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Navigating the UAE’s new corporate tax law? Let us guide you through the process seamlessly. Our dedicated team of experts is here to support you every step of the way, ensuring a smooth and efficient experience by providing entirely corporation tax services. Trust us to handle your corporation tax obligations, allowing you to focus on what matters most – growing your business.
The UAE has long been an attractive destination for entrepreneurs and investors worldwide, thanks to its reputation as a highly profitable location for business establishment.
Whether it’s large corporations or startups, the UAE offers advantages such as:
Moreover, as per the International Monetary Fund (IMF), UAE holds the position of having the fifth-largest economy in the Middle East. While the country has traditionally relied on revenue generated from oil and natural resources, there has been an effort in recent years to diversify the economy. However, this strategic shift is aimed at creating a more sustainable and resilient economic landscape for the UAE.
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Our tax advisor will evaluate your business’s eligibility for corporate tax and any applicable tax exemptions from it.
Our team will assist in completing the registration process accurately and on time, ensuring that you meet all the requirements and deadlines.
Our team will review your financial records, calculate tax liability, identify potential deductions or credits, and file submissions with the FTA yearly.
Our dedicated team will assist you in meeting tax deadlines, filing returns, making payments, and providing required documentation, ensuring compliance and avoiding penalties.
Corporate tax in UAE is a tax imposed on the taxable income of companies and businesses operating within the UAE.
Historically, the UAE has been known for its lower to zero corporate tax regime. However, businesses enjoyed exemption when we compare income tax vs corporation tax. Both were exempted in past.
As of June 1, 2023, the UAE has implemented new corporation tax policies. However, certain businesses in the UAE mainland are now subjected to corporate tax based on their annual net profit.
The specific details of the corporate tax in the UAE, such as the tax rate and thresholds, can vary. However, it is totally based on the nature of the business and its location.
It is worth noting that there are certain free zones in the UAE that still trying to maintain the lower corporate tax rate regime. Moreover, these freezones, providing attractive incentives for businesses operating within those Free zones including Sharjah Free Zones as well.
Each free zone may have its own regulations and requirements. However, it is essential to consider the specific rules and benefits of the respective free zone when establishing a business in the UAE.
The Ministry of Finance has announced several exemptions for certain entities. Consequently, if your business falls under any of these exemptions, you won’t be required to file a tax report or pay taxes. The exempt entities include:
The UAE Ministry of Finance (MOF) has implemented a new tax regime started already from June 1, 2023, which applies to all businesses operating within the UAE. Indeed, the tax calculation process will vary based on the financial year reporting of businesses:
The UAE Ministry of Finance has implemented a tiered taxation policy to pay corporation tax with the following rates:
Businesses need to register with the Federal Tax Authority (FTA) for tax filing purposes. While registration is mandatory. However, after the completion of the financial year, businesses have nine months to file their tax reports and financial statements.
The introduction of corporate tax in the UAE aims to sustain the country’s economy in the long term. Moreover, it also enhances the UAE’s appeal to foreign investors. While the UAE is not the first country in the Middle East to implement corporate tax. Although, its rate of 9% is still relatively low compared to other regional and global economies.
For detailed information on setting up a free zone business in Dubai and benefiting from low corporate taxation.
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