Tax Consulting Services in Dubai, UAE
ACL began its journey as a result-oriented accounting firm in Dubai, committed to providing exceptional services to businesses in the region. Our team of certified & Chartered Accountants had a vision to help businesses of all sizes manage their finances, navigate through complex tax regulations in UAE, and make informed financial decisions. Our expertise and personalized approach earned us a reputation for delivering reliable and efficient financial solutions.
Our team of experienced professionals has the knowledge and expertise to streamline your taxation processes, making it easy for you to focus on growing your business. With our personalized solutions and commitment to delivering exceptional service, we’ll help you stay on top of your taxation obligations and ensure that you’re in compliance with all regulations. Don’t let taxation hold you back – let us simplify it for you. Being the best corporate tax consulting firms in Dubai, UAE, we can help you streamline your processes and achieve your business goals!
Corporate Tax
Corporate Tax is a form of direct tax levied on the net income of corporations and other businesses. Corporate Tax is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax”. The UAE introduced federal Corporate Tax on business profits effective for financial years starting on or after 1 June 2023
By introducing the CT, the UAE aims to:
- Cement its position as a leading global hub for business and investment
- Accelerate its development and transformation to achieve its strategic objectives
- Reaffirm its commitment to meeting international standards for tax transparency and preventing harmful tax practices.
VAT Service
VAT accounting services contributes to accurate financial reporting for businesses. It involves maintaining detailed records of VAT transactions, including sales, purchases, and VAT paid and collected. This information is essential for preparing financial statements and ensuring compliance with accounting standards.The VAT is a consumption-based tax that is imposed on the value added at each stage of the supply chain. The standard VAT rate in the UAE is 5%, with certain goods and services being exempted or zero-rated.
Auditing Services
Every business needs to have auditing services, whether it be in Dubai, Ajman, Abu Dhabi or Sharjah. Examining a company’s financial records to make sure they adhere to accounting principles, regulatory obligations, and international standards is the process of auditing. The main objective of auditing is to deliver a neutral, unbiased review of a company’s financial standing and guarantee the accuracy and dependability of its financial statements.Professional accounting organisations like ACL, which have skilled auditors…
Bookkeeping & Account Outsourcing
Bookkeeping and accounting outsourcing services are becoming increasingly popular among businesses in Dubai. Bookkeeping services involve the recording, organizing, and maintaining of financial transactions, while accounting services encompass the analysis, interpretation, and presentation of financial information. Outsourcing these services to professional bookkeeping companies in Dubai, Ajamn, Sharjah, or Abu Dhabi can help businesses save time and money, improve accuracy, and enhance..
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At ACL, we’re committed to delivering the highest quality tax consulting service to our clients across Dubai, Abu Dhabi, Sharjah and Ajman. We believe in building long-term relationships based on trust and mutual respect, and we’re dedicated to helping our clients succeed. Our team of experts has the knowledge and experience to help you navigate the complex world of finance, and we’re here to guide you every step of the way.We believe in building long-term relationships based on trust and mutual respect, and we’re dedicated to helping our clients succeed. Our team of experts has the knowledge and experience to help you navigate the complex world of finance, and we’re here to guide you every step of the way.
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Frequently Asked Questions
Corporate Tax is a type of direct tax imposed on net income or earnings of corporations & various business entities. In alternative jurisdictions, it may also be known as “Corporate Income Tax” or “Business Profits Tax.”
Corporate Tax in UAE is applicable to legal entities incorporated within country & to foreign legal entities effectively managed and controlled in UAE. Additionally, a foreign legal entity operating in the UAE through a Permanent Establishment or having a taxable presence in UAE would be liable for Corporate Tax.
For individual taxpayers, Corporate Tax is applicable if they are involved in a business or business activity within UAE, whether directly or through an Unincorporated Partnership or sole proprietorship. Cabinet Decision No. 49 of 2023 provides additional details on criteria that bring natural persons under the purview of UAE Corporate Tax.
Certainly. The UAE Corporate Tax is a federal tax, & as such, it will be enforced uniformly across all Emirates.
The following persons are exempt from UAE CT, either automatically or by way of application:
- The UAE Federal and Emirate Governments and their departments, authorities and other public institutions;
- Wholly Government-owned companies that carry out a mandated activity, and that are listed in a Cabinet Decision;
- Businesses engaged in the extraction of UAE natural resources and related non-extractive activities that are subject to Emirate-level taxation after meeting certain conditions;
- Public Benefit Entities that are listed in a Cabinet Decision;
- Investment Funds that meet the prescribed conditions;
- Public or private pension or social security funds that meet certain conditions; and
- UAE juridical persons that are wholly-owned and controlled by certain exempted entities after meeting certain conditions.
The UAE CT regime will become effective for financial years starting on or after 1 June 2023.
Examples:
- A business that has a financial year starting on 1 July 2023 and ending on 30 June 2024 will become subject to UAE CT from 1 July 2023 (which is the beginning of the first financial year that starts on or after 1 June 2023).
- A business that has a financial year starting on 1 January 2023 and ending on 31 December 2023 will become subject to UAE CT from 1 January 2024 (which is the beginning of the first financial year that starts on or after 1 June 2023).
In addition to a 0% CT rate for taxable income up to and including AED 375,000, small businesses with revenue below AED 3 Million can claim ‘small business relief’ and be treated as having no taxable income during the relevant Tax Period and may be subject to simplified compliance obligations. To claim small business relief, an election must be made to the FTA.
UAE companies can apply to form a Tax Group and be treated as a single taxable person if the UAE parent company (directly or indirectly) holds at least 95% of the share capital and voting rights of each of the companies.
Example: Company A owns, 20% of company B, and 100% of Company C. Company C owns 80% of the shares of Company B. Because Company A indirectly owns 100% of the shares of Company B (80% via Company C), it can form a Tax Group with both Company B and Company C.
To form a Tax Group, neither the parent company nor any of the subsidiaries can be an exempt person or a Free Zone entity benefitting from the 0% CT rate, and all companies must use the same financial year and prepare their financial statements using the same accounting standards.
Taxpayers are expected to prepare and maintain financial statements for the purposes of calculating their taxable income, and should maintain all documents and records that support the information in the CT return or in any other filing made with the Authority.
Exempt persons are required to maintain all records to support their exempt status.
Records and documents should be kept for at least seven years following the end of the relevant tax period
For UAE CT purposes, the financial statements of UAE entities and other businesses should be prepared in accordance with accounting standards accepted in the UAE. International Financial Reporting Standards (IFRS) is the most frequently used accounting standard in the UAE.
In principle, all legitimate business expenses incurred to derive taxable income will be deductible, although the timing of the deduction may vary for different types of expenses and the accounting method applied. For capital assets, expenditure would generally be recognised by way of depreciation or amortisation deductions over the economic life of the asset or benefit.
Expenditure that has a dual purpose, such as expenses incurred for both personal and business purposes, will need to be apportioned with the relevant portion of the expenditure treated as incurred wholly and exclusively for the purpose of the taxable person’s business.