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Tax Consultants in UAE

TAX Consultants in UAE

Expert Guidance for Your Business

Since companies must be ready for the recently announced Corporate Tax, hiring the top tax Consultants in Dubai for tax consultancy services has become imperative. The UAE government has declared the implementation of corporation tax as of 1st June 2023. According to the law, starting with their first fiscal year beginning on or after June 1, 2023, taxable individuals and businesses will be liable to a 9% corporation tax. Companies in the mainland and Free zone can work with the best tax consultant in Dubai to determine the following:
  • Whether they are subject to Tax
  • Prepare the necessary financial records and documents
  • Learn how free zone companies will be taxed
  • Comprehend the applicable tax rates, and
  • How related party (group companies) and connected person transactions are treated, withholding Tax, and allowable expenses.
  • Learn about the exempt income, losses that can be carried forward

Purposes of Corporate Tax

In implementing the Corporate Tax, the UAE hopes to:
  • Maintain and expand its status as a major international center for trade and investment.
  • Reaffirm its commitment to upholding global standards for tax transparency and avoiding unfair tax practices.
  • Speed its growth and transformation to realize its strategic goals.

Scope of Corporate Tax in UAE

Corporate Tax in the UAE applies to:
  • The UAE’s commercial license holders include all companies and people undertaking business activities.
  • Businesses in free zones (The UAE Corporate Tax regime will continue to honor the Corporate Tax incentives now being provided to free zone enterprises that abide by all legal requirements and do not conduct operations established on the UAE’s mainland.)
  • Foreign companies and individuals may only do business in the UAE if they do it regularly or on an ongoing basis.
  • Organizations that manage, build, develop, broker, or work in the real estate industry.
  • Banking Operations.

Exemption Categories from Corporate Tax

All enterprises that earn more than the 3,75,000 AED profit level are subject to corporate Tax. The corporate Tax in UAE does not apply to all businesses or revenue, however. Following is a list of companies or income that is not subject to corporation tax:
  • Individuals won’t be charged business tax. Consequently, all personal income derived from work, real estate, stock investments, and other sources unconnected to a trade or company in the UAE will be free from corporation tax.
  • Not relevant to foreign investors who don’t operate businesses in the UAE.
  • Businesses operating in free zones are eligible for corporate tax advantages provided they meet all regulatory conditions.
  • Corporate Tax is not applied to capital gains or dividends from UAE enterprises’ qualified shareholdings.
  • On qualified intragroup mergers and restructurings, corporate Tax is not applicable.

Corporate Tax Rate

According to the Ministry of Finance, the Corporate Tax rates are:
  • Up to AED 375,000 in taxable income, there is no tax.
  • 9% for taxable income above AED 375,000.

How is the Corporate Tax Determined in the UAE?

In the UAE, Corporate Tax is determined at 9% of the net profit shown in the business’s financial accounts. Only when the taxable net profit surpasses 375,000 AED will the 9% corporation tax be applied. There is no tax on net profits up to 3,75,000 AED.
The corporation tax, for instance, will be 9,000 AED if the net profit is 4,75,000 AED (4,75,000-3,75,000 X 9/100).

FAQs about TAX in UAE:

Tax consultants play a vital role in helping businesses to prepare and file their corporate tax returns in the UAE. They have in-depth knowledge and understanding of the UAE’s tax laws and regulations, and they can provide expert advice on how to minimize tax liabilities while complying with the law. Tax consultants can assist businesses in identifying tax deductions, calculating taxable income, and filing their tax returns accurately and on time. They can also represent businesses in dealings with the tax authorities, including audits and investigations.

Choosing a reliable and experienced tax consultant in Dubai can be challenging, given the numerous options available. To select the best tax consultant for your business, you should consider factors such as their experience, qualifications, reputation, and fees. Look for a tax consultant who has extensive experience in the UAE’s tax system and a proven track record of providing high-quality services. Check their qualifications and certifications, and make sure they have a deep understanding of your business and industry. Read reviews and testimonials from past clients to get an idea of their reputation. Lastly, compare their fees with those of other tax consultants to ensure you are getting value for your money.

Tax consultants in the UAE offer a wide range of services, including tax planning, compliance, and representation. They can help businesses to minimize their tax liabilities by identifying tax deductions and credits, structuring transactions, and ensuring compliance with the tax laws and regulations. Tax consultants can also assist businesses in preparing and filing their tax returns accurately and on time, as well as representing them in dealings with the tax authorities, including audits and investigations. They can provide expert advice on complex tax issues and assist businesses in developing tax-efficient strategies that align with their overall business objectives.

There are numerous benefits of hiring a tax consultant in Dubai. Firstly, tax consultants can help businesses to minimize their tax liabilities and avoid costly penalties by ensuring compliance with the tax laws and regulations. They can also provide expert advice on tax planning, helping businesses to structure their transactions and operations in a tax-efficient manner. Tax consultants can save businesses time and money by handling their tax-related tasks, such as preparing and filing tax returns, allowing them to focus on their core business activities. They can also represent businesses in dealings with the tax authorities, providing peace of mind and reducing the stress associated with dealing with the tax authorities.

Youssry & Co is a leading tax consultant in Dubai, with over 30 years of experience in providing high-quality tax services to businesses in the UAE. They have a team of highly qualified and experienced tax consultants who have a deep understanding of the UAE’s tax laws and regulations. Youssry & Co offers a wide range of tax services, including tax planning, compliance, and representation, tailored to meet the specific needs of their clients. They are committed to providing transparent and cost-effective services, and their clients can expect a high level of professionalism and responsiveness. With a strong reputation and a proven track record of delivering exceptional results, Youssry & Co is an excellent choice for businesses looking for reliable and experienced tax consultancy services in Dubai.

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