Unlock Your Business’s Full Potential with the Top Corporate Tax Consultants in Dubai, Abu Dhabi, and UAE. Explore our expert Corporate Tax Services in Dubai.
Dubai welcomes a world of possibilities, but don’t let corporate tax complexities slow you down. Aviaan, cuts through the confusion. Our expertise ensures you navigate Dubai’s tax landscape with confidence, maximizing your business potential.
Aviaan is a renowned and established corporate tax consultant in Dubai, Abu Dhabi UAE. Our dedicated team of tax experts assist you in optimizing your corporate tax strategy, ensure compliance with local regulations, and maximize your tax efficiency in Dubai. Whether you are a multinational corporation or a start-up, our tailored tax solutions are designed to help you make informed financial decisions, minimize tax liabilities, and ultimately drive your business toward towering heights in this thriving metropolis.
At Aviaan, we understand that each business is unique, and so are it’s tax requirements. Our experienced professionals bring in-depth knowledge of the Dubai tax system, coupled with a global perspective, to provide you with personalized guidance and practical solutions. From corporate tax planning and structuring to VAT compliance, our services cover a wide spectrum of tax-related needs.
Let us partner with you to ensure that your business remains financially sound and tax-efficient in UAE’s dynamic economic landscape. Read on to explore how our Corporate Tax Services in Dubai, Abu Dhabi UAE can empower your business growth in this dynamic economy.
Historically, many businesses in the UAE have enjoyed zero income tax on their profits. UAE’s tax-free statute is however set to change soon with the announcement of Federal Corporate Tax.
In order to adapt to the constantly changing international tax rules to provide greater transparency and comply with regulations in an effective manner, the Ministry of Finance of the United Arab Emirates (UAE) has proposed and subsequently decided to introduce Corporate tax with the lowest tax rates at the global level. This will come into force from 1st June 2023 and will be applicable for all the subsequent financial years.
Federal Tax Authority (FTA) will be responsible for the administration, collection and enforcement of corporate tax in UAE.
Corporate tax in Dubai, UAE comes as an entirely new addition to the existing taxes in the country. Many small, medium and large businesses will therefore find the essential requirement for corporate tax services in Dubai by corporate tax consultants in Dubai, UAE. Corporate Tax Implementation in Dubai, UAE will enable companies to level up to the road ahead in bringing them under the corporate tax purview, while lowering regulatory burdens for firms and start-ups.
The scope of corporate tax in UAE is somewhat widespread covering major businesses. These include:
Corporate tax in UAE will be applicable on the net income or profit of corporations and other entities from their business. It is applicable for financial years starting on or after June 1, 2023.
The same is payable on the profits of UAE businesses as reported in their financial statements complying with the international accounting standards and having minimal exceptions and adjustments.
Corporate tax will be levied on all corporations as well as commercial activities in the UAE with a few exceptions.
For more information on income exempted from corporate tax in Dubai, reach out to Aviaan Accounting, the top corporate tax consultants in Dubai.
The Corporate Tax rate in Dubai, UAE has been classified into various slabs and a certain percentage of Dubai, UAE corporate tax rate has been specified for each slab. Accordingly, for taxable income up to AED375,000, the tax rate is nil, and a 9% tax rate applies for taxable income over AED375,000. It may be pertinent here to note that AED375,000 = US$102,095. Further, Large Multinational corporations with a consolidated global revenue exceeding € 750 million (AED 3.15 billion) subject to OECD Base Erosion and Profit-Sharing laws Pillar 2 of the BEPS 2.0 framework will be entitled to different rates.
| Taxable Income | Corporate Tax Rate |
|---|---|
| Up to AED 375,000 | Nil |
| Above AED 375,000 | 9% |
For example, if XYZ Company’s taxable income is AED 500,000 for a financial year then their corporate tax liability will be calculated in the below manner:
Therefore, total tax liability of XYZ Company = AED 112,50
All businesses in the UAE will have to file a corporate tax return annually and through an electronic mode of filing. Failing to do so can attract severe penalty. As best corporate tax consultants in Dubai, we can help you stay compliant and avoid penalties.
Corporate Tax Period and Return Filing Due Date:
The corporate tax period will vary depending on the financial year end followed by the entity.
| Entities With Financial Year Ending | First Corporate Tax Period | CT Return Filing and Payment Due Date |
|---|---|---|
| 30 June | 1 July 2023 – 30 June 2024 | 31 March 2025 |
| 31 December | 1 January 2024 – 31 December 2024 | 30 September 2025 |
| 31 March | 1 April 2024 – 31 March 2025 | 31 December 2025 |
Note: The UAE corporate tax returns must be filed and payment must be made within 9 months of the respective tax period.
Dubai, UAE is considered as a tax haven for businesses and foreign investments. However, this tax haven is now about to implement Corporate Tax. Although one may say that this move might discourage investment and cease to attract international corporations, the corporate tax in Dubai, UAE is one of the world’s lowest corporate tax rates at the global level. With this competitive tax policy, Dubai, UAE may still be a desirable location for multinational companies levelling themselves up to transparency and dynamic international practices.
Once the implementation of Corporate Tax in Dubai, UAE takes effect, there is bound to be a major change that is expected in the tax and compliance outlays of most Dubai, UAE businesses. The new regime requires accurate identification of tax implications to the specific corporate structure of the entity and entities must be compliant with this new tax regime.
Businesses registered in Free Zones and not operating a business with the mainland will be getting the benefit of corporate tax incentives depending on the respective regulations and an annual return is required to be submitted for all free zones.
The impact of the implementation of Corporate tax in Dubai, UAE is not just restricted to this but also extends to corporate mergers and acquisitions. The government’s objective in the implementation of corporate tax is to restructure the economy of Dubai, UAE by reducing its dependency on oil and gas and establishing itself in the field of digitalization and technology.
| Phases | Approach | Action Plan |
|---|---|---|
| Phase 1 | Impact Assessment | Evaluating and preparing your business for the new regime. – Evaluating revenue and expense transactions for accessing corporate tax relevance – Reviewing technical aspects like related party / intra-group transactions, deductibles, transfer pricing, etc. |
| Phase 2 | Assessment and Planning | Performing a quantitative impact assessment and building a preliminary roadmap for change. – Perform a detailed assessment – Identify potential risks and exposures – Suggest the ideal reporting strategy i.e. whether to opt for a separate entity or group filing. |
| Phase 3 | Implementation support | Implementing corporate tax regime and monitoring it. – Developing and accessing business plans, capital structure, debt capacity, etc. – Implementing tax reduction measures i.e. depreciation, interest, director’s compensation, etc. – Periodic monitoring and reporting of the restructuring progress |
| Phase 4 | Post-implementation support | Extending ongoing support. – Providing post-implementation support – Providing ongoing tax advisory – Assisting in preparing and submitting tax returns – Communicating and dealing with the tax office – Helping in preparing appeals |
The implications of the new corporate tax regime can be far-reaching and therefore it is advisable that the tax and finance teams should work on preparing a roadmap for better adoption. In order to accurately access the implications, businesses need to have a sound understanding of the proposed changes.
It may require major changes in the business model, legal structure, organizational structure, accounting and profit, contracting and transfer pricing, business processes and much more. Therefore, the implementation of corporate tax regime is bound to require proper support from tax experts. Seasoned corporate tax consultants in Dubai can help you assess the potential impact of corporate tax on your business and overall economy besides helping you adopt the same in a compliant manner.
It’s time that businesses gear up and prepare for corporate tax compliances early on in order to reduce the last-minute pressure on internal teams and avoid higher implementation costs.
If you are looking for an expert Corporate Tax Consultants in Dubai, UAE, get in touch with Aviaan Accounting. We have a team of dedicated tax experts who have in-depth experience in corporate tax matters. Our corporate tax consultants in Dubai can support you throughout your readiness journey as well as at every stage during the corporate tax implementation process. We will handhold you to ensure that you will be 100% ready to comply with corporate tax.
Our highly qualified tax professionals can assist you with potential restructurings, valuation considerations and pre-deal preparation along with negotiating strong tax indemnities and covenants in UAE transaction documents once the corporate tax is fully implemented.
Our Corporate Tax Services
We work in a phased approach to ensure that the entire process is smooth and satisfactory for you.
Get in touch with us to know more about our corporate tax services in Dubai.
Partner with Aviaan Advisory today and unlock your business’s full potential. Our team of experts is here to provide tailored solutions and guide you every step of the way. Don’t wait – take the first step towards financial success.
Corporate tax applies to all UAE businesses and commercial activities except for the extraction of natural resources, which is still subject to Emirate level taxation.
UAE corporate tax applies to any individual that conducts regular trade or business in the UAE. Thus, an individual who has a commercial license to conduct business in UAE shall attract corporate tax.
Companies set up in free zone are subject to corporate tax and hence are required to comply with the regulations. However, companies in the free zone that do not conduct business with mainland UAE and comply with all other regulations will continue to receive incentives currently being offered to them.
Federal Tax Authority will be responsible for the administration, collection and enforcement of corporate tax in UAE.
The taxable income for the purpose of determining corporate tax in UAE is calculated after making specified adjustments or exceptions to the accounting net profit of UAE businesses as reported in their financial statements. Tax losses can be carried forward to subsequent fiscal years and set off against the taxable income for the respective year.
The corporate tax in UAE is a Federal tax and will therefore apply across all Emirates.
The UAE government considers all the activities undertaken by a legal entity as “business activities” and hence fall within the scope of UAE corporate tax.
No, UAE corporate tax does not apply to industries engaged in the oil and gas sector and other extractive industries. They will be subject to Emirate level corporate taxation.
Yes, banking operations, including those currently taxed at the Emirate level, will be subject to the UAE corporate tax.
Tax losses incurred prior to the implementation of UAE corporate tax will not be allowed to be set off against future taxable income. Only losses that are generated during and after the first UAE corporate tax period can be carried forward and offset against future taxable income.
For enquiries on corporate tax services in Dubai, E-mail: info@aviaanaccounting.com
Aviaan is a leading Advisory firm, providing comprehensive Consulting services to businesses across various industries. Our team of experienced professionals is dedicated to helping clients achieve their financial goals by offering tailored solutions that meet their unique needs.
Our mission is to provide exceptional Consulting services that exceed our clients’ expectations. We strive to be a trusted partner in their financial journey, offering expert advice and guidance to help them make informed decisions.
Financial strength is the pillar of any successful Dubai business. Aviaan Accounting, a leading accounting firm, equips you with the tools and expertise you need. Our comprehensive services empower you to make informed decisions and unlock your full growth potential.
Dubai Office
Binary Tower, Marasi Drive,
Business Bay, Dubai, UAE
Sharjah Media City (Shams), Al Messaned,
Al Bataeh, Sharjah, United Arab Emirates
KSA Office
King Fahad Branch Road,
Riyadh 12313
Oman Office
Bait Mahmiyat Building
Shati Al Qurum Muscat, Oman
