Do you have a business operating in the UAE and grappling with the complexities of corporate taxation? Look no further! The comprehensive range of corporate tax services in UAE is here to assist you in navigating the intricate world of tax regulations and requirements. Whether you need assistance with tax assessment, registration, return filing, accounting, audits, compliance, or expert advisory, you are going to find solutions to meet your unique needs in paragraphs following this one. Discover how corporate tax services can simplify your tax journey and optimize your financial outcomes. In Dubai, the UAE’s thriving business hub, numerous corporate tax firms provide services to assist businesses in managing their tax obligations and optimizing their tax positions. These firms offer expertise in corporate tax planning and strategy. Services include the following:
Corporate Tax Assessment Services
When implementing corporate tax, it becomes crucial to assess the tax liability of a company based on its revenue. This assessment involves a careful calculation of income, application of applicable tax rates, and consideration of any deductions or exemptions that the company may qualify for.
Corporate tax assessment is a systematic process that examines the opportunities for making relevant changes within and outside the business entity or group. The primary objective of this assessment is to establish a foundation for effective tax planning, business restructuring, and the implementation of robust compliance verifications.
Moreover, a comprehensive corporate tax assessment enables businesses to identify opportunities for business restructuring, such as restructuring ownership or operational structures, to enhance tax efficiency and overall performance. It also plays a crucial role in conducting compliance verifications to ensure that the company meets all tax-related requirements and minimizes the risk of non-compliance.
The Corporate Tax Assessment Process in the UAE can be categorized into three main stages:
- Impact Assessment
- Document Assessment
- Tax Compliance Assessment
Assessing the Impact of Corporate Tax in the UAE
Corporate Tax Impact Assessment involves a systematic evaluation of how tax laws, regulations, and policies can potentially affect a company’s financial performance. This comprehensive process entails analyzing the company’s existing tax position, identifying potential risks and opportunities, and formulating strategies to enhance tax efficiency. By conducting a thorough assessment, businesses can gain valuable insights into the potential implications of corporate taxation, enabling them to make informed decisions and proactively manage their tax obligations.
A comprehensive Corporate Tax Impact Assessment in the UAE covers various key aspects, including:
1 Tax Compliance: Assessing the company’s devotion to UAE tax laws and regulations, including the timely submission of tax returns and payment of taxes.
2 Tax Planning: Identifying opportunities for the company to minimize tax liabilities and maximize tax benefits through effective tax planning strategies, such as leveraging available tax credits and deductions.
3 Transfer Pricing: Evaluating the company’s transfer pricing policies to ensure compliance with tax regulations when conducting transactions between related entities, including the transfer of goods, services, and intellectual property.
4 Business Structures: Analyzing the existing business structure of the company and exploring potential changes that could optimize tax benefits and minimize tax liabilities based on the company’s specific circumstances.
5 Tax Incentives and Exemptions: Assessing the company’s eligibility for tax incentives and exemptions provided by the UAE government, such as those offered to companies operating in free zones or engaging in specific industries.
6 International Tax Considerations: Examining the impact of cross-border transactions on the company’s tax position and ensuring compliance with international tax laws and regulations when conducting business activities globally.
Document Assessment Services for Corporate Tax
It involves ensuring that businesses maintain accurate and organized financial records as per the UAE corporate tax requirements. It is crucial to follow these regulations to avoid potential penalties, which the government may introduce in the future.
Businesses must retain records that support the information presented in their UAE corporate tax returns and other documents submitted to the Federal Tax Authority (FTA). By conducting this assessment and maintaining proper documentation, companies can demonstrate compliance and safeguard against any adverse consequences related to corporate tax.
Assessment of Corporate Tax Compliance
In order to facilitate self-assessment of corporate tax obligations, the Federal Tax Authority (FTA) has established a dedicated portal where businesses can seek clarification regarding their tax preparation. If there are any concerns or uncertainties related to planned tax preparations or transactions, businesses have the option to request clarification on the appropriate corporate tax treatment through this portal. By submitting their queries to the FTA, businesses can obtain the necessary guidance and clarification.
It is worth considering the expertise of Professional Corporate Tax Solutions in Dubai to navigate the complexities of corporate tax law effectively. These consultants have extensive knowledge and experience in corporate tax matters, enabling them to provide valuable insights and best practices. Relying on their expertise can help businesses avoid confusion and ensure compliance with corporate tax regulations while benefiting from optimized tax strategies.
Corporate Tax Registration Services
Under the Federal Decree Law 47 issued by the Federal Tax Authority (FTA), all taxable persons, including Free Zone Persons and Exempted Persons, are required to register for Corporate Tax and obtain a unique Tax Registration Number. Corporate Tax returns must be filed within 9 months from the end of a specific period, and the tax liability should be paid by the deadline.
The FTA has specified a specific format and timeline for registration, which must be followed by Taxable Persons unless exempted by the Minister. Once registered, the Corporate Tax rate is 9% for taxable income exceeding AED 375,000, while taxable income up to AED 375,000 is subject to a 0% rate. Compliance with these registration and tax payment obligations is essential to meet the requirements of the Corporate Tax regime.
How to register?
The registration process for UAE Corporate Tax is facilitated through the EmaraTax platform, an online portal provided by the Federal Tax Authority. Taxpayers can create an account on EmaraTax or migrate their existing FTA Account to access a range of tax services, including corporate tax registration, returns, refunds, deregistration, and payments.
To register for corporate tax in the UAE:
1 Create an account on EmaraTax platform.
2 Gather required documents.
3 Fill out the registration form.
4 Submit the form and documents.
5 Await confirmation and receive Tax Registration Number (TRN).
Corporate Tax Return Filing Services
Corporate tax return filing is a legal requirement for companies in the UAE. It is necessary to submit a report to the tax authority, detailing the company’s income and expenses. Failing to file tax returns can lead to penalties and fines. All businesses, regardless of income level, must file corporate tax returns. Free Zone entities are also required to file returns. Businesses need to file tax returns once per tax period, with no advance filings necessary. The deadline for filing is within 9 months from the end of the relevant tax period. Filing corporate tax returns offers benefits like efficient cost control, time management, and the ability to combine group tax amounts.
How to File Corporate Tax Returns
To facilitate the process of filing Corporate Tax Returns, the UAE offers the EmaraTax portal, which allows companies to file their tax returns online. Currently, the Federal Tax Authority (FTA) has implemented pre-registration of corporate tax for selected entities, and if your company falls under this category, you can register for corporate tax through the EmaraTax platform. If you haven’t created an account on EmaraTax yet, there is a step-by-step guide available to help you log in and complete the registration process. EmaraTax has undergone a reorganization of the user experience by merging with the UAE Central Bank and UAE PASS, aiming to provide a more streamlined and user-friendly platform for taxpayer.
1 Tax registration: Obtain a tax registration number from the Federal Tax Authority (FTA) by providing the necessary documents and information.
2 Record keeping: Maintain accurate and organized records of all financial transactions and relevant tax-related documents in compliance with the UAE tax laws.
3 Preparation of tax return: Calculate the company’s taxable income and prepare the tax return, taking into account eligible tax deductions and exemptions as per the UAE tax regulations.
4 Filing of tax return: Submit the completed tax return to the FTA through their online platform, e-Services, within the specified deadline.
5 Payment of tax: Settle the tax liability mentioned in the filed tax return by making the payment on or before the due date.
6 Tax audit: In certain cases, the FTA may conduct a tax audit, during which they may request additional information or documents to verify the accuracy and compliance of the filed tax return.
Corporate Tax Assessment Accounting Services
Corporate tax Assessment accounting services refer to the professional assistance provided to businesses in managing their tax-related accounting processes and ensuring compliance with corporate tax regulations. These services are typically offered by accounting firms or tax experts who specialize in corporate taxation.
Corporate tax accounting services encompass various activities, including:
1 Tax planning: Advising businesses on tax strategies and planning to minimize their tax liabilities and maximize available tax benefits.
2 Tax provision preparation: Assisting in the preparation of tax provisions, which involve estimating and recording a company’s current and deferred tax expenses or benefits.
3 Financial statement tax disclosures: Ensuring accurate and compliant reporting of tax-related information in financial statements, including disclosures of tax provisions, deferred taxes, and tax contingencies.
4 Tax compliance: Assisting with the preparation and filing of corporate tax returns, including calculating taxable income, applying tax rates, and claiming eligible deductions and credits.
5 Tax audit support: Providing support during tax audits conducted by tax authorities, including responding to inquiries, preparing documentation, and representing the company’s interests in discussions with tax officials.
6 Tax research and advice: Conducting research on complex tax issues, interpreting tax laws and regulations, and providing expert advice on tax matters specific to the business’s industry and operations.
7 Tax accounting software implementation: Assisting in the selection and implementation of tax accounting software to streamline tax processes, improve accuracy, and enhance reporting capabilities.
Corporate Tax Audit Services
Corporate Tax Audit in the UAE is a compulsory process that involves examining the tax liability, compliance, and financial records of eligible companies. An auditor reviews the company’s financial statements, tax returns, and documents to identify any discrepancies or errors.
The purpose of a corporate tax audit is to ensure that businesses are adhering to the corporate tax laws and regulations set by the Federal Tax Authority (FTA) in accordance with the guidelines provided. All companies are required to comply with the Corporate Tax Law and undergo these audit procedures.
The FTA conducts these audits to investigate whether taxable companies have fulfilled their obligations by settling all tax debts and ensuring timely collection and payment of taxes to the authorities. By conducting tax audits, the UAE government aims to enforce compliance with tax regulations and maintain the financial integrity of the tax system.
Documentation requirements for audit under the UAE Corporate Tax regime:
Under the UAE Corporate Tax regime, businesses must maintain financial and other records that explain the information included in their CT return and other documents submitted to the FTA. Additionally, individuals or entities eligible for tax exemption need to keep records to demonstrate their exempt status to the FTA. Now the question is whether it is required to have the financial statements or books of accounts audited under the UAE Corporate Tax regime?
The requirement for auditing the financial statements of a business by an accredited audit firm is determined by the relevant company laws and regulations. However, under the UAE Corporate Tax (CT) regime, a Free Zone Person is mandated to have audited financial statements if they wish to avail themselves of the 0% CT regime. Obtaining an audit for the books of accounts is strongly advised as it helps maintain accurate records and facilitates compliance with financial laws. Furthermore, it provides a clear understanding of the business’s financial position, profit or loss, and aids in meeting any
financial-related obligations. It is important to note that corporate tax audits in the UAE are not conducted randomly, but rather based on specific criteria. To avoid potential fines or penalties associated with a tax audit, businesses should ensure full compliance with all tax regulations and laws.
To meet the requirement of preparing audited financial statements for corporate tax purposes
in the UAE, individuals or entities must adhere to specific accounting standards:
1. If the revenue exceeds 50 million dirhams, the financial statements should be prepared following the International Financial Reporting Standards (IFRS).
2. If the revenue is less than 50 million dirhams, the financial statements should be prepared following the Financial Reporting Standards for Small and Medium-sized Enterprises (FRS for SMEs).
3. Qualifying Free Zone Persons in Dubai must comply with IFRS accounting standards when preparing their financial statements for the purpose of corporate tax in the UAE.
In conclusion, businesses in the UAE dealing with corporate tax complexities can rely on comprehensive corporate tax services. These services cover various areas such as tax assessment, registration, filing, accounting, audits, compliance, and expert advice. By partnering with corporate tax firms in Dubai, businesses can streamline their tax processes, ensure compliance with regulations, and improve their financial outcomes. Bestax is here to inform and assist you on corporate tax services in the UAE whenever you need it