It can be a little tricky to choose the right business structure and corporate tax strategies to minimize corporate tax liability. Therefore, business tax advisors of Bestax may assist you in figuring out smart strategies to reduce your overall tax liabilities. Our professional tax consultants in UAE ensure compliance with corporate tax laws.
Businesses operating in UAE can now minimize their overall tax liabilities using improved company structures, and utilization of certain tax incentives. It is a priority of UAE businesses to reduce corporate tax with maximum deductions while complying with the corporate tax laws. They understand that failure to comply with corporate tax laws may lead to corporate tax fines and penalties in UAE.
Corporate Tax Laws UAE
Corporate Tax Law was introduced in UAE on 31 January 2022, followed by the implementation on or after the beginning of June 1, 2023. Since then there has been a huge shift in the taxation landscape where low corporate tax started practicing for corporate companies in UAE. With the commencement of corporate tax laws, UAE government also offers tax exemptions and tax incentives to businesses
Smart Strategies to Reduce Corporate Tax Liability in UAE
Here is a complete guide to reducing your corporate tax liability in UAE using smart ways.
Choose the Right Business Structure
Appropriately structuring your business helps in optimizing and minimizing tax liabilities. There are different options to modify your legal structure of business and utilize tax incentives such as Free Zone, Mainland, and Offshore entities. These jurisdictions come with their own tax implications, tax benefits and other restrictions. Therefore, it is necessary to choose the right business structure for your company to effectively take advantage of the tax incentives.
Free Zones Advantage
Free Zone business structure comes with simplified regulations, streamlined procedures, and other infrastructure. If you consider a free zone for a branch company that is a parent company, you may be subject to different tax incentives. Corporate tax laws allow transactions outside the UAE companies or Free Zone entities with 0% corporate tax on taxable income or profits.
With 100% foreign ownership and exemptions from personal and corporate taxation, Free Zone optimizes the taxation landscape.
Transfer Pricing Optimization
If you strategically organize and structure your transfer pricing policies for different businesses, you can reduce your corporate tax liability. Transfer price is the market price for goods and services transferred between the same business entities. Complying with transfer pricing regulations and effectively allocating resources, income, and expenses minimizes overall corporate tax liability.
Hire an FTA Approved Tax Consultants
Hiring an FTA Approved tax consultant like Bestax can help you reduce your corporate tax liability with corporate tax compliance. Our professional tax consultants are experienced enough to help you incorporate smart strategies in your business to reduce corporate tax liability in UAE.
Bestax Corporate Tax Liability Advisors
While operating multiple businesses in the United Arab Emirates, reducing corporate liability saves you from penalties. Therefore, it is necessary
