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Corporate Tax in UAE - Elevate Accounting & Auditing

Corporate Tax in the UAE can be a challenging and complex area to navigate, but with the right guidance, it can also be a valuable tool for maximizing your business's financial potential. Our team of experts is dedicated to providing comprehensive and customized Corporate Tax solutions that cater to the specific needs of your business. Contact us today to learn more about our Corporate tax services in UAE.

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Corporate Tax in UAE - Elevate Accounting & Auditing

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  1. CORPORATE TAX IN UAE

  2. CORPORATE TAX IN UAE- AN OVERVIEW • The United Arab Emirates, which is abode to the significant corporate gateway of Dubai, will continue to have one of the lowest corporate tax rates in the world. This proposal stems from the UAE's intention to comply with international tax rules, reflecting similar efforts in other Gulf nations, while reducing regulatory burdens for UAE firms and protecting small businesses and start-ups. • On Friday 9th December 2022, UAE announced the much-awaited Corporate Tax Law vide Federal Decree-Law No. 47 of 2022. The law provides a legislative basis for the implementation of Federal Corporate Tax at the rate of 9% effective for financial years commencing on or after 1st June 2023.

  3. CORPORATE TAX RATES IN UAE The announced UAE Corporate Tax regime introduces a tier system with 3 rates: • All annual taxable profits that fall under AED 375,000 shall be subject to a zero rate. • All annual taxable profits above AED 375,000 shall be subject to a 9% rate. • ALL MNEs that fall under the scope of Pillar 2 of the BEPS 2.0 framework (i.e. consolidated global revenues in excess of AED 3.15 billion) shall be subject to different rates as per OECD Base Erosion and Profit-Sharing rules.

  4. SCOPE OF CORPORATE TAX IN UAE The UAE has introduced a federal tax system that is applicable to all businesses and commercial activities operating within the seven emirates. However, there are certain exceptions: • Businesses operating in the extraction of natural resources. These will continue to be subject to the tax decrees issued by the respective Emirate. • Individuals earning income in their personal capacity (i.e. salary, investment income) as long as the income-generating activity does not require a commercial license. • Businesses registered in Free Trade Zones provided they comply with all the regulatory requirements, and do not conduct business with Mainland UAE.

  5. TAXABLE PERSONS-CORPORATE TAX IN UAE • Natural persons carrying on business/commercial activities (includes sole establishments, individual partners in an unincorporated partnership). • Legal Persons (LLC., PSC, PJSC, other entities legally incorporate in UAE as well as foreign entities having a permanent establishment in UAE.

  6. EXEMPTED PERSONS-CORPORATE TAX IN UAE • Natural resource extraction & Persons involved in specified non-extractive activities in the country are exempt from Corporate Tax in UAE. • Other exemptions are available to organizations such as government entities, government-controlled entities, pension funds, investment funds, and public benefit entities due to their vital importance and contribution to the economy of the UAE.

  7. CHOOSE ELEVATE FOR CORPORATE TAX IN UAE With the assistance of Corporate Tax Consultants in Dubai having exceptional experience in local and international taxation, the transition to corporate tax compliance will be hassle-free. Our Elevate Team of expert tax consultants can help you maintain your accounting & financial records to optimize your liability of taxes on corporate income. Our team of experts can help you assess the challenges and opportunities UAE Corporate Tax brings. • Corporate Tax Consultancy Services. • Corporate Tax Training and Awareness. • Corporate Tax Registration Services. • Preparation and filing of Tax Returns. • Representation Services before tax authorities.

  8. If you have not yet considered the impact of Corporate Tax in the UAE on your business, connect with our tax experts for a free consultation. We can guide you to be 100% ready to comply with Corporate Tax in UAE once it is effective.WhatsApp No: +971 561672533 Email Us: info@elevateauditing.com Visit:https://elevateauditing.com/

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