Tax Consultation

How Tax Consultation work in Dubai?

It is absolutely imperative that companies operating in Dubai take immediate action and engage top-notch tax consultants to prepare for the upcoming implementation of corporation tax on June 1, 2023. It is important to note that all taxable individuals and businesses will be required to pay a 9% corporation tax from their very first fiscal year after this date. Regardless of whether a company operates in mainland or Free zone, it is essential that they work with consultants to determine their tax liability and ensure compliance with all relevant regulations. Failure to do so could result in severe penalties and legal repercussions.

1. Prepare the necessary financial records and documents

2. Learn how free zone companies will be taxed

3. Comprehend the applicable tax rates, and

4. How related party (group companies) and connected person transactions are treated, withholding Tax, and allowable expenses.

5. Learn about the exempt income, losses that can be carried forward

What is the purpose of corporate tax?

The corporate tax rate in Dubai is 9% for taxable profits above AED 375,000. This means that companies with taxable profits of less than AED 375,000 will not pay any corporate tax.
The corporate tax in Dubai was introduced in June 2023. It is a federal tax, which means that it applies to all companies in the UAE, regardless of their emirate of incorporation.
There are a number of exemptions from the corporate tax in Dubai. These include:

1. Companies in free zones

2. Government-owned companies

3. Non-profit organizations

4. Charitable organizations

Companies that are exempt from the corporate tax in Dubai will still need to file a tax return with the Federal Tax Authority.

This is to ensure that they are not claiming any deductions or credits that they are not entitled to.

1. The UAE’s commercial license holders include all companies and people undertaking business activities.

2. Businesses in free zones (The UAE Corporate Tax regime will continue to honor the
Corporate Tax incentives now being provided to free zone enterprises that abide by all legal requirements and do not conduct operations established on the UAE’s mainland.)

3. Foreign companies and individuals may only do business in the UAE if they do it regularly or on an ongoing basis.

4. Organizations that manage, build, develop, broker, or work in the real estate industry. Banking Operations.

In the United Arab Emirates, businesses that earn a profit of over 375,000 AED are required to pay corporate tax. However, there are certain companies and types of income that are exempt from this tax. Here is a helpful list of businesses and revenue that are not subject to corporate tax:All enterprises that earn more than the 3,75,000 AED profit level are subject to corporate Tax. The corporate Tax in UAE does not apply to all businesses or revenue, however. Following is a list of companies or income that is not subject to corporation tax:

1. Individuals won’t be charged business tax.

2. Consequently, all personal income derived from work, real estate, stock investments, and other sources unconnected to a trade or company in the

3. UAE will be free from corporation tax.

4. Not relevant to foreign investors who don’t operate businesses in the UAE.

5. Businesses operating in free zones are eligible for corporate tax advantages provided they meet all regulatory conditions.

6. Corporate Tax is not applied to capital gains or dividends from UAE enterprises’ qualified shareholdings.

7. On qualified intragroup mergers and restructurings, corporate

8. Tax is not applicable.

According to the Ministry of Finance, the Corporate Tax rates are:

1. Up to AED 375,000 in taxable income, there is no tax.

2. 9 % for taxable income above AED 375,000.

Corporate tax is mandatory for businesses in the United Arab Emirates that make a profit of more than 375,000 AED. However, there are some exemptions to this tax that apply to certain companies and types of income. Please note the following list of businesses and revenue that are exempt from corporate tax

The Corporate Tax Law mandates that qualified, free-zone individuals pay 0% CT on qualifying income, with a 9% rate for all other taxable income except those exempted or beyond the scope. Free zone residents are required to comply with this law, including registering for corporate Tax, determining taxable income, filing a yearly tax return, paying the applicable taxes, and adhering to other legal requirements.

The Corporate Tax Law mandates that qualified, free-zone individuals pay 0% CT on qualifying income, with a 9% rate for all other taxable income except those exempted or beyond the scope. Free zone residents are required to comply with this law, including registering for corporate Tax, determining taxable income, filing a yearly tax return, paying the applicable taxes, and adhering to other legal requirements.

Choosing the best tax consultant in Dubai is challenging with many options available. Consider experience, qualifications, reputation, and fees. Find a consultant with extensive experience in the UAE's tax system, knowledge of your business, and a good reputation. Check qualifications and reviews. Compare fees to ensure value.

There are many benefits to hiring a tax consultant in Dubai. Firstly, consultants can help businesses minimize tax liabilities and avoid penalties by ensuring compliance with tax laws and regulations. They can also provide expert advice on tax planning, helping businesses structure transactions and operations in a tax-efficient manner. Tax consultants can save businesses time and money by handling tax-related tasks, such as preparing and filing tax returns, allowing them to focus on core activities. They can also represent businesses in dealings with tax authorities, providing peace of mind and reducing stress.

Choosing AlQaisar Accounting Services as Tax Consultant

AlQaisar Accounting Services has been providing top-notch tax consultancy services to businesses in Dubai for more than three years now. Their team of highly qualified and experienced tax consultants has helped numerous businesses with their tax planning, compliance, and representation needs. They have a deep understanding of the tax laws and regulations in the UAE, and they stay up-to-date with the latest changes to ensure that their clients are always in compliance.

At AlQaisar Accounting Services, their goal is to provide their clients with customized and personalized tax services that meet their specific needs. They understand that every business is unique, and they work closely with their clients to develop tax strategies that are tailored to their individual needs. Their services are transparent and cost-effective, and their clients can always expect a high level of professionalism and responsiveness.