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Corporate Tax Advisory
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What is the Corporate Tax in the UAE?
On June 1, 2023, the UAE introduced a corporate tax policy that imposes a 9% tax on business profits exceeding AED 375,000 ($100,000). This move marks a significant shift in the country’s corporate tax framework, which historically offered a tax-free environment for most businesses.
Companies generating less than AED 375,000 in annual profits remain exempt from this tax, allowing smaller businesses and startups to continue benefiting from favorable conditions, making corporate tax services essential for businesses navigating these new regulations.
However, multinational corporations with profits exceeding AED 2.9 billion ($793 million) are subject to a higher tax rate of 15%. This aligns with the Global Minimum Corporate Tax Rate Agreement, an international initiative aimed at preventing large multinational corporations from shifting profits to low-tax jurisdictions.
Benefits of Corporate Tax Advisory
Expert Tax Guidance
Professional advisors provide clear understanding of UAE corporate tax laws, helping businesses stay compliant with changing regulations.
Risk Reduction
Corporate tax advisors identify potential compliance risks and help businesses avoid penalties, fines, and legal complications.
Tax Efficiency
Strategic tax planning helps companies optimize their tax positions and utilize available exemptions and deductions effectively.
Accurate Financial Reporting
Tax advisory services ensure proper documentation and accurate financial records for smooth tax filing and audits.
Business Growth Support
A strong tax strategy supports better financial planning, investment opportunities, and long-term business growth.
Corporate Tax Advisory Services
Corporate Tax Assessment
Experts analyze your business activities and determine the applicable corporate tax obligations.
Tax Planning & Strategy
Advisors develop customized tax strategies to improve efficiency and reduce unnecessary tax burdens.
Compliance Support
Businesses receive guidance on maintaining proper accounting records and meeting UAE tax compliance requirements.
Tax Registration Assistance
Professional support for Corporate Tax Registration with the UAE Federal Tax Authority (FTA).
Tax Return Review
Advisors review financial statements and tax returns to ensure accuracy before submission.
Audit & Documentation Support
Assistance with preparing supporting documents and responding to tax authority inquiries or audits.
What is the corporate tax for free zone businesses?
Under the UAE’s new corporate tax framework introduced in June 2023, businesses in free zones can maintain their tax-free status if they meet specific conditions.
While free zone companies still benefit from a 0% corporate tax rate on qualifying income generated outside the UAE or within the free zone, they must be aware of the regulations.
If a free zone business conducts transactions with the mainland or generates non-qualifying income, a 9% corporate tax rate applies to that portion of profits. For businesses in free zones seeking professional advice on tax matters, corporate tax advisory services from expert corporate tax consultants in Dubai can help ensure full compliance with the new laws.