Corporate tax in UAE allows taxable persons to avail of tax reduction services if they abide by the rules and regulations.
Corporate Tax in UAE?
Corporate Tax is a direct form of tax levied on the net income of any business or corporation. Corporate Tax is also known as “Corporate Income Tax” or “Business Profit Tax”. FTA registers an eligible person for Corporate Tax and allows the individuals to receive a unique Corporate Tax Registration Number. UAE Corporate Tax 2023 has now allowed Dubai tax consultants and audit firms to offer corporate tax services and their implementation for many growing businesses.
Since the announcement, corporate tax in UAE 2023 has attracted many businesses at large. The current reform in corporate tax Dubai 2023 is to increase the credibility of the UAE as a prominent hub for businesses. It is a great step forward to transforming UAE businesses through tax transparency and implementing international standards. This initiative is a gateway to protect the system from fraudulent tax practices.
Corporate Tax Rates in UAE:
The taxation policy is divided into three tiers as per the regulatory body for UAE Corporate tax. These are mentioned below
- Businesses that have a net yearly profit up to AED 375,000, are subjected to a 0% Corporate Tax rate.
- Businesses that yield more than AED 375,000 yearly net profit are subjected to a 9% tax.
- Large multinational companies are subject to a separate taxation policy Pillar 2. According to the OECD Base Erosion and Profit Shifting Projects, large companies with a revenue of AED 3.15 billion globally are subject to taxation.
How to Minimize Corporate Taxes?
UAE Businesses are subject to low rates of corporate taxes. You can minimize corporate taxes, if you effectively structure your business operations, maximize deductions, utilize the tax exemptions and incentives, and seek the advice of a tax expert. However, to avail of tax deductions, taxable persons must comply with the Federal Tax Authority (FTA) regulations and standards. Failure to abide by these rules may lead to heavy corporate fines and penalties.
If you want to reduce Corporate Tax on your business, Bestax is here to help. Bestax has been providing professional Corporate Tax Services in UAE including Corporate Tax registration services in UAE and Tax reduction services. Our tax experts assist you in UAE Tax planning and compliance with the tax rules and regulations, ultimately minimizing your overall corporate tax. Here is how we can help you minimize your corporate taxes.
Maximizing Deductions
To avail maximum deductions on your business corporate taxes, it is necessary to understand the applicable taxes on taxable persons. Bestax aims to figure out tax deductions applicable to your business activities such as local or regional taxes, energy consumption taxes
Seeking Expert Consultant Advice
Only professional tax consultants know well about the applicable tax deductions on taxable persons. They have experience in minimizing corporate taxes effectively while complying with the FTA regulations. Bestax offers a comprehensive tax consultancy service and helps businesses build a corporate structure to gain maximum tax deductions. We assist corporations in getting benefits from double tax agreements. Our experienced tax consultants devise tax-saving strategies that help you gain more advantage of reduced taxable income. Hiring a registered tax agent is a great option.
Keeping Effective Financial Records
Record keeping plays an important role in minimizing corporate taxes in the UAE. Our tax reduction services include maintaining your important documents, receipts, and invoices of a taxable person to keep track of business activities.
Getting Maximum Advantage of Tax Exemptions
There are many entities in the UAE that are exempted from corporate taxes. These include government entities, entities controlled by the government as per cabinet decision, extraction, and non-extraction corporations under MOF, and Public benefit entities. Bestax Chartered Accountants ensures that you take maximum benefit out of these tax exemptions and incentives to minimize your overall taxes. However, it is essential to fulfill the eligibility criteria before applying for these corporate tax exemptions.
Improving Business Structure
Another best way to minimize corporate taxes is to choose a corporate structure with low tax rates. This can be achieved by setting up your business activity in free zones offshore to avail the maximum tax exemptions. Moreover, if you make transactions with free zone entities, you are subject to 0% corporate taxes. Keeping the benefit of business structure in mind, an expert financial advisor can help you decide the business structure. Bestax’s professional accountants assist you in choosing the best business structure depending on the business operations and long-term growth plans.
Filling Corporate Tax Returns and Payments Timely
Whatever business you are dealing with, it is necessary to fill out corporate tax returns and payments in a timely manner. Failure to do so may result in late filing penalties and fines. You can prevent late filing and meet the deadlines for filing tax returns by collecting the documents timely at the end of the fiscal year. This helps minimize additional corporate tax and fines. It is always advised to seek help from a tax firm for timely assistance in this regard. Bestax has professional chartered accountants that provide you with the complete package of excise tax planning, consultancy, and compliance with UAE business regulations.
Conclusion
Bestax financial experts and tax consultants ensure that your business and corporate tax are compliant with the regulations of FTA. We offer 24/7 financial accountancy services and provide you with complete guidance on your business activities. We structured your tax reports in accordance with the UAE’s business laws.
Being registered and recognized in UAE and free zones, we pride ourselves on protecting your company property and protect it from any damage. Our team is comprised of corporate tax advisors, tax consultants, and auditors who help businesses minimize corporate tax liability, through correct reporting, timely filing of taxes, compliance, and complete optimization. For 24/7 Tax Consultancy services and reduction of Corporate Taxes in UAE, contact our expert team right now!
