Feeling overwhelmed by UAE corporate tax?
Ever since the first news about Corporate Tax (CT) in the UAE, it’s been a hot topic across the country. The first Corporate Tax period was from 1 June 2023 - 31 May 2024 and submission and payment was 9 months from year end.
What is Corporate Tax in UAE?
Corporate Tax is a tax companies pay on their profits, which are calculated as total revenue minus allowable expenses. The rate of Corporate Tax is 9% in UAE on your total profit when it is over the threshold and can also depend on the size or type of business.
Companies must file annual returns detailing their profits and tax obligations. This tax is a significant source of government revenue, influencing business decisions and economic growth. After paying Corporate Tax, companies can distribute the remaining profits as dividends to shareholders.
Is it mandatory for all companies to register and file Corporate Tax?
The Federal Tax Authority has made it clear that almost all companies in the UAE regardless of their size and turnover should register for Corporate Tax and get their Corporate Tax number and failing to do so will result in fines.
Almost all companies who are registered should then file their tax returns annually. (Filing doesn’t mean you have to pay tax, it means you will have to disclose your financial details to the Federal Tax Authority and let them know why you can be exempt from paying any Corporate Tax)
What should companies have to comply with requirements?
1. Corporate Tax Registration.
2. A proper set of books of accounts.
3. Sound accounting knowledge.
4. Stay up-to-date with the latest accounting and tax laws.
5. Sound tax knowledge of what needs to be in your submission.
Where can Zyla Accountants help you?
Zyla Accountants have all the required resources to help businesses with the above-mentioned requirements and more.
We have dealt with accounting and tax related activities on behalf of businesses from different industries. We can proudly call ourselves experts in this matter.
How will Zyla Accountants assist you with Corporate Tax?
With our expertise in the market over the years, we have assisted several businesses with their Corporate Tax related needs from registration to final submission. This is from several industries.
We are one of the few companies who have submitted Corporate Tax returns for our clients in the UAE. If this is what you are looking for do not hesitate to book a free call with us.