CORPORATE TAX REGISTRATION IN UAE

According to the UAE Federal Decree-Law on taxation of corporations and businesses, businesses in Dubai will become subject to UAE Corporate Tax from the beginning of their first financial year that starts on or after 1 June 2023.

Businesses that meet the VAT registration threshold in Dubai must also comply with VAT regulations, including charging VAT on taxable supplies, filing VAT returns, maintaining VAT records, and submitting VAT payments. It is important for businesses in Dubai to prepare in advance of the deadline for the new corporate tax law to ensure compliance and avoid penalties.

Who Will Be Subject to Tax in UAE & how much?

A 0% corporate tax rate applies to taxable income up to AED 375,000. The law provides that businesses with profits above AED 385,000 will be levied with a corporate tax rate of 9%, while no tax will be payable on profits up to this amount and 15% corporate tax rate applies to all multinational corporations subject to OECD Base Erosion and Profit-Sharing laws that belong within Pillar 2 of the BEPS 2.0 framework, i.e. combined worldwide revenues in excess of AED 3.15 billion. Therefore, any business or corporation that meets the profit threshold will be subject to corporate tax in the UAE.

Corporate Tax for Free Zone Businesses?

The United Arab Emirates has implemented changes regarding taxation of corporations and businesses with the passing of the Federal Decree-Law No. 47 of 2022. This newly enacted law stipulates that free zone businesses fall within the scope of UAE Corporate Tax and are obligated to register and file a Tax return. However, free zone businesses will still be able to benefit from Corporate Tax holidays in which they are not taxed at a rate of 0%, provided they adhere to all regulatory requirements and do not engage in business activities with mainland UAE.

Furthermore, it is important to note that qualifying free zone persons are now subject to different tax rates depending on the source of their income. Zero percent Corporate Tax applies to all qualifying income, while other income is taxed at a rate of nine percent, unless it is exempt or outside the scope of this law. These measures have been implemented to ensure that businesses remain compliant with all taxation laws and regulations while still being able to maximize their profits and benefits.

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Documents Required for Tax In UAE

A copy of the valid trade license issued by the relevant authority.
A copy of the MOA outlining the company’s objectives and structure.
Document proving the legal establishment of the company.
Copies of the passports of all company share holders.
Copies of the Emirates ID for all shareholders and authorized signatories.
A resolution authorizing specific individuals to handle tax matters on behalf of the company.
Audited financial statements for the last 12 months.
Details about the company’s organizational structure, including subsidiaries and branches.
Information on the company’s bank account, including the account number and IBAN.
If applicable, provide the Tax Identification Number from the home country.

Why JustProBiz ?

JustProBiz Documents Clearing Services offers a comprehensive solution to simplify your corporate-tax registration experience in the United Arab Emirates. We understand the complexities involved in navigating the registration processes and requirements set forth by the tax authorities. That’s why we are here to provide expert assistance every step of the way.

As a leader in the industry, we work tirelessly to ensure that our clients are fully compliant with all local laws related to corporate taxation. We take pride in the quality of our services, and our team of experienced professionals is dedicated to delivering seamless registration processes for you and your business.

So why struggle with the complexities of corporate-tax registration on your own when you can rely on the expertise of JustProBiz? Contact us today and let us guide you through the process with ease and efficiency. Your compliance is our priority, and we look forward to helping you achieve your business goals in the UAE.