Best Auditing & Accounting Company Dubai
Corporate Tax Services in Dubai, UAE
The UAE is among those that have the most competitive corporate tax rates around the globe.
As mentioned above, UAE has the most competitive corporate tax rates, this factor leads to best global practices and easy implementation of laws when it comes to the corporate tax regime.
As per the financial statements prepared following internationally accepted corporate standards, businesses in the UAE will have to pay corporate tax on the profits they earn with minimal exceptions. Along with that, the corporate tax also holds conditions such as a minimum 15% tax to be addressed, no implementation of withholding tax, and foreign tax credit in the UAE.
In addition to the conditions discussed above, there is no need to pay corporate tax on capital gains, and dividends in the UAE which can effectively boost business growth and improve the company’s structure.
Corporate Tax Implementation in the Dubai, UAE
In the upcoming years, the UAE’s corporate tax and its administrative corporate tax and its compliance framework will be the topic of discussion. The global economy is expected to watch this closely and will include UAE’s corporate tax rate in its future calculations. Although it is indicated that UAE’s corporate tax will be among the lowest taxes in the world, but still getting over from the old tax regime will take time.
Furthermore, the introduction of a new tax regime will widely influence almost every domain of a business including prices, marketing, accounting procedures, documentation, IT and infrastructure.
Therefore, both onshore and offshore companies will need to closely monitor their transactions and ensure that they meet all the corporate tax requirements.
An efficient and structured before-time planning of corporate tax will be important for all the businesses operating in the UAE.
How Synergy Auditing Will Help with Corporate Tax in Dubai,UAE
Most of the onshore and offshore companies in the UAE have started to prepare themselves for corporate tax assessments. Preparing early for corporate tax implementation can save companies from higher costs and will save the internal team from last-minute pressures.
Experts at synergy auditing will help you in a smooth transition from the old to the new corporate tax regimes.
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Understanding UAE Corporate Tax
The UAE Corporate Tax is a federal tax levied on the taxable income of companies and other juridical persons. Here’s a breakdown of key aspects:
- ✔ Tax Rate:
1. 0%: Taxable income up to AED 375,000
2. 9%: Taxable income exceeding AED 375,000
3. Different rates may apply for large multinationals under OECD Pillar Two. - ✔ Taxable Income: Generally the accounting net profit, adjusted per Corporate Tax Law.
- ✔ Tax Period: Standard tax period is 12 months.
- ✔ Filing and Payment: Businesses must register, file returns, and pay corporate tax on time.
- ✔ Effective Date: Applies to financial years starting on or after June 1, 2023.
Who Is Subject To Corporate Tax In UAE?
The following entities are generally subject to UAE Corporate Tax:
- A. UAE Companies: All companies incorporated in the UAE, including mainland companies, free zone companies, and branches of foreign companies.
- B. Foreign Companies: Foreign companies with a permanent establishment (PE) in the UAE or deriving UAE-sourced income.
- C. Natural Persons conducting Business: Individuals conducting business or business activities in the UAE that require a commercial license, or undertaking activities which are similar to those undertaken by juridical persons.
Why Synergy Auditing as your CT Advisor In Dubai, UAE?
The following are the key benefits of working with synergy auditing:
- Our team can handle corporate taxes in various areas such as fortune 500 conglomerates, small, medium and large enterprises and family businesses.
- Our team has vast experience in advising several businesses in planning their transactions in the international market based on global standards.
- Our team has competencies in successfully monitoring international transactions and providing guidance on double taxation avoidance agreements, the OECD framework and BEPS principles.
- Our team can efficiently structure transactions for huge projects, construction and procurement contracts.
- Our team has a track record of managing many business restructuring-related transactions including mergers, and spin-offs.
- Our team is equipped with the skills of managing compliance involving the calculation of corporate taxes, filings, documentation, reports, certifications and deposits.
- Our team can efficiently resolve disputes when it comes to handling disputes in front of local tax authorities, courts and complex tax-related issues.
- Our team possesses years of experience in accurately representing the point of view of trade and business by providing proper guidance during the formation of new tax policies by the government.
- Our team ensures to seek necessary prior approvals and clarifications when it comes to complex transactions to escape future tax disputes.
- Our team stays updated with new rules, policies, and changes in taxes and ensures that our clients meet all the requirements timely.
About Our Corporate Tax Services
We offer a complete suite of corporate tax advisory services, including:
Corporate Tax Registration
Assisting with registration for corporate tax with the Federal Tax Authority (FTA).
Impact Assessment
Analysing the impact of the corporate tax law on your business and identifying potential tax planning opportunities.
Tax Planning & Optimisation
Developing tax-efficient strategies to minimise your tax liability while remaining fully compliant.
Compliance Support
Preparing and filing corporate tax returns accurately and on time.
Transfer Pricing Advisory
Assisting with transfer pricing documentation and compliance, including benchmarking studies.
FTA Audit Support
Representing you during FTA audits and resolving any tax-related issues.