UAE Corporate Tax
The United Arab Emirates (UAE) introduced a federal corporate tax framework effective June 1, 2023, marking a significant shift in the country’s tax landscape. UAE Corporate Tax Registration is mandatory or businesses that meet the eligibility criteria set by the Federal Tax Authority (FTA), Here’s a comprehensive overview
▸ Businesses must register for corporate tax.
▸ Annual financial statements must comply with internationally accepted accounting standards.
▸ Tax returns must be filed electronically.
UAE Corporate tax applies to all businesses operating in the UAE, except for those explicitly exempt.
Tax Rates:
▸ 0%: For taxable income up to AED 375,000.
▸ 9%: For taxable income exceeding AED 375,000.
▸ In the UAE, corporate tax is 9% of the profit the company makes according to its financial records. So, if a company makes 1,000,000 AED in profit, the corporate tax is 56,250 AED (that’s 1,000,000 minus 375,000, then 9% of that).
UAE Corporate Tax Registration
The latest news says that companies will start paying corporate tax from the financial year starting on or after 1 June 2023. If a business has its financial year starting on 1 January 2023 and ending on 31 December 2023, they’ll begin paying corporate tax from 1 January 2024.
How Reports Can Simplify UAE Corporate Tax for Businesses
In the UAE’s tax system, a business’s starting point to figure out its tax is its accounting net profit, basically, what’s in its financial statements.To make this calculation, things like financial reports, accounting books, and statements are really important. The money a business makes from selling things, service fees, commissions, interest, and more all count towards its taxable income.
