Our eminent tax specialists will make certain that the ventures are following every legalities and act of the federal thus return of it is utilized for better net worth investments
Our corporate tax advisors in Dubai will act as the guidance provided to every tax inquiry and also will ensure to demonstrate exceptional mediation between the federal authority and entrepreneurs
Our tax scholars will advise the entrepreneurs in different tax strategies in understanding the tax structure for flawless business operations
Our tax experts will ensure that the investment put forward are placed in appropriate platforms where the tax credits are received as well as the money is saved from excessive tax burdens
Corporate tax will come into action in UAE from 1st June 2023, for all the financial years starting on or after that.
The corporate tax is charged at a rate 9% in UAE which will be depending on the total taxable income.
Under corporate tax regime all the businesses in UAE are included excluding the business engaged in Natural resources and branches of foreign banks and including the business registered in the Free zones but not operating with the UAE mainland.
As per the notification of MoF UAE, individuals are subjected to follow the CT regime only when they are carrying on the business under commercial license in UAE.
As of now, no notification is received from the MoF stating the exemption for the govt. owned entities in the UAE from CT. But as per the Pillar Two rules under the CT it can be assumed that entities engaged in meeting the requirements of the govt. and not engaging in profit earning can be exempted.
If the entities maintain an automated and centralized accounting system and financial data from the ERP and non-ERP system then they have to get their financial systems audited.
The expenses which can be considered eligible for deductions are: 1. Interest expenses 2. Payments made to foreign parties as per the transfer pricing rules, depreciation according to the corporate tax regime, overhead and wages or salaries.
The expenses which are not eligible for deduction under the corporate tax regime include the following: 1. Excess depreciation 2. Expenses in relation to derivation of exempt income 3. Personal expenses 4. Any fines or penalties
The corporate tax will be applicable to the foreign business entities and the individuals if they carry out business activities in UAE, hence they will be subjected to follow the corporate tax regime and must stay complied to it to avoid any kind of penalties or fines as per the authority.
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