Taxation Advisory Services UAE
Tax always comes into play in almost every facet of the business. One of the biggest challenges - and greatest areas of opportunity - for taxpayers is how to effectively
manage local and foreign taxes to align with overall business objectives and operations.
To avoid surprises related to tax, tax planning is best developed in advance.
We have in-depth expertise in Taxation, both Indirect (VAT) and Direct Taxation (Income Tax). We are adept at offering advice for tax planning at the company and individual
levels.
Value Added Tax (VAT)
VAT collection was introduced across the UAE on 1 January 2018 at a standard rate of 5%. A business must register for VAT if its taxable supplies and imports exceed the
mandatory registration threshold of AED 375,000.
Furthermore, a business may choose to register for VAT voluntarily if their supplies and imports are less than the mandatory registration threshold but exceed the
voluntary registration threshold of AED 187,500.
VAT Compliance in UAE is governed by:
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Federal Law No. 7 of 2017 on Tax Procedures,
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Federal Law No. 8 of 2017 on Value Added Tax, and
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UAE VAT Executive Regulations.
What are the VAT-related responsibilities of businesses?
All businesses in the UAE will need to record their financial transactions and ensure that their financial records are accurate.
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Must charge VAT on taxable goods or services they supply.
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File VAT returns at regular intervals.
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May reclaim any VAT they've paid on business-related goods or services.
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Keep a range of business records (for min 5 years), allowing the government to check/audit.
How can we Help?
We have extensive experience in VAT in UAE, GCC and India. We can assist our clients in the following:
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First time VAT registrations with FTA.
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Ensure that their IT systems are VAT compliant.
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Monthly / Quarterly filing of VAT returns.
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Help clients with VAT compliant accounting and documentation.
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Advice on the VAT treatment of specific business transactions.
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Filing and claim of VAT refunds.
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De-registration with FTA in case of closure of business.
Corporate Income Tax (CT)
As part of recent international tax developments, the UAE has introduced a competitive Corporate Tax (CT) regime to become a leading global hub for business and
investment. The 9% CT rate, which is one of the lowest CT rates globally, was most likely selected to maintain the UAE's attractiveness for foreign investment.
According to the information published by the UAE Ministry of Finance (MoF), the CT will apply to financial years starting on or after 1 June 2023.
How is the CT period determined?
The UAE CT period for an entity is determined based on its financial year-end. As such, entities with a:
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31 May financial year-end should file their first UAE CT return for the financial year ending 31 May 2024.
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30 September financial year-end should file their first UAE CT return for the financial year ending 30 September 2024.
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31 December financial year-end should file their first UAE CT return for the financial year-ending 31 December 2024.
The due date for filing CT returns has not been specified yet.
Currently, it is unclear when the UAE CT law and further guidance will be published. Given that the UAE CT regime will be effective from 1 June 2023, the UAE MoF has expressed an intention to
provide UAE businesses with ample time to prepare.
MoF - UAE have recently published (in April 2022), a Public Consultation Document on UAE Corporate Tax. By consulting with the business community and other stakeholders in the
industry s part of the implementation process, the UAE Government has demonstrated its commitment to implement a Corporate tax regime compatible with the UAE's friendly business
environment.
As a specialist firm in tax Advisory, we have provided several valuable inputs on the Public consultation document.
We advise our clients in their CT planning ahead of the implementation as per the above timelines.
