Ways to Implement Corporate Tax in UAE

BMS guides you through the pre- and post-implement of corporate tax in UAE, with its impact on the business.

Corporate tax is the fundamental form of direct taxation involving business and profits. In the United Arab Emirates, this comes under an amended law through Federal Decree-Law №60 of 2023 on Federal Decree-Law №47 of 2022 on the taxation of corporations and businesses.

The new corporate tax regime will apply to companies commencing their first financial year on or following 1 June 2023. This will significantly change UAE taxation and business affairs management practices.

BMS Auditing will help you glide this smoothly and keep your business on the perfect financial track and in sync with the new system engrossment.

Implement corporate tax in UAE would require businesses to comply with new tax laws, maintain accurate financial records, and file tax returns with the relevant authorities. Businesses need to seek professional advice from tax consultants in Dubai and take the necessary steps implementation of corporate tax in the UAE, including calculating their tax liability, updating their accounting systems, and training their staff on the new tax laws.

Are you ready for UAE Corporate Tax 2024? BMS guides you through the pre and post-implementation of Corporate Tax, with its impact on the business for both the long and short-term, ensuring complete compliance with the Corporate tax.

The Corporate Tax rate in the UAE is distributed as follows:

• 0% for a profit up to AED 375,000
• 9% for a profit above AED 375,000

BMS Auditing outlines UAE Corporate Tax applicability:

The ambit of our corporate tax services shall cover the following entities liable for UAE CT:

1. UAE-licensed businesses and commercial activities
2. Free zone enterprises-as long as incentives have been availed for compliant businesses
3. Foreign entities regularly trading in the UAE
4. Banking sector operations
5. Real estate businesses-end

We offer extensive assurance in auditing for several business types and help you stay abreast of the regulations in CT with confidence. Trust BMS Auditing to keep your business aligned with the ever-evolving landscape of tax in the UAE.

BMS Auditing: Your Guide to UAE Corporate Tax Preparation

At BMS Auditing, we assist businesses with UAE Corporate Tax in the following ways:

• Professional Consultation: Our tax experts advise on the implications of CT and how a business should be ideally structured to minimize the tax burden.
• Tax Liability Calculation: We correctly calculate your liability arising from CT and ensure that your books of accounts are adequately presented, maintaining compliance.
• Full Knowledge: Our team at BMS informs you about CT legislation, filling and submission criteria, due dates, and any exemptions.
• System Upgrades: We will help upgrade your accounting systems for CT documentation requirements.
• Staff Training: BMS provides corporate tax training for your staff to educate them about new regulations.
• Cash Flow Planning: We support the assessment of the impact of CT on finances and develop strategies for continuing healthy cash reserves.

Let BMS Auditing be your guide to seamlessly managing your business through the new corporate tax landscape of the UAE.

Steps to implement Corporate Tax UAE

You need to understand the procedure before implementing Corporate Tax. Here are the steps:

• Considering the review of the accounting books and verifying the accuracy of the accounting policies to follow the Corporate Tax liabilities
• Determining the expenses and revenue items of the financial statements for Corporate Tax
• Examining the filing methods or reporting models means choosing a Tax group or a separate Corporate Tax return for every entry, with the tax benefits from any reporting method.
• Identifying the need to restructure the legal and capital structures such as System and technology infrastructure
• Relevant systems and technology to address the requirements of the Corporate Tax policy
• Wide focus on Transfer pricing with various requirements in transfer pricing documentation, to be taken care of by the flourishing businesses

BMS Auditing UAE: Your Corporate Tax Specialists

The introduction of corporate tax is rapidly altering the UAE’s tax landscape. BMS Auditing has emerged as a major facilitator of the transition of international and domestic organizations through this significant change. Our pool of experts tailors appropriate solutions to meet the opportunities and challenges introduced by the new corporate tax regime.

1. 1. Advisory Services:

• Corporate tax impact assessment and applicability analysis
• Free Zone entity tax implications evaluation
• Consultation on eligibility for exemption
• Strategies to minimize risk
• Identifying the potential areas of risks and challenges faced by the taxpayer
• Restructuring of the Business Model to optimize the taxation
• Advice on utilization of Foreign Tax Credit
• Advice on withholding tax

1. 2. Compliance Services:

• Assistance during the process of registration of Corporate tax
• Analyzing Taxable income and computation of tax liability
• Preparation and filing of Corporate tax return

1. 3. Consultancy Services:

• Preparation of Written Submissions for tax authorities
• Assistance in responding to notices from the tax authority
• Filing of an appeal against adverse tax adjustments or penalties
• Taxpayer representation before tax authorities

At BMS Auditing, we are committed to providing expert guidance and support to ensure your business navigates the new corporate tax landscape efficiently and compliantly.

Corporate Tax Implementation Services in UAE

At BMS Auditing UAE, we remain your partner for success through the challenges of this new corporate tax world. Our professionals are certified, full-time experts with extensive VAT experience, auditing, accounting, and excise tax practices who offer industry-specific corporate tax services.

Detailed analysis of the short-run and long-run tax effects on your business, always in full compliance with the laws and regulations set by the UAE Corporate Tax, will be further provided. From implementation through ongoing support, BMS remains committed to an optimal tax structure for your business and continues to keep it at the forefront of regulatory change.

From strategy to implementation, rely on professional and reliable strategic solutions from BMS Auditing for all your UAE Corporate Tax needs. Contact us today to ensure the tax readiness and compliance of your business.

Feel free to approach us for any assistance related to UAE Corporate Tax.

Frequently Asked Questions (FAQ)

1. Is corporate tax going to happen in the UAE?

Since June 2023, there has been the introduction of federal implement corporate tax in the UAE.

2. Is UAE corporate tax free? How much is corporate tax in the UAE?

The 0% rate will apply to all taxable profits under AED 375,000 per year. A 9% rate will be applied to any taxable profits over AED 375,000 per year.

3. How much is tax in Dubai for business?

In the United Arab Emirates, corporate tax is calculated at 9% of net profit as reported in the company’s financial statements. This 9% corporate tax is only levied in the event that the net profit subject to taxation exceeds 375,000 AED.

4. What is the tax framework of the UAE?

The UAE does not impose income taxes on individuals. It does, however, impose a 5 percent value added tax on the acquisition of goods and services, which will be paid by the end user and charged at every point of the supply chain.

5. Is Dubai tax-free for business?

Certainly, Dubai’s citizens continue to enjoy a high degree of income tax exemption. On the other hand, the tax rate for those working in the oil industry is 55%. There are also additional taxes to take into account, such as import fees and entertainment taxes.