Corporate Tax Advisory in UAE
In a significant development in the UAE, the Ministry of Finance announced the introduction of the Corporate Tax on business profits in the UAE effective from financial years starting on or after June 2023.
Given the announcement of the new tax regime, we believe that corporate tax implementation needs to be well planned and strategically thought out so that businesses can continue to function smoothly during and post-implementation.
With the adoption of corporate tax in the UAE, the tax and compliance requirements of the majority of UAE entities are anticipated to significantly change.
This may require an accurate identification of corporate tax implications and alterations to corporate structure, operating models, reporting systems, tax operations, finance operations, legal agreements and transfer pricing policies. IMC Group’s corporate tax advisory in Dubai and UAE can prove to be beneficial in transitioning to the new corporate tax regime.
The Importance of Corporate Tax Services in the UAE
Benefits of using Corporate Tax Services in the UAE
Precise computation and submission of taxes
Reduced tax burden via strategic tax planning
Adherence to tax statutes and guidelines
Prevention of penalties for non-adherence
Gain access to expert support on tax-related issues
Corporate Tax Rates in the UAE
- No corporate income tax is levied on taxable income up to AED 375,000
- A corporate income tax rate of 9% applies to taxable income above AED 375,000
- Large enterprises meeting specific criteria under Pillar Two of the OECD Base Erosion and Profit-Sharing Project, such as having a global revenue of over 750 million, are subject to a distinct tax rate
Role of a Corporate Tax Consultant in UAE
Discovering the premier corporate tax advisor in the UAE is essential for businesses aiming to adeptly tactic through the intricate tax environment.
Tax consultants in the UAE offer a spectrum of services to companies, encompassing corporate tax preparedness, registration and submission, and guaranteeing adherence to statutory tax protocols. Moreover, they provide specialized tax counsel, corporate financial management, and strategic corporate tax planning, among other services. The foremost tax consultants possess extensive knowledge of the prevailing tax legislation in the UAE, thus ensuring that taxable entities remain by UAE corporate tax regulations.
Furthermore, corporate tax services play a crucial role in assisting businesses in making well-informed decisions by providing insights into the tax implications of various business transactions. As IMC is a Trusted corporate tax consultant in Dubai, it can aid companies in preparing for corporate tax obligations through comprehensive tax assessment and advisory services.
With the impending implementation of UAE Corporate Tax in June of this year, businesses throughout the UAE are gearing up to fortify their strategies and objectives while ensuring compliance with tax regulations. Each company is obligated to prepare and submit a single UAE corporate tax return to the FTA along with relevant supporting schedules for every tax period.
What is Corporate Tax? Why does the UAE introduce CT? When will the UAE CT regime become effective?
What We Do?
Are you looking for the best way to manage your corporate tax obligations in Dubai, UAE? Employing Corporate Tax Consultants in Dubai could be highly beneficial. A certified corporate tax consultant in Dubai can provide expert advice and ensure adherence to tax regulations, enhancing your financial standing in the industry. With numerous choices available, finding the right consultant can be daunting.
IMC Group’s corporate tax advisory is here to assist businesses in UAE to meet their corporate tax compliance. We are committed to assisting you in determining your corporation tax liability and guiding you in implementing the corporate tax system that is specifically tailored to your entity’s needs.
As one of the top firms offering corporate tax advisory in Dubai, we guarantee utmost accuracy and timely compliance with corporate taxation requirements. Our designated corporate tax team is always there to provide the required assistance and solve all your queries regarding corporate tax matters.
Our Corporate Tax consultants will work with you to implement effective corporate tax strategies.
Our Phase-wise Approach to Planning for Corporate Tax
Phase 1 - Impact Assessment
(Pre issuance of the CT Legislation)
ACTION PLANS:
- Undertake preliminary impact assessment
- Review the nature of expenses for accessing corporate tax relevance
- Understand the business and organisation structure
- Review specific transactions like related party / intra group transactions, deductibles, transfer pricing, etc.
- Understand existing information technology systems
- Understand the potential impact on the cash flow
- Develop a project plan
Phase 2 - Detailed Assessment & Planning
(Post issuance of CT legislation)
ACTION PLANS:
- Conduct a detailed assessment of your business activities based on corporate tax and transfer pricing regulations
- Help you understand the corporate tax law in relation to your specific industry and prepare the financials as necessary
- Identify potential risks and exposures
- Review the impact on profitability with respect to related party transactions (as per transfer pricing guidelines)
- Advise on the ideal and cost effective reporting strategy i.e. whether to opt for a separate entity or group tax filing
- Advise on the most beneficial structure from the corporate tax perspective
- Carry out need based modification to the impact assessment
Phase 3 - Implementation Support
ACTION PLANS:
- Assist in implementing corporate tax and transfer pricing policies
- Advise on structural changes to incorporate tax function
- Evaluate and advise on readiness covering systems, governance and technical aspects
- Identify gaps in your system and address them
- Offer knowledge sharing and conduct training for your in-house tax and finance teams
- Modification to chart of accounts
- Assist with corporate tax registration with the FTA for both individual and group
- Implement tax reduction measures i.e. depreciation, director’s compensation, interest, etc.
- Conduct periodic monitoring and reporting of the restructuring progress
Phase 4 - Post-implementation Support
ACTION PLANS:
- Provide post-implementation support
- Provide ongoing tax advisory
- Prepare adjusted financial statements for corporate tax purposes
- Review audited / unaudited financial statements as per GAAP
- Advise on taxable adjustments to be carried out in regard to the corporate tax legislation
- Offer tax planning advice
- Guide you on important tax matters such as tax calculations and preparing and submitting accurate information in compliance with the law
- Assist in preparing and filing corporate tax returns with necessary supporting documents
- Support in communicating and dealing with the tax office
- Support in preparing appeals
Our Corporate Tax Services in UAE
Transfer Pricing
Corporate Tax Advisory
Corporate Tax Compliance
Corporate Tax Returns Filing
Corporate Tax Impact Assessment
Corporate Tax Advisory in UAE - FAQs
The Corporate Tax rates in the UAE are as follows:
- 0% for taxable income up to AED 375,000
- 9% for taxable income exceeding AED 375,000
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