Corporate Tax Services UAE | Compliance & Advisory 🥇

Corporate Tax Services UAE

The UAE started to apply federal corporate tax to businesses beginning on June 1, 2023. MFSCAS Auditing guides companies in UAE about all the rules, rates, and tax planning steps needed for compliance. Understanding Corporate Tax Services UAE is now very important for every business that operates in the country. In this article, you’ll learn all the major rules, the right way to file, exemptions, and what you need to do.

Significance of Corporate Tax in UAE

Corporate tax in UAE supports the country’s goal to build a stronger, sustainable economy. The tax system wants to help with corporate governance and make the UAE a global business hub. When the government added this tax, the main aim was to follow international rules, stop harmful tax practices, and increase trust from investors. The government uses the tax money to improve infrastructure and public services.

• Corporate tax helps the UAE compete globally.
• The system encourages business transparency.
• Rules align with international best practices.

Why Choose UAE?

Even with this new corporate tax, UAE is still a leading country for doing business. UAE offers the lowest corporate tax rates in the region. For example, France has 26.5%, the US has 21%, and India has rates from 25% to 30%. The Gulf countries attract many investors with their good locations and fair tax policies. UAE remains the top choice for people who want to invest in global businesses because of these low tax rates and simple laws.

Scope of UAE Corporate Tax

The corporate tax in UAE affects many groups and sectors. Here are the main points:

• Every business or person with a commercial license in the UAE must pay if not exempt.
• Free zone businesses may still get special tax benefits if they meet the legal conditions.
• Foreign companies or people must pay if they do regular business in the UAE.
• The law covers banks, real estate companies, agencies, and brokers.

This scope means most companies must know their tax duties. MFSCAS Auditing provides guidance for each situation.

Exemptions for Corporate Tax in UAE

Not every business or person pays the corporate tax. UAE made several exemptions:

• Companies that extract natural resources pay tax only at the emirate level, not federal.
• Businesses that earn dividends or capital gains from qualifying shares are exempt.
• Certain group transactions and company reorganizations are not taxed if they meet set rules.
• Employees’ salaries or individual incomes are exempt.
• Interest from personal savings or deposits is not taxed.
• Foreign investors do not pay tax on dividends, interest, capital gains, royalties, or other returns.
• Individual real estate investments are exempt if made in personal capacity.
• Income from shares or other securities in a person’s name is not taxed.

It’s important to check with MFSCAS Auditing to see if you qualify for any exemption.

Taxable Income

A company’s taxable income is the profit after removing allowed expenses and exemptions. UAE law says companies must:

• Calculate profit based on official financial statements.
• Remove exempt income from the calculation.
• Only include real profits, not fake transactions.

If you are not sure about what is taxable, MFSCAS Auditing can help with clear steps.

Corporate Tax Rate

The UAE’s tax rate is simple and easy to follow:

• 0% for profits up to AED 375,000.
• 9% for profits over AED 375,000.
• Large multinational firms that fall under OECD Pillar 2 rules may pay a different rate.

These rates are the lowest in the region and keep UAE attractive for new businesses. Always double-check your calculations to make sure you follow the rules.

UAE-Sourced Income

Income is called “UAE-sourced” if it comes from activities inside the UAE. This means:

• Any income earned by a UAE branch of a foreign company is taxable.
• Income from services or contracts done inside the UAE is also taxable.
• Residents pay tax on worldwide income, while non-residents only pay tax on UAE income.

MFSCAS Auditing can help businesses understand these rules so they stay compliant.

Corporate Tax on Free Zones

Some companies work inside free zones. The law lets certain “Qualifying Free Zone Persons” (QFZPs) pay 0% tax on qualifying income if they:

• Have enough business presence inside the UAE.
• Earn eligible income as defined by the government.
• Meet transfer pricing and other rules.

A QFZP can choose the standard rate if they want, but most want the 0% benefit. MFSCAS Auditing helps businesses in free zones with all the details.

Tax Losses and Implications

Sometimes a business spends more than it earns. The law lets companies:

• Use losses from one year to lower their tax in future years.
• Set rules for how long you can carry losses forward.
• Share losses with group companies in some cases.

Tax losses help businesses manage tough times, like during economic slowdowns.

Key Points Before Calculating Corporate Tax

Here’s what you should remember before working out your tax:

• 0% rate for profits up to AED 375,000, 9% above that.
• Free zone companies may have a 0% rate for qualifying income.
• Law applies to resident and non-resident companies.
• Resident companies pay on worldwide income.
• Non-residents pay on UAE income only.
• Some activities and entities are exempt (government, certain investment funds, resource extraction).
• Free zone rules apply to branches and main offices in those zones.
• The law has transfer pricing rules for deals with related parties.

MFSCAS Auditing can help with the calculations to avoid mistakes.

Income Exempted from UAE Corporate Tax

Some entities do not have to pay UAE corporate tax. These include:

• UAE government agencies and their departments.
• Government-owned companies that meet special rules.
• Businesses working in natural resource extraction.
• Non-profit or public benefit entities listed by the Cabinet.
• Investment funds that meet certain standards.
• Pension or social security funds, public or private, if they qualify.
• UAE companies 100% owned by these exempted groups.

Ask MFSCAS Auditing to check your business status for exemption.

MFSCAS Auditing Corporate Tax Services for Businesses

MFSCAS Auditing has a team of experts who help businesses handle corporate tax. We know all about UAE and international tax laws. Our team helps you plan your taxes, file correctly, and avoid penalties. We check all records before you submit anything to the government.

Features of MFSCAS Auditing’s Corporate Tax Services in UAE:

• We have tax experts who know UAE and global rules.
• Our accredited managers share the best tax advice for every situation.
• We give you detailed tax reports that show the effects on your business.
• Our team checks every return before filing to avoid mistakes.

Contact MFSCAS Auditing if you want international standard corporate tax services. We guide clients step-by-step for the best results.

Challenges and Tax Policy Reforms

Every business faces tax challenges. UAE keeps updating its tax rules to match world standards. These reforms can be tough for companies to keep up with. MFSCAS Auditing helps clients prepare for every change.

• We plan your transition to the new UAE corporate tax rules.
• Our team checks your company’s needs and finds the best strategy.
• We help fill all the technical and legal gaps for compliance.

Corporate Tax Services We Provide

MFSCAS Auditing offers many tax services:

• Full review of quarterly and yearly income tax provisions.
• Help with uncertain tax positions and business combinations.
• UAE Corporate Tax impact assessment and risk checks.
• Review of your company’s IT and accounting systems for compliance.
• Support for tax grouping, free zone incentives, and cross-border transactions.
• Training sessions for your team about UAE tax rules.

Why You Need Corporate Tax Services in UAE

UAE businesses must follow strict tax laws. Corporate tax services help with:

• Calculating and filing taxes correctly.
• Reducing tax bills using legal tax planning.
• Following all rules to avoid fines.
• Getting expert advice on complicated tax questions.

MFSCAS Auditing is your reliable partner for all these needs.

Corporate Tax Solutions for Every Business

MFSCAS Auditing provides solutions for:

• General tax rules and specific company needs.
• Taxable person checks and base calculations.
• Free zone rules and how to benefit from them.
• Calculating correct taxable income and allowed deductions.
• Rules for group companies and related parties.
• All filing and clarification needs with the Federal Tax Authority (FTA).

We help every business, big or small, comply with the UAE’s new tax laws.

Steps in Corporate Tax Services in UAE

Here’s how MFSCAS Auditing supports you step by step:

1. Assessment: We review your business, activities, and finances.
2. Tax Planning: Our team suggests ways to save on tax.
3. Filing Returns: We prepare and file all tax reports and forms.
4. Tax Payment: We make sure you pay the correct amount on time.
5. Audit Support: We represent you if the government reviews your taxes.
6. Ongoing Advice: We answer questions and help keep your business compliant all year.

Corporate Tax Advisory in UAE

Every business is different. MFSCAS Auditing tailors its advice for your specific needs. We help with:

• Corporate tax registration and return filing.
• Explaining the newest rules from the FTA.
• Preventing fines and penalties with good planning.
• Full support for any other tax question.

We are known for quality and are highly recommended in the UAE.

Corporate Tax Registration and Filing in UAE

Registering for corporate tax is now a must for businesses in UAE. MFSCAS Auditing guides you through:

• Signing up with the Federal Tax Authority.
• Submitting required documents.
• Filing returns once a year (with extra schedules if needed).

If you miss deadlines, you may face heavy fines. Stay on track with MFSCAS Auditing.

Violations and Penalties

Not following the law can bring big fines. Common mistakes include:

• Not registering for tax on time.
• Submitting late returns.
• Giving wrong information in your forms.
• Not paying the full amount.

MFSCAS Auditing helps you avoid these problems by checking everything before filing.

Corporate Tax Impact on Business

Paying corporate tax changes how you run your business. It can affect:

• Cash flow and profit planning.
• Investments and expenses.
• How you structure your company or group.

Getting expert advice from MFSCAS Auditing means you can plan better and grow safely.

How MFSCAS Auditing Can Help Your Business

At MFSCAS Auditing, we stand with your business through every step of the corporate tax process. We believe in guiding you with trust and dedication, making sure you never feel “left high and dry.” Here’s what we offer:

• Assessment of your tax situation.
• Accurate calculation and filing of returns.
• Advice on tax-saving strategies.
• Full support during tax audits or questions from the government.
• Ongoing guidance all year round.

For more information:

Contact/WhatsApp: +971 50 266 5348

Visit our office: Book Authority – Office D22 – Sharjah – United Arab Emirates