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All You Need to Know about Corporate Tax Deadlines and Compliance in the UAE for 2025 Header
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All You Need to Know about Corporate Tax Deadlines and Compliance in the UAE for 2025

The corporate tax system in the UAE has established clear guidelines for individuals and businesses engaged in commercial activities in the country in 2025. According to the Federal Tax Authority (FTA), these entities are required to register for tax. Based on the type of the entity, the authorities have announced specific deadlines.

Businesses and individual enterprises need to comply with these deadlines to avoid penalties. Failing to register a business on time can invite a fine of AED 10,000. Organizations operating in the city, therefore, must seek professional advisor solutions from established corporate tax consultants in Dubai to ensure compliance.

Tax Registration Deadlines in the UAE

Check out the tax registration deadlines for individuals operating businesses and companies.

Natural Persons

If you’re an individual or natural person operating in business or providing professional services in Dubai, you must register for corporate tax if the revenue exceeds AED 1 million in a financial year.

Revenue Threshold Met

Tax Registration Deadline

Revenue exceeded AED 1 million in 2024

31st March, 2025

Revenue exceeds AED 1 million in subsequent years

31st March of the following year

In case an individual fails to register the business before the due date, an administrative fine of AED 10,000 will apply.

UAE-Registered Businesses

If you’re a business holding a commercial license in the UAE that was issued before 1st March 2024, remember the following dates.

License IssuedRegistration Deadline
January – FebruaryMay 31, 2024
March – AprilJune 30, 2024
MayJuly 31, 2024
JuneAugust 31, 2024
JulySeptember 30, 2024
August – SeptemberOctober 31, 2024
October – NovemberNovember 30, 2024
DecemberDecember 31, 2024

If you did not hold a commercial license as of 1st March 2024, you must complete your registration within the first three months commencing from this date.

Businesses Incorporated After March 1, 2024

Non-Resident Businesses

Foreign businesses that have a Permanent Establishment (PE) or a Place of Effective Management (POEM) in the UAE must comply with the following deadlines:

Entity TypeRegistration Deadline
PE created before March 1, 2024Within 9 months of establishment
PE created after March 1, 2024Within 6 months of establishment
Foreign company with POEM in UAEWithin 3 months after the end of its financial year

Key Issues Faced by Businesses While Ensuring Compliance

Although the registration framework has been structured, many businesses are encountering difficulties in compliance due to misunderstandings or regulatory complexities. Some of these common challenges include:

  • Corporate tax vs. VAT registration: Some businesses mistakenly assume that VAT registration automatically covers corporate tax registration. However, the FTA has clarified that both require separate registration.
  • Tax treatment in free zones: Free zone businesses may be eligible for 0% corporate tax under Article 18 of the tax law. However, they must still register and file tax returns annually.
  • Foreign businesses: Many non-resident businesses with POEM in the UAE are unaware that they must register within three months after their financial year ends, even without a commercial license in the UAE.
  • Requirements for updates: Organizations must report any changes to trade licenses, business activities, or ownership to the FTA within 20 days. Many businesses struggle to determine whether they must update even minor modifications.

Penalties for Late Registration and Non-Compliance

In case a business fails to register the organization within the stipulated deadlines, it faces significant penalties. The FTA has introduced the following fines.
Violation Penalty
Not registering for corporate tax within the deadline. AED 10,000 (US$2,722)
Not updating tax records within 20 days Variable (case-dependent)
Filing corporate tax late Determined by FTA (based on the delay period)
A grace period until 31st March 2025 has been granted for businesses to update their records and rectify errors without incurring penalties.

Professional Compliance Advisory Services

The new corporate tax framework in the UAE presents businesses with significant challenges. Organizations in the UAE must adhere to strict tax registration and reporting requirements.

 Proactive businesses must seek compliance advisory services from professional consultants like the IMC Group. With accurate record-keeping and proactive measures for compliance from these tax experts, organizations can ensure smooth operations amidst the evolving tax regime in the UAE.

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Free Zone Firms Gain Greater Access to Mainland Economy in Dubai Under New Rules

The Executive Council of Dubai introduced Decision No. 11 of 2025 on 3rd March, taking a significant step towards modernizing the economic framework of the emirate. As per the new regulations, companies licensed in the free zones in Dubai can legally expand their operations into the mainland.

This is a landmark decision that will further position Dubai as a lucrative business hub at a time when the country has eased FDI restrictions. Now, global investors and businesses can thrive in the evolving marketplace in Dubai. Businesses are seeking professional support from reputed advisors regarding company formation in Mainland to capitalize on the growing opportunities.

However, it is important to note that financial entities licensed in the Dubai International Financial Centre (DIFC) remain outside the scope of this framework. These organizations continue to operate under their own distinct regulations.

Three Key Pathways to Onshore Operations

Under the new rules, free zone companies can now access three key avenues to operate in mainland Dubai.
  • Physical onshore branch: This approach involves the establishment of a legally recognized branch in mainland Dubai with a physical presence.
  • Free Zone-based onshore operations: Businesses can operate on the mainland while remaining physically based in the free zone. This eliminates the requirement for an onshore office.
  • Temporary onshore permit: Organizations may also acquire a temporary onshore permit to operate on the mainland. This permit remains valid for six months, during which the company can conduct specific onshore activities.

However, it’s essential for organizations to obtain prior approvals from relevant authorities. This includes licensing regulators and different governing bodies specific to sectors.

Besides, businesses must also maintain separate records for accounting for their onshore activities. They must comply with the federal corporate tax system in the UAE to adhere to financial regulations.

Flexible Workforce and Cost Implications

One of the key benefits for free zone companies as a result of this decision is their ability to use their existing workforce for onshore operations. Employees who are registered under free zone jurisdictions can now work on mainland projects while enjoying the benefits of being employed in a free zone.

 This is a notable advantage for businesses navigating Emiratisation policies and workforce quotas. These companies need not hire additional employees based in the mainland.

From a financial perspective, the new framework introduces a structured fee system.

  • Establishing a branch in the free zone with operating rights in the mainland will cost businesses AED 10,000 per year.
  • Businesses can obtain a six-month temporary permit for short-term business activities in the mainland for AED 5,000.

Implementing the New Norms for Accessing the Mainland

In collaboration with free zone authorities, the Dubai Department of Economy and Tourism (DET), will publish a list of approved economic activities within the next six months. This list will outline the types of businesses that will be allowed to operate onshore under the new framework.

Free zone businesses that currently operate onshore without a proper license need to regularize their status by March 3, 2026. The DET is entitled to extend this grace period if necessary. Thus, businesses will have ample time to comply with the updated regulations.

Professional Consultancy Services to Establish a Company in Mainland Dubai

As businesses await the new regulations to be implemented, they expect a phased rollout from the government. The success of this framework will ultimately depend on how efficiently regulatory bodies streamline application processes.

Organizations must work closely with professional consultants like the IMC Group to streamline the process of establishing their company on the mainland. These experts comprehensively guide businesses on how free Zone companies can operate in the Dubai mainland. Companies looking to capitalize on the strategic decision of Dubai must seek expert support as they expand their operations onshore.

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How is Dubai Redefining Financial Hubs as a Global Wealth Magnet?

As the global wealth environment undergoes a profound transformation, it’s time for HNWIs and family offices to rethink their financial strategies. Traditional financial hubs are gradually losing their grip with evolving regulations.

Tax efficiency and legal protection are two of the core priorities for wealth creators today. Along with these, they prioritize global mobility.

Dubai stands at the forefront of this transformation, as the city emerged as the international powerhouse to manage wealth. Some of the top single family offices in Dubai are turning to professional wealth consultants for strategic advisory solutions.

What makes Dubai the Financial hub of the future?

Dubai has rapidly positioned itself as a top destination for HNWIs and family offices. The progressive policies in the UAE and a favorable regulatory environment makes it a favorable destination that attracts global wealth.

Its strategic infrastructure, strong digital economy, and favorable business ecosystem has propelled the city into the spotlight as a financial hub built for the future. Dubai has an attractive residency framework.

The ease of doing business and its world-class financial institutions are some of the other reasons that draw elite investors. Those looking for a stable and strategic base for investing consider Dubai as the ideal investment hub.

Why HNWIs Are Choosing Dubai

In 2024, the UAE witnessed the migration of around 6,700 millionaires to the country. These figures speak a ton about the growing appeal of Dubai among the wealthy class around the world.

 Here’s why Dubai has become a preferred hub for HNWIs.

1. Favorable Tax Framework

The tax structure in Dubai is highly competitive. With no personal income tax, the jurisdiction appears highly tax-efficient for preserving wealth.

2. Political and Economic Stability

In Dubai, the business environment is secure and well-regulated. This instils confidence among global investors to choose the city as a safe place to operate.

3. Global Connectivity

Dubai is positioned as a major international hub. Its demography ensures a seamless access to the international market its world-class air and sea infrastructure.

4. Cosmopolitan Appeal

Dubai has a diverse population. This inclusive environment makes it an attractive location for global professionals and entrepreneurs.

5. Advanced Infrastructure

The world-class healthcare and academic infrastructure in Dubai are some of the other reasons why HNWIs are relocating to this city. It also offers plenty of opportunities for luxury shopping and entertainment.

6. Business-Friendly Regulations

With its specialized free zones, Dubai actively supports investment with incentives. Entrepreneurs and investors enjoy tailored business solutions in this city.

A Tax Regime Built for Global Investors

The UAE Ministry of Finance states that Dubai imposes a 9% corporate tax on taxable income that exceeds AED 375,000. Below this threshold, no tax is levied. Naturally, this business regime appeals to investors, which attracts HNWIs looking to optimize wealth management strategies.

A Secure Ecosystem for Family Offices - DIFC

The Dubai International Financial Centre (DIFC) establishes a clear regulatory environment for global investors. The norms have been established on the basis of the English common law. This framework fosters trust and transparency for international investors.

The DIFC Family Wealth Centre offers comprehensive support to help HNWIs preserve wealth. These include:

  • Personalized advisory services
  • Tailored structuring solutions
  • Global networking opportunities
  • Succession planning and governance

This structured regulatory environment ensures that family offices can operate with clarity and confidence. With professional advisory services, setting up a family office in DIFC takes little time.

Expanding Tax Treaty Network

The extensive Double Taxation Agreement (DTA) network in Dubai reinforces its global financial strategy. The Ministry of Finance in the UAE confirmed that the country has signed more than 140 DTAs. This is going to facilitate lower withholding taxes on cross-border wealth transfers. Key agreements with different countries, including India, make Dubai attractive for global investors.

Professional Advisory Services for Expanding Family Offices in Dubai

For HNWIs looking to set up a family office in Dubai, the process has been significantly streamlined in recent years. Moreover, a step-by-step guidance and documentation process has been mentioned in the official website of the DIFC.

HNWIs have been consulting experienced professionals like the IMC Group for advisory solutions regarding the expansion of family offices in Dubai. With experts on the side, the process of establishing a family office gets streamlined as high net worth individuals explore lucrative avenues to grow their wealth.

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The Booming M&A Market in the MENA Region in 2024

The MENA region witnessed a remarkable surge in M&A activities in 2024, recording a total of 701 deals valued at $92.3 billion. This marks a 3% increase in deal volume and a 7% rise in total deal value compared to 2023. A number of significant reforms in capital markets fuelled this growth, along with strategic changes in policies. The focus on attracting foreign investments has also paid off, driving these deals.

Strategic Reforms Leading to the Growth of M&A Activities

The GCC region led the way with 580 deals valued at $90 billion. It’s worth mentioning that cross-border deals played a vital role, contributing to 52% of the total volume and 74% of the deal value.

Experts reveal that businesses in the region are actively looking for growth opportunities. Particularly, they are exploring sectors like insurance, asset management, real estate, power, utilities, and technology sectors. Successful organizations are also seeking M&A advisory services from experienced consultants to enhance regional collaborations in the Asian and European markets.

Major Players and Key Deals

M&A activities in the MENA region were primarily dominated by major players like Sovereign wealth funds (SWFs). This included the Abu Dhabi Investment Authority (ADIA), Mubadala Investment, and Saudi Arabia’s Public Investment Fund (PIF). The strategic investments of these firms continue to reshape the economic landscape of the region. Leading companies are looking for comprehensive due diligence services from reputed experts before entering these transactions.

The $12.4 billion acquisition of Truist Insurance by Clayton Dubilier & Rice, Stone Point Capital, and Mubadala Investment marked the largest deal of 2024. Some of the other notable transactions included:

    • Saudi Aramco’s $8.9 billion acquisition of a 5% stake in Rabigh Refining and Petrochemical Company.
    • The $8.3 billion purchase of a 60% stake in Zhuhai Wanda Commercial Management Group by PAG, Mubadala, and ADIA.

Interestingly, outbound M&A deals accounted for 61% of the total deal value. Across 199 transactions, the value of outbound deals reached $56.6 billion. On the other hand, inbound deals recorded an 18% surge in volume and 42% in value, reaching $11.4 billion. Naturally, these players have been seeking comprehensive due diligence services from top consultants to ensure successful deals.

Leading Investment Destinations - UAE and KSA

IN 2024, the UAE emerged as the top investment hub. It recorded as many as 96 inbound deals, with a total valuation of $7.6 billion. The country accounts for 67% of the total inbound deal value. This growth was led by the technology sector, particularly domains like AI, digital transformation, and cybersecurity. One of the significant deals in this space was the $1.5 billion acquisition of Abu Dhabi’s Group 42 by Microsoft.

Saudi Arabia followed the suit, contributing significantly to the regional M&A transactions. Together, the UAE and KSA recorded 318 deals valued at $29.6 billion. In 2024, these two nations have been ranked among the MENA bidders. This reinforces their positions as dominant players in the M&A space.

Outside MENA, the US was the largest acquirer. The country completed 48 transactions worth $4.6 billion. Meanwhile, MENA investors favored the U.S., with 41 deals totalling $19.9 billion.

Domestic M&A on the Rise

Domestic mergers and acquisitions accounted for 48% of the total deal volume. With 339 transactions, the total value of deals stand at $24.4 billion. The technology and consumer products sectors contributed 35% of these deals.

In terms of disclosed deal value, oil and gas remained the top sector. It accounted for 37% of the total domestic deal value, recording $9.0 billion. Saudi Aramco’s $8.9 billion stake acquisition in Rabigh Refining and Petrochemical Company was the key driver of this growth.

The Future of M&A in MENA

Experts have observed that technology continues to be the most attractive sector for investors. It constitutes 23% of total inbound and domestic M&A deals. The MENA region is undergoing a transformation in productivity, thanks to the rise of AI and digital transformation. This is significantly shaping capital allocation for deals.

Looking ahead, 2025 promises strong momentum for M&A activities in the MENA region. With professional M&A advisory services from reputed consultants like the IMC Group, businesses are looking to strike major deals. Fresh opportunities await both domestic and international investors in the MENA region in 2025.

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Dubai Attracts Ultra Wealthy Investors and Expanding Family Offices Header Image
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Dubai Attracts Ultra-Wealthy Investors and Expanding Family Offices

Dubai is rapidly strengthening its position as a prime destination for ultra-high-net-worth individuals and family offices. In recent years, the city has witnessed a combination of strategic policies and economic initiatives. Thanks to the growing financial sector, the city is now a top choice for wealth management and investment.

The Growth of the Financial Market in Dubai

According to the Dubai International Financial Centre (DIFC), the number of hedge funds within the DIFC has recorded a 50% growth, reaching a total of 75 firms. Some of the high-profile players have set up their operations in Dubai. The growth of family offices in the Middle East can be largely attributed to the business-friendly regulations and growing investor base in Dubai.

Beyond hedge funds, the broader financial ecosystem in this city is thriving. Currently, the DIFC hosts over 410 wealth and asset management firms, with 6,920 registered entities. This marks an impressive 25% Y-o-Y increment. This boom has also translated into a 10% rise in employment within the DIFC, pushing the total workforce to over 46,000.

Family Offices Managing Over $1 Trillion

The appeal of Dubai to the wealthy class extends well beyond institutional finance. This is evident from the increasing popularity of single-family offices in Dubai. Family offices, which manage substantial private wealth, currently oversee assets exceeding $1 trillion. The DIFC alone accounts for more than $700 billion in AUM, reflecting a remarkable 58% growth over the past year.

The tax advantages that wealthy investors enjoy in Dubai, along with factors like global connectivity and a stable financial environment, make it a preferred hub for this class. The strong regulatory framework in the city has also been instrumental in attracting prominent family offices looking for long-term wealth preservation and strategic investment opportunities.

Rise of Exclusive Peer Networks in Dubai

While the number of UHNWIs calling Dubai home continues to grow, so does the need for high-level networking and knowledge-sharing platforms. One of the global networks of peers was founded in 1999 and recently launched a chapter in Dubai. Thus, ultra-high net-worth individuals find a private space to discuss investment strategies, wealth preservation, and philanthropy. The Dubai chapter is expected to become a key hub for local and international investors.

Why are UHNWIs Moving to Dubai?

The financial success of Dubai exists solely due to its tax advantages and financial regulations. Its demographic position makes it a crucial link between Europe, Asia, and Africa. This provides businesses with strategic access to global markets.

The political stability in the emirate, advanced infrastructure, and focus on technical innovation further enhance its reputation as a financial hub.

Following the suit of Dubai, Abu Dhabi is also emerging as a crucial financial hub. The Abu Dhabi Global Market (ADGM) has witnessed a 31% jump in company registrations in just the first half of 2024. This surge is driven by major financial institutions that have been expanding their presence in the Middle East.

A Promising Future for Wealth Management

The promising growth trajectory of Dubai as a leading hub for wealth management makes it a focal point for wealth management firms. As its financial ecosystem expands, the surge in the number of ultra-wealthy residents is likely to continue. A successful single-family office in Dubai must consult experienced and qualified professionals to benefit from their expertise. IMC Group has a team of experienced experts who can provide qualified advisory services to family offices.

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SMEs in UAE Embrace Outsourced Accounting for Superior Agility

The UAE is quickly catching up with global trends, with nearly 37% of small and medium-sized enterprises in the country outsourcing their accounting functions. As international businesses thrive in this commercial hub of the Middle East, this trend reflects a strategic decision to improve cost management and maintain compliance with evolving regulations.

A majority of these firms are turning to established professionals offering outsourcing accounting services to streamline their business finance management. This enables companies to access advanced technologies and benefit from professional insights without incurring the overhead cost of a full-time in-house team. With this approach, firms can focus more on core business activities and strategic initiatives for growth.

Cost Efficiency and Flexibility

The clear financial benefit that organizations experience on outsourcing accounting services is one of the key drivers behind this shift. When businesses maintain an internal accounting department, they need to make significant investments in salaries, ongoing training, and infrastructure.

However, outsourcing presents firms with a more flexible and cost-effective alternative. Working with a trusted partner, businesses need to pay only for the services they require. This helps them significantly curtail costs. Eventually, SMEs can reallocate their resources towards growth and innovation.

Growing companies are capitalizing on the benefits of outsourcing accounting services, with professional advisors handling complex financial regulations. Naturally, business owners can devote more time to expanding market share and exploring new opportunities.

Thriving in the Dynamic Regulatory Environment in the UAE

The regulatory framework in the UAE continues to evolve. For SMEs, it’s a challenge to stay abreast with the latest financial standards. Outsourcing service providers are well-equipped to monitor these changes and help their clients remain compliant. This proactive approach minimizes the risk of penalties and helps companies avoid costly disruptions.

SMEs gain access to a team that constantly remains updated on regulatory developments. This level of expertise is crucial for businesses that need to adapt to new tax laws. Proper adherence to reporting standards ensure that they can keep their operations running smoothly.

Access to Specialized Expertise

Beyond cost savings, outsourced accounting services provide access to expertise that can significantly benefit an SME. Specialized professionals bring a wealth of experience to SMEs, providing strategic financial insights besides managing routine accounting tasks. Their industry knowledge and best practices, along with advanced accounting software, helps in streamlining financial operations and enhances the decision-making process of emerging companies.

Thus, SMEs can consult experts on various matters like tax planning, audit preparation, and financial forecasting. This professional insight allows businesses to optimize their financial strategies.

Improving Data Accuracy and Financial Reporting

With the adoption of outsourced accounting services, SMEs have also benefitted in terms of data accuracy and the quality of financial reporting. Leading outsourced service providers use sophisticated digital tools and platforms that ensure precise and timely record-keeping. This technological edge enhances transparency and supports better decision-making with accurate predictions.

For SMEs, data accuracy is critical, particularly in an environment where reliable financial information helps in managing risks.

Outsourced Accounting Services from Top Professionals

As small and medium businesses operating in the UAE brace up to strengthen their focus and core competencies, they are partnering external experts to delegate accounting tasks. Top companies providing outsourced accounting services, like the IMC Group, can help SMEs build stronger business models. While the professionals take care of their accounting department, businesses can invest more on product development and expanding their market in the Middle East.

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What Businesses Should Know About DIFC Company Formation

Risk management continues to be one of the prime challenges for businesses looking to raise funds. In this regard, the DIFC Prescribed Company (PC) formation is worth exploring, as it presents businesses with a risk-free environment to raise funds and invest. This is different from traditional corporate structures as liabilities remain separate from shareholders and investors in a DIFC PC.

Currently, a significant number of firms are seeking professional advisory services from reputed professionals for DIFC company formation in the UAE. Businesses looking for an attractive option for investing without unnecessary exposure find an attractive option in DIFC. The Dubai International Financial Centre (DIFC) provides a strong financial framework, which helps businesses achieve capital growth while maintaining compliance.

How do Businesses Raise Capital with a DIFC Prescribed Company?

It is fairly easy to set up a DIFC PC for businesses. During the incorporation process, businesses need to submit the necessary documents and obtain regulatory approvals. Next, they need to structure the company to align with DIFC regulations. One of the prime advantages of this type of company formation is the separation between investment funds and operational liabilities. Thus, investors experience a risk-free environment. Therefore, they can attract funding without the traditional risks associated with direct investment in a standard company.

Moreover, businesses registered as DIFC PCs enjoy higher credibility. The financial ecosystem of the DIFC is well-regulated. Operating in such an environment gives a competitive edge to companies. Investors also experience mental peace since their funds are managed within a secure and internationally recognized system.

Since companies under a DIFC PC can maintain structured financing within a low-cost regulatory environment, this framework is ideal for startups, established enterprises, and investment firms looking to raise funds.

Key Benefits of a DIFC PC

Now, let’s understand the key benefits of a DIFC PC framework for company formation.

Regulatory Flexibility

The regulatory flexibility under a DIFC PC is one of the most compelling reasons to choose this framework for forming a company. Unlike standard DIFC entities, a Prescribed Company need not conduct business within the DIFC. Neither is it required to have a physical office in the jurisdiction.

Naturally, this reduces operational costs significantly, while businesses continue to enjoy the advantages of being a part of a globally recognized financial centre. Commercial entities also benefit from streamlined compliance requirements. Since they need to face simplified obligations for financial reporting, they experience lower administrative burdens.

Strong Asset Protection

Another key benefit of a DIFC PC is the strong asset protection it provides. Whether a company is managing investments, intellectual property, or structured finance operations, the DIFC PC framework secures its assets from external liabilities. Businesses involved in passive investment models find it particularly beneficial.

Crowdfunding and structured financing

DIFC PCs are highly beneficial for crowdfunding and structured financing. Crowdfunding-focused PCs can operate without strict shareholder limits and audit requirements. However, they need to maintain an annual turnover of under $5 million. Likewise, structured finance DIFC PCs benefit from audit exemptions. This makes them an efficient and cost-effective instrument for financial transactions.

Professional Assistance for Setting Up a DIFC PC

A DIFC PC appeals to businesses as a highly cost-effective option. Companies need to pay a one-time application fee of just $100. The annual license fee for a DIFC PC is $1,000. This low-cost structure enables firms to access the financial ecosystem of the DIFC without significant expenses.

Organizations looking to establish a DIFC Prescribed Company must partner with one of the established advisory service providers like the IMC Group. These professionals hold extensive expertise in legal structuring, compliance, and regulatory frameworks. Check out the benefits of outsourcing DIFC compliance and work with professionals to maximize the benefits of this corporate structure. Businesses looking to attract new investors or streamline their financial operations should consider seeking professional support at all the stages.

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FTA Imposes Strict Penalties for Late Corporate Tax Payments

The Federal Tax Authority (FTA) of the UAE has issued a firm reminder to businesses about the importance of timely corporate tax payments. In a recent announcement, the tax authority stated that companies failing to meet their tax obligations on time will face a hefty 14% annual penalty. This amount will be calculated on a monthly basis on the unpaid amount.

The FTA further clarified that the penalty will start accumulating the day after a company misses the payment deadline. The amount will compound each month, which can lead to significant consequences in case of non-compliance. Businesses are proactively seeking corporate tax consulting services in UAE from reputed professionals to ensure compliance and prevent penalties.

How the FTA Corporate Tax Penalty Adds Up Over Time

For businesses, late corporate tax payments may seem to be a minor issue. However, considering the monthly compounding nature of the penalty, the financial impact can be substantial. The tax authorities in the UAE have designed this penalty structure to ensure compliance. With this penalty now in place, businesses are likely to be more responsible with their corporate tax payments.

The unpaid tax amount will be immediately subjected to penalty once a deadline is missed. With each passing month, the unpaid amount of tax continues to accumulate penalties. This will exert significant financial strain on businesses, prompting them to make their corporate tax payments on time. Particularly, for companies operating with tight cash flow, these penalties can lead to significant additional costs. Therefore, making timely corporate tax payments is now a priority.

Why Tax Compliance Is Essential for Businesses

While businesses feel that paying corporate tax on time saves them from penalties, ensuring tax compliance also brings in other advantages.

Financial Stability

When businesses pay taxes on time, they can save funds as they need not shell out unnecessary penalties. This preserves their cash flow and ensures that funds are allocated towards business operations and growth.

Strengthening Reputation

Every business strives to maintain its credibility and reputation. Adhering to tax regulations demonstrates their commitment to authenticity. Therefore, businesses maintaining tax compliance gain the trust of investors, clients, and stakeholders, which positions the company as a reliable entity.

Long-Term Sustainability

Businesses avoiding penalties and maintaining a healthy relationship with tax authorities can enjoy long-term sustainability. These firms remain secure from sudden financial shocks that might have disrupted their growth plans.

Time Frame For UAE FTA Corporate Tax Registration

According to the Federal Decree-Law No. 47 of 2022 on Corporate Tax, commercial entities need to submit their payments for corporate tax within nine months after the end of the respective period. In case any business misses this deadline, automatic penalties will be triggered. So, every company needs to manage their tax obligations proactively. The new corporate tax system of the UAE has been extensively adopted. By December 2024, over 450,000 companies have already registered with this system. Some of the key aspects of the tax framework for businesses include:
  • 9% corporate tax rate for businesses earning over AED 375,000 annually
  • 0% tax rate for businesses earning below the AED 375,000 threshold

Businesses must strictly adhere to the time frame for UAE FTA corporate tax registration to remain compliant.

Professional Tax Advisory Solutions for Businesses

With the FTA enforcing a 14% penalty on unpaid taxes, businesses in the UAE must prioritize compliance to ensure their operational efficiency and financial stability. Delaying corporate tax payments can lead to significant economic consequences. The IMC Group continues to be a trusted advisory service provider for corporate tax-related issues. Their experienced team guides businesses through the compliance process, ensuring that they remain ahead of deadlines and avoid penalties.

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Golden Visa Program of the UAE Can Benefit Foreign Head
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How the Golden Visa Program of the UAE Can Benefit Foreign Investors

The UAE has been proactive in attracting foreign investors with its favorable visa programs. Particularly, the Golden Visa program of the country has transformed the nation into a premier destination for foreign investors. This visa program has been designed to offer long-term residency and financial security to skilled professionals and their families in the UAE. This program brings a plethora of benefits for the visa holders, including a strong business ecosystem, a tax-free environment, and lucrative real estate opportunities.

Originally, Golden Visa in Dubai was launched to attract entrepreneurs, investors, and highly skilled professionals. The goal was to make the UAE a prime destination for global talent and investment. Since its introduction, the Golden Visa has significantly evolved. Particularly, Dubai stands out as a leading hub for investors with its booming real estate market. Property value in this city has sharply risen, with 91 square meters of prime residential space costing around $1 million. This price is more than double, considering real estate values in cities like New York or Sydney. The strong rental returns, investor-friendly policies, and economic stability of the city further enhance its appeal.

What does the Golden Visa Program offer?

The Golden Visa program offers residency options to the holders in the country, and it can be renewed every five or ten years. One can obtain this visa without the need for local sponsorship, which ensures long-term security for investors, skilled professionals, and business owners. A broad range of professionals and businesses are eligible for this visa, including entrepreneurs, property investors, researchers, scientists, and specialists in different fields. With this visa program, the UAE demonstrates its commitment to innovation and economic diversification.

 Real estate investors in the UAE must invest at least AED 2 million (around $545,000) to qualify for a five-year renewable visa in the country. This program has significantly influenced the real-estate ownership pattern in the country. Currently, a greater number of investors are buying properties rather than renting them, which fuels the growth of the luxury and mid-tier property markets in the country.

Competitive advantage of the UAE with its Golden Visa Program

The Golden Visa program of the UAE gives professionals and entrepreneurs an edge, compared to similar residency programs in Malta and Portugal. For visa holders, key benefits include its tax-free income policies, stable currency, and a pro-business regulatory environment.

Also, Dubai consistently ranks among the top cities across the globe due to its ease of doing business. This makes it an attractive option for high-net-worth individuals and corporations.

Among the prime locations for real estate investment in the UAE are Downtown Dubai, Dubai Marina, and Palm Jumeirah. With high rental returns and a luxury lifestyle, the demand for properties in these regions continues to surge.

A report reveals that 43% of global HNWIs with over $15 million in personal wealth are looking to invest in properties in Dubai for personal use.

Investment Opportunities In The UAE Beyond Real Estate

While investing in real estate is one of the ways to obtain the Golden Visa, investors are also exploring other opportunities in sectors like innovation, healthcare, and technology. The strategic location and world-class infrastructure of Dubai make it a global hub for businesses. Naturally, entrepreneurs looking for access to the international market have Dubai on their radar.

 The Golden Visa program is properly aligned with the Dubai Economic Agenda ‘D33’. It reinforces economic growth, which reflects the long-term vision for economic growth and global leadership in the region. In 2024, the UAE welcomed around 6,700 new millionaires, further strengthening its status as a prime destination for high-net-worth families and investors.

Professional Support to Obtain Golden Visa in the UAE

As the UAE continues to shape itself for global investment with stability and business-friendly policies, professionals and investors are looking to work with professionals like the IMC Group for comprehensive support. The experts can help in identifying key investment opportunities in Dubai, besides providing assistance with obtaining the Golden visa. The Golden Visa program not only offers long-term residency but also serves as a strategic gateway to financial growth. The visa program has established the UAE as a strategic hub for investors looking for security and prosperity in the thriving economy.

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Key Insights from the MoF Update on UAE Family Foundations
  • NEWSLETTER,U.A.E

Key Insights from the MoF Update on UAE Family Foundations

The UAE has introduced a significant update regarding family foundations that is likely to reshape the way high-net-worth families manage their wealth and maintain their legacy.

The Ministerial Decision No. 261 of 2024, which has been in place from 1st June 2023, brings a host of transformative benefits to wealthy families. This decision simplifies governance and enhances tax relief, ensuring that such families experience greater flexibility. Interestingly, family foundations have emerged as an essential tool for wealth management in the UAE. Families looking to safeguard their assets and streamline succession planning must reach out to an established single family office in UAE to safeguard their assets and streamline succession planning.

What is a Family Foundation?

As per the UAE Corporate Tax Law, a Family Foundation is a legal structure like a trust or foundation that protects and manages the wealth of a family or an individual. These entities serve specific purposes, which include:

  • Holding, investing, and managing assets and funds.
  • Distribute resources for the benefit of charitable causes or individual beneficiaries.
Importantly, activities carried out directly by the beneficiaries, founder, or related individuals of the foundation don’t count as ‘business activity’ or ‘business’ for corporate tax purposes. Thus, family foundations can preserve wealth without facing any business-oriented tax obligations.

What are the key highlights of the MoF Update?

Let’s take a look at the key aspects of the MoF update.

1. Family Foundations Get Tax Transparent Status

The introduction of tax-transparent status for family foundations has been one of the outstanding features of the update. This provision simplifies tax treatment, the income of the foundation will be treated as if it belongs directly to its council members or founder. Families can eliminate the need to evaluate each individual asset holder. This simplified structure ensures clarity in tax reporting.

For families managing complex estates, this change reduces administrative burdens. Thus, they can focus on preserving wealth and expanding. Thanks to the tax-transparent status, compliance processes get streamlined, which provides an efficient and predictable framework for managing family assets in the UAE.

2. Income Treatment of Individuals

Historically, family foundations were eligible for corporate tax exemptions only on specific types of income. These include returns from investments or rental properties.

Now, under the new framework, income generated by fully owned entities of the foundations, including single family office in UAE, is treated as if it was earned directly by the council members or founders. This policy significantly enhances the flexibility of managing wealth, which allows families to enjoy tax advantages traditionally available to individuals.

3. Improved Succession Planning

For family foundations, succession planning is one of the most crucial aspects. The new provisions make this process even more efficient. Family foundations can focus on their long-term goal of preserving wealth as they qualify for tax transparency and exceptions. Consolidating assets within a foundation ensures a smoother transfer of wealth across generations. It also minimizes administrative complexities often associated with estate management and inheritance.

4. Integration with the Tax Framework in the UAE

The updated regulations in the UAE align with its broader corporate tax structure, treating them like unincorporated partnerships. This facilitates seamless navigation of the tax regime in the country, ensuring that founders benefit from favorable tax treatments while maintaining operational flexibility across jurisdictions.

Family foundations now enjoy a more stable and predictable regulatory environment, whether they operate within the DIFC, ADGM, or RAK ICC.

5. Asset Consolidation Incentives

The latest update on MoF provides a compelling reason to consolidate family assets under a foundation. Now, families can position a family foundation at the top of the ownership hierarchy to achieve tax neutrality across various underlying assets. This approach simplifies wealth management and strengthens the protection of assets. It also reduces the exposure to corporate tax. Now, families can manage different portfolios, including securities, real estate, and private investments.

Optimize Wealth Management with Professional Consultancy Solutions

As new opportunities open up for family foundations in the UAE, wealthy families would be looking for expert guidance to proceed further. Check out this comprehensive guide to setup single family office in UAE. The IMC Group continues to be one of the leading advisory service providers, helping family offices and foundations navigate the latest legal frameworks to achieve their goals. The professionals offer tailored solutions to help family foundations adapt to the MoF update on UAE Family Foundations. With expert advice, these organizations can capitalize on the fresh opportunities and protect the wealth for future generations.

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