Tax Agency Number (TAN) 30004113
UAE Corporate Tax Return Service : The Ministry of Finance has announced a 9% federal corporate tax on business profits with a threshold of AED 375,000. This comes into effect from the financial year beginning 1st June 2023.
The introduction of CT in the UAE logically follows from its membership in the OECD's inclusive framework, particularly given its discussions on global minimum tax. The proposed 9% tax rate is still highly competitive in comparison to other jurisdictions, as well as being based on well-recognized and practiced international principles. Once it takes effect, businesses might want to reconsider their corporate structures in order to avail themselves of these available benefits.
Preparing for corporate tax Return (CT) early can save time and money, and reduce the pressure on internal teams to complete these preparations within a tight last-minute deadline. Our expertise and experience will ensure that your organization makes a smooth and seamless transition to the era of Corporate Tax.
The key advantages of working with SGA SAIF include: a commitment to high standards, an emphasis on innovation and quality, a focus on continuous improvement, and the opportunity to work toward your goals in a challenging environment.
Corporate Tax is a form of direct tax levied on the net income or profit of corporations and other businesses. Corporate Tax is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions.
A competitive CT regime based on international best practices will cement the UAE’s position as a leading global hub for business and investment, and accelerate the UAE’s development and transformation to achieve its strategic objectives
Introducing a CT regime reaffirms the UAE’s commitment to meeting international standards for tax transparency and preventing harmful tax practices
he UAE CT regime will become effective for financial years starting on or after 1 June 2023
Examples:
The UAE CT is a Federal tax and will therefore apply across all Emirates
UAE CT will apply to all UAE businesses and commercial activities alike, except for the extraction of natural resources, which will remain subject to Emirate level corporate taxation
All activities undertaken by a legal entity will be deemed “business activities” and hence be within the scope of UAE CT
This would generally be done by reference to the individual having (or being required to obtain) a business licence or permit to carry out the relevant commercial, industrial and/or professional activity in the UAE
The CT rates are:
A multinational corporation is a corporation that operates in its home country, as well as in other countries through a foreign subsidiary, branch or other form of presence / registration. Merely earning income from outside its home country without a foreign presence or registration would not make a business a multinational corporation
In the context of the global minimum effective tax rate as proposed under 'Pillar Two' of the OECD Base Erosion and Profit Shifting project,” large” refers to a multinational corporation that has consolidated global revenues in excess of EUR 750m (c. AED 3.15 bn)
UAE CT will not apply on an individual’s salary and other employment income (whether received from the public or private sector)
Business income earned under a commercial license will be within the scope of UAE CT
UAE CT will generally apply to income earned from activities carried out under a freelance license / permit, albeit no CT will be payable unless the annual net income of the freelance professional exceeds AED 375,000.
Interest and other income earned by an individual from bank deposits or saving schemes will not be subject to UAE CT
The CT liability will be calculated as follows:
Free zone businesses will be subject to UAE CT, but the UAE CT regime will continue to honour the CT incentives currently being offered to free zone businesses that comply with all regulatory requirements and that do not conduct business with mainland UAE
A business established in a free zone will be required to register and file a CT return
The UAE CT treatment that will apply to businesses in free zones will be the same across all free zones
Related Link : Dubai Corporate Tax Consultancy | UAE CT 2023 | Tax Audit
Tax Audit is one of the compliance checks or to verify a person’s VAT liability is accurate by way of examining various records which are maintained by the taxpayer. It is basically a government’s assessment of a company about their responsibility as a taxable entity. The government also assesses a company whether they are following certain responsibilities that apply to their business as per the tax laws (VAT Law, Excise Tax Law, etc.) [More]
The business community in the UAE will be subject to corporate taxes beginning June 1, 2023. In order to prepare for these new regulations, it is important to understand the administrative requirements such as tax registration, deregistration, filing of corporate tax returns, and payment. Consulting with a corporate tax consultant in Dubai helps business owners have a prior understanding of compliance related requirements and avoid hefty penalties in the UAE. [More]
We provide complete financial solutions for individuals, businesses and organizations of all sizes. Our team of experienced professionals has the expertise and knowledge to help you navigate the complex world of accounting and taxation.Our firm offers a range of services to help you with bookkeeping, tax planning and preparation, or financial consulting. We are committed to building long-term relationships with our clients and helping them achieve financial success. [More]
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