Tax Consultancy & Registration

VAT

Value Added Tax (VAT) is imposed on the sale of goods and services within the United Arab Emirates (UAE). For businesses operating in the UAE, VAT registration is mandatory under certain conditions. Specifically, if your business’s taxable supplies and imports exceed AED 375,000 per year, you are required to register for VAT. This registration ensures compliance with UAE tax laws and allows businesses to collect VAT from customers on taxable transactions. Businesses that do not reach the AED 375,000 threshold annually also have the opportunity to register for VAT voluntarily. This voluntary registration option enables smaller businesses to formalize their tax status and potentially reclaim VAT on their business expenses, thereby enhancing financial management and competitiveness. The introduction of VAT in the UAE is part of broader fiscal reforms aimed at diversifying revenue sources and promoting sustainable economic growth. It is essential for businesses to understand their VAT obligations, including registration, collection, and remittance requirements, to avoid penalties and ensure smooth operations within the UAE’s regulatory framework.

• VAT Consultancy
• VAT Registration
• VAT Tax Return Filing

Corporate tax

On June 1, 2023, the UAE government implemented a new Corporate Tax. Under this regulation, both individuals and companies classified as taxable entities are required to pay a 9% corporate income tax starting from their first tax year that begins on or after this date. This marks a significant change in the UAE’s fiscal policy, aiming to align the country with global tax practices and ensure a stable revenue stream. Businesses and individuals subject to this tax will need to account for this new expense in their financial planning and reporting processes. The introduction of Corporate Tax is part of a broader effort by the UAE to diversify its economy and reduce its reliance on oil revenue, promoting transparency and compliance in financial matters. Companies operating in the UAE should familiarize themselves with the specifics of this new tax law to ensure adherence and optimize their tax strategies. As this change affects all taxable entities, it is crucial for businesses to review their tax obligations and prepare for the implications of this policy shift, ensuring they remain compliant and avoid any potential penalties associated with non-compliance.

• Corporate Tax Consultancy
• Corporate Tax Registration
• Corporate Tax Return Filing