RNI Consulting, established in 2019 specializes in Financial Accounting, Audit services, Tax and Legal services, Budget Review, Advisory services, Risk Management, HR & Payroll and Business Incorporation and liquidation.

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+971-56-418-1640

Office No 1407, The Regal Tower, Business Bay, Dubai – UAE

info@rniconsulting.ae

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Taxation

Corporate Income Tax & VAT Services Dubai

Since the introduction of the Value Added Tax (VAT) in the UAE on January 1st, 2018, understanding and complying with VAT has become essential for businesses. VAT, a key consumption tax, applies a standard 5% rate to a broad spectrum of goods and services, excluding necessities like healthcare, education, and basic food items.

The complexities of VAT regulations demand expert navigation, and that’s where our specialized VAT services play a vital role. Our VAT registration services ensure your business meets all compliance requirements from the outset. To ease the burden of VAT management, we offer efficient online VAT return services, streamlining both filing and payment processes.

Beyond VAT, we also provide customized corporate income tax services. Our expertise covers a range of needs, from filing business taxes to preparing and submitting corporate tax returns. We cater to various business structures, ensuring precise handling of corporate income tax matters.

For a more comprehensive approach, we offer VAT General Consultancy for bespoke advice and strategy formulation. Our services extend to VAT Return Review and Submission Assistance, prioritizing accuracy and punctuality. Additionally, our VAT Compliance Audit and VAT Audit Liaison with FTA services reinforce your business’s adherence to regulations, offering assurance and peace of mind.

Choose us as your partner for all VAT and corporate income tax requirements. We promise a seamless and efficient service experience, tailored specifically to your business’s needs.

VAT Advisory Services

Our VAT services in Dubai aid our clients stay well-informed of regulatory changes, at the same time as offering direct access to our local experts and a robust control outline which provides accuracy and devotion to reporting deadlines.

 

Challenges to Businesses

In spite of the fact that seen by numerous individuals as only a accounting challenge, the new VAT framework pervasively affects the manner in which you do business. Recognizing the effect of VAT on costing, product pricing, cash flow, procurement and supply chain and executing the fundamental changes in the present IT system, accounting and financial reporting programs are the significant challenges to confront while ensuring compliance with the new regime. New operating models will have to be adopted. Employees will need comprehensive training to increase their skill sets for the same.

Our experienced taxation team with exposure to different tax regimes in the Middle East and Sub-Continent is capable of advising and assisting businesses in the region to improve their systems and processes. RNI with our experts by having depth knowledge of tax related matters is able to intensely reduce the management burden and save time on VAT complications.

VAT Implementation

A business must register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000, the business is liable to pay tax.
Furthermore, a business may choose to register for VAT voluntarily where the total value of its taxable supplies and imports (or taxable expenses) is over the voluntary registration threshold of AED 187,500.

VAT Rates in UAE

The types of VAT rates in the UAE are:

  • Standard rated (5% VAT)
  • Zero-rated (0% VAT)
  • Exempted (No VAT)

VAT Registration & De-registration

  • The businesses must apply for VAT registration if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. Furthermore, a business may choose to register for VAT voluntarily where the total value of its taxable supplies and imports (or taxable expenses) is over the voluntary registration threshold of AED 187,500. RNI Consulting offers a VAT registration service to ensure that companies who are eligible to have the TRN must get the TRN on time.

VAT Return Filing

  • VAT return filing is mandatory for all taxable businesses. Once you have registered for VAT in UAE, you are required to file your VAT return and make related VAT payments within 28 days after your tax period ends. If your business fails to file a VAT return on a timely basis or submits the wrong VAT return filing then the business will incur VAT audit and VAT fines from the FTA. RNI Consulting is offering quality and timely VAT return filing services in Dubai on a monthly and quarterly basis.

VAT Refund

  • Input VAT is the tax payable for items (goods and services) purchased by a business or taxable person in UAE. On the other hand, output VAT is collected tax on items sold by a business or taxable person in UAE. If your business is paying more tax as compared to the tax your business is collecting from the clients, then you are eligible to claim an FTA VAT refund in UAE. RNI Consulting offers VAT refund services to help our clients with their VAT refund applications.
  • Other than above mentioned services we also provide below mentioned services too:
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• Excise Tax Registration Service

• Excise Tax Advisory Service

• Tax Group Registration and De-registration

Corporate Tax Advisory Services

UAE is introducing Corporate Tax (CT) with effect from 1st June 2023.

Corporate Tax in UAE is a form of direct tax levied on the net income or profit of corporations and other businesses. Going forward, licensees operating in UAE will be required to assess the impact of the upcoming regulations to their business and undertake the necessary compliance. On this note, the UAE Tax Authorities have already stated that non-compliance will translate to crippling penalties.

Scope of the Corporate Tax

The UAE has introduced a federal tax system that is applicable to all businesses and commercial activities operating within the seven emirates. However, there are certain exceptions:

Businesses operating in the extraction of natural resources. These will continue to be subject to the tax decrees issued by the respective Emirate Individuals earning income in their personal capacity (i.e. salary, investment income) as long as the income generating activity does not require a commercial license.
Businesses registered in Free Trade Zones, provided they comply with all the regulatory requirements, and that do not conduct business with Mainland UAE.

It is interesting to note that the foreign Banking sector, which has been operating under the Emirate level Bank tax decree will now be subject to the UAE Federal Tax Law. The impact of CT on the Emirate level banking tax decree will be communicated in due course. This will be a significant shift for both branches of foreign Banks, that will need to switch to the new Law and for local banks who similar to other businesses will now be subject to corporate tax.

Tax Rates

The announced UAE CT regime introduces a tier system with 3 rates:

  • All annual taxable profits that fall under AED 375,000 shall be subject to zero rate.
  • All annual taxable profits above AED 375,000 shall be subject to 9% rate.
  • ALL MNEs that fall under the scope of Pillar 2 of the BEPS 2.0 framework (i.e. consolidated global revenues in excess of AED 3.15 billion) shall be subject to different rates as per OECD Base Erosion and Profit-Sharing rules.

Taxable profits are the accounting profits subject to certain adjustments. At RNI, our team of experts can help you in assessing the challenges and opportunities that the introduction of a Corporate Tax will bring.

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