Dubai Corporate Tax Consultants, UAE
The Ministry of Finance had recently announced the first of its kind introduction of a 9% federal corporate tax in the UAE to be levied on business profits with a threshold limit of AED 375,000. This tax comes into effect from the financial year beginning on the 1st of June 2023.
UAE Corporate Tax is now amongst the most competitive in the tax world with the lowest rate in the GCC. The UAE Corporate Tax is a Federal tax and will therefore apply across the entire Emirates and The Federal Tax Authority (FTA) will be directly responsible for the administration, collection, and enforcement of the UAE corporate tax.
At Financial Cube, our varied service and a sustainable paperless digital outlook in the world of finance along with 4+ years of experience ensures that all your Corporate tax needs are met with satisfaction ensuring timely registrations, filings, and returns.
What is Corporate Tax UAE?
Corporate Tax comes forward as a form of direct tax levied straight on the net income or the profits of both corporations and businesses alike.
The term Corporate Tax is oftentimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in several other jurisdictions but generally, as per tax legislation, they both mean the same.
Reasons for introducing Corporate Tax
A highly competitive corporate tax regiment adapted and based on international tax laws and best practices will warrant the UAE’s position as a commanding global hub for both business and investments equally, accelerating the UAE’s overall developmental schemes and ideations, and transforming them to achieve its strategic objectives.
Introducing a regulated Corporate Tax regime affirms the UAE’s sole commitment to meeting international standardizations for transparency and helps prevention of illegal tax theft and other related unlawful practices.
What you get with our Corporate Tax Consulting Service
The easiest way to legally comprehend and rightly follow all taxation policies is achieved by first selecting an expert tax consultant firm that’s reliable and experienced.
Our upgraded, modern and cutting edge tax consultations and financial services include all that your business needs-
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More about Corporate Tax Dubai, UAE
The UAE Corporate Tax will apply to:
Who is eligible for corporate tax in Dubai?
Eligibility criterions – UAE corporate tax will apply to all businesses, corporations and commercial activities alike, only except for the extraction of natural resources, which will still remain subject to the Emirate level corporate taxation .
How is corporate tax calculated in UAE?
The taxable income will be calculated on the net accounting profit of a business, post adjustments for certain articles as specified under the UAE corporate tax law.
The net accounting profit of a business is equal to the amount reported in its annual financial statements that’s prepared in accordance with the international accounting standards and protocols.
The Ministry of Finance state current corporate tax rates as:
- 0% for taxable income up to AED 375,000
- 9% for taxable income above AED 375,000
UAE Corporate Tax Rate : For free zones.
Free Zone (including financial free zones) businesses in UAE will be subject to Corporate Tax. However, its stated that the Corporate Tax regime will continue to recognize the corporate tax incentives currently offered to all free zone businesses that comply in with regulatory requirements and dont conduct business in mainland UAE
- All businesses registered in a free zone will be required to file a Corporate Tax Return.
What exemptions are there to the UAE corporate tax 2023 scheme?
Below are the list of exemptions from the UAE corporate tax. Which include
- Businesses engaged in the extraction of natural resources are exempted from corporate tax and remain subject to the current Emirate level corporate taxation.
- All dividends and capital gains earned by a UAE based business from its qualifying shareholdings will be exempt from corporate tax .
- All qualified intra-group transactions and reorganizations will be exempted from corporate tax, provided the regulatory conditions are met.