Corporate Tax Advisory Dubai

‘When you find it hard to understand tax, we understand both of you!’

Tax Management is considered as the toughest responsibility of an organization as it demands intricate detailing and effective structuring. However, proper tax history helps prevent financial loss and reduces liability while enhancing the goodwill of the organization. BCL’s tax service suite provides a comprehensive approach to the overall tax structure of your organization.

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CORPORATE TAX ADVISORY SERVICE ATTACHMENT

Overview:
The United Arab Emirates, which houses significant corporate gateway of Dubai, will have one of the lowest corporate tax rates in the world. This proposal stems from the UAE’s intention to comply with international tax rules, reflecting similar efforts in other Gulf nations, while reducing regulatory burdens for UAE firms and protecting small businesses and start-ups.

Effective Date:
The UAE has decided to introduce Corporate Income Tax (CIT) on business profits in the country. It will be effective for financial years starting on or after June 2023.

Corporate Tax Rates in UAE :
The following are the proposed corporate tax rates:

  • A 0% tax rate applies to taxable income up to AED 375,000
  • A 9% tax rate applies to taxable income over AED 375,000
  • All multinational corporations subject to OECD Base Erosion and Profit-Sharing laws that belong within Pillar 2 of the BEPS 2.0 framework, i.e. combined worldwide revenues in excess of AED 3.15 billion (€750m) will be entitled to varying rates

Key Takeaways from UAE Corporate Law:

  1. Law not applicable to Individual’s Salary Income, Dividend Income, Capital gains, Rental Income (Passive Incomes)
  2. Free Zones that do not operate a business with the mainland will be getting the benefit of corporate tax incentives depending on the respective Free Zone regulations. An yearly CIT return is required to be submitted for all free zones
  3. Non-residents are subject to tax on UAE sourced income and taxable income form PE in the UAE
  4. Transfer pricing as per the OECD guidelines is applicable. Transactions with owners, directors, officers, etc. shall be as per Arms’ Length Price.
  5. TP benchmarking study to be conducted for determining ALP, mandated by every Company.
  6. Any foreign Corporate Tax imposed on UAE taxable income shall be allowed as a tax credit against its annual tax liability.
  7. Domestic, cross-border payments and specified transactions are subject 0% withholding tax (WHT).

Tax Structuring Dubai

Proper structuring of tax creates a regulated framework for all your tax payments and trading arrangements. It helps in reducing a range of direct and indirect tax your organization is required to pay. A perfect tax plan aligns with its corporate strategy or business framework, and includes identification of tax risks.

Corporate Tax in UAE
Corporate Tax compliance

Tax Filing Dubai

Filing proper tax returns on time with adherence to both national and international tax governance bodies (FTA, CSR, etc.) lets you off the penalties and legal proceedings. A business subject to CT will need to register with the FTA and obtain a Tax Registration Number within the prescribed period. The Tax return and the CT payment must be made within nine (9) months from the end of the relevant Tax Period.

Corporate Tax Filing Services:

  • Providing corporate tax registration services to all businesses.
  • Preparing and assisting in the filing of corporate tax returns.
  • Providing tax accounting services to streamline the accounts as per CT regulations.

Corporate Tax Impact Assessment Study

  • An initial assessment of the corporate tax impact as per the current operational structure of the company will be performed.
  • This will be followed by a system impact analysis which would include analysing the data that is required to be collated for corporate tax requirements and would include understanding whether the same is being captured by the existing systems in place.
Corporate Tax compliance services
CT registration services

Tax Advisory Services in Dubai

  • Assessing and advising on tax implications for the company
  • Assessing the eligibility of corporate tax and advising on corporate tax exemptions to the mainland, offshore as well as free zone businesses, if any
  • Assessing and analyzing the possibility of tax grouping of the companies to avail tax benefits
  • Advising on the restructuring of group companies including foreign subsidiaries/branches
  • Advising on the possibility of foreign tax credits, withholding tax and deduction of expenses and interest

At BCL, we understand the intricacies of the corporate tax landscape. Our expert team of advisors goes beyond simple compliance, offering a comprehensive suite of corporate tax advisory services designed to optimize your financial health and navigate today’s complex tax environment. Read More

Here’s how we empower your business:

  • Strategic Tax Planning:

    We delve deep into your operations, meticulously assessing the advantages and disadvantages of your activities. This in-depth analysis forms the foundation for developing a customized tax plan that minimizes your liabilities and maximizes your profitability.
  • Seamless Corporate Tax Registration Services:

    Navigate the registration process with ease. We handle every step, ensuring accurate and efficient registration, allowing you to operate seamlessly from day one.
  • Flawless Corporate Tax Filing Services:

    No more late nights or error-ridden forms. Our experienced professionals handle the entire filing process with meticulous attention to detail, maximizing deductions and minimizing potential errors.
  • Unwavering Corporate Tax Compliance Services:

    Stay ahead of the curve with our proactive approach. We closely monitor evolving regulations and keep you informed, ensuring your business remains fully compliant year-round.
But our expertise extends beyond just compliance:
  • Expert Documentation Guidance:

    With the latest amendments in tax law always at our fingertips, we advise on preparing accurate and complete documentation, minimizing the risk of audits and inaccuracies.
  • Rigorous Submission Scrutiny:

    Our meticulous reviewers carefully scrutinize every submission before it leaves the door, ensuring flawless paperwork and reducing the chances of errors and delays.

Invest in your future:

Choosing BCL’s corporate tax advisory services is more than just outsourcing compliance. It’s a strategic investment in your long-term success. We become your trusted partners, working alongside you to unlock tax efficiency, minimize risks, and optimize your financial performance.Contact us today for a free consultation and discover how our comprehensive corporate tax advisory services can propel your business towards a brighter financial future.

FAQs on Corporate Tax Compliance Services

Corporate Tax will be levied at a headline rate of 9% on Taxable Income exceeding AED 375,000. Taxable Income below this threshold will be subject to a 0% rate of Corporate Tax.

We provide highly professional boaUAE Corporate Tax applies to juridical persons incorporated in the UAE and to foreign juridical persons that are effectively managed and controlled in the UAE. A foreign juridical person that operates in the UAE through a Permanent Establishment or that has a taxable nexus in the UAE would also be subject to Corporate Tax.

Natural persons will be subject to Corporate Tax only if they are engaged in a Business or Business Activity in the UAE, either directly or through an Unincorporated Partnership or sole proprietorship. Cabinet Decision No. 49 of 2023 specifies further information on what would bring a natural person within the scope of UAE Corporate Tax.

Therefore it is very clear from the above that every business will be covered by corporate tax except for the specific exemption provided by the cabinet.okkeeping services. We ensure that proper chart of accounts are created before the start of accounting project and ensure that management gets the profit numbers at the tip of a button. Our USP is timely completion of bookkeeping which is as accepted internationally as we follow IFRS & GAAP.

Yes, Free Zones that are a qualifying free zone will get 0% corporate tax rate if the activities by a businessmen is categorized under qualifying business activity as per Ministerial Decision number 265 of 2023. It also covers few designated zone activities that may be taxed at 0% and a designated zone is same as Federal Decree-Law No. (8) of 2017 on Value Added Tax

When an individual invests in real estate within their financial means, it stays tax-free. Meaning investment income is not subject to corporate tax.

As per the Ministerial Decision No. 82/2023, all Taxable Persons deriving revenue exceeding AED50,000,000 (fifty million) during the relevant tax period, and all Qualifying Free Zone Person(s) (regardless of its Revenue) are required to prepare and maintain audited financial statements. In the case of all other Taxable Persons, the Federal Tax Authority can ask for financial statements from any Taxable Person.

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