Corporate Tax Advisory

Corporate Tax Advisory In Dubai

BookBreeze provides expert corporate tax services in the UAE, ensuring businesses comply with the newly introduced 9% federal corporate tax on profits exceeding AED 375,000. Effective from June 1, 2023, corporate tax applies to all eligible businesses, making timely tax assessment, registration, and return filing essential for compliance and financial stability.

Our experienced consultants assist in corporate tax registration, tax planning, and filing, ensuring adherence to UAE regulations and internationally accepted accounting standards. With BookBreeze, businesses can streamline their tax obligations, optimize financial reporting, and minimize tax risks.

Regulatory Compliance:

Ensuring businesses meet UAE tax laws and regulations.

Accurate Tax Assessment:

Proper evaluation of taxable income and liabilities.

Efficient Tax Planning:

Optimizing tax structures to minimize financial burdens.

Timely Filing:

Avoiding penalties through prompt tax return submissions.

Regulatory compliance ensures businesses adhere to UAE tax laws, avoiding legal issues and penalties. Accurate tax assessment helps evaluate taxable income and liabilities correctly, preventing miscalculations. Efficient tax planning optimizes tax structures, reducing financial burdens while maximizing savings. Timely filing ensures tax returns are submitted on schedule, avoiding fines. Financial transparency enhances audit readiness and ensures accurate financial reporting, fostering trust with stakeholders and regulatory bodies.

Scope of Corporate Tax in UAE

Corporate tax in the UAE applies to both resident and non-resident taxable persons, as defined in the Corporate Tax Decree Law. Resident persons include companies established in the UAE, foreign businesses managed and controlled within the UAE, and individuals conducting business activities. Non-resident persons are subject to tax if they earn UAE-sourced income, have a permanent establishment, or meet nexus conditions. Understanding these categories is essential for ensuring compliance and effective tax planning.

Resident Persons:

UAE Companies:

Entities registered and operating within the UAE.

Foreign Businesses:

Managed and controlled in the UAE.

Unincorporated Partnerships:

Electing to be treated as taxable persons.

Non-Resident Persons:

UAE-Sourced Income

Any income generated within the UAE.

Permanent Establishment:

A fixed place of business or ongoing business activity in the UAE.

Nexus in UAE:

Economic ties to the UAE that trigger tax obligations.

Resident businesses must comply with UAE corporate tax regulations, ensuring proper financial reporting and tax filings. Non-resident entities with a significant presence in the UAE are also liable for taxation. Understanding corporate tax obligations is essential for maintaining compliance, avoiding penalties, and optimizing tax strategies for business sustainability and growth.

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Exemption For Corporate Tax in UAE

Certain entities in the UAE are exempt from corporate tax under specific conditions outlined in the Corporate Tax Decree Law. These exemptions ensure that essential sectors and organizations contributing to public welfare or economic stability remain tax-free.

Entities Exempt from Corporate Tax:

Government Entities – Subject to conditions in Article 5.
Government-Controlled Entities – Exempt under Article 6.
Non-Extraction Natural Resource Businesses – Subject to Article 8.
Natural Resource Extraction Businesses – Covered under Article 7.
Public Benefit Entities – Must meet criteria under Article 9.
Investment Funds – Exempt under Article 10.
Pension & Social Security Funds – Both public and private funds that meet the required conditions.

Corporate Tax Base and Rate:

The UAE has implemented a federal corporate tax structure to ensure fair taxation while supporting small businesses. The tax rates are structured as follows:

Small Business Relief

Small Business Relief is designed to ease the corporate tax burden on startups and small enterprises, reducing compliance costs and supporting business growth. As per Article 21, a resident business can elect to be treated as having no taxable income if the following conditions are met:

The relief applies only to tax periods ending on or before December 31, 2026.
The business must have annual revenue not exceeding AED 3,000,000 in both the relevant and prior tax periods.
The business must not be a part of a multinational group that is required to file a country-by-country report or a Qualified Free Zone Person.

Transfer Pricing

The UAE Corporate Tax Law aligns with OECD Guidelines by implementing a Transfer Pricing (TP) regime based on the arm’s length principle. This ensures that transactions between related parties and connected persons reflect fair market value, preventing profit shifting and tax avoidance.

TP Methodologies

The law permits the use of internationally recognized methods to determine an arm’s length price, including:

Comparable Uncontrolled Price Method (CUP) – Compares prices of similar transactions between independent entities.
Transactional Net Margin Method (TNMM) – Assesses profitability based on net margins.
Resale Price Method (RPM) – Sets prices based on the resale margin of a distributor.
Cost-Plus Method (CPM) – Adds a fair profit margin to costs incurred.
Transactional Profit Split Method (TPSM) – Allocates profits based on relative contributions.

Corporate Tax on Free Zones

Free Zone businesses in UAE will be subject to corporate tax. However, it has been clarified that the corporate tax regime will continue to honor the corporate tax incentive currently being offered to free zone businesses that comply with all regulatory requirements and that do not conduct businesses in mainland UAE.
Businesses established in a free zone will be required to register and file a corporate Tax Return.

Why Do You Need Corporate Tax Services in UAE

Corporate tax services in UAE are necessary for businesses to guarantee legal compliance gain from tax reductions, reduce risks, expedite procedures, and obtain professional advice for strategic tax planning. In addition to resolving tax and reporting issues, hiring reputable tax advisors, audit companies, and accounting firms in Dubai can have a major positive impact on the corporate tax impact assessment’s overall financial performance.

The following are some benefits of using corporate tax services in UAE:

With the help of corporate tax services in UAE, companies can avoid fines and legal problems by adhering to the intricate tax laws and regulations established by the government.
A comprehensive understanding of company tax regulations allows them to offer precise guidance and support for tax planning and preparation.
Maximizes their tax benefits and makes the most use of their financial resources.
Helps to avoid penalties and legal issues.
Provide expert guidance on tax-related issues.

smooth and seamless transition

Preparation for corporate tax early will avoid higher implementation costs and reduce the pressure on the internal team to complete these preparations within a tight last-minute deadline.

As the best Corporate tax services in UAE, we have a qualified and expert team, so you can get expert advice regarding registration, taxability, exemption, qualification under the free zone, and other complicated matters.

Every firm is unique in its objectives and approaches and we at Algorithm Accounting and Consultancy are acutely aware of this. As a result, we tailor our company tax solutions to the needs of each client. Our team of Corporate tax advisors offers customized solutions that advance your organization by fusing technical know-how with commercial understanding.

Along with accounting and bookkeeping services in Dubai, Algorithm Accounting has an expert team of Corporate tax advisors in UAE who are up to date with Tax laws prevailing in UAE and the tax laws that are going to be implemented in the future. Our expert tax consultants in Dubai have already started offering corporate tax services in the UAE to their clients to enable them to make the necessary adjustments in advance and prepare for the new tax system.

With our excellent financial services, we are highly recommended by clients for all business-related queries, especially Corporate Tax Services in the UAE. To get more details contact our accounting services in Dubai, UAE

Comprehensive Corporate Tax Advisory Services

We are the best tax advisory firms in UAE because of our in-depth knowledge of the industry and ability to provide a wide range of tax solutions that are customized to your company’s unique requirements. Our committed team of tax advisors can assist both local startups and global corporations in navigating the complicated world of company tax in the UAE.

In addition, we stand out from the competition thanks to our dedication to quality and client pleasure. Since each business is different, we take the time to learn about your particular goals and objectives before offering specialized corporate tax services in UAE. Our team ensures you receive quick, accurate advice that complies with local laws by being up to date on the newest tax legislation and changes in the UAE.

Below shows few corporate tax services we offer:

Tax planning and compliance

Tax advisory services

Tax audits

Tax valuation

BookBreeze Consultancy offers expert financial, accounting, and tax solutions to help businesses thrive in Dubai.

Corporate Tax Advisory