Category: Corporate Tax
Tax Consultants in Dubai
Tax Consultants in Dubai from Alliance Prime Accounting & Tax Consultancy offer extensive and reliable tax management and consultancy services tailored for businesses in the UAE. Our dedicated team of best tax consultants follows the highest standards of tax compliance practices for VAT, income tax, and Corporate Tax, catering to all businesses, residents, non-residents, and certain foreign companies with sourced income in the UAE.
Tax consultants are professionals who provide valuable assistance to individuals and businesses with their tax-related matters. They play a crucial role in helping clients understand and adhere to tax laws, while also offering advice on tax planning, preparation, and representation. Tax consultants can take on various roles, such as being Certified Public Accountants, approved auditors, Enrolled tax attorneys, or registered tax agents. With their expertise, they may represent clients in audits and appeals with tax authorities, ensuring their tax affairs are in order and compliant with the regulations.
Tax Consultants in UAE
In the UAE, the tax laws surrounding VAT, Excise Tax, and Corporate Tax present various challenges for businesses. To effectively address these challenges, efficient tax consultancy services are essential. Tax consultants in Dubai play a crucial role in assisting businesses with tasks like VAT and Corporate Tax registration and de-registration, filing tax returns, and processing refunds. By ensuring tax compliance, these experts help prevent businesses from incurring fines or penalties due to late registration or delayed tax return filings. Their expertise is invaluable in navigating the complexities of the tax landscape and safeguarding businesses from potential financial consequences.
Alliance Prime proudly owns the best tax consultants in the UAE, who have specialized in various types of taxes- VAT, Excise, and Corporate Tax. Each team ensures that you are compliant with the tax laws, thus avoiding penalties.
Role of Tax Consultants in UAE
Tax Consultants give the right advice, to prepare, and help individuals or businesses to file tax returns in UAE through tax consultancy services. The foremost tax return filing services offered by our Tax consultants in UAE are,
One of the significant roles of tax consultants is to maintain minimum tax for the clients, thus tracking the updated policies provided by banks, and organizations, and providing suggestions based on the financial stability of the client businesses. They are highly responsible for advising and providing relevant information to ensure compliance by the clients.
While preparing and submitting documents to the tax authority in the UAE, tax consultants help with the best practices. These consultants possess adequate knowledge of environmental factors such as updated tax rules and governmental guidelines affecting client businesses.
Let us look at some of the key roles of tax consultants in Dubai:
- Preparation of monthly and yearly tax returns and concerned compliance documents
- Recording files for documentation and maintenance
- Following the information about updates regarding tax laws, regulations, and practices
- Researching tax and customs-related issues, especially on behalf of an organization and its clients
- Interacting with the Tax Authority and customs team
- Actively participating in knowledge management, professional development, and the administrative activities of a company when needed
- Optimizing tax and budget-planning for a long-term
Tax Consultancy in Dubai, UAE
Alliance Prime Accounting & Tax Consultancy in Dubai offer comprehensive expertise in handling all types of direct and indirect taxes, including VAT, Excise, and Corporate Tax for businesses in the UAE. Our full tax consulting services cover a wide spectrum, starting from initial tax analysis and planning to continuous support and representation in tax-related challenges. Our team of skilled tax experts plays a pivotal role in assisting businesses and individuals in navigating the complexities of various tax regulations, ensuring smooth compliance and optimizing tax strategies. With us as your tax partner, you can confidently navigate the intricate world of taxes in Dubai.
We specialize in a comprehensive range of key taxes in the UAE, focusing on:.
- Value Added Tax
- Corporate Tax
- Excise Tax
- Custom Duty Tax
Tax Consultancy for VAT
Our top tax advisors are highly committed to staying updated with the latest developments from the Federal Tax Authority (FTA). With our team of FTA-approved tax consultants in the UAE, we prioritize delivering outstanding VAT solutions to businesses across the region. Our specialized VAT consultants are dedicated to helping your company achieve VAT compliance while strictly adhering to FTA legislation. Trust us to navigate the complexities of VAT regulations, ensuring your business meets all necessary requirements and remains fully compliant.
Tax Consultancy for Excise Taxes
Understanding your potential responsibilities concerning UAE excise tax is of utmost importance. Our team of excise tax specialists is fully committed to providing robust support and guidance, allowing you to navigate through any excise tax complexities effortlessly. We offer comprehensive excise tax advisory services, covering everything from registration to filing, ensuring that you remain fully compliant with all excise tax regulations. With our expert assistance, you can confidently manage your excise tax obligations and focus on the growth and success of your business.
Corporate Tax Consultancy
Alliance Prime Accounting & Tax Consultancy takes pride in its team of renowned corporate tax advisors and consultants, providing exceptional corporate tax services in the UAE. Our expert tax consultants thoroughly analyze and assess your business, enabling us to assist you in preparing accurate financial audit statements and ensuring seamless registration and filing of corporate tax with 100% compliance. With our dedicated support, you can navigate corporate tax requirements effortlessly, allowing your business to thrive in the UAE market.
Procedure for Tax Consultancy Services in UAE
The consultants implement certain procedures to provide the best tax consultancy services in UAE.
Here are the main procedures involved:
- Analyzing the financial aspects of the business
- Tax Planning
- Verifying the documents
- Tax Compliance
- Tax Implementations
- Review and Support
Tax Consultants and Tax Agents in Dubai
In the UAE, both Tax Consultants and Tax Agents play vital roles in assisting businesses and individuals with their tax responsibilities, although they have distinct differences.
Tax Consultants are experts in tax law and financial advisory, offering guidance on tax-related matters and strategies to minimize tax liabilities. However, they do not possess the authority to represent clients in dealings with the tax authority.
On the other hand, Tax Agents hold authorization from the Federal Tax Authority (FTA) and can represent their clients in communications with the FTA. They are equipped to handle tax return preparations and assist with audits or reviews conducted by the tax authority. Tax Agents must meet specific qualifications and education criteria, adhering to a code of professional conduct.
In summary, Tax Agents are government-authorized representatives who interact with tax authorities on behalf of their clients. Tax Consultants typically possess advanced education and experience in tax law, possibly holding professional designations like Certified Public Accountant (CPA) or Chartered Accountant (CA). Each plays a crucial role in supporting individuals and businesses with their tax matters in the UAE.
Tax Advisors in UAE
With over a decade of extensive experience, Alliance Prime Accounting & Tax Consultancy Dubai excels in delivering top-notch Tax Consultancy services in the UAE. Our highly qualified and knowledgeable tax consultants are dedicated to providing superior assistance with tax calculations and minimizing tax liabilities for your business. Keeping you compliant with the ever-changing tax laws, our Tax Consulting team in Dubai ensures you stay updated with the latest regulations from the country’s tax authority. Trust us to optimize your tax strategies and keep your business in full compliance with the tax requirements.
The Alliance Prime team also helps with these aspects as per the corporate Tax Law through the famous corporate tax services in UAE
Before implementing the Law:
- Corporate Tax Assessment Services – an indication of business of the concerned law
- Corporate Tax Consultancy
- Corporate Tax Registration Services
After implementing the Law:
Need Help with tax consulting? For assistance or queries, call Alliance Prime, or reach out to our office in Dubai.
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.
For any Tax or related enquiry, visit localhost/alliance-acc/ or contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com
UAE Corporate tax relief for small businesses in United Arab Emirates
The Ministry of Finance has taken a significant step towards supporting small businesses in the UAE with Ministerial Decision No. 73 of 2023 on Small Business Relief for Corporate Tax.
Small Business Relief aims to ease the burden on startups, small, and micro-enterprises by reducing their Corporate Tax and compliance costs. The decision outlines the revenue threshold and conditions for eligible businesses to avail the relief and also clarifies provisions related to carried forward Tax Losses and disallowed Net Interest Expenditure under this scheme.
Here’s what you need to know about Small Business Relief:
Eligibility and Revenue Thresholds
The Ministerial Decision establishes that businesses and individuals that generate an annual revenue below AED3 million will qualify for the small business relief exemption. The relief will be available for financial years beginning on or after 1 June 2023 until 31 December 2026. This applies if their revenue in the relevant tax period and previous tax periods is below AED3 million for each such tax period. Once the revenue threshold is exceeded, the small business relief will no longer be available.
Businesses that are eligible for relief but do not elect to apply for it will have the option to carry forward incurred tax losses and can disallow net interest expenditure from such tax periods. The Ministerial Decision expands on the relief already contained in the Corporate Tax Law, which applies to businesses with annual profits of less than AED375,000. Where this relief is applied, there is also no ability to carry forward losses.
Effective Period
The AED 3 million revenue threshold will apply to tax periods starting from 1st June 2023 and will continue until tax periods ending on or before 31st December 2026. In addition to meeting the above-mentioned threshold, other conditions must be fulfilled in order to be eligible for small business relief.
Exclusions
Small Business Relief won’t be available for Qualifying Free Zone Persons or members of Multinational Enterprises Groups (MNE Groups) with consolidated group revenues exceeding AED 3.15 billion.
Tax Losses and Net Interest Expenditure: Businesses not opting for Small Business Relief in specific tax periods can carry forward any incurred Tax Losses and disallowed Net Interest Expenditure for use in future tax periods without the relief.
Businesses Precluded
Small business relief is solely available to UAE entities who are a Resident Person and are not one of the following:
- a constituent company of a multinational enterprises group (groups of companies with operations in more than one country with a consolidated revenue exceeding AED3.15 billion); and
- a qualifying free zone person, (i.e. a legal person incorporated, established, or otherwise registered in a free zone).
Anti-Abuse Rules
The decision warns against artificial separation of business activities to claim Small Business Relief while exceeding the revenue threshold. Such arrangements may fall under the general anti-abuse rules of the Corporate Tax Law. Where a taxable person who has artificially separated their business, or business activity and the total revenue exceeds AED3 million in any tax period, and such person has elected to apply for small business relief, this would be considered an arrangement to obtain a corporate tax advantage under Clause (1) of Article 50 regarding the general anti-abuse rules of the Corporate Tax Law and may be set aside.
Burden is on the Business
Regardless of whether the relief is claimed, small business entities may be under an obligation to register for and file corporate tax returns. However, there may be a relaxation of filing and registration requirements for small businesses under rules that are still awaited.
Conclusion
If your business is a mainland business or incorporated in the UAE or if you are a person that operates a business in the UAE, you may be eligible for small business relief, provided that your revenue in the relevant tax period does not exceed AED 3 million.
As UAE’s corporate tax regime are still new, we look forward to seeing additional decisions clarifying the provisions of the Corporate Tax Law, such as those relating to qualifying income.
If you have any questions regarding the UAE corporate tax regime or its application to your business, please get in touch with your usual Reed Smith contact or one of the authors. We would be happy to assist you in determining whether corporate tax will apply to your business and what the next steps are to ensuring compliance.
Supporting the growth of small businesses is crucial for the UAE’s economy, and the Small Business Relief paves the way for a promising future for these enterprises.
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.
For any Corporate Tax or related enquiry, visit localhost/alliance-acc/ or contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com
A Quick Guide to Corporate Tax Registration in the UAE
FTA has invited all taxpayers in the state to register for corporate tax.
FTA has invited all taxpayers in the state to register for corporate tax.
Eligibility for Early Registration
Currently the registration is open for Public Joint Stock Companies ‘PJSC’, Private Shareholder Companies ‘PSC’, and other private entities such as Limited Liability Company “LLC”. Registration is required for all legal entities except those are Exempt Persons, unless insofar Exempt Persons conduct a Business or a Business Activity. Non-resident companies such as a Branch of a foreign company, and Sole Establishment should not register for now, but wait for further clarification from the FTA.
Distinction from VAT Registration
The UAE Corporate Tax ‘CT’ registration is a separate process from VAT registration. Companies registered for VAT should also register for Corporate Tax ‘CT’, and receive their Tax Registration Number “TRN”, which is unique per each Taxpayer.
CT Registration Assistance
Companies that are invited for early registration should follow the FTA’s guidelines for the registration process, and we would be glad to help you throughout the registration process. As an FTA Approved Tax Agent, Alliance Prime is a leading provider of auditing, accounting, taxation, and advisory services in the UAE. Our team’s experts will guide you through the complex laws and regulations of the UAE, including the Corporate Tax Registration process.
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.
For any Corporate Tax or related enquiry, visit localhost/alliance-acc/ or contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com
Ministerial Decision No (120) of 2023 on Transitional Rules for Corporate Tax.
UAE Corporate Tax Update📣
The Ministry of Finance UAE has issued Ministerial Decision No (120) of 2023 on Transitional Rules for Corporate Tax.
The decision includes adjustments for the opening balance sheet under the Corporate Tax Law and offers significant clarifications for businesses to transition smoothly before and after the enactment of the Law.
The decision applies to certain assets and liabilities held by businesses before the Corporate Tax Law comes into effect, such as:
- Immovable property
- Financial assets
When filing their initial Tax Return, businesses have the opportunity to make adjustments to the tax treatment of their assets and liabilities, in accordance with specific regulations. It is crucial for businesses to carefully consider and determine the approach they wish to take in this regard.
Under normal circumstances, their decision would be considered permanent. However, it is important to note that there may be certain exceptional situations or specific conditions where this permanence could be subject to change or reconsideration. These special circumstances would require additional evaluation or consideration before any adjustments or alterations to the initial decision are made.
There is further flexibility for the real estate sector
Companies with immovable property recorded on a historical cost basis, before the Corporate Tax comes into effect, can select the basis of the relief, using either:
✅ a time apportionment method; or
✅ valuation method
For details, refer the detailed copy of the Ministerial Decision here: https://mof.gov.ae/tax-legislation/
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.
For any Corporate Tax or related enquiry, visit localhost/alliance-acc/ or contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com
UAE Corporate Tax Registration is Open from May 15, Monday
The registration for UAE Corporate Tax has been started on May 15th, Monday through the EmaraTax platform.
The UAE’s Federal Tax Authority (FTA) has started registration for corporate tax through the EmaraTax digital tax services platform for public joint stock companies and private firms from Monday, May 15, 2023.
Under the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, PJSCs and private firms will be subject to a nine per cent corporate tax from the beginning of their first financial year that starts on or after June 1, 2023. Therefore, they must register and obtain a tax registration number for corporate tax purposes.
In line with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (“Corporate Tax Law”), which stipulates that Taxable Persons will become subject to Corporate Tax from the beginning of their first financial year that starts on or after 1st June 2023.
Therefore, Taxable Persons must register and obtain a Tax Registration Number for Corporate Tax purposes.
UAE Corporate Tax Registration
The FTA invited all Taxable Persons that are Public Joint Stock Companies and Private Companies resident in the UAE for Corporate Tax purposes to register with the FTA, noting that this will not cover Free Zone Persons for whom Corporate Tax Registration will be made available at a later stage.
Similarly, Corporate Tax registration for other categories of Taxable Persons, such as natural persons conducting Business or Business Activity as to be specified by a Cabinet Decision, will open at a later date.
The Authority explained that early Corporate Tax registration will allow ample time for companies and businesses to comply with their legal obligations.
For the time being, the Corporate Tax registration process will be available to individual legal entities only.
Entities that would like to form a Corporate Tax Group are required to register individually first, and then, at a later date, will be able to apply to form a Corporate Tax Group.
The UAE Ministry of Finance has also issued a guide explaining all aspects of the upcoming Corporate Tax in the country.
The guide aims to explain all aspects of the taxation guidelines and explains every single article in the law. Click here to download the Corporate Tax Guide issued by the UAE Ministry of Finance.
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.
For any Accounting or Taxation or related enquiry contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com
The Muwafaq Package: Innovative tax solutions to encourage SMEs in the UAE
The initiative offers innovative tax solutions and digital learning materials to facilitate self-compliance, along with quick and precise procedures.
The United Arab Emirates (UAE) has always been at the forefront of promoting and supporting small and medium-sized enterprises (SMEs) in the country. Inline with this, the Federal Tax Authority (FTA) has launched the Muwafaq Package which aims to make it easier for small and medium-sized enterprises (SMEs) to comply with tax regulations and conduct their business practices. The Muwafaq Package is a significant and fast project that seeks to create positive change in the SME sector quickly and adopt a new approach to government activities.
Benefits of Muwafaq Package
The package offers various benefits, including financial assistance, advisory services, and access to new markets. In addition to these benefits, the Muwafaq Package also has an impact on VAT and corporate tax in the UAE.
The Muwafaq Package provides several financial incentives to SMEs, including a zero-interest loan for six months and a 50% reduction in the fees for the SME registration and licensing process. These incentives help SMEs overcome their cash flow problems and reduce their operational costs. Moreover, the package offers SMEs access to credit facilities and loan guarantees, enabling them to secure funds to invest in their businesses, expand their operations, and create new job opportunities.
One of the primary benefits of the Muwafaq Package is the financial assistance provided to SMEs. The package offers several financial incentives, including a zero-interest loan for six months and a 50% reduction in the fees for the SME registration and licensing process. These incentives help SMEs overcome their cash flow problems and reduce their operational costs.
The financial assistance provided by the Muwafaq Package has a significant impact on VAT in the UAE. Since SMEs are the primary beneficiaries of the package, they are more likely to be eligible for the VAT refund scheme. The VAT refund scheme allows eligible businesses to recover the VAT they have paid on their purchases. By providing SMEs with financial assistance, the Muwafaq Package increases their chances of being eligible for the VAT refund scheme, thus reducing their VAT costs.
Moreover, the package offers SMEs access to credit facilities and loan guarantees. This enables SMEs to secure the necessary funds to invest in their businesses, expand their operations, and create new job opportunities. By providing SMEs with access to credit facilities, the package helps SMEs strengthen their financial position and grow their businesses.
Impact on VAT and Corporate Tax in the UAE
The Muwafaq Package has an impact on corporate tax in the UAE. One of the incentives offered by the package is a waiver of the administrative penalties imposed on businesses for late payment of corporate tax. This waiver is applicable to all businesses, including SMEs. By waiving the administrative penalties, the government encourages businesses to comply with their tax obligations, reducing the burden on SMEs and promoting a more favorable business environment in the UAE.
Another significant benefit of the Muwafaq Package is the advisory services provided to SMEs. These advisory services help SMEs overcome the challenges of running a business and make informed decisions that lead to their success. The advisory services provided by the Muwafaq Package also have an impact on VAT and corporate tax in the UAE. The package offers SMEs access to expert advice on various aspects of their business, including financial management, marketing, and legal compliance. This advice helps SMEs make informed decisions and comply with their tax obligations, reducing the risk of penalties and fines for non-compliance.
The package also provides SMEs with access to new markets through various initiatives. For example, the UAE government has launched an online platform called “Made in UAE” to showcase locally produced goods and services. SMEs can use this platform to promote their products and services and reach new customers.
Additionally, the package includes initiatives to promote e-commerce and digital transformation among SMEs. These initiatives help SMEs leverage technology to improve their operations, increase efficiency, and reach new markets.
Conclusion
The Muwafaq Package is a significant step towards supporting SMEs in the UAE. The package offers various benefits, including financial assistance, advisory services, and access to new markets. In addition to these benefits, the Muwafaq Package has an impact on VAT and corporate tax in the UAE. The financial incentives provided by the package increase the chances of SMEs being eligible for the VAT refund scheme, while the waiver of administrative penalties promotes tax compliance. The advisory services and initiatives to promote e-commerce and digital transformation also help SMEs comply with their tax obligations and reduce the risk of penalties and fines. Overall, the Muwafaq Package promotes a more favorable business environment for SMEs in the UAE and contributes to the growth and development of the country’s economy.
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.
For any Accounting or Taxation or related enquiry contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com
Federal Tax Authority board reviews corporate tax implementation progress
Federal Tax Authority to launch 4 ‘transformative’ projects to boost country’s competitiveness.
As the UAE’s Federal Tax Authority gears up to introduce corporate tax this year, the board has given approval to the 2022 financial statement, while also reviewing the development plans and performance indicators. As per Dubai Government Media Office, during the second meeting this year, the board was also informed about updates regarding the Federal Decree Law on the Taxation of Corporations and Businesses, as well as the FTA’s readiness and procedures leading up to its implementation.
During the meeting, which was presided over by Sheikh Maktoum bin Mohammed, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance, and FTA board chairman, the attendees were also updated on the collaboration between the Ministry of Finance and the FTA to ensure the smooth implementation of policies and decisions related to the new corporate tax law, according to the statement.
The introduction of this law aims to enhance the UAE’s global position as a prime destination for business and investment that complies with the highest international standards of tax transparency.
Last year, the UAE implemented a federal corporate tax law with a standard statutory rate of 9% that will become applicable for businesses commencing their financial year from June 1st onwards.
In December, the country passed the federal corporate tax law, which included companies earning more than Dh375,000 in the scope of the corporate tax category.
The board was also briefed about the progress the FTA has made in terms of its “transformational projects”, aimed at enhancing the country’s competitiveness.
According to the Media Office, the Federal Tax Authority is currently executing several significant projects, including the Muwafaq initiative aimed at enhancing ease of doing business and tax compliance within the small and medium-sized enterprises sector, the introduction of a Specialised Tax Agent, implementation of the Electronic Invoicing System, and the corporate tax system.
During its meeting, chaired by Sheikh Maktoum, the FTA Board of Directors reviewed the progress made in implementing the integrated tax system, as well as the results of the successful launch of the FTA’s advanced integrated digital tax services platform, EmaraTax.
The platform was activated in December 2022, with all services now available for taxpayers.
A comprehensive report reviewed by the FTA Board of Directors on the achievements, results, and developments of the Authority’s existing projects reveals that the number of registrants for Value Added Tax (VAT) has reached 351,514, while there are 1,549 registrants for Excise Tax, and 467 Tax Agents.
The report also outlines key statistics regarding VAT and Excise Tax, periodic returns, the payment of taxes, and refund requests that have been processed.
According to the report, the Federal Tax Authority has approved new applications from citizens requesting refunds on the tax they incurred for building their new homes, worth more than AED131m in February and March 2023, a growth of 13.92 per cent from last year.
This is a direct result of the seamless procedures implemented by the FTA to enable citizens to recover the tax incurred on building their new homes.
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.
For any Corporate Tax, enquiry contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com
UAE Corporate Tax: Conditions for Change in Tax Period
Conditions for Change in Tax Period for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
For the purposes of Article 58 of Federal Decree-Law No. 47 of 2022 referred to above, the Taxable Person can make an application to the Authority to change the start and end date of the Tax Period, or use a different Tax Period, where the following conditions are met:
- The change is for one of the following reasons:
-
- The Taxable Person’s liquidation
- Aligning the Resident Taxable Person’s Financial Year with the Financial Year of another Resident Person for the purpose of forming a Tax Group or joining an existing Tax Group, or aligning the Taxable Person’s Financial Year with the Financial Year of its domestic or foreign head office, subsidiary, parent, or ultimate parent company, for the purpose of financial reporting, or to benefit from a tax relief available under the Federal Decree-Law No. 47 of 2022 referred to above or under the legislation of a foreign jurisdiction (or)
- There is valid commercial, economic, or legal reason to change the Tax Period.
- The Taxable Person has not yet filed the Tax Return for the Tax Period he is applying to change.
- The application for change in Tax Period is in respect of any of following:
- Extend the current Tax Period to be a maximum of 18 months; or
- Shorten the next Tax Period to be between 6 and 12 months.
- The application shall be made before the lapse of 6 months from the end of the original Tax Period.
- Where the Taxable Person filed an application to shorten a Tax Period, the application shall not be in respect of a prior or current Tax Period.
Any provisions contrary to or inconsistent with the provisions of this Decision shall be abrogated. Implementation of the Decision shall be published in the Official Gazette and shall come into effect as of 1 June 2023. All Cabinet Decisions and Ministerial Decisions issued relating to the Corporate Tax Law are available on the Ministry of Finance’s website: www.mof.gov.ae.
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 UAE. If you’re looking for reliable and professional auditing, accounting, taxation, and advisory services in the UAE, look no further than Alliance Prime.
For any Corporate Tax, enquiry contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com
UAE CT Update: Corporate Tax Exemption for Public and Community Welfare Entities
Entities eligible for exemption are those that prioritize philanthropy, community services, and corporate social responsibility initiatives
The UAE Ministry of Finance (MoF) said public benefit entities that contribute to the welfare of society are eligible for tax exemptions under the country’s corporate tax law.
“The MoF unveiled a UAE Cabinet new implementing decision relating to qualifying public benefit entities for the purposes of the corporate tax law, which is designed to ensure that entities existing and operating for the wider public benefit are eligible for tax exemption,” the ministry of finance said in a tweet.
The tax exemption is designed to reflect these entities’ important role in the country, which often includes religious, charitable, scientific, educational or cultural value. The UAE said to qualify for the exemption, eligible entities must meet the conditions specified in Article 9 of the corporate tax law and must maintain compliance with all relevant federal and local laws.
The ministry called on all qualifying public benefit entities to register with the UAE Federal Tax Authority and obtain a tax registration number for corporate tax purposes.
The MoF unveiled a UAE Cabinet new implementing decision relating to Qualifying Public Benefit Entities for the purposes of the Corporate Tax Law, which is designed to ensure that entities existing and operating for the wider public benefit are eligible for tax exemption.#UAECT pic.twitter.com/e0fYR1LbOt
— وزارة المالية | الإمارات (@MOFUAE) April 23, 2023
The entities must also inform the ministry of any changes that may affect their status as qualifying public benefit entity.
In addition, various reporting obligations apply to Qualifying Public Benefit Entities, principally to check that they continue to meet the criteria for approval.
This Cabinet Decision also provides further certainty and transparency for taxpayers in relation to their deductible expenditure under Article 33 of the Corporate Tax Law, as donations and gifts will be allowed as deductible expenditure for Corporate Tax purposes if they are made to a Qualifying Public Benefit Entity listed in the Cabinet Decision.
Earlier, the Ministry announced corporate tax exemptions for non-resident persons, government entities, government-controlled entities, as well as extractive businesses and non-extractive natural resource businesses.
For any Corporate Tax, enquiry contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com
Source: https://mof.gov.ae/
What Is Transfer Pricing in Dubai?
In general, transfer pricing refers to the price agreed for transfer of goods, services and technology between related parties and connected persons. The UAE CT regime will have transfer pricing rules to ensure that the price of a transaction is not influenced by the relationship between the parties involved. In order to achieve this outcome, the UAE will apply the internationally recognised “Arm’s Length” principle to transactions and arrangements between related parties and connected persons.
Arm’s length Principle (ALP) ALP in case of related parties and connected persons transactions to be determined as per internationally recognised transfer pricing methods (for example comparable uncontrolled price method, resale price method, cost plus method, comparable profits method & profit split method) or under different method (s) where specified method cannot determine ALP; Provisions of ALP are applicable to both related parties and connected persons.
All Related Party transactions and transactions with Connected Persons will need to comply with transfer pricing rules and the arm’s length principle as set out in the OECD Transfer Pricing Guidelines.
Transfer Pricing documentation:
Business will be required to submit a disclosure containing information regarding their transactions with Related Parties and Connected Persons.
A business will also need to maintain a master and local file (with format and content consistent with the requirements prescribed under OECD BEPS Action 13) where the arm’s length value of their Related Party transactions exceeds a certain threshold in the relevant tax period.
The New UAE Transfer Pricing Regime: How would rules look like? Potential content of the TP documentation requirements
CbC report
CbC report requirements
- Revenue
- Profit before tax
- Cash tax paid
- Current tax accrual
- Capital and retained earnings
- Net book value of tangible assets
- Number of employees
- Complete list of entities and permanent establishment
Master File
Master File requirements
- Group wide description including supply chain, value drivers, main markets, high level functional analysis, details of business changes
- High level description of IP strategies, IP location and R&D management and location
- High level description of group financing arrangements
- Consolidated group accounts
- Description of APAs or other rulings
Local File
Local File requirements Transactional/entity specific:
- Local management structure
- Detailed functional analysis
- Economic analysis and reconciliations of TP to accounts
TP disclosure form
- TP disclosure form requirements
- Direct reading of crucial TP information Ownership information (beneficial owner, actual ownership, ownership %)
- Information on the profitability of each related party