A new phase has begun with a greater emphasis on global integration and tax compliance. With the proposed corporate tax, The UAE’s Ministry of Finance has announced the introduction of a 9% federal corporate tax on business profits with a threshold of AED 375,000. This is to be effective from the financial year beginning 1st June 2023. Corporate Tax UAE is a form of direct tax levied on the net income or profit of corporations and other businesses. Going forward, licensees operating in UAE will be required to assess the impact of the upcoming regulations on their business and undertake the necessary compliance.
To know international corporate tax rates, visit the Wikipedia page, where also mentioned by us the corporate tax rates applicable in the United Arab Emirates.
In view of this, Corporate Tax Services in Dubai and across the UAE play a highly demanding role in the taxation service industry, maintaining compliance with various regulations being a complicated enterprise. After this announcement, every business requires the assistance of a consultancy with an expert tax team. EMT Accounting and Taxation Services offers Corporate Tax Consultants to help companies navigate this new path. For the last few years, we have been providing the business community in the UAE with comprehensive tax consulting services that meet their customers’ demands. We can assist you in managing your company’s tax structure more effectively and offer the optimal advisory services for the proposed corporate income tax. Our dedicated tax team will provide the necessary support and address your questions regarding corporate tax in the UAE. Our Corporate Tax Consultants in UAE offer a range of services to meet your needs.
In addition to our extensive experience, our Corporate Tax Consultants in Dubai are well-versed in helping businesses stay compliant with local tax laws and regulations. As a leading Taxation company in UAE, we understand the complexities involved in corporate taxation and offer tailored solutions to help you optimize your tax strategies. With our Corporate Tax Advisory in Dubai, we ensure that your business receives the best guidance and support, allowing you to focus on growth while we handle the intricacies of corporate tax compliance. We also provide Corporate Tax Registration Service in Dubai to ensure that your business is fully registered and compliant with the latest tax regulations, streamlining the process for you.
This tax rate is amongst the most competitive in the world and the lowest in the GCC – where Bahrain now becomes the only country without a corporate tax regime.
We shall keep a close watch on the details which are awaited. For now, it has been made clear that the UAE corporate tax regime shall follow best global practices and we believe it is likely to be implemented with ease in compliances.
UAE corporate tax will be payable on the profits of UAE businesses as reported in their financial statements prepared in accordance with internationally accepted accounting standards. There will be minimal exceptions and adjustments. This clearly means that financial statements must now be audited without exception on time.
The extraction of natural resources, likely to remain subject to emirate-level corporate taxation, is to be the only business activity with tax exception, the announcement says. Exemptions, subject to some conditions, will also apply to entities operating in Free Zones.