Are you ready for UAE Corporate Tax?
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Are you ready for UAE Corporate Tax?
Prepare yourself to handle the complexities of the Ministry of Finance’s (MoF) Corporate Tax rules, guaranteeing compliance and optimizing your chances of success.
Attention, individuals and legal persons! If you’re engaged in business activities under a commercial license in the UAE, the Corporate Tax awaits your arrival. But fear not, exceptions exist to maintain the balance:
Corporate tax consultants in Dubai can help navigate the process of corporate tax registration seamlessly. Once approved, the FTA issues a tax registration number required for tax compliance duties going forward such as periodic returns filing. Registered firms also get access to reliefs and incentives under relevant treaties and agreements. Keeping registration records updated is essential if any changes occur to the legal or shareholding structure.
If the revenues persistently fall below the threshold for over a year can apply for deregistration with the FTA. However, tax affairs must be fully settled first and clearance obtained from other regulating bodies. Corporate tax consultants in Dubai ensure meticulous fulfillment of deregistration prerequisites to avoid delays.
Post-deregistration, firms no longer need to fulfill regular tax obligations in the UAE. However, records must be retained for future reference in case of any tax inspections. Proper deregistration concludes the tax relationship with authority while allowing business continuity with non-tax authorities.
In the UAE, certain exemptions provide relief and clarity to businesses operating within its jurisdiction. Specifically, two significant exclusions merit attention: capital gains and dividends earned from qualifying shareholdings, and qualifying intra-group transactions and restructurings.
First off, dividends and capital gains from eligible shareholdings are free from UAE corporate tax. This exemption makes sure that people and companies can profit financially from their share investments without having to pay more in taxes. Such qualifying shareholdings refer to investments that meet the specific criteria outlined by the tax regulations.
Secondly, qualifying intra-group transactions and restructurings are also exempt from the corporate tax. This exemption acknowledges the unique nature of transactions and restructurings that occur within a group of companies. It recognizes that these internal exchanges and changes are typically executed for strategic or operational purposes, rather than for the purpose of generating taxable income. By exempting these transactions, the tax framework encourages smooth operations and efficiency within corporate groups.
These exemptions aim to strike a balance between promoting investment, facilitating business activities, and ensuring a fair and sustainable tax environment. This way, the UAE Corporate Tax system seeks to incentivize economic growth and foster a favorable business climate for both domestic and international entities operating within the UAE.
Companies in the mainland and free zone can get an assessment of whether they are subject to taxes by partnering with the best corporate tax consultants in the UAE. They can also prepare the necessary paperwork and financial records, learn how taxed free zone companies will be treated, and gain knowledge of the applicable tax rates, withholding tax, allowable expenses, interest cap, foreign tax credit, tax group formation, and other important requirements like paying taxes, filing tax returns, and auditing financial statements.
Understanding the UAE’s corporate tax regulations can enable companies to maintain compliance and stay out of trouble. Following UAE corporate tax laws will also assist businesses to stay out of serious trouble and keep the confidence and transparency of their shareholders and investors.
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Taxable Income
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Corporate Tax Rate
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Taxable Income up to AED 375,000
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0%
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Taxable Income over and above AED 375,000
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9%
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Large Multinationals that meet the criteria under 'Pillar Two' of the OECD Base Erosion and Profit Shifting projects
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Different tax rate
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At BAM Advisors in World Trade Center, Dubai, we stand as your steadfast companions, we stand as your steadfast companions, guiding you through the labyrinth of Corporate Tax. Our array of services includes:
The future of taxation has arrived, and BAM Advisors stands ready to unlock your potential within this new landscape. Embrace the transformation, equip yourself with knowledge, and embark on the Corporate Tax adventure with confidence and success. Together, let’s navigate the path ahead!
Corporate Tax Consultant (CTC) is a business professional who provides advice and guidance to businesses on their tax responsibilities and how to reduce their tax liabilities.
Corporate tax consultants offer a range of services, including tax planning, compliance, tax audit representation, resolving tax disputes, identifying tax credits and deductions, international tax planning, transfer pricing, and assistance with mergers and acquisitions.
As corporate tax consultants, we specialize in uncovering tax savings through the use of legal tax planning techniques, such as tax deductions, tax credits, tax incentives, and tax-efficient transaction structuring.
Choosing the right corporate tax consultant depends on a number of factors, including:
1. Expertise
2. Experience
3. Reputation
4. Client references
5. Industry specialization
6. Range of services
7. Personalized tax solutions
It’s important to find a company tax consultant who is familiar with your business and can tailor tax solutions to your specific needs.
There are several steps you can take to begin working with a company tax consultant. You can research and contact companies or individual consultants you trust, set up a meeting to discuss your company’s requirements, and review their proposed plans and fees before you commit to working with them.
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