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Corporate Tax

Corporate Tax Services in the UAE

Welcome to ANPJ's Corporate Tax Services page, where we provide professional assistance and guidance for managing corporate tax obligations in the United Arab Emirates. Corporate tax is a critical aspect of every business operating in the UAE, encompassing the tax levied on the profits earned by companies and corporations. Effective management of corporate tax is essential not only for compliance with local tax laws but also for maximizing tax efficiency and optimizing financial strategies.

Understanding Corporate Tax

Corporate tax regulations in the UAE have evolved significantly in recent years. In January 2022, the Ministry of Finance announced the introduction of corporate income tax, marking a pivotal moment in the country's fiscal policies. Subsequently, on December 9, 2022, The Federal Decree Law No. 47, also known as the "Taxation of Corporations and Businesses" or the "Corporate Tax Law," was issued. This legislation established the legislative framework for the implementation of Federal Corporate Tax in the UAE. Since June 1, 2023, corporate tax has been effective for financial years.

Scope of Corporate Tax

The Corporate Income tax applies to various entities and activities in the UAE, including:
1. All businesses and individuals conducting commercial activities under a commercial license in the UAE.
2. Free zone businesses, with exceptions for those that comply with regulatory requirements and do not conduct business in the UAE mainland.
3. Foreign entities and individuals conducting trade or business in the UAE on an ongoing or regular basis.
4. Banking operations.
5. Businesses engaged in real estate management, construction, development, agency, and brokerage activities.

Certain entities and activities are exempt from Corporate Tax in the UAE, such as:
1. Businesses engaged in the extraction of natural resources.
2. Dividends and capital gains earned by a UAE business from qualifying shareholdings.
3. Qualifying intra-group transactions and reorganizations (subject to meeting necessary
conditions).
4. Individuals earning a salary and other employment income.
5. Interest and other income earned by individuals from bank deposits or saving schemes.
6. Foreign investors' income from dividends, capital gains, interest, royalties, and other
investment returns.
7. Personal investment in real estate by individuals.
8. Dividends, capital gains, and other income earned by individuals from owning shares or
other securities.

Our Corporate Tax Services

At ANPJ, we specialize in providing professional Corporate Tax services tailored to meet the diverse needs of businesses in the UAE. Our experienced team of tax professionals is dedicated to helping businesses navigate the complexities of tax regulations, ensuring compliance, and optimizing tax liabilities.

Our services include:

Expert Guidance on UAE Tax Regulations: Our team stays updated with the latest developments in UAE tax laws to provide clients with accurate and timely guidance. We analyze the specific tax requirements of each client's business and offer tailored solutions to address their needs effectively.

Strategic Tax Planning: Effective tax planning is essential for minimizing tax liabilities and maximizing tax efficiency. We work closely with clients to develop strategic tax plans that align with their business goals and objectives. Our proactive approach helps clients identify tax-saving opportunities and implement strategies to optimize their tax position.

Assistance in Staying Compliant with the Law: Compliance with tax laws is crucial for avoiding penalties and maintaining the integrity of your business operations. We assist clients in meeting their tax compliance obligations by preparing and filing tax returns accurately and on time. Our thorough approach ensures that all tax-related documentation is complete and in accordance with regulatory requirements.

In addition to our core services, we offer comprehensive support and assistance to clients facing tax audits or inquiries from tax authorities. Our team has extensive experience in dealing with tax authorities and can effectively represent clients throughout the audit process.

Why Choose ANPJ for Corporate Tax Services?

  • Expertise: Our team comprises highly skilled tax professionals with in-depth knowledge of UAE tax laws and regulations. We leverage our expertise to provide clients with reliable advice and solutions tailored to their unique needs.

  • Personalized Service: At ANPJ, we understand that every business is unique, and we take a personalized approach to meet the specific needs of each client. We take the time to understand our clients' businesses and develop customized solutions to address their tax challenges effectively.

  • Commitment to Excellence: We are committed to delivering excellence in everything we do. Our team strives to exceed client expectations by providing superior service, timely communication, and proactive support. We are dedicated to helping our clients achieve their tax-related goals and objectives.

  • Trusted Partner: ANPJ is a trusted partner for businesses in the UAE, providing reliable and professional tax services. We build long-term relationships with our clients based on trust, integrity, and mutual respect. Our clients rely on us to navigate the complexities of corporate tax and help them achieve their financial objectives.

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Frequently asked questions

What is corporate tax, and who is liable to pay it in the UAE?

Corporate tax is a tax levied on the profits earned by companies and corporations. In the UAE, entities conducting commercial activities, including businesses under commercial licenses, free zone businesses (with exceptions), foreign entities conducting trade or business, banking operations, and businesses engaged in real estate activities, are liable to pay corporate tax.

What are the exemptions available under the UAE corporate tax regime?

Certain entities and activities are exempt from corporate tax in the UAE, including businesses engaged in natural resource extraction, dividends and capital gains earned by UAE businesses from qualifying shareholdings, qualifying intra-group transactions and reorganizations, among others. It's essential to consult with tax professionals to understand the specific exemptions applicable to your business.

What is strategic tax planning, and why is it important for businesses?

Strategic tax planning involves developing tax strategies tailored to a business's unique needs and objectives. It aims to minimize tax liabilities, maximize tax efficiency, and optimize financial strategies. Strategic tax planning is essential for businesses to achieve their financial goals while ensuring compliance with tax laws and regulations.

When was corporate tax introduced in the UAE, and what are the key regulations governing it?

Corporate tax was introduced in the UAE in January 2022, with the issuance of Federal Decree Law No. 47, also known as the "Taxation of Corporations and Businesses" or the "Corporate Tax Law," on December 9, 2022. This law established the legislative framework for corporate tax implementation in the UAE, effective from June 1, 2023.

How can ANPJ assist businesses in managing their corporate tax obligations?

ANPJ offers a range of professional corporate tax services designed to help businesses navigate the complexities of tax regulations, ensure compliance, and optimize tax liabilities. Our services include expert guidance on UAE tax regulations, strategic tax planning, assistance in staying compliant with the law, and support during tax audits or inquiries.

How does ANPJ ensure compliance with UAE tax laws and regulations?

ANPJ helps businesses stay compliant with UAE tax laws and regulations by providing accurate and timely guidance on tax requirements, preparing and filing tax returns accurately and on time, and ensuring all tax-related documentation is complete and in accordance with regulatory requirements. We also offer ongoing support and assistance to clients facing tax audits or inquiries.

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