Corporate Tax Archives

Local File and Master File File For Transfer Pricing in UAE

Posted on August 7, 2023 by admin

Enhancing Fairness and Transparency in UAE’s Tax System: New Transfer Pricing Documentation Requirements

In a significant move towards promoting fairness and transparency in the United Arab Emirates’ (UAE) tax system, the Ministry of Finance has issued a pivotal Ministerial Decision, numbered 97 of 2023. This decision outlines comprehensive requirements for maintaining transfer pricing documentation, ensuring that transactions between related parties and connected persons are conducted on an arm’s length basis. It required businesses that meet the qualification clauses, to maintain Transfer Pricing Documentations (Local File and Master File), in addition to a Related Party Disclosure form along with the Corporate Tax Return. The decision is aligned with Federal Decree Law No. 47 of 2023 on the Taxation of Corporations and Businesses, which enforces transfer pricing rules and documentation standards.

The Aim: Promoting Transparency and Fairness

The core objective of Ministerial Decision No. 97 is to instill transparency and fairness in the UAE’s tax framework. By emphasizing the arm’s length principle, wherein transactions between related parties should be priced as if they were independent entities, the decision seeks to prevent undue influence on pricing due to inter-company relationships.

Key Provisions of the Decision

The decision, guided by the expertise of His Excellency Younis Haji Al Khouri, Undersecretary of the Ministry of Finance, introduces several crucial provisions to achieve its goals.

Standardized Documentation: Taxpayers are required to maintain transfer pricing documentation that proves the arm’s length basis for transactions with related parties and connected persons. The use of standardized files streamlines the process and ensures consistency in documentation.
Thresholds for Documentation: The decision provides clarity on the threshold criteria for preparing master files and local files. Taxpayers falling under certain revenue brackets must adhere to specific documentation requirements. Businesses with revenues of at least AED 200 million in a relevant tax period, or those part of a Multinational Enterprise (MNE) group with consolidated revenues of AED 3.15 billion or more, are mandated to maintain transfer pricing documentation.
Reduced Compliance Burden: Recognizing the importance of facilitating compliance, the decision includes exclusions for disclosing certain transactions. This alleviates the compliance burden on taxpayers while ensuring that critical information is still captured.
Support for Small and Medium-Sized Businesses: His Excellency Younis Haji Al Khouri emphasizes that the decision’s ultimate goal is to ease compliance burdens for small and medium-sized businesses, thereby fostering a business-friendly environment that encourages growth and economic diversification. This move not only supports local enterprises but also enhances the UAE’s competitiveness on the global stage.
Reinforcing the UAE’s Commitment: The decision underscores the UAE’s dedication to fostering an equitable tax ecosystem that aligns with international standards. By introducing robust transfer pricing documentation requirements, the UAE solidifies its commitment to transparent and fair business practices.

Implications and Benefits

The implementation of Ministerial Decision No. 97 holds several significant implications and benefits for both businesses and the UAE’s economic landscape.

Enhanced Fairness: The decision eliminates potential biases in pricing due to affiliations, ensuring that transactions are based on market conditions, thereby fostering a level playing field.
Transparency: Standardized documentation ensures that relevant information is readily available for regulatory scrutiny, bolstering the UAE’s reputation as a transparent and compliant tax jurisdiction.
Global Competitiveness: By promoting a business-friendly environment and adhering to international standards, the UAE strengthens its position as a global business hub, attracting foreign investment and facilitating economic growth.

In today’s global business landscape, fair transfer pricing is paramount. Introducing the Transfer Pricing Master File and Local File—a dynamic duo crafted to ensure transparency and compliance in intercompany transactions.

UAE CT Law, under Article 55, it required businesses that meet the qualification clauses, to maintain Transfer Pricing Documentations (Local File and Master File), in addition to a Related Party Disclosure form along with the CT Return.

What is the difference between Local File and Master File?

Let us see the difference between Local File and Master File for a better understanding of the Decision. The Transfer Pricing Master File unveils an enterprise’s global operations and pricing strategy. From organizational structure to financial insights, it paints the full picture. Developed by OECD, it encourages transparency while allowing presentation flexibility.

In each jurisdiction, the Local File delves into the details—uncovering intracompany transactions, methodologies, and more. While many nations align with OECD’s model, variations exist. Consistency with the Master File is your shield against audit risks.

Conclusion

Ministerial Decision No. 97 of 2023 marks a significant step forward in the UAE’s pursuit of fairness, transparency, and competitiveness in its tax system. By enforcing transfer pricing documentation requirements, the UAE ensures that transactions between related parties are conducted on an arm’s length basis. This move not only aligns with international standards but also reinforces the UAE’s commitment to fostering a conducive business environment that drives growth, supports economic diversification, and enhances its standing on the global stage.

For more information on the Ministerial Decision and related legislative updates, interested parties can visit the Ministry of Finance’s official website: www.mof.gov.ae.

Navigating Success Together

Embrace transparency and compliance for global triumph. Mastering Transfer Pricing Documentation “TPD” empowers businesses worldwide. Connect with our TP professionals for tailored insights—unlock international success on a solid foundation.

It’s important to note that these thresholds are linked to the Master File and Local File preparation, focusing on Article 55 Clause 2 of the CT Law. But here’s the kicker—even if these thresholds aren’t met, the arm’s length principle still reigns supreme. Taxable Persons, when requested by the Authority, must substantiate the arm’s length nature of transactions with Related and Connected Parties, armed with insights like benchmarking studies.

As the landscape of transfer pricing evolves, compliance remains non-negotiable. The Ministerial Decision paves the way, shedding light on intricacies and expectations. For Taxable Persons navigating this terrain, transparency and meticulous documentation are the keys to a successful journey.

Why is Alliance Prime the best Tax Consultancy in Dubai?

Alliance Prime is a leading provider of auditing, accounting, taxation, and advisory services in the UAE. Our expert team will guide you through the complex laws and regulations of UAE, including Corporate Tax, VAT, Excise Tax, Accounting and Bookkeeping, ESR, Financial Advisory, ERP, etc. We stay up-to-date with the latest changes in laws and regulations in the UAE. If you’re looking for reliable and professional auditing, accounting, taxation, and advisory services in the UAE, look no further than Alliance Prime.

To find out if your business is eligible for Small Business Relief under the new CT regime or to Book a Free Consultation, contact us on: at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com

Group Relief and Restructuring Relief in the UAE Corporate Tax Regime

Posted on August 7, 2023 by admin

Corporate groups often manage their operations through multiple businesses, each with a parent company and subsidiaries. To optimize tax compliance costs and responsibilities, these companies can form tax groups. The UAE’s new corporate tax regime, effective from June 1st, 2023, allows taxable persons to create tax groups and benefit from Group Relief and Restructuring Relief in the UAE Corporate Tax Regime.. Corporate tax consultants in Dubai can provide guidance on the rules governing the formation of corporate tax groups.

Group Relief under the UAE Corporate Tax

Businesses frequently undergo reorganizations or restructuring to enhance operational efficiency or adapt to economic changes. However, without targeted tax rules, such restructuring within a group may trigger tax liabilities when gains on assets or liabilities are transferred, even though there is no change in ultimate ownership.

The proposed UAE corporate tax regime offers a solution by allowing companies to reorganize their businesses without incurring unnecessary tax charges. The regime proposes an exemption or deferral of corporate tax for asset or liability transfers between members of a tax group. It also permits tax-neutral reorganization transactions, such as mergers, where no taxable gain or loss is triggered.

Intra-group Transfer of Assets and Liabilities

The new corporate tax regime in the UAE allows for intra-group transfer relief for assets and liabilities transferred between UAE resident companies that are at least 75% commonly owned. The assets and liabilities must remain within the same group for at least three years to avail this relief. With intra-group relief, the relevant assets and liabilities are treated as being transferred at their tax net book value, eliminating the need to account for any gain or loss in the transferor and transferee company’s taxable income.

Restructuring Relief in the UAE Corporate Tax

The UAE corporate tax regime provides exemptions or deferrals of taxation when a whole business or independent parts of a business are transferred in exchange for shares or ownership interests. This restructuring relief facilitates mergers, spin-offs, and other corporate restructuring transactions.

For example, if an individual transfers their business to a newly incorporated company in exchange for shares, they can avail corporate tax exemption on any gains from the transfer. The acquiring company can also maintain the transferor’s existing tax basis in the transferred assets and liabilities. Assets and liabilities involved in qualifying restructurings are considered transferred at their tax net book value, thereby avoiding the need to report any gain or loss for calculating taxable income.

Clawback of Restructuring Relief in the UAE Corporate Tax

Can the Authority Claw Back a Restructuring Relief in the UAE Corporate Tax? If a business is subsequently transferred to a third party within three years of restructuring, the restructuring relief will be clawed back. In this case, any gain or loss triggered by the initial transfer will need to be calculated and included in the tax return for the tax period of the third-party disposal.

Consult with Top Corporate Tax Consultants in Dubai, UAE

As the implementation of the UAE Corporate Tax Law draws nearer, companies should start their tax preparation. Alliance Prime Accounting & is among the best corporate tax consultants in Dubai, offering services such as CT Assessment & Advisory, CT Compliance, and CT Agent Services for representing clients to the Federal Tax Authority (FTA) in the UAE. Availing Alliance Prime’s corporate tax consulting services will ensure compliance and help businesses avoid penalties. Get in touch with the CT experts consultants at Alliance Prime for reliable tax solutions.

Why is Alliance Prime the best Tax Consultancy in Dubai?

Who is eligible for the Small Business Relief Regime in UAE?

Posted on August 4, 2023 by admin

The UAE Corporate Tax Law (CTL) has introduced the Small Business Relief Regime (SBRR) under Art. 21, offering a tax benefit to resident taxable persons subject to specific conditions. The Ministry of Finance recently issued Ministerial Decision No. 73 of 2023 on Small Business Relief to support start-ups and small businesses with limited resources in meeting corporate tax compliance requirements.

Does the ministry mean no taxes will be paid?

Any UAE resident taxable person with revenues below the Dh3 million threshold and meeting other conditions can claim the Small Business Relief by electing not to derive any “taxable income” during the relevant tax period. This means that revenue earned below the threshold will not be subject to corporate tax as it will not be considered “taxable income.”

What about qualifying businesses earning Dh375,000 or more?

The Small Business Relief is different from the 0% corporate tax rate applicable to “taxable income.” If a taxable person’s revenues exceed Dh3 million, they won’t qualify for the Small Business Relief. However, their taxable income up to Dh375,000 will be subject to a 0% tax rate, while any income above this threshold will face a 9% corporate tax rate.

What if companies don’t take advantage of this Small Business Relief Regime?

Claiming the Small Business Relief restricts certain reliefs and deductions for the relevant tax period. For some unprofitable UAE resident taxable persons after 1 June 2023, it may be advantageous not to claim the relief. This allows them to carry forward tax losses and disallowed net interest expenses for use in future tax periods when the relief is not chosen or available.

Conditions for eligibility for Small Business Relief Regime

Three million Dirhams revenues threshold: Resident taxable persons with revenue below AED 3 million in the relevant and previous tax periods can claim SBRR based on applicable accounting standards (e.g., IFRS).
Not a Qualifying Free Zone Person: Those defined as a Qualifying Free Zone Person under Art. 18 of CTL are ineligible for the relief.
Not a member of a big Multinational Enterprises Group: Members of big multinational groups with consolidated group revenue exceeding AED three billion are not eligible for SBRR, even if their UAE business units have revenues below the three million thresholds.

At Alliance Prime, our team of experts can assist you in understanding and optimizing the benefits of the Small Business Relief Regime. We provide comprehensive accounting and tax consultancy services to help your business thrive in the UAE’s evolving tax landscape.

Why is Alliance Prime the best Tax Consultancy in Dubai?

What is Qualifying Income in UAE Corporate Tax?

Posted on August 1, 2023 by admin

With the implementation of Corporate Tax in the UAE from 1st June, businesses need to be aware of the different regulations, especially for UAE Free Zones. Alliance Prime Accounting & Tax Consultancy aims to provide clarity on Corporate Tax in Free Zones and the concept of Qualifying Income for Free Zone individuals.

Corporate Tax in Free Zones and Qualifying Income

Free Zone businesses can benefit from a 0% corporate tax rate, but they must meet specific criteria to qualify as a Qualifying Free Zone Person (QFZP). To be eligible as a QFZP, certain conditions from the federal decree law of corporate tax must be met, including generating revenue that falls under the category of Qualifying Income.

Qualifying Income – Definition and Determination

Qualifying Income refers to any income earned by a Qualifying Free Zone Person subject to a 0% Corporate Tax Rate. This income is derived from qualifying business activities or transactions conducted within the Qualifying Free Zone.

Criteria for Determining Qualifying Income

As per Cabinet Decision No. 55 of 2023, the following criteria determine the Qualifying Income for a Qualifying Free Zone Person:

Income from transactions with other Free Zone Persons, excluding income from excluded activities.
Income from transactions with Non-Free Zone individuals, limited to qualifying activities that are not excluded activities.
Other income, where the Qualifying Free Zone individual fulfills the De Minimis requirements.
Income from transactions with a Free Zone Person where that person is the Beneficial Recipient of the relevant services or goods.
Understanding Beneficial Recipient
A Beneficial Recipient is a person who has the right to use and enjoy the services or goods without any contractual or legal obligation to pass them on to another person.

Qualifying Income for Domestic or Foreign Permanent Establishments

Payable income to a Domestic or Foreign Permanent Establishment of a Qualifying Free Zone individual is considered taxable income and is subject to a 9% corporate tax rate for the Free Zone business.

Qualifying Income for Immovable Property located in a Free Zone

Income payable from transactions with Non-Free Zone Persons regarding Commercial Property or immovable property (not commercial) with any individual is considered taxable income and taxed accordingly.

De Minimis Requirements

De Minimis requirements are fulfilled when the non-qualifying revenue obtained by the Qualifying Free Zone Person in a tax period does not exceed the total Revenue Percentage or the amount specified by the Minister, whichever is lower. Certain revenues are not included in the calculation of non-qualifying revenue and total revenue.

Corporate Tax Services for Free Zones

Alliance Prime Accounting & Tax Consultancy is a leading tax consulting firm in Dubai with extensive knowledge of Corporate Tax Law. Our FTA approved Corporate Tax consultants offer comprehensive corporate tax solutions for Free Zones, including determining qualifying income and ensuring compliance with regulations to qualify as a QFZP for 0% corporate tax in the UAE.

Our Corporate Tax Services include:

Corporate Tax Impact Assessment
Corporate Tax Registration
Corporate Tax Return Filing
Corporate Tax Accounting
Corporate Tax Audit
Corporate Tax Compliance
Corporate Tax Advisory
Corporate Tax Transfer Pricing

Any queries related to Corporate Tax in Free Zones, reach out to Alliance Prime Accounting & Tax Consultancy for expert assistance.

Why is Alliance Prime the best Tax Consultancy in Dubai?

If you would like additional information or clarity on Corporate Tax or require assistance to Register for Corporate Tax, and its impact assessment, visit localhost/alliance-acc/ or contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com

The Significance of Corporate Tax Registration in the UAE

Posted on July 31, 2023 by admin

The Significance of Corporate Tax Registration and Accurate Financial Records in the UAE

Registering for corporate tax and maintaining accurate financial records are vital steps for corporate entities in the UAE to ensure compliance with tax regulations. These processes play a crucial role in facilitating the filing of tax returns and demonstrating adherence to tax laws. This article highlights the importance of precise financial record-keeping for corporate tax purposes in the UAE.

Online Corporate Tax Registration

The UAE has streamlined the corporate tax registration process by introducing EmaraTax, an online platform provided by the Federal Tax Authority. EmaraTax enables businesses to conveniently register for corporate tax and make tax payments. This user-friendly and efficient online registration system simplifies corporate tax compliance for businesses in the UAE.

Essential Requirements for Corporate Tax Registration

Registration is a mandatory step for all corporate entities in the UAE to take advantage of tax benefits and comply with tax regulations. Accurate and comprehensive financial records are indispensable for filing corporate tax returns and demonstrating compliance with tax laws. Timely registration is crucial as failure to do so within the specified time frame may lead to penalties and legal consequences.

Exemptions to Corporate Tax Registration

While generally mandated for all taxable individuals and entities, both residents and non-residents, Corporate Tax registration can be exempted in certain cases, as specified by Ministerial Decision No (7) of 2023 and (43) of 2023. The following entities are excluded from the registration under corporate tax:

Government Entities
Government Controlled Entities
Individuals engaged in Extractive Businesses (subject to specific conditions)
Individuals engaged in Non-Extractive Natural Resource Businesses (subject to specific conditions)
With State-Sourced Income Non-Resident Persons without Permanent Establishment in the UAE

Entities Required to Register

Furthermore, the UAE’s Corporate Tax Law and Withholding Tax provisions establish a comprehensive framework that provides clarity and certainty to companies operating within the region. These tax reforms serve as catalysts for stimulating economic growth, ensuring stability, attracting international investments, and facilitating the realization of strategic objectives.

Resident Legal Entities Incorporated in UAE
Legal Entities Incorporated in Free Zone UAE
Entities Established in Other Countries but Controlled and managed in UAE
Natural individuals conducting business activities within the UAE may also be classified as residents.

Conversely, a Non-Resident Person refers to individuals or entities that fail to meet the residency criteria but possess a Permanent Establishment (PE) in the UAE or generate income from the UAE. Satisfaction of given conditions is necessary for non-resident entities having UAE Permanent Establishment regarding taxable income. However, specific types of UAE-sourced income not associated with a PE may be subject to a 0% withholding tax.

Maintaining Compliance with Laws and Regulations

Accurate financial records are crucial for complying with UAE tax authorities’ laws and regulations applicable to individuals and entities liable for taxation. Registering for corporate tax with the relevant authority, ensuring timely submission, and obtaining a unique Tax Registration Number are essential steps in fulfilling taxation obligations. Proper record-keeping substantiates the information provided in corporate tax returns and avoids fines, penalties, and legal consequences.

Accurate Tax Calculations

Precise financial records enable businesses to accurately calculate taxes in accordance with UAE corporate tax regulations. Ensuring accurate calculations is essential to avoid both overpayment and underpayment of taxes, which can have serious consequences for businesses, including unnecessary financial losses, penalties, fines, and audits.

Promoting Business Transparency

Transparent financial record-keeping fosters openness in business operations. It provides a clear and complete outline of a company’s banking transactions, sources of income, costs, investments, and other activities. Transparent financial reporting enhances stakeholders’ confidence, including investors, lenders, and regulators, facilitating better business connections and opportunities.

Enhancing Decision-Making

Accurate financial records provide valuable insights into a company’s financial performance, enabling informed decision-making. Businesses can use this data to assess the feasibility of new projects, identify areas of financial inefficiency that require improvement, and forecast future financial performance. Reliable financial information facilitates strategic planning and ensures that decisions are based on sound financial data.

Streamlined Corporate Tax Returns Filing

Businesses in the UAE are required to file a single tax return with supporting schedules for each tax period with the Federal Tax Authority (FTA). Unlike some jurisdictions, UAE businesses are exempt from filing provisional tax returns or paying advance taxes, reducing administrative burdens on taxpayers.

In conclusion, corporate tax registration and accurate financial records are crucial for businesses in the UAE to comply with tax regulations. These records not only aid in calculating taxable income correctly but also promote transparency in business operations. Timely registration and meticulous record-keeping are essential for businesses to avoid penalties and demonstrate compliance with tax laws.

Why is Alliance Prime the best Tax Consultancy in Dubai?

Understanding the Regulations and Calculating Excise Tax in UAE

Posted on July 28, 2023 by admin

The UAE implemented an excise tax in UAE on various commodities in October 2017, aiming to generate government revenue and discourage the consumption of harmful products like tobacco, energy drinks, and carbonated beverages. Alliance Prime Accounting & Tax Consultancy sheds light on the different approaches to calculating excise costs and the specific tax rates used in the UAE.

Compliance with Excise Tax Regulations in the UAE

Registered businesses in the UAE must regularly file excise tax returns and pay the applicable tax on their excise goods to comply with excise tax regulations. Accurate calculation of the excise tax is crucial to determine the company’s liability correctly. Failure to register for excise tax or neglecting to pay the tax can lead to penalties and fines imposed by the Federal Tax Authority (FTA).

Excise Tax Rates in UAE

The UAE levies excise taxes on tobacco products, energy drinks, and carbonated beverages at specific rates:

Tobacco Products: The excise tax in UAE on tobacco products is 100% of the retail price.
Energy Drinks: Energy drinks, containing stimulants like caffeine and taurine, attract a 100% excise tax.
Carbonated Drinks: All aerated drinks, excluding aerated water, are subject to a 50% excise tax.

Methods of Calculating Excise Tax in the UAE

The UAE uses two methods to calculate excise prices:

Specific Method: This method applies a fixed tax rate per unit of the product. For instance, energy drinks may have a specific excise tax rate of AED 0.1 per milliliter, while cigarettes may have a rate of AED 0.4 per cigarette.
Ad Valorem Method: This approach calculates the excise duty based on a percentage of the product’s value. For example, high-end automobiles may attract a 50% excise tax based on their retail price, while jewelry may have a 5% excise tax based on its retail value.

Example for Calculating Excise Tax in UAE

Using the specific tax method, a pack of cigarettes costing AED 20 will have an excise price of AED 8 (AED 20 x 100%).

For energy drinks priced at AED 10, the excise price using the ad valorem tax method will be AED 20 (AED 10 + 100% x AED 10).

Similarly, a carbonated drink with a suggested retail price of AED 5 will have an excise price of AED 7.5 (AED 5 + 50% x AED 5) using the ad valorem tax method.

Challenges in Implementing Excise Tax in UAE

Enforcing excise tax, particularly in cross-border transactions, presents challenges in ensuring compliance and collecting the required amount of tax. SMEs may also face difficulties with the excise tax adoption, leading to higher pricing for customers or reduced profits for businesses. Striking a balance to minimize the impact on SMEs becomes crucial.

Advisory for Excise Tax in UAE

To navigate the complexities of taxation and ensure compliance with excise tax regulations, it is vital for liable entities to seek advice from qualified tax advisors in the UAE. Alliance Prime Accounting & Tax Consultancy offers expert guidance on understanding, calculating, and filing excise taxes. Our team is dedicated to providing tailored advice to meet your specific needs and ensure adherence to all relevant rules and regulations. For excise tax assistance or other tax-related matters, contact Alliance Prime Accounting & Tax Consultancy for reliable support.

Why is Alliance Prime the best Tax Consultancy in Dubai?

If you would like additional information or clarity on Excise Tax or require assistance to Register for Excise Tax, visit localhost/alliance-acc/ or contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com

UAE Transfer Pricing Regulation

Posted on July 28, 2023 by admin

Transfer Pricing refers to the pricing of transactions between related parties, such as companies that are part of the same group. These transactions may include the sale or transfer of goods, services, intangible property, or the provision of loans or financial guarantees.

The UAE Arm’s Length Principle requires that transfer prices in controlled transactions should be set as if the parties were independent and unrelated entities, dealing with each other at arm’s length. This helps ensure that profits are allocated appropriately and that taxes are paid where economic activities generate value.

Article 34 and 45 of the UAE CT Law, determines and defines the criteria for Related Parties, Connect Persons, and crystalize the importance of Arm’s Length Principle to be in-force.

Meanwhile, Article 55 of the UAE CT Law, businesses that meet the thresholds/qualifications for Transfer Pricing, shall be required to submit their Transfer Pricing Documentation, in addition, there would be a Related Party disclosure form to be filed along with the CT Return. It is worth to mention that the UAE adopts OECD Transfer Pricing Guidelines “TPG”.

The primary concern with Transfer Pricing arises when related parties engage in such transactions because they have an incentive to manipulate prices to shift profits from high-tax jurisdictions to low-tax jurisdictions.

Our Transfer Pricing experts, who brings +10 years of experience in niche TP industries with MNE across the region, can bring your compliance to the next level and help you plan for an impact on the business, we rely on global accredited database for conducting our work (e.g., TP Catalyst/Bureau Van Dijk).

For any queries related to Corporate Tax & Transfer Pricing, reach out to Alliance Prime Accounting & Tax Consultancy for expert assistance.

Why is Alliance Prime the best Tax Consultancy in Dubai?

Top 10 Corporate Tax Consultants in UAE

Posted on July 27, 2023 by admin

Are you a business owner looking to optimize your tax strategies and ensure compliance with the ever-changing corporate tax landscape in the UAE? Look no further! You need to find out a one of the best corporate tax consultants in the UAE. In this blog article, we present the crème de la crème of corporate tax consultants in the UAE.

These top 10 corporate tax consultants in UAE have earned their reputation through years of expertise, exceptional client service, and a deep understanding of the local tax regulations. Whether you’re a start-up, a growing enterprise, or an established corporation, partnering with one of these reputable firms can make a significant difference in your financial success. Let’s dive into the world of tax consultancy and discover the perfect match for your business needs.

UAE taxable persons are advised to avail of the services of reputable tax consultants in Dubai to seamlessly prepare for corporate tax registration and filing. UAE tax consultants assist companies to stay compliant with the Federal Tax Authority’s regulations and standards noncompliance accrues hefty fines on companies.

The Importance of Availing the Services of Corporate Tax Consultants in UAE

UAE tax consultants provide companies with services such as the enforcement of corporate tax compliance and advisory, corporate accounting and budgeting assistance, and corporate tax planning and consulting to mention a few. UAE tax consultants are well-versed with the prevalent tax laws in the UAE which therefore assists taxable persons to stay compliant with the UAE corporate tax standards.

Top 10 Corporate Tax Consultants in UAE

1. PwC Middle East

A world-renowned name in corporate taxation services, PwC has been offering corporate tax solutions across the MENA region for many years now. Their corporate taxation team is highly experienced and provides a range of corporate tax services including corporate tax compliance & advisory, corporate accounting & budgeting assistance, and corporate tax planning & consulting.

2. Deloitte Middle East LLC

A leading professional services firm, Deloitte offers corporate taxation advice via its corporate tax function in Dubai. Their corporate taxation team is highly experienced and well-versed in the applicable corporate laws of the region and provides corporate tax compliance, planning, and consulting services as well as corporate accounting and budgeting assistance.

3. Ernst & Young (EY)

An eminent name in both consultancy and auditing services in the UAE, EY works closely with clients to provide comprehensive corporate taxation solutions. Services include corporate tax planning & consulting, corporate tax compliance & advisory services as well as corporate accounting & budgeting assistance.

4. KPMG Middle East

It is a leading professional services firm in the UAE, KPMG provides corporate taxation advice via its corporate tax function in Dubai. Their corporate tax team is experienced and well-versed in the corporate laws of the region and offers corporate tax compliance, corporate tax planning & consulting as well as corporate accounting & budgeting assistance.

5. Grant Thornton

Grant Thornton’s diversified team of experts combines a perfect blend of international experience across several industry sectors, technical expertise, and commercial nuances with a commitment to delivering exceptional value to the business. The firm supports multinational groups to optimize their tax structures. It assists businesses in analysing existing group transactions and inter-group supplies, as well as advising on potential implications of various taxes to facilitate an efficient Group tax structure.

6. Crowe Horwath International

Crowe Horwath International is a top international player providing corporate tax solutions across the Middle East, it offers a wide range of corporate tax services including Tax Planning & Consulting, Corporate Accounting & Budgeting Assistance, Corporate Tax Compliance & Advisory, and more.

7. BDO

BDO’s approach to risk assurance provides a challenging mix of talent, experience and determination to find the best solution for you and your firm. BDO is an international network of public accounting, tax and advisory firms which perform professional services under the name of BDO. As one of the world’s leading audit and accounting networks, BDO audits many well-known and respected companies, including companies regulated by DFSA and ADAA. Whether the audit is a legislative requirement or commissioned for a special purpose, the firm is committed to a high level of service and expertise

8. Alliance Prime

Alliance Prime is a one of the leading corporate tax consultants and provider of accounting, taxation, and advisory services in the UAE. Our expert team will guide you through the complex laws and regulations of UAE, including Corporate Tax, VAT, Excise Tax, Accounting and Bookkeeping, ESR, Financial Advisory, ERP, etc. If you’re looking for reliable and professional auditing, accounting, taxation, and advisory services in the UAE, look no further than Alliance Prime.

9. Baker Tilly

Baker Tilly is an independent member firm of Baker Tilly International, the world’s tenth largest network of outstanding accounting and business advisory firms. Baker Tilly’s Dubai team collaborates with insurance companies and law firms to provide expert forensic accounting and consulting services in large insurance losses involving property, casualty/liability, and financial lines, as well as the analysis of complex multimillion-dollar cases and claims.

10. PKF International

PKF UAE is a subsidiary of PKF International Limited, a global network of legally independent firms united by a shared commitment to quality, integrity, and the creation of clarity in a complex regulatory environment. PKF International Limited is a global network of legally autonomous firms.

The PKF family of companies employs approximately 18,000 experts and is made up of over 400 offices and 200 member firms that do business in 150 countries across five regions. They are experts in providing high-quality auditing, accounting, tax, and business consulting services to local and foreign companies in all of our markets.

Why is Alliance Prime the best Tax Consultancy in Dubai?

Tax Group Formation Under The UAE Corporate Tax Regime

Posted on July 27, 2023 by admin

As a leading accounting and tax consultancy firm in Dubai, Alliance Prime Accounting & Tax Consultancy is committed to keeping businesses informed about crucial aspects of the corporate tax regime. One such important aspect is Tax Grouping, which allows eligible companies to streamline their tax obligations and be treated as a single entity for corporate tax purposes.

What are Tax Groups, and when can they be formed?

A tax group is a group of companies that are taxed collectively. Under the U.A.E.’s tax laws, companies can form a group or join an existing group to file a single tax return for all the members of the group.

There are some requirements that need to be fulfilled to create a tax group or become a part of an existing tax group. All members of a permanent or temporary group, including representatives, are considered a single entity and pool their income and expenses together for filling purposes.

Intercompany transactions are “out of scope”.

Resident Juridical Persons: Both the parent company and its subsidiaries must be resident juridical persons in the UAE.
Common Financial Year and Accounting Standards: The parent company and its subsidiaries must have the same Financial Year and prepare their financial statements using the same accounting standards.
Ownership and Control: The parent company must own at least 95% of the share capital, hold at least 95% of the voting rights, and be entitled to at least 95% of the profits and net assets of the subsidiary.

It is important to note that the ownership, rights, and entitlement can be held either directly or indirectly through subsidiaries. However, Tax Groups cannot include an Exempt Person or Qualifying Free Zone Person.

How to calculate the Taxable Income of a Tax Group?

Once a Tax Group is formed, the parent company must prepare consolidated financial accounts covering each subsidiary that is a member of the Tax Group for the relevant Tax Period. In the process of calculating the Taxable Income of the Tax Group, transactions between the parent company and each group member, as well as transactions between the group members, would be eliminated.

By consolidating financial accounts and eliminating inter-group transactions, Tax Groups can achieve a more streamlined and accurate calculation of their Taxable Income, optimizing tax efficiencies and compliance.

What are the Benefits of Forming a Tax Group?

By forming a corporate tax group in the UAE, businesses can also enjoy benefits such as better tax planning and reduction of compliance costs. The UAE corporate tax Public Consultation Document provides a detailed description of the benefits and requirements associated with tax groups. However, it is advisable to seek advice from corporate tax advisors in Dubai before making any decision as the government is yet to issue the Corporate Tax Law. This article will provide you with valuable insights into the benefits and requirements of forming a Tax Group.

At Alliance Prime Accounting & Tax Consultancy, we understand the complexities of Tax Grouping and its potential benefits for businesses. Our team of expert professionals is here to provide comprehensive guidance and assistance in forming and managing Tax Groups, ensuring that your company’s tax obligations are met efficiently and effectively.

As the corporate tax landscape evolves, count on Alliance Prime to be your trusted partner in navigating these changes and optimizing your tax strategies to drive your business towards success. If you have any questions or require further assistance regarding Tax Grouping or any other tax-related matters, do not hesitate to reach out to us.

Why is Alliance Prime the best Tax Consultancy in Dubai?

If you would like additional information or clarity on Tax Group or require assistance for planning your Tax Group formation, and its impact assessment, visit localhost/alliance-acc/ or contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com

Obtain Your Tax Residency Certificate in UAE

Posted on July 26, 2023 by admin

The Tax Residency Certificate in the UAE is a document provided to business owners and entrepreneurs to help prevent double taxation. This document is applied for by individuals who are paying taxes in another country, wherein they have an income due to a business. As the UAE is a part of several Double Tax Avoidance Agreements with other countries, having such a certificate helps them avoid being taxed in both countries. Business owners can, therefore, avail of tax benefits by obtaining the Tax Residency Certificate.

Eligibility Criteria for TRC in UAE

Natural persons: The applicant must have been a resident of the UAE for at least 180 days. Also an annual lease agreement officially documented by the competent authorities, such as EJARI in Dubai, municipalities in other Emirates and free zone authorities must be attached to the application.
Legal persons: In order to be eligible to apply for a TRC, the legal person must have been established for a period of at least one year. Financial accounts must be audited or prepared by an accredited audit firm and attached with other required documents to the application. The report must be certified and stamped by the audit firm. The audited financial report to be attached to the application must cover the year for which the certificate is requested. If the certificate is requested for the present year, the audit report must be covering the past year.

* Note: Offshore companies are not allowed to apply for the service because they are not listed in the Double Taxation Avoidance agreements. Unless otherwise specified, the validity of this document is one year.

Documents Required for Tax Residency Certificate in UAE

For Companies

Trade license
Partners’ attachment
Certified Establishment Contract
Passport copy of the owners, partners and directors
ID proof copy of the owners, partners and directors
Residence permit copy of the owners, partners and directors
Audited financial accounts
Authorised bank statements of the last six months
Verified lease agreement
Details regarding the company’s organizational structure

For Individuals:

Passport
Valid Residence Permit and ID Proof
Residential lease agreement/Rental Agreement or Registration Certificate
Authorised bank statements of the last six months
Salary Certificate
GDRFA issued Exit and Entry report
Tax forms of the country wherein the Domicile Certificate will be submitted

Things to Know About the Tax Residence Certificate

The entire process takes around 14 to 21 days.
Once completed, the Tax Residency Certificate is sent to you via your registered email-ID.
Once you receive the certificate, it will remain valid for a year from the date of issue.
While Onshore, Mainland and Free Zone Companies can apply for the Domicile Certificate, Offshore companies cannot, as they are not regarded as residents of the UAE.
However, Offshore companies do have the option of applying for a Tax Exemption Certificate, in place of the TRC.

Benefits of Obtaining the Tax Residency Certificate in the UAE

Avail of tax benefits associated with Double Taxation Avoidance Agreements.
Helps avoid having to pay higher taxes, enabling you to save on valuable resources.
In case you are a part of the CRS group of nations, the TRC helps with maintaining compliance.
Allows you to claim excess taxes paid.
Protects the national economy by ensuring fairness for both taxpayers and the government.
Builds credibility and transparency for the company involved.
Proves residency in the UAE, helping establish authenticity.

Our team of expert professionals at Alliance Prime can help you with every step of the process, enabling you to obtain the certificate with ease. We focus on customer satisfaction and do everything in our power to make sure you receive the best possible service. Furthermore, it is our commitment towards our clients and our strong work ethics that have enabled us to become one of UAE’s best tax accounting, bookkeeping and audit firms. With decades’ worth of experience in the field of finance and compliance in the UAE, our team will surely help you with every need you might have. We also go the extra mile to ensure the timely delivery of services and bring you the best service at the most reasonable prices. So, partner with us, at Alliance Prime, and lay to rest all your worries regarding taxation and compliance.

Why is Alliance Prime the best Tax Consultancy in Dubai?

To obtain a TRC or related enquiry, visit localhost/alliance-acc/ or contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com