Understanding Corporation Tax in the UAE
Historically, the UAE has always been known for its extremely low and often free business and personal taxes. In 2023, things have changed. The UAE Ministry of Finance (MoF) recently revealed their decision to introduce a new federal corporate tax system. This system is set to take effect for financial years beginning on or after June 1, 2023.
Often misunderstood to be a negative change, the new changes will enable further growth and investment in infrastructure, education and healthcare cross the region.
All companies, regardless of their type or jurisdiction, are required to register for corporate tax and a corporation tax return has to be submitted each year (even if no tax is due).
The current rate of corporation tax is 9% on net profits above AED 375,000. Simply, this equates to a tax free allowance of AED 375,000 (approx $100,000 USD).
At Strive Consultants, we understand the complexities of corporation tax and its impact on businesses. Our goal is to provide tailored tax solutions that optimize your tax liabilities, ensure compliance with UAE tax laws, and maximize tax-saving opportunities. Let us handle your corporation tax needs so you can focus on growing your business with confidence.
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Our Approach to Corporation Tax
We tailor our tax services to meet the unique needs and goals of each business, ensuring personalized solutions.
1. Expert Guidance
Our team of tax specialists stays updated with the latest tax regulations and provides expert guidance to navigate complex tax scenarios.
2. Efficient Processes
We streamline tax processes and workflows to minimize the administrative burden on businesses and ensure accuracy in tax filings.
3. Proactive Compliance
Our proactive approach ensures that businesses meet their tax obligations on time and avoid penalties.
Why Choose Strive Consultants?
Experience and Expertise: With years of experience in tax advisory and compliance, we offer reliable and efficient tax solutions.
Client-Centric Approach: We prioritize client satisfaction and work closely with businesses to achieve their tax-related objectives.
Transparent Communication: We believe in transparent communication and keep our clients informed about tax matters every step of the way.
Peace of Mind: Partnering with us means peace of mind, knowing that your corporation tax matters are in capable hands.
Client Testimonials
See What Our Clients Say About Our Corporate tax and Compliance Services
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If you are looking for a reliable, professional, and efficient company to help set up your business and arrange visas in the UAE, look no further than Strive. They are fantastic, and I wholeheartedly recommend their services to anyone seeking a seamless and successful business setup experience!
Strive handled the entire process of setting up our business in Dubai and the visa processes for our family. I literally couldn't fault them on one thing. The entire process was seamless - they were super quick to respond to our endless questions. I wouldn't hesitate to recommend them to anyone.
The team at Strive made my experience transitioning abroad seamless. Finding people who are straight, informative, and speak from their own experiences is what I was after, and with Pali and the team, I got exactly that! Highly recommended.
Frequently Asked Questions About Our Corporation Tax Services
Do all businesses in the UAE need to pay corporation tax?
Not all businesses in the UAE need to pay corporation tax. According to the new rules, corporate tax is only levied on taxable profits that exceed AED 375,000 per year. Therefore, businesses with annual earnings below this threshold will not be liable to pay corporate tax. However, all businesses, regardless of their earnings, are required to register for corporate tax.
How can Strive Consultants help with corporation tax compliance?
We provide comprehensive corporation tax services, including tax planning, compliance, and filing. Our team ensures that your business meets all regulatory requirements and takes advantage of any available tax benefits.
How often do I need to file corporation tax returns?
Corporation tax returns are usually filed annually. Strive Consultants can assist you in preparing and submitting your tax returns on time to avoid any penalties.
What are the penalties for late filing or non-compliance with corporation tax regulations?
Penalties for late filing or non-compliance can be substantial and may include fines, interest on unpaid taxes, and potential legal action. Our team ensures timely filing and full compliance to mitigate any risks.
What support does Strive Consultants offer during a tax audit?
In the event of a tax audit, we provide comprehensive support, including preparing necessary documentation, representing your business in discussions with tax authorities, and ensuring a smooth audit process.
How do I get started with Strive Consultants' corporation tax services?
To get started, contact us to schedule a consultation. Our expert tax advisors will assess your business's needs and develop a tailored tax strategy to ensure compliance and optimize your tax position.
Get compliant from day one
We offer a range of accounting packages to make managing corporation tax simple
- Free corporation tax registration
- Low cost monthly book keeping
- Financial planning