tax : 1 – Collect all the financial records or statements of your company as per the IFRS or similar standards. 2 – After the calculation of revenues and expenditure , calculate the company’s profit within the taxable period and mention it as net profit within your financial statements. 3 – Review your financial statement and identify the non – deductible expenses and income exempted from corporate taxes if they might have been calculated while the computation of net profit. 4 – In the next step, apply the relevant tax rate based on Dubai’s tiered system. Formula for computing Corporate Tax Corporate Tax = Net Profit obtained x Corporate tax rate as applicable Example – If your company’s net profit for the taxable period is AED 800,000. Then calculation of Corporate tax will be as : Since net profit of AED 800,000 exceeds the AED 375,000 threshold, then there will be no need of the adjustments for computing taxable income and hence the taxable income for Corporate tax purposes is AED 800,000. As the taxable income surpasses AED 800,000 and applicable tax rate is 9 %, then by using the above formula we will calculate the Corporate tax as, Corporate Tax = AED 800,000 x 9% Corporate Tax = AED 72,000 Since Corporate Tax regime is relatively new in UAE, so it is important for you that take the guidance or advice of experienced Tax consultants in Dubai who can help you to come out of this complex situation . Taxable entities of UAE Diverse entities and people are engaged in financial activities of UAE as: Resident people A normal person engaging in commercial enterprise inside the UAE. Juridical entities incorporated , mounted ,or diagnosed within UAE or overseas entities managed in UAE. Non- Resident people People having permanent establishment in corporate tax services UAE, derive profit sourced within UAE or have a nexus inside the UAE. Branches of the non- resident people inside the UAE are dealt with as the same taxable man or woman for taxation functions. Conclusion The First Check is the team of tremendous Tax consultants in Dubai who analyzes and understands the complexities of Corporate tax services in Dubai and ensures you compliance with all regulations and helps you in improving the economic fitness of your business.
To comply with the VAT and Corporate Tax Regulations, companies in UAE must understand the tax laws and regulations and ensures that their accounting as well as financial system align with the requirements of tax payers. This is the situation where tax consultants come in. A tax consultant in Dubai is an expert who guides the individuals as well as businesses on tax related matters. He is a person whose motive is to minimize your tax liability and maximizes your tax benefits. A tax consultant is essential for navigating the complexities of taxation. Need of Tax Consultant in Dubai Tax consultants or VAT consultants plays a very critical role in helping the businesses to understand the impact of VAT on their business operations and assists the tax payers in implementing the effective VAT strategies for the successful operations of their business. So with the below discussed points the importance or the need of well qualified and experienced tax consultant or a VAT consultant in Dubai: Experience and knowledge The organizations which are providing tax advisory services in Dubai always hires a team of professionals who are experienced as well as knowledgeable with respect to the taxation and laws such as VAT and Corporate Tax. Such consultants understands your business operations to minimize your tax liability and maximize your tax recoveries. Risk assessment Tax consultants in Dubai are experienced enough to assess the risk associated with your business set up. So the precision of data is ensured by the tax or VAT consultants in Dubai by taking extra care. They cross check the VAT files with the help of advanced technology and manual reviews. Compliance Tax consultants holds the expertise in tax laws, tax planning and tax compliance also. So people hire the tax consultant in Dubai which provides the best tax consultants to you for the long as well as short term tax optimization. A tax consultant ensures that the business complies with all the tax regulations in Dubai. How a Tax Consultant in Dubai helps in excise tax? A Tax Consultant in Dubai provides specialized advice on all aspects of excise tax compliance, including understanding of how to calculate the correct amount due ,how to register with Federal Tax Authority (FTA), file returns correctly, understand exemptions and deductions and other related matters. Excise tax is an indirect tax paid on certain commodities known as “excise goods” that are often damaging to human health or the environment. In the year 2017,the excise tax was implemented across the UAE. Products registered as excise goods are: Carbonated drinks including beverages and sweetened drinks. Nicotine and tobacco products. E – cigarettes and fluids used in electronic smoking devices. Energy drinks and alcohol A tax consultant can help you for the excise tax advisory services in Dubai in the following ways: Compliance the taxation laws – Ensures the businesses to comply with all the tax regulations of Dubai which includes registration with in Federal Tax Authority(FTA) ,filing of returns and payment of all the taxes on time. Determines excise law in industries – For businesses operating in highly regulated industries,a tax consultant in dubai understands the requirements for determining the amount payable for excise taxes. In Dubai excise taxes are applicable across a range of industries from oil and gas production to telecommunications and tourism sectors. Maintaining records – Maintaining the tax records is a daunting task in Dubai. Therefore a tax consultant maintains your documents required for excise tax records and reconciliation a hassle free task . Manages excise tax obligations – An experienced and knowledgeable tax consultant is dedicated for helping you and your businesses to understand your business operations and applying effective strategies for managing excise tax obligations. Updated on changing regulations – Tax regulations doesn’t remains the same forever, they are subject to change and thus an experienced tax consultant can help the business to be updated on any changes in excise tax and will guide the tax payers to comply with the laws . Supports in auditing – At the time of excise audit by the concerned authorities , a tax consultant always provide support in documentation and explanation of the tax positions . To ensure compliance with all the legal obligations relating to the payment of excise taxes in Dubai, many businesses now hiring business set up consultants in UAE who are specializes in offering advice on tax liabilities for various products and services available in UAE market. CONCLUSION The First Check Consultant is a business set up consultants in UAE which primarily deals in Corporate tax services in UAE including VAT and Corporation Tax, audit and assurance, compliance and risk management, etc. The team of experienced professionals will help you to navigate the complexities of UAE taxation policies and ensuring you the compliance and fully optimizing tax liabilities. The First Check Consultants has an extensive experience in various domains which understands the needs of each client and provide them the best output with excellence, integrity and client satisfaction. Read More: The Importance of Corporate Tax Planning in Dubai, UAE for a Business Which Company Provides The Best Business Setup in Dubai, UAE? How To Find The Right UAE Business Partner For Your Needs What Is The Corporate Governance Of The UAE? Who is the Best Business Setup Consultant in UAE? Who is required to register for corporate tax in UAE?
Corporate tax planning is the arrangement of the financial activities in such a way that maximum tax benefits are enjoyed by making use of all beneficial provisions in the tax laws. It also entitles the assesses toavail certain rebates,exemptions,deductions and reliefs so as to minimize his tax liability. Objectives of Corporate Tax Planning Corporate Tax planning is a channelization of taxable income to different investment plans. It involves generating white money that flows freely and results in the sound progress of the economy. A proper tax planning aims at conforming provisions of the tax laws. Need for Corporate Tax Planning There are benefits of corporate tax planning for both large and small businesses and its planning plays an important role in: Reducing the tax rates Lowering the amount of taxable income Maximum tax relief available Techniques of Corporate Tax Planning in Dubai Like any other jurisdiction,corporate tax planning in Dubai involves various strategies that aims at minimizing the tax liabilities while remaining compliant with the laws and regulations. 1 – Tax Incentives Similar to the other countries Dubai also offers various tax incentives along with the exemptions to attract new businesses with their domain. 2 – Capital Allowances and Deductions In order to reduce the burden of taxable income companies can take advantage of capital allowances and deductions which implies under Dubai’s taxation law and it includes writing of bad debts,amortization,depreciation and other capital expenditure. 3 – Treaties of Tax Dubai offers the Double Taxation Avoidance Agreement i.e. DTAAs with various other countries around the world. Double Taxation means taxing the same income twice in the hands of an assesses. These treaties can be leveraged to minimize the tax liabilities by reducing double taxation of the income earned in Dubai. 4 – Profit Depatriation Various strategies have been followed by the companies operating in Dubai to repatriate profits to their home countries in a tax efficient manner. It also includes activities like dividend distribution, intercompany loans and other financial instruments. 5 – Documentation and Compliance As per experienced financial consultants’ documentation and compliance practices play an important role for the various aspects of tax planning in Dubai.Such activities help in maintaining comprehensive records to support tax positions that helps in reducing the risks related with tax audits and disputes with the dignified tax authorities. Conclusion We at TheFirst Check Consultants are immensely dedicated to providing one of the Best Tax Services as per the new Tax law of UAE including New Business Setup, Accounting, Corporate Finance and Regulatory Compliance solutions to enterprises. Connect with us for your all kinds of need as we protect our client’s business from various legal issues and Compliance as per the latest financial law of UAE, and provide them a long-term financial planning and implementation including Investments, new Business License, Corporate tax planning in dubai & help in visa for the employees of other countries. We provide comprehensive corporate tax services in UAE that are specifically designed to satisfy your company’s demands. With our knowledge and commitment. we want to reduce risks, streamline your tax duties, and maximize your tax strategy for long-term growth. Dhiraj Sankhi has over 2 decades of professional work experiences by managing Finance & Accounts, Internal Audit, Tax, Corporate Finance and Risk Department office responsibilities with Banking, Private Equity, Asset Management, Islamic Finance, Insurance, Wealth Management, Family Offices, Hospitality, Real Estate Developments with a multi-billioncost. Read More: Which Company Provides The Best Business Setup in Dubai, UAE? How To Find The Right UAE Business Partner For Your Needs What Is The Corporate Governance Of The UAE? Know the best Business Setup Consultant in UAE Who is required to register for corporate tax in UAE?
The United Arab Emirates (UAE) is a thriving business hub with a favorable tax environment that attracts both local and international companies. Understanding the corporate tax registration requirements is crucial for businesses operating in the UAE. In this article, we delve into the specifics of who is required to register for corporate tax in UAE and the key considerations for businesses navigating this process. An overview of Corporate Tax in UAE The UAE is known for its business-friendly policies, and one of the key attractions for businesses is the absence of a federal corporate income tax. However, certain emirates within the UAE have introduced their own corporate tax regulations. As of the last available information in 2022, two emirates, namely Dubai and Abu Dhabi, have implemented corporate tax regimes. Know Corporate Tax in UAE, Dubai Dubai introduced corporate tax regulations to diversify its revenue streams and enhance economic sustainability. Companies in Dubai are subject to the Dubai Corporate Tax Decree, and the applicable tax rate is generally 9%. However, exemptions and special conditions may apply based on the nature of the business, size, and other factors. This section will explore the specific criteria that determine whether a company in Dubai is required to register for corporate tax. This includes considerations such as the company’s legal structure, annual revenue, and activities conducted within the emirate. Corporate Tax in Abu Dhabi Abu Dhabi, the capital of the UAE, also implemented its own corporate tax regulations to support economic development. The Abu Dhabi Corporate Tax Law governs corporate taxation in the emirate, and the tax rate is typically 2.5%. Similar to Dubai, exemptions and special conditions may apply. Here, we will outline the criteria that determine the obligation for corporate tax registration in Abu Dhabi. This includes discussions on legal structures, revenue thresholds, and the nature of business activities carried out within the emirate. Federal Tax Authority (FTA) and VAT While corporate income tax is imposed at the emirate level, the UAE introduced Value Added Tax (VAT) at the federal level. Companies meeting certain criteria are required to register for VAT with the Federal Tax Authority (FTA). This section will shed light on the connection between corporate tax registration at the emirate level and VAT registration at the federal level, emphasizing the importance of compliance with both sets of regulations. Special Economic Zones and Free Zones The UAE is home to numerous free zones and special economic zones, each with its own set of regulations and incentives. Companies operating within these zones may enjoy specific tax advantages or exemptions. This section will explore the impact of free zone status on corporate tax obligations and how businesses can leverage these zones to optimize their tax position. Penalties for Non-Compliance Understanding the consequences of non-compliance is essential for businesses in the UAE. Penalties for failing to register for corporate tax in UAE or violating tax regulations can have serious financial implications. In this section, we will outline the potential penalties and highlight the importance of proactive compliance measures. Bottom line of corporate tax registration At Thefirst-check.com, we provide comprehensive corporate tax in UAE that are specifically designed to satisfy your company’s demands. So the corporate tax registration in UAE is the requirements in which the UAE involves a careful examination of emirate-specific regulations, federal tax obligations, and the unique features of free zones. Businesses must stay informed about changes in tax laws and seek professional advice to ensure compliance and make informed decisions regarding their tax positions in this dynamic and business-friendly environment, if you need Corporate finance services in UAE then ask to us we can help you as per the Regulatory compliance of UAE.