Corporate TAX Registration in Dubai

With extensive experience in UAE's changing tax regulations, we are experts in corporate tax assessment, audit, planning, and implementation.
Starting from June 1st, 2023, the UAE government has legislated a new tax known as Corporate Tax (CT), and businesses must take the necessary steps to prepare for it and meet their compliance obligations. This is where Business Heads can help. We offer guidance and assistance in planning and meeting CT obligations, ensuring that corporations in the UAE can seamlessly streamline their tax-related affairs. Our tax advisory services are designed to provide peace of mind and help businesses in the UAE thrive.

 What is the UAE Corporate Tax?

The UAE government issued the Federal Decree-Law No. 47 of 2022 on the taxation of businesses and corporations on 09 December 2022. This is referred to as the UAE Corporate Tax Law.

The Corporate Tax or the CT in short is a form of direct tax that is levied on the net profit of corporations and businesses in the UAE. Corporations in the UAE are required to register for the corporate tax which is going to be applicable from 1 June 2023.

 FTA-Registered Tax Agents in Dubai, UAE

We are an registered tax consultant in UAE offering world-class quality services in the corporate tax domain including advisory, financial management, CT registration, CT implementation, bookkeeping, accounting, consultancy, CT compliance, and more.

We take pride in being the top choice for corporate tax services in Dubai, and all over the UAE. Our CT experts stay updated with the changing tax landscape to ensure that we offer you the best advisory services that minimize your tax liabilities and maximize your ROI.

 Expert Corporate Tax Consultancy

We have a team of exceptional tax agents, registered with the Federal Tax Authority. Our tax agents work with corporations to handle their tax-related affairs, from planning to legal representation in front of the FT

 Ensure Your Corporate Tax Compliance

Corporate tax compliance can be tricky, especially with the implication of new tax laws by the government. We help local and foreign organizations navigate tax compliance challenges in an effective, to minimize tax liabilities. Cost-Effective Services

Our services are top-of-the-line, yet affordable at the same time. We aspire to help new and established businesses understand the UAE corporate tax compliance obligations and capitalize on them to stay ahead of the competition. This is the reason why we offer our services at market competitive prices.

 We Are Experts In:

• CT Impact Assessment

• CT Implementation Support

• CT Compliance

• CT Review

• Legal Representation

 Corporate Tax in UAE – Complete Guide for Businesses

The Corporate Tax is going to be imposed on the taxable Income, at the rates determined under this UAE Federal Decree-Law No. 47 of 2022, and payable to the Federal Tax Authority under this Decree-Law and the Tax Procedures Law.

The businesses will be subject to UAE Corporate Tax (CT) from the beginning of their first financial year, starting from 1st June 2023.

 Who is Corporate Tax Applied On?

The Corporate Tax is going to be imposed on the taxable Income, at the rates determined under this UAE Federal Decree-Law No. 47 of 2022, and payable to the Federal Tax Authority under this Decree-Law and the Tax Procedures Law.

The businesses will be subject to UAE Corporate Tax (CT) from the beginning of their first financial year, starting from 1st June 2023.

 Who is Corporate Tax Applied On?

Resident person: Taxable income derived from the United Arab Emirates or from outside the state.

Natural Person (Resident): Income derived from the United Arab Emirates or from outside the state in relation to business or business activity conducted by the natural person in the United Arab Emirates

 A Non-Resident Person:

Resident person: Taxable income derived from the United Arab Emirates or from outside the state.

Natural Person (Resident): Income derived from the United Arab Emirates or from outside the state in relation to business or business activity conducted by the natural person in the United Arab Emirates

 A Non-Resident Person:

The taxable income which is attributable to the Permanent Establishment of the person in the United Arab Emirates

The State sourced income which is not attributable to the Permanent Establishment of the person in the United Arab Emirates

The taxable income which is attributable to the nexus of the Non-Resident Person in the state as determined in a decision by the Cabinet

 Who is a Resident Person?

Companies and other juridical persons that are incorporated or otherwise formed or recognized under the laws of the UAE will automatically be considered Resident Persons for CT purposes.

This covers juridical persons incorporated in the UAE under either mainland legislation or applicable Free Zone regulations and would also include juridical persons created by a specific statute.

Foreign companies and other juridical persons may also be treated as Resident Persons for Corporate Tax purposes where they are effectively managed and controlled in the UAE.

Natural persons will be subject to Corporate Tax as a “Resident Person” on business income from both domestic and foreign sources.

Any other income earned by a natural person would not be within the scope of Corporate Tax example, Salaries, dividends, capital gains, and other income derived in a personal capacity

 Corporate Tax Exemption Rules & Regulations

The following “Tax Persons” in the UAE are exempt from Corporate Tax as per the FTA guidelines:

• A Government Entity

• A Government Controlled Entity

A Person who owns an extractive business in the UAE, that meets the conditions of Article 7 of this Decree-Law.

A person who owns a non-extractive natural resource business in the UAE, that meets the conditions of Article 8 of this Decree-Law

There is also an exemption for Qualifying Public Benefit Entity under Article 9 of this Decree-Law.

The exemption is applicable to an Investment Fund under Article 10 of this Decree-Law as well.

A public pension or social security fund is also exempt from the CT. Some other categories of exemption include a private pension or social security fund that is subject to regulatory oversight of the competent authority in the emirates. It should also meet any other conditions that may be prescribed by the Minister.

Also, a juridical individual in the emirates is also exempted from CT, that is wholly owned and controlled by an Exempt Person specified in paragraphs (a), (b), (f), and (g)

 Corporate Tax Imposing Guidelines

Corporate Tax is applicable on a specified Taxable Income earned by a “Taxable Person” in a Tax Period in the UAE.

Corporate Tax is going to be imposed on an annual basis. The Corporate Tax liability is to be calculated by the Taxable Person using self-assessment

The starting point for calculating CT Taxable Income is the Taxable Person’s accounting income (i.e., net profit or loss before tax) as per their financial statements. The CT Taxable Person will then be required to make required adjustments and changes to determine their Taxable Income for the tax period.

 Corporate Tax Timeline

Corporate Tax (CT) shall be applicable on Businesses and Taxable persons in UAE from financial years starting on or after 1st June 2023. Hence the Effective Date on which Corporate Tax will become applicable will be different from business/taxable person to business, based on their specific financial year.

Taxable Person must file a Tax Return in applicable format by no later than nine months from the end of the relevant Tax Period. The same timeframe would be applicable for the payment of any Corporate Tax due in respect of the Tax Period for which a CT return is filed.

 Corporate Tax Rate

Corporate Tax will be imposed on the Taxable Income at the following rates:

• 0% Corporate tax would be on the portion of the CT Taxable Income not exceeding the amount specified in a decision made by the Cabinet at the suggestion of the Minister.

• 9% on corporate tax would be applied to the “taxable Income” that exceeds the amount specified in a decision made by the Cabinet at the suggestion of the Minister.

The UAE Corporate Tax will be imposed on a Qualifying Free Zone Person at the following rates:

• 0% Corporate Tax on Qualifying Income.

• 9% CT on Taxable Income that is not Qualifying Income under Article 18 of this Decree-Law and any decision issued by the Cabinet at the suggestion of the Minister in respect thereof. Chapter Three – Exempt Person Article 4.

 Corporate Tax Registration, Filing, and Payment

All “Taxable Persons” in the UAE, including Free Zone Persons, would have to register for the UAE Corporate Tax (CT) and obtain a Corporate Tax (CT) Registration Number.

 CT Record Keeping

A Taxable Person will maintain all records and documents for a period of seven years following the end of the Tax Period. The documents should support the information to be provided in a Tax Return or in any other document to be filed with the federal tax authority.

 Financial Statements

The Federal Tax Authority may, by notice or through a decision issued by the Authority, request a Taxable Person to submit the Financial Statements. The statement would be used to determine the Taxable Income for a Tax Period.

 How Business Heads Tax Consultant Can Help You

Assisting to determine whether your business will be subject to Corporate Tax and if so, from which date.

Understand the requirements for your business under the CT Law, including:

Whether and by when your business needs to register for CT?

What is the accounting and Tax Period for your business will be?

When will your business need to file a CT return?

What procedures or applications your company may or should make for CT purposes?

What financial information and records your business will need to keep for CT?

 CT Consultation

To assist you in Bookkeeping, accounting, and review of awareness of CT law

Prepare and audit financial statements

Contact Business Heads for Professional Corporate Tax Services in UAE

Business Heads is the best corporate tax services company in UAE with years of practical industry experience. We have helped a wide array of local and international businesses in the UAE plan and implement custom tax compliance strategies. Our qualified tax consultants can help you navigate the ever-changing tax laws while ensuring CT compliance for your business.

Get in touch with Business Heads for professional corporate tax advisory services in UAE.

 ** FAQs

What does a corporate tax advisor do?

A corporate tax advisor is responsible for planning and implementing tax strategies for corporates, meant to reduce liability and ensure tax compliance. Tax advisors also offer legal representation in front of the local tax authorities.

 What is the current corporate tax in UAE?

• The corporate tax in the UAE is going to be effective from 1st June 2023 and the corporates will be subjected to a 9% tax from the start of their financial year started from the aforementioned date.

• Is UAE corporate tax-free?

• UAE is no longer tax-free for corporations. The corporations will be subjected to a corporate tax starting from 1st June 2023.

• Who is in charge of corporate tax enforcement in the UAE?

• The Federal Tax Authority (FTA) is responsible for the administration, collection, and enforcement of corporate tax in the UAE.