Corporate Tax (CT)
Services

Getting you
Corporate Tax Ready

UAE introduced the Corporate Tax (CT) regime (Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses) last December 2022 and is in effect starting 1 June 2023. Implementing with the lowest CT rate in GCC set at 9% of business profits exceeding AED375,000.

The UAE CT regime has been designed to incorporate best practices globally and minimize the compliance burden on businesses.

Unlike VAT, corporate tax has an overreaching effects on business operations as it is levied directly on business profits, hence, application of which may affect cash flow and overall profitability. INTANGIBLES has a community of trained and qualified tax experts who will help you plan, strategize and save. Tax evasion is illegal, however, there are legal tax-savings opportunities for businesses to lessen the tax burden.

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Highlights of The UAE Corporate Tax Regime

The taxable income for CT will be on the accounting net profits(loss) of the business after making adjustments for certain items. The accounting net profit (loss) is the amount reported in its financial statements prepared in accordance with internationally acceptable accounting standards.
Corporate tax is a federal tax and therefore will apply across Emirates, however, businesses engaged in the extraction of the UAE’s natural resources and in certain non-extractive activities that are subject to Emirate level taxation will be outside the scope of UAE CT, subject to meeting certain conditions.
Intercompany transfer pricing and documentation requirements will apply to UAE businesses with reference to the OECD Transfer Pricing Guidelines, irrespective of whether the Related Parties or Connected Persons are located in the UAE mainland, a Free Zone or in a foreign jurisdiction. Intercompany transactions would need to be undertaken at arm’s length and generally should be supported by appropriate documentation.
UAE companies can apply to form a Tax Group and be treated as a single taxable entity or to apply for group relief in respect to losses and intragroup transactions, carrying out transfers tax neutral.
Accumulated taxable losses shall be allowed to offset future taxable profits.
UAE intends to honor its commitment to businesses in Free Zone, and will be able to benefit from 0% CT so long as they don't conduct business in the UAE mainland, until the end of the holiday period. All Free Zones have to file an annual CT return.
Only one (1) CT return will be required for each financial period with no advance tax payments or provisional returns. The CT return will generally be due within 9 months following the end of the Tax Period.

What You Need to Consider

Preparing for CT

What is the current status of your books and records? Are you IFRS compliant?
Does your business needs to register for UAE Corporate Tax?
Should you consider Group Tax or standalone reporting?
What is your business accounting/tax period?
When do you need to register and file your CT return?
What financial information and records do you need to keep?

Planning for CT

What we are offering

Assistance with tax planning, strategies and expert advice on legitimate tax savings opportunities.
CT impact assessment and analysis on financial, operational, and legal aspects of the business.
Evaluation of your business models, internal controls, processes and procedures including documentations.
Proposal of accounting systems, operations processes, data migration and/or system changes to ensure CT compliance.

How can we support

Retainer service to keep you updated with the relevant laws through advisory services. Meetings, emails, phone-calls to clarify on grey areas or if in doubt on CT applications.
Training company personnel to ensure compliance with CT requirements.
Business modeling and IFRS impact assessment to gear up your business and ensure CT compliance.