We possess a skilled team comprising accountants and tax advisors who can assist you in efficiently fulfilling your corporate tax registration and submitting taxes punctually.
With the introduction of the UAE’s recent corporate tax legislation, numerous firms encounter the challenge of adapting to unfamiliar regulations and procedures. Our team of tax specialists is well-equipped to assist you in comprehending the implications of corporate tax on your enterprise, leveraging available exemptions and reliefs, and ensuring timely compliance to avoid penalties.
We offer comprehensive support throughout the entire process, including business registration for corporate tax, adherence to accounting standards, and submission of corporate tax filings, ensuring a streamlined, effective, and economical procedure.
To adhere to the new corporate tax regulations in the UAE, every business must fulfill three key obligations:
Although not all businesses are subject to corporate tax payments, it is mandatory for all businesses to complete these steps. This process helps determine eligibility for potential tax exemptions.
Our specialists will provide guidance on all corporate tax aspects that could affect your business. This encompasses identifying potential tax exemptions applicable to your business and strategizing on how to leverage them effectively.
Our team will assist in registering your business for corporate tax with the FTA and manage the deadlines for all of your corporate tax obligations.
Our team will evaluate your corporate tax status, optimize tax outcomes for your business, and handle all required filings with the FTA consistently throughout the year.
Corporate tax is imposed on the taxable income (net profit) of businesses domiciled in the United Arab Emirates. The updated tax regulations became operative on June 1, 2023, with the majority of companies becoming fully subject to taxation by January 1, 2024.
The Ministry of Finance (MOF), responsible for UAE corporate tax regulations, has introduced a three-tier taxation policy:
In order to register for Corporate Tax in the UAE, you can access the Federal Tax Authority’s (FTA) website. On this platform, you must fill out the required forms and submit the necessary documents.
The documents that will need to be provided will include the entity’s Emirates ID, trade license, passport, financial records, details of business activities and corporate structure. Once the forms and documents have been submitted, the authorities will review the application and, if approved, provide the company with a tax registration number (TRN), signifying their official registration.
Approvals usually arrive within 20 days, however, if additional information is required, it will take another 20 days. At Proactive zone, we will assist you with your application through the FTA.
Additionally, companies may qualify for tax income exemptions in various cases, such as dividends, capital gains, and earnings from foreign operations. Freezone Persons can avail a zero percent tax rate under specific conditions, while freelancers operating under their name fall under the corporate tax regime once their revenue exceeds AED1m. Groups of taxable entities can establish a ‘Tax Group’ under specific criteria, and tax deductions are available for various expenses incurred for generating taxable revenue. The Federal Tax Authority (FTA) oversees corporate tax administration, with annual filings required alongside financial reports.
As discussed above, the Federal Corporate Tax Authority requires all companies to register with them for tax filing purposes. After completing a financial year, businesses will get nine months to complete their tax filing and financial reporting.
The implementation of corporate tax is poised to enhance the UAE economy’s diversification and long-term sustainability while bolstering its appeal to foreign investors.
It’s worth noting that corporate tax is not unprecedented in the Middle East and Gulf region, with several countries already enforcing it at varying rates:
Saudi Arabia: 20%
Oman: 15%
Qatar: 10%
Bahrain: 46% for select sectors linked to natural resource extraction, 0% for others
Kuwait: 15%
Comparatively, other economic regions have different corporate tax rates:
Montenegro: 9%
Gibraltar: 12.5%
Ireland: 12.5%
Liechtenstein: 12.5%
Hong Kong: 7.5-16.5%
Singapore: 17%
San Marino: 17%
Despite the UAE’s corporate tax rate of 9%, it remains lower than that of many regional and global competitors.
To maintain compliance with evolving tax regulations in the UAE, it’s crucial to stay informed about government updates. Seeking assistance from our tax advisors can optimize your business structure for handling corporate tax efficiently.
Proactive Zone offers a team of experienced professionals to assist in registering your business with tax authorities and streamline management processes. Contact Proactive Zone today for expert support!
Email us at [email protected]
Dubai office: Level 41, Emirates Towers, Dubai – PO Box 31303
London office: Suit 401-402 Cumberland House, 80 Scrubs Lane, London NW10 6RF
Email us at [email protected]
Dubai office: Level 41, Emirates Towers, Dubai – PO Box 31303
London office: Suit 401-402 Cumberland House, 80 Scrubs Lane, London NW10 6RF
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