Implementation of Corporate Tax in the UAE

UAE has introduced the lowest corporate tax rate within the GCC at a standard rate of 9% for businesses and is to be implemented from June 2023. BMS Auditing can guide you through the pre and post-implementation of Corporate Tax on the business ensuring complete tax compliance with the top Corporate tax Services in UAE. 

Corporate Tax was introduced by the Ministry of Finance in January 2022. Presently this new policy has not implemented the federal corporate tax scheme. At the Emirate level, the UAE would charge corporate tax only on oil and gas companies and branches of foreign banks. Moreover, the UAE gets various benefits from over 40 free zones, that have their own rules and regulations. It is important to note that no corporate tax is charged on employment-based income. 

Corporate Tax Implementation in UAE

Are you ready for UAE Corporate Tax 2023? BMS guides you through the pre and post-implementation of Corporate Tax, with its impact on the business for both the long and short-term, ensuring complete compliance with the Corporate tax. 

The Corporate Tax rate in the UAE is distributed as follows:

• 0% for a profit up to AED 375,000

• 9% for a profit above AED 375,000

Steps to implement Corporate Tax UAE

You need to understand the procedure before implementing Corporate Tax. Here are the steps:

• Considering the review of the accounting books and verifying the accuracy of the accounting policies to follow the Corporate Tax liabilities

• Determining the expenses and revenue items of the financial statements for Corporate Tax

• Examining the filing methods or reporting models means choosing a Tax group or a separate Corporate Tax return for every entry, with the  tax benefits from any reporting method

• Identifying the need to restructure the legal and capital structures such as System and technology infrastructure 

• Relevant systems and technology to address the requirements of the Corporate Tax policy

• Wide focus on Transfer pricing with various requirements in transfer pricing documentation, to be taken care of by the flourishing businesses 

How BMS Auditing UAE can help?

The corporate tax in the UAE will change the tax landscape of the UAE Significantly and international groups with businesses in the UAE are advised to evaluate the impact of such development. Our team of specialists at BMS Auditing can assist you in determining the opportunities and difficulties that the implementation of a corporate tax will bring with some of the excellent Corporate Tax services in UAE.

   A. Corporate Tax Advisory services:

• • • Assessing the impact of Corporate Tax on business and applicability thereto

• • • Analysis of the impact of Corporate Tax for Free Zones (including Financial Free Zone) entities

• • • Advise on whether any exemption can be availed

• • • Consultancy on Group Corporate Tax and how to minimize potential risks

• • • Advise on potential Corporate Tax risk areas and challenges faced by taxpayers

• • • Assistance in restructuring the business model from the Corporate Tax perspective

• • • Guidance on availing Foreign Tax Credits paid by taxpayers in other countries

• • • Advise on withholding taxes.
      
      

   B. Corporate Tax Compliance Services:

• • • Assist in registration for Corporate Tax before the relevant authorities

• • • Analysis of taxable income and payable Corporate Tax in UAE.

• • • Preparation and filing of tax returns.
      
      

   C. Corporate Tax Representation services:

• • • Preparing the written submissions to be furnished before tax authorities

• • • assisting in the submission of the response to the notices from the tax authorities 

• • • Filing of written appeal against the adverse tax adjustments made or penalty imposed by the tax authorities

• • • Representing taxpayers in front of tax authorities and appealing on their behalf.

The expert team at BMS Auditing UAE helps you understand Corporate Tax in detail; its short and long-term impacts on the business as per the nature of the industry. The professional team of BMS is certified in public accountancy with high exposure to VAT, auditing, accounting, and excise tax. Corporate Tax experts help your business comply with the laws and regulations of UAE Corporate Tax through impact analysis consultation services. 

Feel free to approach us for any assistance related to UAE Corporate Tax.