Corporate Tax is levied at 9% starting from June 1, 2023, in UAE. The companies must factor the said percentage into their routine business operations. For this, they must perform the corporate tax impact assessment.
Corporate tax impact assessment helps you understand the implications of the new corporate tax rate on your business units and groups. An analysis of the impact on the operations, business strategy, and financial position is also essential.
Such corporate tax impact assessment forms the base for tax planning for the future and ensures tax compliance. It helps you maintain cash flow in your business. Also, corporate tax impact assessment enables you to smoothly adapt to the new corporate tax regime.
At Fame Advisory, we help you with detailed and accurate tax impact assessments. We conduct a detailed study and analysis of the corporate structure of the group. Based on this analysis, we can evaluate alternatives to restructure with a view to optimising the impact of Corporate Tax.
Our professional tax consultants also help you with all the necessary corporate tax calculations. Thus, we ensure that you have a complete and accurate picture of your tax liability.
We provide necessary advice on matters related to the corporate income tax of UAE to optimise it better. Our tax impact assessment findings and corporate tax liability calculations form the backdrop of this expert advice.
The impact analysis is conducted on an “As is Basis”. We also analyse potential transactions and situations where the impact of corporate tax is not yet known to you. It leads to the identification of limitations, which need quick fixing. Timely attention to these loopholes reduces costs and prepares your operations better.
We conduct corporate tax impact assessments for all types of company operating in any industry sector. If you are operating in UAE for years and are confused about the new taxation, FAME can resolve your queries. We can help all types of companies, including new startups, small and medium-sized entities, and large brands, with tax impact assessment services.
We have a track record of helping businesses in different sectors with corporate tax impact assessment studies. The implications of corporate tax are not the same for every industry. So, with our corporate tax impact assessment study, you get a customized view of the implications and actions you can take.
With FAME’s corporate tax impact assessment study, you understand your business better. You get to know the areas where you can make improvements to reduce your tax liabilities. If you are a group in UAE with subsidiaries in other countries, you can identify the income on which this corporate tax is applicable. You also get a better idea of the following:
Our detailed corporate tax impact assessment includes the evaluation of the following areas:
Corporate tax payments form a part of government revenues. Globally, governments earn tax revenues by imposing corporate taxes on entities. The main reason for introducing the corporate tax rate in UAE is the OECD’s Action 1 Pillar 2. According to Pillar 2, a global minimum tax regime must exist to reduce incentives for entities to establish their operations in tax-free or less-taxed jurisdictions. Thus, the new corporate taxation has impactful consequences for MNCs operating in the country.
The federal corporate tax rate in UAE is 9%. It will come into effect from the financial year starting on or after June 1, 2023. This federal rate applies to all businesses operating in the country’s seven Emirates.
The standard rate of 9% applies to businesses with annual taxable profits above AED 375,000.0. If the annual taxable profits are below AED 375,000.0, the federal corporate tax rate is 0%.
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