Failure to comply with the tax deadlines could result in hefty fines
The new tax regime clarifies that the headline 9 per cent corporate tax will be creditable against the emirate-level tax on foreign banks
Foreign banks that violate the law face a stiff penalty of not more than Dhs500,000
The evaluation of the UAE’s Free Zone Corporate Tax regime was part of the OECD’s comprehensive review of taxation regimes worldwide
Dealmakers and their advisers are including insurance on their agenda just as much as the traditional corporate risk manager
The company will provide SMEs with free corporate tax registration, free accounting services, and compliance guarantee
Under Cabinet Decision No (75) of 2023, penalties will be imposed on taxable persons who do not comply with the UAE corporate tax law effective from August 1
The new feature forms part of the steps the FTA has taken to ensure a smooth implementation of the corporate tax law
The government said qualifying entities in the country’s economic free zones will be subject to a 0 per cent rate
The new decisions will help determine taxable income in addition to providing tax relief for intra-group transfer of assets or liabilities between members of the same qualifying group
The decision further clarifies the conditions under which UAE resident entities that are 95 per cent or more commonly owned can form or join a tax group and be treated as a single entity
Businesses must assess their finance technology stack to check if the tools can effectively manage the new processes required and if the systems in place integrate efficiently to allow for seamless automation
The decision applies to immovable property, intangible assets, financial assets and financial liabilities held by businesses before the corporate tax law comes into effect on June 1
According to the ministry, the three new decisions aim to enhance the flexibility of UAE’s corporate tax regime and ensure a supportive business environment for all sectors
Buyers will need to evaluate the tax status of the target company or target assets and consider whether any restructuring is required to optimise tax efficiency
Here’s how to ensure your SME is set to deal with the advent of UAE’s corporate tax from June
The decision aims to clarify the application of the corporate tax regime for individuals and ensures that only business income is taxed
The authority explained that early corporate tax registration will allow enough time for companies and businesses to comply with their legal obligations
Organisations that qualify for the exemption include entities that focus on activities such as philanthropy, community services and corporate social responsibility
The Ministry of Finance said government entities, government-controlled entities as well as extractive businesses are exempted from corporate tax
The tax relief seeks to support startups and other small businesses by reducing their corporate tax burden and compliance costs
The evolving landscape will require chartered accountants to steer the ship, bring clarity to the process and ensure compliance with regulations and policies
The programme will feature a series of sessions to raise awareness of the corporate tax law amongst the business community and its implications for the national economy
The country’s corporate tax regime will levy a standard rate of 9 per cent on taxable profits exceeding Dhs375,000
A more solid, practical, and transparent fiscal system, combined with a new approach to alternative revenues, is helping the UAE strengthen its position as an attractive and competitive hub for international business and investment
The UAE will likely continue to attract highly qualified individuals into the country
Overall, the tax rate will be a big win for the region’s businesses
The Ministry of Finance has set a rate of 9 per cent for taxable income exceeding Dhs375,000