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Corporate Tax Impact Assessment

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Corporate Tax Impact Assessment
Corporate Tax Impact Assessment

Corporate Tax Impact Assessment in UAE

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 in UAE.

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.

The UAE 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.

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.

NOW is the time to conduct a corporate tax impact assessment for effective tax planning.

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Our Corporate Tax Impact Assessment Services

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. Our CT impact assessment consultants know how to calculate corporate tax in UAE, considering your unique business structure, and 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.

Corporate Tax Impact Assessment

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.

Corporate Tax Impact Assessment image

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 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:

  • The time for registering your business for corporate income tax in UAE
  • Your business’s tax or accounting period
  • The deadlines for filing and submitting the annual tax returns
  • Information, data, and records you need to furnish to the authorities

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:

  • The time for registering your business for corporate income tax in UAEfor corporate tax
  • Your business’s tax or accounting period
  • The deadlines for filing and submitting the annual tax returns
  • Information, data, and records you need to furnish to the authorities

Areas of Corporate Tax Impact Assessment

Our detailed corporate tax impact assessment includes the evaluation of the following areas:

  • Expenses allowed and disallowed as deductions to calculate the taxable income for corporate tax.
  • Existing intragroup transactions, cross-border transactions, business models, and long-term agreements. It helps understand the exposure of a group or transaction to Permanent Establishment (PE) or Place of Effective Management (POEM) risks.
  • Implementation of the right principles for corporate tax calculation, including segmentation of business and non-business expenditures, accounting standards, and division of capital and revenue expenditures.
  • Pricing of goods and services from both the supply and demand sides to incorporate the changes with the introduction of new corporate tax.
  • Readiness of existing systems, processes, control procedures, and employees related to the new corporate tax regime.
Areas of Corporate Tax Impact Assessment img
  • Implementation of the right principles for corporate tax calculation, including segmentation of business and non-business expenditures, accounting standards, and division of capital and revenue expenditures.
  • Pricing of goods and services from both the supply and demand sides to incorporate the changes with the introduction of new corporate tax.
  • Readiness of existing systems, processes, control procedures, and employees related to the new corporate tax regime.

Finding difficulties in adapting to the new corporate tax structure?

Consult the CT impact assessment experts at FAME for quality and quick support.

Connect to the team at FAME

FAQs: Corporate Tax Impact Assessment

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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