Corporate Tax Impact Assessment in UAE
 

Corporate Tax Impact Assessment

Corporate Tax Impact Assessment

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.

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

Our corporate tax impact
Assessment Services

https://fame.ae/wp-content/uploads/2023/04/TP2.jpg

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:

  • 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

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.
bt_bb_section_bottom_section_coverage_image
Finding difficulties in adapting to the new corporate tax structure?

FAQs about Corporate Tax Impact Assessment Services

What is the impact of corporate tax on a country?

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.

What is the federal corporate tax rate, and what is the date of its implementation in UAE?

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%.

bt_bb_section_bottom_section_coverage_image
REACH US Headquarters
Onboard the UAE’s one of most trusted advisory firm offering various tailored services to support all upcoming & existing businesses across the UAE.
OUR LOCATIONSWhere to find us?
FAME Advisory: Suite 405, Office Court Building, Oud Metha Road Bur Dubai, P.O. Box 103904, Dubai, UAE

TMSL (Collaboration Partner): 501-A, Pinnacle Corporate Park Next to Trade Centre, BKC, Bandra East Mumbai, Maharashtra, India
GET IN TOUCH
Follow us on Social Media
To get the latest news and updates from FAME Advisory, join our social media now.
REACH USHeadquarters
Onboard the UAE’s one of most trusted advisory firm offering various tailored services to support all upcoming & existing businesses across the UAE.
OUR LOCATIONSWhere to find us?
FAME Advisory: 412, Office Court Building - D79, Oud Metha, Dubai, UAE

TMSL (Collaboration Partner): 501-A, Pinnacle Corporate Park Next to Trade Centre, BKC, Bandra East Mumbai, Maharashtra, India
GET IN TOUCHFollow us on Social Media
To get the latest news and updates from FAME Advisory, join our social media now.

Get in touch