Corporate Tax Advisory Services in UAE

Written By Akshaya Ashok, Reviewed By Reyees K P

Published on 03/12/2024

As the UAE embraces global financial standards and introduces corporate taxation, businesses operating in the region must ensure compliance while optimizing their tax liabilities. Navigating the complexities of corporate tax requires expert guidance, and that’s where professional corporate tax services come into play.

What is Corporate Tax in UAE? 

Corporate tax in UAE is a tax imposed on the profits of businesses operating within the country. The new taxation regime introduced by the UAE in June 2023 is the most significant development and transition from the previous landscape of being a tax-free region. The corporate tax is set at a standard rate of 9% on profits exceeding AED 375,000. For taxable profits below this threshold, no corporate tax is payable. This move aligns the UAE with global tax standards and is part of broader economic reforms aimed at diversifying revenue sources and enhancing transparency. The introduction of corporate tax necessitates that businesses operating in the UAE, whether on the mainland or in the various free zones, understand their obligations under the new regulations and implement effective strategies to manage their tax liabilities.

Why do Businesses Need Corporate Tax Advisory Services in UAE?

• Following the Law: Tax rules can be complicated and change frequently. Corporate tax Advisory services help businesses understand what taxes they must pay, ensuring they follow local and international rules. This helps avoid fines or audits for not following the law.
• Reducing Taxes: Tax experts can help businesses find ways to lower their tax bills. With the right tax planning, businesses can pay the least amount of tax allowed by law while taking advantage of discounts or exemptions.
• Accurate Tax Returns: Corporate tax services make sure that tax returns are filed correctly and on time, preventing mistakes or delays that could lead to penalties or extra scrutiny from tax authorities.
• Managing Risks: With expert help, businesses can handle complicated situations like mergers, acquisitions, or restructuring, making sure they don't make costly mistakes or run into legal problems.
• Handling International Taxes: For businesses that work in different countries, tax services help manage taxes in each place. This includes things like setting fair prices for products sold across borders, following VAT rules and making sure taxes are paid properly in all locations.
• VAT Compliance: With VAT being introduced in places like the UAE, businesses must make sure they are registered, report VAT correctly, and pay it on time. Corporate tax services guide businesses through these rules and help manage VAT-related tasks.

What is the difference between tax advisory and tax consulting?

Tax advice and tax consulting are words that are often used to refer to the same thing, but they have different meanings when it comes to tax planning and compliance.

Tax Advisory is concerned with long-term, strategic tax planning and regulatory compliance. Tax advisors offer dynamic advice on tax-efficient structures, corporate tax implications, and risk mitigation to enable businesses to make the best financial decisions.

Tax Consulting is more problem-solving and operational in nature, and it handles direct tax issues like filing returns, tax disputes, and compliance issues. Tax consultants help individuals and companies in explaining tax laws, making accurate tax filings, and resolving tax queries.

In brief, tax advisory is strategic and forward-looking in nature, while tax consulting is technical and problem-specific, focusing on current tax issues.

What are the Key Corporate Tax Advisory Services in the UAE?

With the introduction of corporate tax in the UAE (effective June 1, 2023), businesses must follow different types of tax regulations while optimizing their financial strategies. Corporate tax advisory services help businesses navigate tax laws, ensure compliance, and maximize tax efficiency. The following are the key Corporate Tax Advisory Services offered in the UAE:

1. Corporate Tax Registration & Compliance

• Assistance in corporate tax registration with the UAE Federal Tax Authority (FTA).
• Ensuring businesses meet all compliance requirements and deadlines.
• Filing corporate tax returns in accordance with UAE tax laws.
  
  

2. Corporate Tax Planning & Optimization

• Identifying tax-saving opportunities and structuring business activities to minimize tax liabilities.
• Advising on deductible expenses, tax exemptions, and transfer pricing rules.
• Helping businesses align their operations with UAE’s free zone tax incentives.
  
  

3. Transfer Pricing Advisory

• Ensuring compliance with UAE’s transfer pricing regulations for multinational companies.
• Preparing transfer pricing documentation as required by tax authorities.
• Structuring intercompany transactions to align with OECD guidelines.
  
  

4. Tax Residency & Structuring Advice

• Assisting companies in obtaining a Tax Residency Certificate to avoid double taxation.
• Advising on corporate restructuring to benefit from UAE’s tax treaties.
• Helping businesses determine whether to operate in the mainland or a free zone for tax efficiency.
  
  

5. VAT & Excise Tax Advisory

• Ensuring businesses remain compliant with UAE VAT (5%) regulations.
• Advising on excise tax obligations for specific goods (e.g., tobacco, sugary drinks, energy drinks).
• Assisting with VAT Services, VAT return filing and tax audits.
  
  

6. Corporate Tax Audit Support & Risk Management

• Assisting businesses in preparing for tax audits conducted by the FTA.
• Identifying and mitigating tax risks to prevent penalties.
• Representing businesses in tax disputes or appeals with regulatory authorities.

Who Needs Corporate Tax Advisory Services in UAE?

The following types of businesses and entities in the UAE may require corporate tax services:

• Mainland Companies: Businesses operating under a UAE commercial license, regardless of revenue, are subject to corporate tax regulations and need expert advice for compliance.
• Free Zone Entities: Although many free zone businesses enjoy tax incentives, they must still register with the Federal Tax Authority (FTA) to comply with the new tax laws.
• Foreign Entities: Companies incorporated outside the UAE but conducting trade or business regularly within the UAE must also register for corporate tax.
• Individuals Conducting Business Activities: Entrepreneurs, sole proprietors, or partners conducting business in the UAE are subject to corporate tax and require tax services for compliance.
• Real Estate Businesses: Companies involved in real estate management, development, construction, agency, and brokerage activities must comply with corporate tax laws.
• Banking Operations: Banks and financial institutions operating in the UAE are also subject to corporate tax and need assistance with tax registration and ongoing compliance.

Why Choose Reyson Badger for Corporate Tax Advisory Services in UAE?

Reyson Badger is a trusted partner for corporate tax services in the UAE. We offer comprehensive expertise to help businesses navigate the complexities of tax regulations in this country. Our team of professionals will provide tailored solutions aimed at full compliance with the latest tax laws, covering corporate tax registration, tax return filing, tax planning, and dispute resolution. Our deep understanding of both local and international tax frameworks allows us to optimize tax positions and minimize liabilities for businesses of all sizes. Whether you're a mainland company, a free zone entity, or a foreign business operating in the UAE, Reyson Badger offers reliable and strategic tax services to streamline your tax processes and keep your business compliant, competitive, and tax-efficient.

Written By

Akshaya Ashok

Akshaya Ashok is a content writer specializing in creating content focused on accounting and auditing. With over two years of experience, she has developed expertise in crafting professional content for the financial sector.