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Barsha 1 - Dubai, UAE
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Corporate Tax
Corporate Tax Advisory Services
Introduction Corporate Tax in UAE
The United Arab Emirates (UAE), acclaimed for its business-friendly environment, has historically been distinguished by its appealing tax policies, notably the absence of a corporate tax. Yet, in a notable evolution, the UAE has recently revised its tax regime, introducing corporate income tax. This pivotal change in the nation’s fiscal strategies signifies its intent to broaden its revenue streams and conform to international tax norms.
For businesses like RNI Consulting operating in the UAE, this introduces a new aspect of financial management, particularly concerning the need to file taxes for business. Understanding and navigating the nuances of corporate tax return filing is now imperative. Entities must be adept in procedures to file company tax return, ensuring compliance with the updated tax regulations. This alignment with global standards in taxation represents a significant shift for the UAE, impacting corporate entities and their tax strategies.
The absence of corporate tax, along with various other incentives, played a crucial role in attracting foreign investment and fostering economic growth in the region. However, in line with global efforts to combat tax avoidance and to create a more sustainable and diverse economy, the UAE decided to introduce corporate taxation.
On 9 December 2022, UAE Ministry of Finance (MoF) issued new Decree-Law No. 47 of 2022, this new legislation, known as the Federal Corporate Tax (CT), introduces a comprehensive framework for corporate taxation in the UAE.
Effective from 1 June 2023, the corporate tax is applicable to all financial years commencing on or after that date. It encompasses all Emirates of the UAE and applies to all business and commercial activities conducted within the country. This means that companies operating in the UAE will now have obligations and responsibilities towards fulfilling their corporate tax requirements.
It’s important to note that the UAE CT is specifically aimed at business and commercial income, and does not apply to employment income or other non-business income earned by individuals in their personal capacity. This ensures that taxation is focused on corporate profits rather than personal earnings.
It is critical for companies doing business in the UAE to become familiar with the new Federal Corporate Tax and ensure compliance with its rules.
By availing our Corporate Tax related services, businesses can benefit from our expertise in navigating the intricacies of the corporate tax implementation, registration process, ensuring accurate and timely submission of required information, and minimizing the risk of non-compliance.
How We Help with Corporate Tax
At RNI Consulting, we understand the importance of adhering to tax regulations and the impact it has on businesses’ financial and operational aspects. Therefore, we strive to provide personalized and comprehensive assistance to our clients, allowing you to focus on your core business operations while maintaining compliance with the UAE’s corporate tax requirements.
Analysis
- Qualitative analysis on the impact of UAE CT and Transfer Pricing (TP) on the business
- Quantitative analysis to evaluate potential financial impact of UAE CT for business
- Identify restructuring and optimisation opportunities
- Flag the required system changes
Implementation
- Amend contracts and other legal agreements
- Review and implement necessary Transfer Pricing policies
- Implement changes to legal / organizational structure
- Obtain clarifications / tax rulings
- Apply for CT groups / exemptions
- Amend tax function and tax governance framework
- Implement system changes / updates
- Perform TP risk and opportunity analysis to identify the changes required from a transfer policy standpoint
- Training and awareness sessions
Post implementation
- Assist in Corporate Tax registrations
- Submit applications for tax groups registration and exemptions
- Prepare and submit Corporate Tax returns
- Prepare and submit Transfer Pricing documentation
- Provide Tax accounting / provisioning support
Corporate Tax Registration Services
At RNI Consulting, we are dedicated to providing professional Corporate Tax Registration services to assist businesses in complying with the Federal Decree Law No. 47 of 2022 titled “Taxation of Corporations and Businesses,” also known as the Corporate Tax Decree Law, issued by the Ministry of Finance in the UAE.
Under Article 51 of the Corporate Tax Decree Law, it is mandatory for every Taxable Person to register for Corporate Tax within the prescribed timelines and obtain a Tax Registration Number from the Federal Tax Authority (FTA), unless exempted by the Minister under specific circumstances.
To facilitate this process, we utilize the FTA’s digital services platform, EmaraTax, for Corporate Tax Registration. While currently, the registration process is primarily based on invitation-only from the FTA, it is anticipated that in the future, it will be open for all businesses.
Our primary objective is to make the Corporate Tax Registration process hassle-free for our clients. Our team of experienced corporate tax consultants assist businesses by guiding them through the requirements, helping to gather and organize the necessary documents, completing the online registration process, and ensuring compliance with the Corporate Tax Decree Law in a seamless manner.
We are Always Ready to Assist Our Clients
developing financial processes and procedures
Services
Contacts
Visit Us Daily
Office No 1407, The Regal Tower, Business Bay, Dubai – UAE
Have Any Questions?
+971-56-418-1640
Mail Us
info@rniconsulting.ae
Frequently Asked Questions
What is accounting service?
Accounting service involves the systematic recording, analysis, and reporting of financial transactions of a business. It includes bookkeeping, financial statement preparation, tax planning, and other financial services that help businesses manage their finances effectively.
Why do I need accounting service for my business?
Accounting service is essential for businesses to keep track of their financial health, comply with tax laws, and make informed decisions based on financial data. By hiring an accounting service provider, businesses can focus on their core activities while leaving financial management to the experts.
What types of accounting services are available?
There are various types of accounting services available, including bookkeeping, financial statement preparation, tax planning and preparation, payroll management, and financial advisory services. Businesses can choose to outsource these services to a professional accounting firm or hire an in-house accountant.
What are the benefits of outsourcing accounting services in Dubai?
Outsourcing accounting services in Dubai can provide several benefits, including reducing costs, improving accuracy and efficiency, ensuring compliance with regulations, and save time, as it allows businesses to focus on core operations while leaving financial management to experts.
What is bookkeeping and why is it important for my business?
Bookkeeping is the process of recording and organizing financial transactions in a systematic manner. It involves maintaining accurate records of income and expenses, tracking accounts payable and receivable, and reconciling bank statements. Bookkeeping is important for businesses because it provides a clear picture of their financial health, helps with decision-making, and ensures compliance with tax laws and regulations.
What is the difference between bookkeeping and accounting?
Bookkeeping is the process of recording financial transactions, such as sales, purchases, and payments. Accounting involves a broader range of activities, such as financial reporting, analysis, and tax planning. While bookkeeping is a critical component of accounting, accounting encompasses a wider scope of financial management.
How often should businesses in Dubai review their financial statements?
Businesses in Dubai should review their financial statements regularly to ensure accuracy and identify any areas for improvement. This could be done on a monthly, quarterly, or annual basis depending on the size and complexity of the business.
What kind of software or tools do accounting service providers use?
Most accounting service providers use accounting software, such as QuickBooks, Xero, or Sage, to manage financial transactions and generate reports. They may also use other tools, such as cloud-based storage, document management software, and online payment systems.
How can I improve my cash flow management?
Improving cash flow management involves strategies such as reducing expenses, improving collections of accounts receivable, negotiating better payment terms with vendors, and implementing effective budgeting and forecasting processes. It's important to have a clear understanding of your cash flow needs and to regularly monitor and adjust your strategies as needed.
What are some common bookkeeping mistakes to avoid?
Common bookkeeping mistakes include recording transactions in the wrong account, failing to record all transactions, failing to reconcile bank statements, and using incorrect or inconsistent accounting methods. It's important to stay organized, pay attention to detail, and implement consistent record-keeping practices to avoid these mistakes.