Top Best Corporate Tax Impact Assessment Services in Dubai, Abu Dhabi and UAE

Tax Agent
أبحاث السوق ودراسة الجدوى للمدرسة في المملكة العربية السعودية ودبي الإمارات العربية المتحدة

Dubai has always been the most attractive destination for businesses and investors across the globe. The main reason for Dubai being the favourite destination to do business was nil tax rate and lesser tax compliances. However, with the modification in the tax structure and introduction of corporate tax from 1st June 2023 onwards, there will be an impact on the way businesses function in the UAE. In this article, we shall discuss the impact of corporate tax on business in the UAE and how Aviaan Accounting can assist you in dealing with it.

Why UAE Corporate Tax Impact Assessment Is Crucial?

Since corporate tax is newly introduced in the tax structure of UAE, it is essential to understand its impact on the business. Corporate tax assessment will help you in knowing what changes needs to do in finances and operations of your business. Effective assessment will lay the foundation for effective tax planning, applying compliance checks and restructuring of business. Seeing assistance from Aviaan Accounting can help you know the right steps to take to prepare your business for the upcoming corporate tax regime.

Companies Eligible for Corporate Tax in Dubai, Abu Dhabi and UAE

The following companies are covered under the scope of corporate tax in UAE.

  • Domestic companies located in the mainland of UAE
  • Foreign companies having a permanent establishment in UAE or have an income source in UAE
  • Free Zone persons

Companies That Will Be Impacted By New Corporate Tax Regime

  • Companies having annual taxable income up to AED 375,000 shall attract 0% tax rate.
  • Companies having annual taxable income exceeding AED 375,000 shall be taxable at the rate of 9%.
  • Different tax rates shall apply to multinational corporations having consolidated global revenue higher than EUR 750 million or approx. AED 1.25 billion. 

Why UAE Corporate Tax Impact Assessment Is Crucial - Top Best Corporate Tax Impact Assessment Services in Dubai, Abu Dhabi and UAE

Business Areas Impacted and How Aviaan Accounting Can Help With Corporate Tax Impact Assessment Services in Dubai, Abu Dhabi and UAE

  • Audit

With the introduction of corporate tax in the UAE, the business would require to conduct an audit based on its profitability as per the internationally accepted accounting standards. Furthermore, to claim the benefit of a 0% tax rate, the Free zone persons must carry out an audit of their financial statements. Therefore, getting the financial accounts audited has become the primary requirement. Moreover, businesses will need to bifurcate its business and non-business income based on the accounting principles followed to determine the correct profitability.

Having Aviaan Accounting manage your books can help you stay assured that your accounting is done as per the accepted norms. Our experts would ensure that your business reports correct profitability after considering the impact of the new tax regime.

  • Reviewing Current Systems and Processes

Aviaan Accounting can help you access the current systems and processes that govern your business. Based on the requirements of the new tax regime, we can help you reconfigure and update the mechanism of accounting the business income and expenditure, inventory management, intercompany transactions, etc. We will ensure that the business meets all the compliance requirements and reports accordingly.

  • Reviewing Contracts with Customers and Suppliers

The corporate tax in UAE will impact the profits of the companies. Therefore, to help you understand the exact impact on your profit margins, Aviaan Accounting can review the existing contracts with the customers and suppliers or service providers.

The supplier of the goods or services will also increase their costs considering the outflow due to tax.  After the impact assessment, we would recommend the price revision requirement with the existing suppliers and help you explore the new price of the products or services that will help the business in maintaining the profit margins.

  • Reviewing Place of Effective Management (‘POEM’)

 A company that has its headquarters in UAE and carrying out its operations through foreign subsidiaries or an immediate holding company will need to consider the risks relating to the Place of Effective Management (‘POEM’).

The new tax regime in UAE has introduced the concept of POEM that would involve the risk of tax exposure based on where the key management is located and where the commercial decisions are being taken. POEM will have an impact on cross border and intra group transactions.

Aviaan Accounting can help the company in tackling POEM related compliances and determining the POEM status for a business on a year-to-year basis.

  • Permanent Establishment Risk Exposure

Foreign companies carrying out business in UAE need to know the impact on their existing business models after the introduction of Permanent Establishment (PE) under the new income tax regime.

To overcome the risk relating to Permanent Establishment (PE), Aviaan Accounting shall assist in evaluating your existing business model, long term agreements / contracts, intragroup and cross border transactions, etc.
Permanent Establishment Risk Exposure - Top Best Corporate Tax Impact Assessment Services in Dubai, Abu Dhabi and UAE

Why Choose Aviaan Accounting for Corporate Tax Impact Assessment Services in Dubai, Abu Dhabi and UAE

Aviaan Accounting is one stop solution for all your tax requirements relating to the new corporate tax in Dubai, Abu Dhabi and UAE. Our team of experts and professionals ensures that your business follows all the compliance requirements. We maintain all the financial and other records of your business keeping the new corporate regime in mind. Aviaan Accounting ensures that your financial statements are prepared error free and are based on the international accounting standards.

For any query related to corporate tax impact assessment services in Dubai, Abu Dhabi and UAE, you may drop us an email and we will get back to you soon.

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