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, UAE Corporate tax consultancy and assistance services play a highly demanding role in taxation service industries, maintaining compliance with various regulations 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 advisory services for companies starting this new path. For the last few years, we have been offering the business community in the UAE comprehensive tax consulting services that completely meet their customers’ demands. We can help you manage your company’s tax structure more effectively and provide the optimum advisory services for the proposed corporate income tax. Our dedicated tax team will offer the necessary support and solve your questions regarding corporate tax in UAE. Our Corporate Tax Services Include.
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.