The UAE always attracts foreign business owners and investors due to the provided flexible tax system for them. The tax rules ease businesses subject to corporate tax to establish and run their operations smoothly without worrying about errors in tax compliance. Lately, there have been some changes in the UAE’s tax system and some of them have to do with the introduction of federal corporate tax. Alsun Bookkeeping and Taxation Company is a top-rate consultant to depend on when it comes to your taxes and in this article, we’re going to guide you through the corporate tax UAE latest news.
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What Is Corporate Tax in the UAE?
The federal corporate tax policy was announced in 2022 then rendered effective on June 1st 2023. The new corporate tax in the UAE requests that businesses operating in the country pay a standard tax rate of 9% on their taxable income. This decision falls within the UAE Ministry of Finance’s plan to align the country with global tax standards while also remaining as an attractive business hub for foreign business owners looking for a business-friendly destination.
The Regime of Corporate Tax in the UAE
- Threshold of Taxable Income: You are eligible for corporate tax registration, if your business’s taxable income exceeds AED 375,000
- Tax Exemption News: Governmental entities and public benefit organizations may not be included in the sectors subject to corporate tax and can get tax exemptions.
- Free Zones: If your business is in the Free Trade Zones and you do not conduct business with the mainland UAE, then your business can benefit from a 0% corporate tax rate, provided you meet certain conditions.
Everything You Need To Know To Get Your Corporate Tax In Order
The Federal Tax Authority (FTA) in the UAE has issued guidelines and updates to ensure the smooth implementation of corporate tax laws from corporate tax registration to tax exemption news upkeep. Take a look at some of the corporate tax UAE latest news:
- Corporate Tax Registration Requirements
For businesses operating in the UAE, the process to register for corporate tax with the FTA is straightforward. Alsun Tax Agency lends you the careful attention you need for corporate tax registration to ensure your business avoids penalties and complies seamlessly with all regulatory requirements that you may be unaware of.
- Tax Exemption News
The UAE government has clarified the criteria for tax exemptions under the new corporate tax regime. Some of the income exempt from corporate tax includes dividends and capital gains earned from qualifying shareholdings. Businesses in certain sectors like agriculture and renewable energy are also eligible for reduced tax rates or exemptions in specific situations.
- Federal Corporate Tax (FTA) Guidelines
In order to help businesses understand their roles and obligations with the corporate tax UAE latest news, the FTA has released thorough guidelines under this development. The guidelines cover comprehensive points from taxable income calculation to transfer pricing rules.
- Penalties for Non-Compliance
If your business fails to comply with these corporate tax regulations perfectly, you could face significant consequences including fines and legal action from the government. The perfect way to stay updated on the latest requirements by the Federal Tax Authority (FTA) is to seek the help of a professional consultant of Alsun’s experts.
Corporate Tax Registration for Natural Persons
The UAE’s Federal Tax Authority (FTA) stated that natural persons are subject to a new corporate tax system that was announced in 2022. A natural person, as FTA denoted, is a normal UAE resident or any country resident of any age who operates a business or has business activity in the UAE, whether it is a sole establishment or partnerships. This statement includes that the calendar year 2024 is the first tax period for natural persons.
According to the corporate tax UAE latest news, natural persons subject to corporate tax are those whose revenue is more than AED 1 million during the year 2024 or the following year, and they must register for Corporate Tax and submit their tax documents, complying with all Corporate Tax obligations before March 31, 2025 to avoid serious consequences and administrative penalties.
Alsun Bookkeeping and Taxation, as reliable tax agency in Dubai, provides professional taxation services for natural persons in the UAE through a team of certified tax agents and financial advisors who are keen to file your tax documents accurately, help you planning your taxes, and analyze your financials to submit your corporate on time without delays that could cause problems and penalties.
Alsun Tax Agency: Endless Competence with Corporate Tax in the UAE
Alsun Bookkeeping and Taxation helps you to stay updated with corporate tax UAE latest news if your business belongs to this flourishing market. Our team of tax agents and business consultants makes sure you understand your tax obligations and maintain legal compliance throughout any regulation changes. Alsun’s support helps you navigate the UAE’s corporate tax landscape with ease and confidence. All you have to do is reach out for a consultation today.
FAQs
Is UAE corporate tax free?
The UAE has been known to be a tax-free business environment up until June 2023. Alsun helps you determine how much your corporate taxes are or if your business is eligible for tax exemption.
How much is the corporate tax in the UAE?
The rate of corporate tax in the UAE is 9% for businesses that have a taxable income exceeding AED 375,000.
Which business will pay corporate tax in the UAE?
Businesses subject to corporate tax in the UAE are: mainland companies – foreign companies – branches of foreign companies.
What is the 15% tax in Dubai?
Large multinational corporations that earn annual revenues exceeding EUR 750 million are subject to a 15% tax rate in Dubai.
How does Alsun Tax Agency help with corporate tax in the UAE?
Our tax agents at Alsun Tax Agency provide professional services and the proper service for your business in the matters that are related to tax, including corporate tax registration, tax compliance with legal standards, and tax return preparation and filing.
Corporate tax in the UAE is an essential procedure in your business, and understanding it is an important step you need to take to ensure your business is perfectly compliant with the local tax regulations. Stay updated with corporate tax UAE latest news, as Alsun Tax Agency helps you navigate the complicated factors of corporate tax by making the process simple for you. Our team ensures that your business meets UAE tax obligations and we understand the UAE laws and regulation well and know any changes the moment they happen.