UAE Taxes

Corporate tax (CT) is a form of direct tax levied on the net income or profit of corporations and other entities from their business. Corporate Tax is sometimes also referred to as “Corporate Income Tax (CIT)” or “Business Profits Tax” in other jurisdictions.

Corporate Tax Enforcement Date in UAE

Corporate Tax will become effective in fiscal years beginning on or after June 1, 2023. Businesses adopting a fiscal year ending May 31, 2024, will be subject to corporate tax. The first tax returns will be filed in 2024. Corporations with fiscal years starting on January 1, 2023, and ending on December 31, 2023, will be subject to corporate tax.

For Example, Corporations with fiscal years starting on June 1, 2023, and ending on May 30, 2024, will be subject to corporate tax, likewise:

Exceptions

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:

• 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 that do not conduct business with Mainland UAE; and
• Businesses operating in the extraction of natural resources. These will continue to be subject to the tax decrees issued by the respective Emirate.

How we can help you

• CT registration/deregistration
• Amend contracts and other legal agreements
• Review and implement necessary TP policies
• Implement changes to legal/organizational structure
• Obtain clarifications/tax rulings
• Amend tax function and tax governance framework
• Implement system changes/updates
• Perform TP risk and opportunity analysis to identify the changes required from a transfer policy standpoint
• Training and awareness sessions
• Submit applications for tax groups and exemptions
• Prepare and submit CT returns
• Prepare and submit TP documentation
• Provide Tax accounting/provisioning support

Value Added Tax is assessed and collected on the value of goods or services that have been provided every time there is a transaction (sale/purchase). The seller charges VAT to the buyer, and the seller pays this VAT to the government.

VAT Enforcement Date in UAE

Value Added Tax (VAT) was introduced by the government of UAE on 1st January 2018. VAT is the indirect tax levied on the consumption of services and goods. Since the regulation of VAT in UAE, we have been providing professional assistance in the registration of VAT. It is important for companies to get VAT consultation from experts to adopt proper tax procedures and VAT compliance.

How we can help you

• VAT Registration Services
• VAT De-Registration Services
• VAT Return Filling Service
• VAT Consultancy Services
• VAT Training
• VAT Transaction Advisory Services
• Tax Audit Services