How to start your business in UAE?
We advise you to read through this guide to fully understand the steps required on how to incorporate a company in Dubai. The process of establishing a company in the UAE involves only a few simple steps, in all seven emirates. Steps involved in incorporating a business. Starting a business in ordinary ways involves a […]
What is Tax Residency Certificate (TRC)?
Since UAE follows residency-based taxation, where resident entities are taxed with respect to their worldwide income, double taxation may occur where income is taxed in both the source country and resident country. To avoid this UAE has entered into Double Taxation Avoidance Agreement (DTAA) with multiple countries. An updated list of DTAs can be found […]
Corporate Tax Compliance – What are the important administrative requirements?
CT registration/deregistration, Tax return and Payments Every Taxable Person will be required to electronically register for UAE CT with the Authority before applicable tax period and obtain a Tax Registration Number. The registration would need to be undertaken even if the Taxable Person has already been registered for VAT purpose. In order to keep the […]
Do individuals have to pay Corporate Tax?
General rule As per Cabinet Decision No. (49) of 2023, business owners in the country will be subject to corporate tax only if their combined turnover in a calendar year exceeds Dh1 million (around $272,294). The aim of the decision is to clarify how the corporate tax regime will apply to UAE residents and non-residents. For instance, […]
Adjustments to Taxable income – Explained
Summary on calculation of taxable income Set out below is an illustrative/indicative summary of how Taxable Income will generally be computed for UAE CT purposes: Net accounting profit/(loss) before tax Fair value accounting and capital asset adjustments (subject to election) less/add: unrealised gains/losses less/add: foreign exchange gains/losses Exempt income less: Dividends and profit distributions received […]
Is Corporate Tax applicable on Freezone Persons?
In the UAE, a Free Zone Person is defined as an individual or corporate entity that is licensed to conduct business activities in the UAE free zones. Free zones are designated areas in the UAE that offer a multitude of incentives to foreign investors, including 100% foreign ownership, tax exemptions, and more. These free zones […]
What taxes are applicable in UAE?
Corporate Tax (CT) In January 2022, the UAE Ministry of Finance announced the implementation of Corporate Tax all over the United Arab Emirates. As per the Ministry, the Corporate Tax law will be effective from the 1st of June 2023. The Corporate Income Tax will be applicable on or after 1st June 2023, depending on […]
Quick rates and dates
Corporate income tax (CIT) rates Headline CIT rate (%) 9 Corporate income tax (CIT) due dates CIT return due date Under the UAE CT Law, all taxable persons are required to file a corporate tax return within nine months from the end of the relevant tax period. CIT final payment due date Under the UAE […]
Understanding how partnerships and family foundations are taxed in UAE
Limited and general partnerships Limited and general partnerships and other unincorporated joint ventures and association of persons will be treated as “transparent” for UAE CT purposes. A flow-through entity – also known as a “pass-through entity” or “fiscally transparent entity” – is a legal business entity where its profits flow directly to the investors/owners, and […]
Complete guide on income determination
Under the UAE CT Law, the accounting net profit (or loss) as stated in the standalone financial statements of a business is taken as the starting point for determining its taxable income. The law prescribes a number of key adjustments to the accounting net profit (or loss) in order to compute the taxable income. The […]