Corporate Tax Restructuring for a Growing E-commerce Business
A small business with 50-100 employees, specializing in e-commerce and retail, faces issues with its corporate tax structure.
The Challenge
Corporate Tax Restructuring for a growing E-commerce Business
This online company based in Dubai had grown fast using two licenses on the mainland, but it had never consolidated its accounting. As the Corporate Tax deadline was approaching, the company owners were not sure if they could continue to get the small business relief or whether they would be subject to the 9% tax rule.
Company Type:
E-commerce & Retail Business.
Business Location:
Dubai, UAE
Company Size:
50–100 Employees.
Business Structure:
Two Mainland Licenses.
Our Solution
A Structured 4-Step Corporate Tax Restructuring Plan
ABT’s team reviewed the financial status of both entities to establish their eligibility based on the comparison of revenue against the Small Business Relief threshold. We followed a structured plan to determine their accurate eligibility:
Financial Statements Consolidated
Consolidated all financial statements from both licenses to provide one view of taxable income.
Related-Party Transactions Reviewed
Conducted examination of related-party transactions to avoid any artificial division of the revenue.
Corporate Tax Registration Completed
Filed Corporate Tax registration for both entities before the FTA deadline.
Future Tax Filing Process Established
Created an easy quarterly filing procedure to ensure future compliance with the audit standards.
This structured approach gave the business greater clarity over its Corporate Tax position and the appropriate treatment for each entity. By consolidating the financial information, reviewing related-party transactions, and completing the required registrations, ABT provided practical corporate tax consultation tailored to the company’s structure and helped establish a clear process for ongoing tax compliance.
The Result
Corporate Tax Position Clarified and Future Compliance Structured
Both the entities registered on time, with one having met the eligibility criteria for Small Business Relief while the other was appropriately filed under the standard 9% rate. The client avoided late-filing penalties and has a system in place for future tax periods.
Operating More Than One Business License?
If your business operates through multiple licenses or entities, our team can review the structure and help establish the appropriate Corporate Tax treatment.