Corporate Tax Services in UAE

Tax services for corporations have become essential for businesses operating in the UAE. As the country implements a corporate tax, it is vital for companies to engage in these services to conduct their operations legally and transparently. Understanding and complying with UAE tax laws and regulations not only helps businesses avoid penalties but also minimizes risks associated with non-compliance.

Outsourcing corporate tax services allows businesses to save on the costs of hiring an in-house accountant while freeing up resources to focus on growth and strategic planning. By collaborating with industry experts, businesses can ensure their tax requirements are handled efficiently and precisely, setting the stage for long-term success in the competitive UAE market.

Why corporate tax services are important for businesses in the UAE

1. Mandatory registration: Starting in 2024, all businesses must register for corporate tax, with a 9% rate on profits that exceed AED 375,000. Failing to register on time can result in a penalty of AED 10,000.The deadline for registration with the tax authority is until the end of 2024.
2. Accurate tax returns: Proper accounting records are necessary to substantiate income and ensure tax returns are error-free. This minimizes the risk of fines and penalties from regulatory authorities.
3. Tax burden minimization: Strategic tax planning helps to lower the amount of your tax obligations, allowing you to retain more profits for reinvestment.
4. Transparency: Maintaining clear records promotes transparency in your operations, fostering trust with stakeholders and regulatory bodies.
5. Cost optimization: By leveraging corporate tax services, you can identify opportunities to optimize costs, enhancing your business growth potential.
6. Professional support: Having expert assistance ensures you navigate tax and compliance requirements confidently, helping you avoid mistakes that could lead to penalties. You don’t have to face these challenges alone; reliable assistance can make a significant difference in your success in the UAE.

What corporate tax services do you need

1. Tax obligation analysis
   Understanding your tax obligations is the first step. This involves analyzing your business structure, revenue streams, and the specific regulations that apply to your industry. By clearly identifying what taxes you owe, you can avoid unexpected surprises and penalties down the road.
2. Planning of taxes
   This means evaluating different approaches to maximize deductions and credits. A tailored tax strategy helps you forecast your tax liabilities and make informed financial decisions, ultimately boosting your bottom line.
3. Tax returns
   Preparing and filing your tax returns involves gathering all necessary documentation and ensuring compliance with UAE tax laws. Professional services can streamline this process, reducing the likelihood of errors and ensuring accurate and timely submissions.
4. Tax payments
   Keeping track of your tax payment deadlines is vital to avoid penalties. Corporate tax services can help you establish a payment schedule that aligns with your cash flow, ensuring that you meet all obligations without straining your finances.
5. Support in tax audits
   If your business is selected for a tax audit, having expert support is invaluable. Tax professionals can help you prepare for the audit, organize your records, and represent you before the tax authorities.
6. Client support
   Whether you have questions about regulations or need assistance with compliance, having access to knowledgeable professionals will help you manage any issues easier. This support ensures you stay informed and confident in your tax strategy, allowing you to focus on growing your business.

What you get with Emirabiz

When you choose Emirabiz as a partner in your corporate tax journey in the UAE, you gain access to a comprehensive suite of services designed to simplify your business operations and enhance compliance. Here is a roadmap we draw to plan your way to a successful and profitable business in the Emirates:

1. Jurisdiction selection
   We will guide you in selecting the most suitable location for your company based on your specific needs and goals. Our experts understand the nuances of each free zone and mainland options, ensuring you make the right decision.
2. Tax regime consultation
   We will consult with you to analyze different tax options and help you select the most optimal regime for your business model. This ensures you benefit from any available incentives and minimize your tax liabilities.
3. Assistance with activities and licenses
   Selecting the right types of activities and obtaining the necessary licenses can be overwhelming. This is your key to a long-term and profitable business as the wrong activity can lead to problems with maintaining and growing your company as well as opening bank accounts. Our team will assist you in identifying the appropriate activities for your business and ensure that you secure the relevant licenses, so you can operate smoothly.
4. Clarification of tax obligations
   We will clarify all your tax responsibilities, ensuring you know exactly what is required of you. This enables you to avoid expensive errors and ensures compliance with legal regulations.
5. FTA registration support
   We will help you navigate the EmaraTax portal and assist with your registration, ensuring that you meet all requirements without unnecessary delays.
6. Tax return preparation and submission
   Our team will assist you in compiling the necessary documents and preparing your tax return accurately. We ensure timely submission, so you can focus on your business.
7. Guarantee against fines and penalties
   One of our key commitments is to help you avoid fines and penalties. With our expert guidance and thorough processes, we ensure compliance with tax regulations, so you can operate without fear of unexpected costs.
8. Accounting control
   We will take your accounting under our control, ensuring it adheres to all rules and laws. This not only simplifies your financial management but also prepares you for any potential audits, giving you confidence in your business’s financial health.

With Emirabiz, you’re not just getting a service provider; you’re gaining a dedicated partner committed to your success in the UAE business landscape.

Essential aspects of the UAE corporate tax law

Tax rate

The UAE is no longer a tax-free haven. Effective June 1, 2023, a corporate tax of 9% applies to profits of more than AED 375,000 for both individuals and businesses operating within the country. For profits below this threshold, a 0% tax rate is in place. Companies in free zones may face different conditions based on specific regulations. Freelancers registered in free zones can avoid corporate tax if their annual earnings are under AED 1 million. However, if their revenue surpasses this limit, they must undergo registration procedure and pay 9% on taxable income. There is also a beneficial tax scheme called Small Business Relief, which exempts freelancers from corporate tax if their revenue stays below AED 3 million until December 31, 2026.

Taxable persons

It's important to understand who qualifies as a taxable person under the new regulations. This term refers to individuals and companies obligated to comply with corporate tax laws. They must register for corporate tax in the UAE, make tax payments, and file tax returns. This classification encompasses both legal entities (companies) and natural persons (individuals). Additionally, the terms "resident" and "non-resident" for corporate tax purposes differ from traditional residency status. These classifications are strictly relevant to tax obligations, not residency visas or physical presence in the UAE.

Tax registration and deadlines

Registration for corporate tax must be completed via the EmaraTax Portal, with guidelines available on the FTA website. This registration should occur before filing your first corporate tax return. Companies have a deadline of nine months after the end of their tax period to submit returns. All businesses must complete their registration during 2024, and specific deadlines vary depending on when a company obtains its license.

Corporate taxes for free zone companies

Free zone companies are now subject to corporate tax but benefit from specific incentives. They can qualify for a 0% tax rate if classified as a Qualifying Free Zone Person (QFZP) and earn Qualifying Income. To meet these criteria, companies must engage in transactions with other free zone entities, demonstrate sufficient business activity, adhere to revenue guidelines, follow transfer pricing rules, and prepare audited financial statements.

Tax returns filing

Filings must be completed nine months after the end of the relevant fiscal year. This timeline corresponds to the fiscal year reflected in the prepared financial statements. Companies are required to submit their tax returns annually, with no provisional filings needed. It's essential to remember that registration must be completed in 2024, with deadlines dependent on the month of license issuance.

Penalties

All taxable persons, including both legal entities and individuals (regardless of residency status), must apply for tax registration. Late registration can incur financial penalties, including a fine of AED 10,000 set by the Ministry of Finance. Additionally, delays in registration can disrupt business operations and lead to potential legal complications. Understanding these obligations is crucial for smooth business functioning in the UAE.

A complete suite of services to fuel your business success

With the recent introduction of a corporate tax regime, it's more important than ever to ensure compliance while optimizing your financial management. Emirabiz brings a wealth of expertise and a deep understanding of the UAE's regulatory landscape, ensuring you meet your obligations without the stress.

Our dedicated team is here to provide you with the support and guidance necessary to thrive in this evolving environment. We help you navigate everything from tax registration and filing to strategic planning and compliance. By collaborating with Emirabiz, you gain a reliable ally committed to your business's growth and transparency.

Emirabiz offers tax and accounting services tailored to meet your needs:

• VAT registration
• Quarterly VAT filing
• Corporate tax registration
• Corporate tax returns filing
• Bookkeeping
• Audit report preparation
• Account reconciliation
• Tax consultation
• Tax planning and optimization
• Financial statement preparation
• Dedicated accounting support
• IFRS accounting training
• Zoho software setup and training

With Emirabiz, you can rest assured that your accounting and financial management are in capable hands, allowing you to focus on what you do best—growing your business in the UAE.