Boost Your Business With Corporate Tax Services in UAE

Bestax offers comprehensive UAE Corporate Tax Registration Services and implementation of UAE Corporate Tax Regulations. This helps navigate the CT laws in UAE businesses and unleash their true growth potential. 

What is Corporate Tax?

UAE Corporate tax rate implementation started on 1 June 2023 by the Ministry of Finance UAE

The announcement of UAE Corporate Tax has attracted many businesses from all around the globe. This tax reform has increased the credibility of existing businesses in Dubai and ensured tax transparency and implementation of International Standards.

Corporate Companies in UAE receive many tax incentives and a favorable tax environment, but you can still reduce it with legitimate tax strategies. Bestax is here to assist you with tax savings strategies while complying with the regulations and laws simultaneously. If you are running a business in the UAE, or thinking about it, knowledge of corporate tax services is important. 

It can only be possible with a professional tax expert to get maximum advantage of tax exemptions and tax savings and unleash your true business potential. Bestax CA in UAE can help you with Corporate Tax strategies and implementation to get maximum results.

UAE Corporate Tax Strategies to Boost Your Business:

Bestax understands the true objective of Corporate Tax in UAE and helps businesses and investments strengthen their position. Our professional UAE Corporate Tax services assist businesses in achieving their corporate tax objective to develop and transform.

Chartered Accountants at Bestax are determined to provide Corporate Tax Services in Dubai, Corporate Tax Registration Services in UAE, and Tax Reduction Services. We will assist you throughout the process of receiving the Corporate Tax Registration Number. You can count on Bestax business tax advisory anytime and we ensure to provide top-quality tax strategies and tax services to unleash their business potential. 

Let’s discuss how Bestax’s Corporate Tax strategies play a vital role in seeking UAE advantage of corporate tax reform.

Selecting the Right Business Structure

Bestax services of corporate tax in UAE start with choosing the right business structure for your company. This is an effective tax strategy that we use to help you get the maximum benefit of tax savings. Setting up a business in UAE requires you to choose between the Mainland and the Free Zone. However, selecting any one of them to start a business activity in the UAE comes with its tax implications, tax benefits, and other restrictions.

Our business tax advisory consultants make sure to devise smart tax strategies that give your business a competitive edge in Dubai with all the tax exemptions. 

Benefiting from Double Taxation Avoidance Agreements:

UAE has incorporated a Double Taxation Avoidance Agreement (DTAA) that saves the taxpayer from imposed taxes in two countries.

Foreign tax credits

A tax that is paid on the UAE taxable income overseas can now offset a portion of Corporate Tax payable in the UAE. UAE has now entered into double tax treaties with 137 DTA. However, it can work properly under the sustainable tax system where there must be a linkage between cross-border trade and ownership. It must be before and after the announcement and implementation of UAE’s Corporate Tax.

Bestax is here to save you from extra tax implications and help run your business effectively. Our professional tax consultants will devise an appropriate strategy for your business to leverage this agreement and reduce overall tax rates and implications.

Tax Exemptions and Incentives Utilization

The following businesses and corporations are exempted from the Corporate Tax services:

  • Government Entities are automatically exempted.
  • Controlled by Government Entities are exempted if specified from the Cabinet Decision.
  • Extraction businesses or non-extraction natural corporations, if declared exempted by the Ministry of Finance
  • Public benefit entities are exempted if listed under Cabinet Decisions.
  • If the Federal Tax Authority approves, the exempted entities include public or private pensions social security funds, and qualified investment funds.
  • UAE subsidiaries which are Wholly owned and controlled by the Government Entities are also exempted if approved by FTA.

Our professional tax planning consultants help you in seeking benefits from these tax exemptions and incentives. Bestax financial advisors are dedicated to providing you with tax reduction services and making your investment in the UAE business sector.

Understanding the corporate tax relief for companies helps you optimize tax planning strategies and reduce it while ensuring compliance with the tax regulations. Bestax tax advisors aim to reduce your overall tax liability so that you focus on your main financial activities in Dubai.

Optimization of Tax Planning with Transfer Pricing

It involves carefully devising transfer pricing strategies between two entities in such a way that you achieve maximum tax exemption benefits. Bestax tax consultants understand how much it is to strategically choose the pricing of products, services, and tangible or intangible assets when dealing with multinational groups.

Therefore, we are here to assist you in structuring and documenting your transfer pricing of products and services in such a way that it optimizes your tax planning. Moreover, we help you achieve your tax objectives through wise transfer pricing. However, it requires your business to comply with the OECD transfer pricing standards and documentation requirements. You can contact Bestax Chartered Accountants for tax consultations and information on Corporate Tax Services in Dubai.

Investing in Research and Development

UAE businesses are subject to many tax benefits and tax incentives if they invest in research and development R&D activities. R&D expenditures for innovative services help businesses reduce their taxable income and minimize tax liabilities in the end. Bestax tax consultants figure out how your business gains advantage of tax incentives through R&D expenditures in innovations. Minimize your Corporate Taxes in UAE with our strategies to mitigate tax liabilities.

Wrapping Up

Bestax Chartered Accountants and Tax Consultants are experienced enough to provide you with detailed Corporate Tax Strategies. Our professionals will understand your businesses and help you take most of the Corporate Tax UAE advantage. We will help you avoid corporate tax fines and penalties in UAE. Bestax is determined to provide quality corporate tax services in UAE to unleash the real potential of your business dealings. Hence, with the assistance of our professional experts, you get advanced tax consultation and achieve your business.

Mastering Corporate Tax Services: UAE Expertise & Benefits

As corporate tax regulations in the UAE become more stringent, businesses face the challenge of staying compliant while optimizing their tax strategies. To respond these challenges Outsourcing your taxation offers expert solutions, cost savings, and increased efficiency, enabling companies to navigate the complexities with confidence and focus on core operations. Benefit from our comprehensive corporate tax services in UAE and drive your business forward today!

Before heading towards services related to corporate tax the thing you should know

What is corporate tax?

• Corporate Tax is a direct tax imposed on the net income of corporations and other businesses.

• United Arab Emirates (UAE) issued the Federal Decree-Law No. (47) of 2022, commonly
known as the “Corporate Tax Law,” on 9th December 2022.

• In various jurisdictions, Corporate Tax is occasionally referred to as “Corporate Income Tax”
or “Business Profits Tax.”

The above new law mandates that all corporations operating in the UAE must fulfil these three
requirements for law compliance.

• From June 2023, corporate tax registration becomes mandatory.

• It is now required to maintain accurate accounting records as per the approved accounting standards of the UAE.

• Businesses must submit their corporate tax returns to the Federal Tax Authority (FTA).

Expert Corporate Tax Services in Dubai

Failing to understand the services provided by tax firms can have serious consequences for a businessman and their business. Without the expertise of tax professionals, the businessman may struggle to navigate the complex and ever-changing tax landscape, increasing the risk of non-compliance with tax laws and regulations. As a result, the business may face penalties, fines, and legal issues, leading to financial instability and a damaged reputation.

Additionally, the businessman may overlook valuable tax planning opportunities, leading to higher tax liabilities and missed chances to claim deductions. This lack of tax efficiency can strain the business financially, reducing profitability and impeding its ability to invest in growth and expansion. Before listing the Professional Corporate Tax Planning Services in Dubai provided by tax firms, it’s important to know that these firms play a significant role in helping businesses with their taxes. They have specialized knowledge of tax laws and regulations, and they can assist businesses in ensuring compliance,  optimizing tax strategies, and making informed financial decisions.

These are the general services provided by Corporate Tax Specialists in Dubai

1. Corporate Tax Rate Tax Planning

2. Assessment of Corporate Tax Impact

3. Multi-Country Tax Planning

4. Base Erosion and Profit Shifting (BEPS) Solutions

5. FPI Advisory and Fund Compliance Service

6. Corporate Tax Advisory Services for Businesses

7. Individual, Family Office, Estate, and Trust Tax Compliance

8. Technology and Consulting Support for Tax Matter

9. Comprehensive Tax Compliance Support

10. Litigation Support for Tax-related Matters

11. Effective Tax Rate (ETR) Management Solutions

12. Conducting advance tax calculations to facilitate informed financial planning.

13. Ensuring compliance with tax obligations arising from Corporate Tax & ESR laws.

14. Handling the preparation and filing of returns related to Corporate Tax and other applicable
taxes.

15. Providing expertise in global taxation and transfer pricing to optimize cross-border
transactions.

16. Assisting with Corporate Tax transition management for smooth and efficient tax processes.

17. Preparing businesses for Corporate Tax Audits to ensure seamless and successful outcome.

Benefits of Outsourcing Corporate Tax in the UAE

Outsourcing corporate tax in the UAE offers several advantages for businesses, and here are some key benefits

Expertise and Experience

Enlisting the services of a professional firm in the UAE grants access to a team of experienced experts who adeptly manage corporate tax affairs. They possess up-to-date knowledge of the latest regulations, enabling businesses to navigate the intricate tax laws of the UAE. These experts can help minimize tax liabilities and capitalize on available tax incentives.

Save your Cost

Outsourcing corporate tax leads to cost savings in multiple ways. Businesses avoid expenses associated with recruiting, training, and retaining in-house tax personnel. Additionally, there’s no need for investments in tax management software and infrastructure. Moreover, outsourcing allows businesses to pay only for the specific services they require, proving more cost-effective in the long run.

Increased Business Efficiency

By entrusting corporate tax responsibilities to external experts, businesses can concentrate on their core competencies, fostering increased overall efficiency. Tax specialists manage the entire tax process, from preparation to timely filing, freeing businesses to focus on other critical aspects of their operations.

Maximizing Tax Savings

By outsourcing your tax services to a Professional Corporate Tax Services providers, you open the door to maximizing your tax savings. These experts possess in-depth knowledge of tax laws and regulations, allowing them to identify often-overlooked tax deductions and credits. As a result, you can reduce your tax liability and optimize your tax savings effectively.

Risk Management

Compliance with tax regulations is vital to avoid penalties and legal complications. Outsourcing corporate tax to Specialists in Dubai ensures businesses stay updated with the latest regulations and maintain compliance. This helps mitigate the risk of penalties, legal issues, and safeguards the business’s reputation.

Stay Up to Date

Additionally, tax laws are continuously evolving, posing challenges for business owners to have current knowledge. However, by relying on the expertise of a reputable accounting and tax consultancy firm, you can rest assured that you will remain up-to-date with the latest tax laws and regulations. Their dedicated resources and understanding of changes in tax laws ensure that your business remains fully compliant with all applicable tax requirements.

How to Choose the Right Firm for Outsourcing?

Selecting the appropriate corporate tax outsourcing firm in the UAE is crucial for reaping the benefits. To make an informed decision, businesses should look for the following qualities:

1. Reputable Track Record: Ensure the firm has a good reputation and a proven history of managing corporate tax affairs in the UAE.

2. Customized Services: Look for a firm that offers tailored solutions, catering to the specific needs of your business.

3. Expertise in Related Services: opt for a firm that also offers other relevant services like accounting outsourcing, VAT filing, etc. for comprehensive support.

In short hand over your taxation to us and focus on your business. This will lead you to numerous benefits, particularly with the implementation of the new corporate tax regime. Embracing these advantages allows businesses to allocate their resources wisely, focus on growth, and stay ahead of the competition. To explore how outsourcing corporate tax can drive your company’s success, reach out to Bestax today.

UAE Plans to Introduce its First Corporate Tax in 2023

UAE Plans To Introduce Its First Corporate Tax In 2023

The United Arab Emirates is introducing a federal corporate tax for the first time in its history. This recent move is aimed at bringing the country into synchronization with other competitive global markets, but on the other hand, it also undermines the country’s economic status as a tax haven.

The UAE Ministry of Finance announced that the new federal profits tax of 9% will come into force on 1 June 2023. The United Arab Emirates, which includes Abu Dhabi, Dubai, and five other emirates, is slowly introducing additional taxes to raise non-oil revenues.

The new tax framework will come into force in June 2023 and will apply to all business activities in the UAE except the exploitation of natural resources. A tax will be levied when companies’ revenues exceed USD 102000 or Dh375000. The UAE government is introducing a completely new corporate tax to modernize its economy and comply with international tax standards. Moreover, corporate tax is being introduced as the country’s leadership works to close tax fraud loopholes in the global economy. Analysts believe that this measure will improve the Gulf state’s budgetary system. The UAE claims to have the most competitive tax rate in the world.

Important Conclusions

Companies in Emirati free zones are exempt from the new corporate tax as long as they do not carry out their activities onshore. Oil and gas companies are an exception as they have their own tax structures.

To help small businesses and start-ups, corporate profits of up to USD 102000 will not be taxed. In addition, international taxes can be offset against UAE corporate income tax to avoid double taxation. The tax plan will allow groups of UAE companies to pay tax as a single entity or to seek assistance in the event of losses or restructuring.

The tax incentives granted to companies in the free zones which do not carry out business onshore remain unchanged. Domestic and cross-border payments will also be exempt from withholding taxes.

Capital gains and dividends of UAE companies will be exempt from corporate income tax.

Individuals will continue to be exempt from tax on gains from employment, real estate, investments in shares, and other forms of personal income.

No tax will be imposed on foreign investors who are not established in the country.

Companies will only have to file one corporate tax return each calendar year and will not have to pay tax in advance or prepare provisional tax returns.

Competition

The UAE has recently taken steps to attract foreign investors to stay, in particular by easing restrictions on company ownership rules and granting certain long-term visas. It has also relaxed various Islamic restrictions on drinking and unmarried couples, as well as moved to a Monday to Friday working day. However, the UAE faces strong competition from Saudi Arabia, which is making extra efforts to attract businesses and families to come to the kingdom.

The UAE has consistently promoted itself as a destination where international investors and companies are welcome. Over time, lower tax rates and a favorable business climate have improved the 50-year-old country’s standing.

If you have any questions about the new corporate tax regime, the highly experienced team at BESTAX CHARTERED ACCOUNTANTS will be happy to help in every way possible. We have been serving globally for over a decade and have an extensive knowledge in account related tasks. Renowned companies are our clients with entire satisfaction. Call us now to book an appointment and for more details.

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