Providing top-notch corporate tax services in UAE , Bestax ensures your business complies with the CT regime. Our business tax advisory professional ensures that you have sufficient information about corporate tax laws and procedures. We understand that failure to comply with tax laws may lead to corporate tax fines and penalties in UAE. Therefore, our expert tax consultants make sure that your business operations are compliant with Corporate Tax laws and regulations. Here is a complete guide on how to register for UAE corporate tax.
Overview of Corporate Tax Law UAE
The Ministry of Finance UAE introduced Corporate Tax in 2022 followed by the implementation of its laws by 2023. This announcement has not only shifted the United Arab Emirates tax landscape but also benefits businesses with the lowest corporate income tax rate.
Businesses in Dubai will be subject to Corporate Tax in UAE from the beginning of their first financial year which starts on or after 1st June 2023. It may be applicable after 1st June 2023 or 1st January 2024, depending upon the financial year of the respective companies.
The UAE Corporate Tax Regime has now in practice, mitigating the tax compliance burden on many businesses working under the jurisdiction of Dubai.
Why Corporate Tax Registration Is Important?
The Ministry of Finance has introduced this new UAE Tax reform to benefit businesses that pay corporate tax. Registering your business under a corporate tax regime helps you minimize overall taxes. Incorporating tax structure into your corporate companies in UAE reduces your after-tax revenue and ultimately minimizes shareholder returns.
Other benefits may include ensuring compliance with global corporate tax standards and uprooting any malicious activity timely.
UAE Corporate Tax Rate
As per the Ministry of Finance, the Corporate Tax rates are as follows:
- Taxable persons must pay a standard 9% Corporate Tax on their taxable income i.e. profits above AED 375,000.
- For profits falling below the threshold of AED 375,000, the taxable person will pay 0% Corporate Tax on their taxable income i.e. profits.
Who Needs to Register For Corporate Tax?
Every taxable person including Free Zones business owners has to register under the Corporate Tax regime and obtain a corporate tax registration number. Under UAE tax laws, all businesses are subject to corporate tax registration. Bestax helps businesses complete their corporate registration process and ensure compliance with CT laws.
Who is Exempted from Corporate Tax Registration Services UAE?
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.
