FTA announces Corporate Tax Registration Deadline – 90 days from Date of Incorporation/MOA. AED 10k penalty for late registration.
Corporate Tax Consultants in Dubai
Arabian Wingz takes pride in being your go-to partner for all kinds of corporate tax advisory services in Dubai. We offer professional guidance in terms of the corporate tax landscape and guarantee that your business complies with all the stringent tax regulations and boosts its efficiency.
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Reliable Corporate Tax Consultants in Dubai
In the dynamic business environment of Dubai, thoughtful tax management is not just about compliance but about making the most of tax laws to drive expansion and profitability. With the introduction of corporate tax by the Ministry of Finance, each company in the UAE should reconsider its business tax approach to stay in obedience to the ever-evolving tax landscape in the country. Getting assistance from reliable corporate tax consultants in Dubai can assist businesses in several ways.
At Arabian Wingz, we understand that effective tax management strategies and compliance are vital for the comprehensive success of the business. Our complete corporate tax services in Dubai are created to offer the insights and tools required to make informed financial judgments that resonate with your business objectives.
What is a Corporate Tax?
Corporate Tax is a direct tax imposed on the profits or net income of corporations and businesses. The UAE Ministry of Finance has already announced the introduction of corporate tax on business profits. As per the UAE Federal Decree-Law No. 47 of 2022, the corporate tax will apply to financial years beginning on or after June 1, 2023. Corporate tax rates differ across countries and can vary significantly. For businesses, paying corporate tax can be beneficial compared to paying additional individual income taxes, and it also allows companies to offset losses more easily.
Corporate Tax Rate In UAE
According to the UAE ministry, the following rate of UAE corporate tax would be applied to profits and taxable income:
- For taxable income up to AED 375,000, there will be no corporate tax.
- A 9% company tax will be applied to taxable income over AED 375,000.
For example, the corporation tax will be AED 2,250 if a company makes a taxable profit of AED 400,000 in a financial year (AED 400,000 – AED 375,000 = AED 25,000 at 9%).
How We Help Your Business with Corporate Tax?
Here is a breakdown of our comprehensive procedure:
Step 1
Book a one-on-one consultation session with our tax professionals.
Step 2
We evaluate your financial history and structure of the company.
Step 3
Execute a tax approach and guarantee compliance with UAE regulations.
Step 4
File precise and timely corporate tax returns.
Corporate Tax Procedure in Dubai, UAE
The corporate tax procedure in Dubai involves various steps:
- Registration: Each company in the UAE is required to register for the UAE corporate tax with the Federal Tax Authority. However, there are some exemptions for particular categories. The procedure involves submitting essential paperwork and acquiring a Tax Registration Number (TRN).
- Record Keeping: To file corporate tax returns, companies must uphold precise and transparent financial history. For tax consultation purposes, these statements should comprise documentation of all the earnings and expense deals.
- Return Filing: Companies in Dubai should file their return digitally with the FTA by a prescribed due date. It is crucial that the tax returns precisely mirror the taxable earnings, deductions, and tax obligations calculated.
- Tax Payment: Any corporate tax payable on the basis of a filed return should be settled within the given time period.
- Potential Audits: The FTA might choose businesses for audits to evaluate obedience to the tax laws. Companies should be ready to offer required papers and manage any auditor inquiries during the procedure of the audit.
Benefits of UAE Corporate Tax
UAE corporate tax provides a comprehensive array of benefits. These include:
- Additional Incomes: Corporate tax assists government authorities in generating extra earrings while also encouraging honesty and transparency in business functions.
- Economy Control: The execution of corporate tax provides greater control over the economy and also encourages its expansion.
- Equal Tax Distribution: The corporate tax encourages the equitable distribution of taxation across all companies.
- Stability Factor: The corporate tax is immensely stable in contrast to several other taxes in the country. It is also convenient to address since there is a single entity engaged.
- Overcome Financial Challenges: The corporate tax in UAE offers social security and support in safeguarding against financial challenges and loans.
- Funding of Public Services: Corporate tax comes across as a vital source of income for the government in the country which helps in funding necessary public services.
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Our Corporate Tax Services in Dubai, UAE
Here is an exceptional range of corporate tax services provided by Arabian Wingz in Dubai:
- Corporate Tax Assessment Services: Assessing the impact of corporate tax is important for maintaining your business’s competitive edge and operations. By ensuring compliance, enhancing financial planning, and promoting well-informed decision-making, Arabian Wingz is essential in assisting you in navigating the difficulties of corporate tax. We reduce compliance risks, avoid fines, and protect your company's goodness and reputation by keeping it up to date with the most recent tax rules and regulations.
- Corporate Tax Registration Services: Arabian Wingz auditing has a team of highly qualified and experienced tax consultants with specialized knowledge in Corporate Tax registration. Throughout the corporate tax registration process, our tax experts offer top services. We are fully aware of the substantial changes in the implementation of the corporate tax. With the extensive experience of our tax consultants, you can trust that the process will be smooth and efficient.
- Corporate Tax Return Filing Services: Filing a corporate tax return is a legal obligation for businesses operating in the UAE, and failure to comply can result in penalties and fines. With the recent introduction of corporate tax law in the UAE, businesses are preparing to file their tax returns within the deadlines set by the Federal Tax Authority (FTA). Arabian Wingz auditing’s highly skilled and knowledgeable tax consultants are here to assist you with the best Corporate Tax return filing services in the UAE.
- Corporate Accounting Services: Corporate tax accounting is an important element of tax adherence and upholding precise financial statements related to corporate tax. It involves calculating taxable earnings, evaluating obligations related to tax, and supervising credits and debits. The Arabian Wingz experts have in-depth knowledge of tax legislation and help you stay updated on changing tax regulations. We maintain detailed financial statements for your business.
- Corporate Tax Audit Services: A corporate tax audit in the UAE is a compulsory process for companies that meet specific criteria. The audit involves checking financial statements, tax returns, and other relevant documents to determine any differences or errors. Arabian Wingz offers expert tax auditing services, including professional tax audits for your business. Our experienced tax consultants, with extensive expertise in VAT and Excise Tax in the UAE, are now fully equipped with FTA-approved qualifications to provide the best audit services.
- Corporate Tax Advisory Services: Businesses operating in the United Arab Emirates are required to accept the tax laws and regulations set by the government. For businesses to successfully deal with this complex new tax structure and ensure they continue to adhere to the applicable laws, corporate tax services are crucial. Our team of highly skilled and professional Corporate Tax advisors is here to help you implement corporate tax strategies efficiently.
Why Choose Arabian Wingz for Corporate Tax Services?
When it comes to corporate tax services in Dubai, Arabian Wingz is your trustworthy partner. Experienced business tax advisers from the United Arab Emirates are part of our team. We have a track record of assisting companies to flourish in the UAE’s constantly changing tax environment by using a client-focused approach. We keep you informed about all new tax reforms and provide real-time support to confirm that your business stays compliant.
Our core focus is on providing:
- Stakeholder Value
- Strategic Tax Planning
- Global Tax Management
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FAQ's
What is corporate tax in Dubai?
One type of direct tax imposed on businesses’ net profits is corporate tax. This tax, which is imposed on the taxable income of corporations and other entities from their business operations, is governed by federal law in Dubai and the larger United Arab Emirates.
When was corporate tax introduced in the UAE?
A federal corporate tax was implemented in the United Arab Emirates, and it will go into effect at the start of the first fiscal year that starts on or after June 1, 2023.
What is the current corporate tax rate in Dubai?
For taxable income over AED 375,000, Dubai’s standard corporate tax rate is 9%. The corporate tax rate is 0% for companies with taxable incomes up to AED 375,000. For big multinational companies that fit certain requirements, there are various rates.
Which businesses are required to pay corporate tax in Dubai?
The majority of companies doing business in the United Arab Emirates are subject to corporate tax, including –
- Companies that are incorporated or run in the United Arab Emirates are considered resident juridical persons.
- Legal entities that are not residents but maintain a permanent presence in the United Arab Emirates.
- Natural persons (individuals) with a turnover above a specific threshold who engage in business operations in the United Arab Emirates.
Are there any exemptions from corporate tax in Dubai?
Clearly, there are a number of corporate tax exemptions, such as –
- Government organizations and organizations under government control.
- Companies that extract natural resources.
- Qualifying investment funds and public benefit organizations.
- Social Security and pension funds, either public or private.
- “Qualifying Free Zone Persons” are free zone companies that fulfill certain requirements.
How is taxable income calculated for corporate tax in Dubai?
With some modifications, taxable income is typically determined using a company’s net profit as reported in its financial statements. After adjusting for non-deductible expenses (such as fines and some entertainment costs), exempted income, and unrealized gains or losses, you begin with the accounting income. The amount used to apply the tax rate is the final taxable income.
What is the filing process for corporate tax in Dubai?
The following steps are involved in Dubai’s corporate tax filing process –
- Registration – Companies need to get a Tax Registration Number (TRN) and register with the Federal Tax Authority (FTA).
- Preparation – Accurate financial statements and accompanying documentation should be prepared.
- Filing – Within nine months of the fiscal year’s conclusion, electronically file an annual corporate tax return via the FTA’s EmaraTax portal.
- Payment – By the filing deadline, pay any taxes owed.
What are the penalties for non-compliance with corporate tax regulations in Dubai?
Administrative sanctions may be imposed for noncompliance. These may consist of penalties for –
- Not registering for corporate tax in the allotted time.
- Not filing a tax return on time.
- Not making the tax payment by the due date.
- Not maintaining the necessary documentation.
Depending on the type of infraction and how often it occurs, the exact penalty amount may change.
Can free zone companies be subject to corporate tax in Dubai?
Companies in free zones may be liable for corporate taxes. However, a “Qualifying Free Zone Person” can take advantage of a 0% corporate tax rate on their qualifying income if they meet certain requirements, such as having qualifying income and maintaining sufficient economic substance. The standard 9% tax rate would apply to any income that does not qualify.
How can Arabian Wingz help businesses with corporate tax compliance in Dubai?
Although Arabian Wingz is a well-known supplier of accounting, auditing, and business advisory services, their particular offerings in relation to corporate tax compliance can differ.
- Tax Advisory – Giving advice on corporate tax law, how it affects your company, and compliance tactics is known as tax advisory.
- Registration – Helping with the EmaraTax portal’s corporate tax registration procedure.
- Calculation and Filing – Assisting in the precise and timely preparation of financial statements, the calculation of taxable income, and the timely filing of the annual corporate tax return.
- Documentation – Making certain that all necessary records are kept up to date and in order in case of an audit.
- Ongoing Compliance – Offering constant assistance to guarantee that the company stays in compliance with the changing tax laws.
