- m.ayyad@fcaest.com
Since the Ministry of Finance recently announced the first of its kind introduction of a 9% federal corporate tax in the UAE to be levied on business profits with a threshold limit of AED 375,000. This tax comes into effect from the financial year beginning on the 1st of June 2023.
UAE Corporate Tax is now amongst the most competitive in the tax world with the lowest rate in the GCC. Corporate Tax in Dubai, UAE is a Federal tax and will therefore apply across the entire Emirates and The Federal Tax Authority (FTA) will be directly responsible for the administration, collection, and enforcement of the UAE corporate tax.
At Financial Cube, our varied service and a sustainable paperless digital outlook in the world of finance along with 4+ years of experience ensures that all your Corporate tax needs are met with satisfaction ensuring timely registrations, filings, and returns.
Corporate Tax comes forward as a form of direct tax levied straight on the net income or the profits of both corporations and businesses alike.
The term Corporate Tax is oftentimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in several other jurisdictions but generally, as per tax legislation, they both mean the same.
A highly competitive corporate tax regiment adapted and based on international tax laws and best practices will warrant the UAE’s position as a commanding global hub for both business and investments equally, accelerating the UAE’s overall developmental schemes and ideations, and transforming them to achieve its strategic objectives.
Introducing a regulated Corporate Tax regime affirms the UAE’s sole commitment to meeting international standardizations for transparency and helps prevention of illegal tax theft and other related unlawful practices.
We have been guiding VAT registration in the UAE since its inception.
We are a responsibly competent finance based network offering accounting and corporate tax consulting services in the UAE.
Offering a wide service portfolio in filing taxations, auditing, accounting and bookkeeping. We’re a truly wholesome financial service provider offering high level VAT filing services across UAE along with tailored Corporate Tax solutions in Dubai for all your business and accounting needs in the Gulf region.
The easiest way to legally comprehend and rightly follow all taxation policies is achieved by first selecting an expert corporate tax consultant that’s reliable and experienced.
All businesses and individuals conducting financial activities registered under a commercial license in the UAE.
Free zone businesses (In The UAE) corporate tax regime will continue to regulate the incentives currently being offered to the free zone businesses that comply with all essential regulatory requirements and dont conduct businesses set up in the UAE’s mainland.)
Foreign entities and individuals are levied only if they conduct a financial trade or business in the UAE in an ongoing or regular manner.
All banking operations.
Businesses that are engaged in real estate management, construction, development, agency and brokerage.
Businesses must MANDATORILY register for VAT only if the taxable supplies exceed an annual threshold of AED 375,000. Furthermore, businesses should register voluntarily, if their imports are less than the mandatory registration threshold but exceed the voluntary registration threshold of AED 187,500.
The taxable income will be calculated on the net accounting profit of a business, post adjustments for certain articles as specified under the UAE corporate tax law.
The net accounting profit of a business is equal to the amount reported in its annual financial statements that’s prepared in accordance with the international accounting standards and protocols.
The Ministry of Finance state current corporate tax rates as:
Free Zone (including financial free zones) businesses in UAE will be subject to Corporate Tax. However, its stated that the Corporate Tax regime will continue to recognize the corporate tax incentives currently offered to all free zone businesses that comply in with regulatory requirements and dont conduct business in mainland UAE
Below are the list of exemptions from the UAE corporate tax. Which include
At Financial Cube, we have thrived in the UAE by offering a wide service portfolio in filing taxes, auditing, accounting, and bookkeeping. Financial cube is a truly wholesome corporate tax consultant in Dubai.