Corporate Taxation Services in the UAE: A Complete Guide Corporate Tax for Businesses

The United Arab Emirates (UAE) has ushered in a new era of its fiscal landscape with the introduction of corporate tax in 2023. As businesses across the UAE—including those in Dubai and across the UAE—adjust to these changes in tax, understanding the corporate tax law and ensuring tax compliance is paramount.

We provide expert corporate tax services designed to help your business in the UAE navigate the complex tax requirements, minimize tax liabilities, and adhere to the guidelines set by the Federal Tax Authority (FTA) and the Ministry of Finance.

This blog serves as a complete corporate tax guide, covering the essentials of the UAE CT regime, the specific range of services we offer, and how our expert corporate tax consultants in Dubai and the UAE can be your trusted tax advisor.

What Are Corporate Taxation Services?

Corporate taxation services are an essential component of the tax structure for any modern enterprise. They encompass a broad spectrum of tax consulting services and advisory services aimed at ensuring that a corporation complies with tax laws and regulations.

Our comprehensive tax services ensure your entity is correctly registered, its tax returns are accurately filed, and it benefits from strategic tax planning. Corporate tax services in the UAE are vital for entities now subject to corporate tax and for complying with the implementation of corporate tax.

Why Do Businesses in the UAE Need Corporate Taxation Services?

Businesses in the UAE are now required to comply with the corporate tax law that was introduced in 2023. This new tax regime applies to companies operating in mainland and free zones, with specific rates based on income. As a business, it's essential to stay compliant with the UAE’s tax laws to avoid penalties and ensure smooth operations. Here’s why corporate taxation services are crucial:

• Understanding Tax Obligations: The new tax laws introduce complexities that businesses need to understand. Corporate tax services help businesses identify their obligations, ensuring they comply with the new regulations.

• Minimizing Tax Liabilities: Corporate tax services help businesses plan their tax strategy effectively to minimize tax liabilities while remaining compliant.

• Accurate Tax Filing: Filing taxes incorrectly can lead to severe penalties. Corporate tax experts ensure that your tax filings are accurate and timely.

• Avoiding Penalties: The UAE imposes penalties for non-compliance. Having a professional service ensures that businesses avoid these penalties.

 Benefits of UAE Corporate Tax

The introduction of corporate tax in the UAE (corporate tax in uae) serves several strategic purposes, representing a significant shift towards robust fiscal governance. One of the main benefits of corporate tax is establishing a reliable source of direct tax revenue, which contributes to the nation's economic stability and diversification away from oil. Furthermore, by implementing a corporation tax structure, the UAE must adhere to international tax standards, enhancing tax transparency and mitigating harmful tax practices, thereby solidifying its position as a compliant global business hub. Businesses can leverage this new regime with the help of professional tax services; for instance, corporate tax services in dubai and corporate tax services in uae are specifically designed to help entities optimize tax by accurately assessing tax liabilities, utilizing corporate tax incentives, and ensuring corporate tax returns accurately reflect their financial position. Engaging registered tax agents for corporate tax preparation and managing the corporate tax filing process ensures adherence to the new tax rules for businesses dubai and across the uae.

Special Provisions and Relief Corporate Tax in UAE

The UAE Corporate Tax regime includes several special provisions and relief mechanisms, demonstrating that the services are designed to be supportive of specific business circumstances. Key examples include the Small Business Relief, which simplifies the compliance burden for smaller companies, and provisions for Business Restructurings and Intra-Group Transfers, allowing tax-neutral transactions under certain conditions to support economic efficiency. Furthermore, while separate from Corporate Tax, businesses must continue to adhere to Value Added Tax (VAT) regulations. These provisions, along with other available tax incentives and exemptions (such as for qualifying investment funds or Free Zone entities), help businesses optimize their tax liability while ensuring that the overall fiscal framework remains competitive and fair.

Corporate Tax Services in UAE 

 Focused range of services tailored to the specific needs of the UAE corporate tax law. Our tax specialists and corporate tax expert team are ready to assist with every phase of your corporate income tax journey.

1. Corporate Tax Registration

• Service Name: Corporate Tax Registration

• Service Description: Assistance with the registration process with the FTA, ensuring compliance with all documentation and requirements for entities subject to corporate tax.

• Value Proposition: Ensuring your business meets the registration requirements to avoid penalties and is properly recognized by the Federal Tax Authority.

2. Corporate Tax Filing and Compliance

• Service Name: Corporate Tax Filing & Compliance

• Service Description: Preparation, corporate tax calculation, and submission of the corporate tax return (corporate income tax) in accordance with the UAE’s tax laws. This service helps you file corporate tax and file tax returns accurately.

• Value Proposition: Timely and accurate tax filing process to ensure corporate tax compliance and avoid penalties.

3. Corporate Tax Advisory Services

• Service Name: Corporate Tax Advisory Services in Dubai

• Service Description: Providing tax advice and expert consultation on the tax rate, corporate tax regulations, and navigating specific issues related to international tax and corporate income.

• Value Proposition: Tailored tax solutions and guidance from a corporate tax expert to help you optimize your tax strategy and maintain continuous compliance.

4. Tax Planning and Optimization

• Service Name: Corporate Tax Planning & Optimization

• Service Description: Developing strategic tax strategies to minimize tax liabilities, identify tax incentives, and improve overall financial performance while adhering to the tax law.

• Value Proposition: Helping businesses save on taxes and achieve effective corporate tax management through a coordinated tax strategy.

Key Steps for Complying with UAE Corporate Tax Laws

Complying with the new UAE Corporate Tax (UAE CT Regime) is a multi-step process that ensures your business in the UAE meets its statutory and financial obligations to the Federal Tax Authority (FTA). It is a critical component of corporate tax compliance and requires a disciplined approach, often necessitating the assistance of corporate tax consultants in UAE.

Here are the key steps for effective compliance:

1. Determine Applicability and Register:  

   First, confirm if your entity is a Taxable Person (resident or non-resident with a  Permanent Establishment) and if your corporate income exceeds the AED 375,000  threshold for the standard 9% rate.          

   • Corporate Tax Registration is mandatory for all taxable persons (including Free Zone entities), regardless of whether they expect to pay tax.

   • Register online via the FTA's EmaraTax portal to obtain your Tax Registration Number (TRN) before the stipulated deadline, which varies based on your license issuance date.

2. Maintain Compliant Financial Records:

   Prepare and maintain comprehensive financial statements in accordance with International Financial Reporting Standards (IFRS) or IFRS for SMEs.

   • Mandatory tax audits of financial statements are required for entities meeting certain revenue thresholds (e.g., above AED 50 million) or for Qualifying Free Zone Persons claiming the 0% corporate tax rate.

   • Retain all supporting documentation (invoices, contracts, payment slips) for a minimum of seven years from the end of the relevant tax period.

3. Calculate Taxable Income:

   • Start with your net accounting profit and prepare a detailed reconciliation to arrive at the statutory Taxable Income.

   • This involves adjusting for non-deductible expenses (like fines or half of entertainment expenses) and subtracting exempt income (like Qualifying Dividends or income from a Qualifying Free Zone Person).

   • Properly apply allowable deductions, reliefs (like Small Business Relief), and tax benefits.

4. Manage Related Party and Transfer Pricing:

   • Identify all transactions with Related Parties and Connected Persons.

   • Ensure all such transactions adhere to the Arm's Length Principle and the Transfer Pricing regulations to prevent a larger tax burden.

   • Prepare and maintain Transfer Pricing documentation (Local File and Master File) if your business meets the specified revenue thresholds (e.g., annual revenue exceeding AED 200 million for a standalone entity).

5. File the Corporate Tax Return and Make Payment:

   • File Corporate Tax returns electronically through the EmaraTax platform.

   • The return must be submitted, and the tax liability (if any) must be paid, within nine months from the end of the relevant tax period (the financial year-end). Timely and accurate tax filing is crucial to avoid severe penalties for non-compliance.

   • For Free Zone entities claiming the 0% rate, the compliance process is critical to prove Economic Substance and maintain the qualifying status.

Corporate Tax Registration

Corporate Tax Registration is a mandatory initial step for all taxable entities across the UAE, including mainland and Free Zone businesses, regardless of whether they expect to incur a tax liability. This process involves officially registering with the Federal Tax Authority (FTA) through the EmaraTax digital platform. Completing corporate tax registration is essential for obtaining a Tax Registration Number (TRN), formally recognizing the entity under the UAE Corporate Tax Law, and ensuring compliance with the FTA’s stipulated deadlines. Failure to complete this step within the prescribed timeline can lead to administrative penalties, making it a critical foundation for all subsequent corporate tax filing and tax compliance activities.

How Young & Right Can Help You with Corporate Taxation Services

At Young & Right, we understand the complexities of corporate taxation in the UAE and are here to guide you through every step of the process. Our team of tax experts offers tailored services to ensure your business remains compliant with the UAE’s evolving tax laws and maximizes tax efficiency. Here's how we can help:

 • Corporate Tax Registration is mandatory for all taxable persons (including Free Zone entities), regardless of whether they expect to pay tax.

• Expert Corporate Tax Advice: With a deep understanding of Federal Decree-Law No. 47 of 2022 and other relevant tax regulations, we provide strategic advice to optimize your tax planning and minimize liabilities.

• Corporate Tax Registration: We assist with seamless corporate tax registration, ensuring you meet all deadlines and avoid penalties while navigating the registration process with ease.

• Tax Filing Assistance: From preparing and submitting accurate corporate tax returns to ensuring your business meets all filing requirements, we take the stress out of tax season.

• Transfer Pricing & International Tax: Our experts help businesses with cross-border transactions, ensuring compliance with international tax laws and optimizing transfer pricing strategies.

• Compliance & Audit Support: We support businesses in maintaining comprehensive records, preparing for audits, and ensuring full compliance with UAE tax authorities.

• Continuous Tax Strategy & Updates: The tax landscape is constantly evolving, and we keep you informed about any changes that may affect your business, helping you adapt and plan proactively.

Partnering with Young & Right means you can focus on growing your business while we handle the complexities of corporate taxation. Whether you’re a startup or a multinational corporation, our team is committed to providing you with the best tax strategies and ensuring long-term financial success.

Conclusion

Corporate tax services are now an essential investment for any business operating in the United Arab Emirates. If you are looking for corporate tax expertise to ensure compliance with UAE tax regulations, get expert corporate tax assistance from Young & Right. We offer the expertise and support to confidently manage your taxation of corporations and businesses.