Overview
Corporate tax is a critical aspect of every business operating in the UAE. It refers to the tax levied on the profits earned by companies and corporations. Understanding and effectively managing corporate tax obligations is essential for compliance with local tax laws and maximizing tax efficiency.
We provide professional Corporate Tax services in the UAE. We understand that navigating the complexities of tax regulations can be challenging for businesses, and that's where our experienced team comes in. We aim to help you ensure compliance, optimize your tax liabilities, and maximize your tax strategy.
Brief History
In January 2022, the Ministry of Finance announced the introduction of corporate income tax in the UAE. On December 9, 2022, The Federal Decree Law No. 47 was issued, officially known as the "Taxation of Corporations and Businesses" or the "Corporate Tax Law." This law establishes the legislative framework for the implementation of a Federal Corporate Tax in the UAE. Starting from June 1, 2023, corporate tax is effective for financial years.
Scope
The Corporate Income tax applies to various entities and activities in the UAE, including:
1. All businesses and individuals conducting commercial activities under a commercial license in the UAE.
2. Free zone businesses, with exceptions for those that comply with regulatory requirements and do not conduct business in the UAE mainland.
3. Foreign entities and individuals conducting trade or business in the UAE on an ongoing or regular basis.
4. Banking operations.
5. Businesses engaged in real estate management, construction, development, agency, and brokerage activities.
Certain entities and activities are exempt from Corporate Tax in the UAE, such as:
1. Businesses engaged in the extraction of natural resources.
2. Dividends and capital gains earned by a UAE business from qualifying shareholdings.
3. Qualifying intra-group transactions and reorganizations (subject to meeting necessary
conditions).
4. Individuals earning a salary and other employment income.
5. Interest and other income earned by individuals from bank deposits or saving schemes.
6. Foreign investors' income from dividends, capital gains, interest, royalties, and other
investment returns.
7. Personal investment in real estate by individuals.
8. Dividends, capital gains, and other income earned by individuals from owning shares or
other securities.
What We Offer
At our company, we provide professional Corporate Tax services in the UAE. Our team of experienced professionals is dedicated to helping businesses navigate the complexities of tax regulations, ensuring compliance, and optimizing tax liabilities. We offer expert guidance on UAE tax regulations, strategic tax planning, and assistance in staying compliant with the law.
We specialize in offering comprehensive accounting and tax services to businesses in the UAE. Our expert team will guide you through the intricacies of the Corporate Tax system, ensuring compliance, and helping you optimize your tax strategy. With our assistance, you can effectively navigate the evolving tax landscape and stay ahead of the curve. Contact us today to learn more about our Corporate Tax services and how we can assist your business in managing its tax obligations efficiently.
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