The UAE has recently put into effect a federal corporate tax law that is relevant to the majority of businesses functioning within its borders. It's a pretty big deal because it basically means most businesses here will now be contributing to the country's growth, which is good for everyone. But, let's be honest, figuring out all the new rules and making sure you're doing everything right can be a bit of a headache. You've got to understand all the ins and outs, make sure you're compliant, and keep up with any changes, it can take up a lot of time and brainpower. That's where we, Reyson Badger, come into the picture. Think of us as your guides providing the necessary corporate tax services in the UAE. We're here to make it clear and straightforward, so you can get it sorted and get back to what you do best, running your business without all the tax stress.
Who Exactly Needs to Pay Corporate Tax?
According to Federal Decree-Law No. 47 of 2022, the UAE business tax applies to:
- Companies based in the UAE that are registered in the UAE, except for those that have been specifically excluded.
- Companies operating in free zones benefit from a tax rate of 0% on eligible income as long as they adhere to compliance requirements.
- Foreign entities refer to companies that make money in the UAE or operate their business within the country.
- People who engage in business activities, such as sole proprietors, freelancers, and others, earn taxable income from such activities.
How much is Corporate Tax in Dubai?
This is a common question among everyone when it comes to the corporate tax rates. We have just simplified it for you:
- There is no corporate tax on earnings up to AED 375,000.
- And a 9% fee applies to income that exceeds this threshold.
There are also some exceptions, like government bodies, companies fully owned by the government, and certain organizations that are set up for public benefit.
How We Can Help You with Corporate Tax Services in Dubai?
We provide various corporate tax services to assist businesses in effectively managing the UAE's tax laws. A short overview of the primary services is provided below:
UAE Corporate Tax Registration: Let Us Handle the Paperwork!
Every company that falls under UAE corporate tax regulations must be officially registered with the Federal Tax Authority (FTA). Our team verifies that your business complies with all registration criteria, such as determining the accurate tax classification and submitting required documents promptly. Check out our corporate tax registration services to ensure seamless registration with the FTA.
Filing Your UAE Corporate Tax Return? We've Got You Covered!
We help companies get ready and submit their yearly corporate tax documents to the FTA. Precise record-keeping is crucial to prevent fines and abide by the corporate tax laws in the UAE. Our specialists help in simplifying the procedure and guaranteeing that your return is submitted correctly and timely. You can check out our corporate tax return filing services to find all the necessary details for return filing.
Corporate Tax Audit in the UAE: Making Sure Everything Checks Out!
A tax audit helps to confirm the accuracy of your financial records and tax returns. We perform in-depth audits to verify that your business meets corporate tax regulations, finding any inconsistencies and offering suggestions to improve your tax strategies. Learn more about our corporate tax audit services and contact us now to get expert insights for improvement.
FTA Tax Assessment Coming Up? We'll Get You Ready!
Following the submission of their tax returns, businesses could be subject to a tax evaluation conducted by the FTA. Our team helps you prepare for this evaluation, ensuring all necessary paperwork is organized and answering any questions from the authorities. Check out our corporate tax assessment services to ensure you're fully prepared for the FTA evaluation.
Looking for Free Zone Perks? Let's Talk Free Zone Corporate Tax Benefits!
Companies based in UAE Free Zones could be eligible for specific tax benefits, such as being exempt from or paying lower rates of taxes. We assist in identifying qualifications, submitting applications for necessary benefits, and adhering to the Free Zone tax rules. Check out our Free Zone corporate tax services to maximize your benefits and ensure compliance.
Accurate Accounting for UAE Corporate Tax: That's What We Do!
Correct accounting is essential for determining taxable income and guaranteeing adherence to regulations. We help in keeping precise financial records, accounting for any exceptions or deductions, and creating financial statements according to corporate tax regulations. Learn more about our corporate tax accounting services and ensure regulatory adherence now.
Which Industries Do We Work With?
We help out businesses in lots of different sectors with their corporate tax needs, including:
- Ensuring compliance and tax benefits for manufacturing companies.
- Guiding real estate businesses through tax regulations.
- Simplifying tax submission for retail and trading businesses.
- Clarification of complex tax rules for banks and financial companies.
- Preserving free zone companies' tax benefits within the laws and regulations set.
- Tax advice for hotels, tourism, and entertainment businesses.
- Maximizing tax benefits for tech start-ups.
UAE corporate tax regulations
Significant modifications have been made to the corporate tax laws of the United Arab Emirates for companies doing business there. What you should know is as follows:
Corporate Tax Rates and Deadlines in Dubai
For taxable income over AED 375,000, the ordinary corporate tax rate is 9%; income under this threshold is free.
- If a natural person's yearly turnover exceeds AED 1 million, they are required to register for corporate tax. Those who surpass this threshold in 2024 have until March 31, 2025, to register for taxes.
- The registration dates for businesses that were incorporated prior to March 1, 2024, differ according to the date on which the commercial license was issued. For instance:
- Licensees for January–February: May 31, 2024;
- Licensees for March–April: June 30, 2024
- Businesses that have just been incorporated: within three months of incorporation
Challenges businesses face with the new corporate tax regulations
Compliance confusion: Many businesses struggle with unclear and inconsistent compliance regulations, particularly when it comes to corporate tax and VAT registrations.
Free zone businesses: The 0% tax status for eligible free zone enterprises, which must still register and submit annual tax returns, is ambiguous.
Foreign companies: Many businesses are still unaware that they must file corporation tax if they have a Permanent Establishment (PE) or Place of Effective Management (POEM) in the UAE.
Transfer pricing: If handled improperly, complex intercompany transactions involving multiple jurisdictions can result in significant tax increases and fines.
Penalties for Non-Compliance
- Failure to register for corporate tax within the stipulated deadline results in a penalty of AED 10,000.
- Late filing of corporate tax returns and failure to update tax records can lead to additional penalties.
To navigate these challenges, businesses should prioritize timely registration, maintain accurate records, and seek professional Corporate Tax Services in Dubai to ensure compliance with UAE corporate tax regulations.
Why Choose Reyson Badger for Corporate Tax Services in Dubai?
Just think of running an entire business but getting confused by the Dubai corporate tax regulations. That is where Reyson Badger come into play. We don’t just ensure compliance with the corporate tax law; rather, we make it clear and simple to understand. Our team listens closely to your needs, offers tailored solutions, and keeps you ahead of any changes. With Reyson Badger, corporate tax in Dubai is no longer a source of stress, so you can focus on what truly matters: building your business with confidence.