Corporate Tax & VAT Services Across the UAE

Corporate Tax & VAT in the UAE

The UAE is a great place for businesses. However, it is important to understand its tax laws. This includes corporate tax and Value Added Tax (VAT). Knowing these laws helps ensure compliance.

The UAE has low taxes, but some industries may still have to pay corporate tax. These taxes are designed for different industries to ensure fair taxation and promote economic growth across the country.

They are tailored to meet the specific needs of each industry. This helps to create a level playing field for businesses. Overall, these taxes contribute to steady economic development nationwide.

Meanwhile, VAT, introduced in 2018 at 5%, applies to most goods and services consumed domestically. Compliance is essential to avoid penalties, making professional assistance invaluable.

TAG offers expert guidance on tax obligations, optimizing strategies, and ensuring compliance, enabling businesses to thrive in the UAE's competitive landscape.

Coprorate Tax
VAT

Corporate Tax

In June 2023, the UAE implemented a 9% corporate tax on certain companies. This marked a significant change to the country's tax system. This change ended the country's long-standing tax-free status for companies. This shows a shift towards better financial stability.

It also indicates a more diverse economy. Corporate tax rates vary based on factors like industry, revenue, and activities. It's important to remember that not all companies are subject to the same tax rate.

The introduction of corporate tax in the UAE underscores the government's commitment to modernize its tax system and align with international best practices. The UAE plans to tax some companies. This will help increase revenue. The money will be used to improve public services and infrastructure. It will also strengthen the economy against global challenges.

The corporate tax indicates that the country is becoming a global business center. This shows its growth and ability to compete internationally.

Businesses in the UAE must carefully follow new corporate tax rules to stay compliant and reduce their tax costs. Professional assistance from firms like TAG can be invaluable in understanding the implications of corporate tax, optimizing tax strategies, and ensuring regulatory compliance. Businesses can adjust to UAE's changing tax environment with expert help and succeed in this dynamic business hub.

Corporate Tax Registration

We assist businesses in registering for corporate tax, ensuring compliance with the new UAE legislation. Our team simplifies the registration process, allowing you to focus on your core operations.

Corporate Tax Consultant

We offer corporate tax consultancy services, helping businesses minimize their tax burden and comply with regulations. Our consultants provide expert advice to navigate the complexities of corporate tax. We tailor our services to meet the specific needs of your business.

VAT Consultancy Services

Value Added Tax (VAT) is a tax on goods and services based on their value at each stage of production and distribution. In the UAE, VAT was introduced in 2018 at a standard rate of 5%. VAT is charged on most goods and services in the country. Businesses must register for VAT if their yearly sales go over a certain limit.

TAG offers expert assistance to businesses navigating the complexities of VAT in the UAE. Our services include VAT registration, compliance, and reporting. We help businesses understand their VAT obligations, optimize their tax strategies, and ensure compliance with local regulations. With TAG's help, businesses can handle their VAT matters well, reducing risks and seizing growth opportunities for success.

VAT Return Services

Efficient VAT return management is essential for maintaining compliance and optimizing financial processes. We help your business claim all VAT refunds and submit accurate returns on time. We streamline the process to minimize errors and reduce the administrative burden on your team.

VAT Registration Assistance

Registering for VAT can be complex, with various legal requirements and documentation needed. Our team helps with registering your business in UAE, making sure it follows tax laws correctly. We handle all necessary paperwork and communication with the tax authorities.

VAT Experts and Consultation

Understanding VAT regulations and their implications for your business can be challenging. Our VAT experts provide personalized advice to help your business understand and follow VAT rules, reducing your tax costs. We provide strategic insights to optimize your VAT processes and reduce potential liabilities. Our consultants tailor their advice to your specific needs.

VAT Compliance and Reporting

Staying compliant with VAT regulations is crucial to avoid penalties and ensure smooth business operations. We offer VAT compliance services, including accurate reporting and timely filing of VAT returns. Our team ensures that all transactions are correctly documented and that your business adheres to the latest regulatory updates.

FAQ

What is corporate tax, and has it been imposed in the UAE?

Corporate tax is a tax levied on the profits of companies. Starting in June 2023, the UAE now has a 9% corporate tax for some companies that qualify. This is a big change from before when there was no tax.

What requirement need to be met by a freezone company to benefit from a 0% corp tax?

A Freezone company should meet the following conditions to benefit from the 0% CT rate:

Maintain adequate substance in the UAE
Derives qualifying income (as to be specified in a cabinet decision yet to be made)
Has not elected to be subject to 9% CT
Complies with transfer pricing provisions (as applicable).

Qualifying Free Zone Persons that meet conditions will have to pay tax at the following rates:

0% on qualifying income
9% on taxable income that does not meet the qualifying income definition.

What is Value Added Tax (VAT), and how does it work in the UAE?

VAT is a tax on goods and services based on their value at each stage of production and distribution. In the UAE, VAT was introduced in 2018 at a standard rate of 5%. It applies to most goods and services consumed domestically.

Who is required to register for VAT in the UAE?

Businesses with an annual turnover exceeding the mandatory threshold are required to register for VAT in the UAE. Once registered, businesses must charge VAT on their sales, file VAT returns, and remit VAT to the government.

How can TAG assist businesses with corporate tax and VAT in the UAE?

TAG offers expert guidance and support to businesses navigating corporate tax and VAT in the UAE. We provide tax planning, registration, and reporting services. Our goal is to help businesses enhance their tax strategies. We also ensure they comply with local regulations, especially with the recent changes in corporate taxes.