Tax & Compliance
The UAE’s shift towards a tax economy in accordance with rising competitiveness is both commendable and essential since it stimulates economic diversity and increases transparency. There have been several developments in the tax economy that seeks attention in terms of improving international tax compliance. Following the laws and regulations established by an authority have become crucial, and if a company wants to avoid future headaches, they should choose a reputable organization to provide regulatory tax and compliance services.
1. Value Added Tax (VAT)
The implementation of VAT in the UAE on the majority of goods and services offered a new stream of revenue that may be used to continue providing high-quality public services. It will also help the government achieve its aim of decreasing dependency on oil and other hydrocarbons as a revenue source. VAT will undoubtedly affect your firm regardless of where it operates in the UAE. As a result, VAT auditing and consulting services have become essential for businesses to function.
Our designated tax team at Desertbiz will provide the required assistance and clear your queries on VAT.
2. Corporate Tax
The UAE has decided to introduce corporate tax in the country that will be effective for financial years starting on or after June 2023. Corporate tax will be levied for all businesses (extraction of natural resources is excluded) and commercial activities across all the emirates in the UAE.
Businesses that generate taxable profit up to AED 375,000 need not pay CT and the ones that exceed this specific amount will be levied 9 per cent CT. MNCs with consolidated group turnover of AED 3.15 billion will be levied higher tax.
With the introduction of corporate tax in UAE, a major change is expected in the tax and compliance costs of most UAE businesses. Entities must be compliant with the new tax regime and this requires an accurate identification of tax implications and alterations to corporate structure, operating model(s), finance / tax operations, reporting systems, legal agreements and transfer pricing policies, if required.
Our designated tax team at Desertbiz will provide the required assistance and clear your queries on corporate tax.
3. Excise Tax
Introduced in 2017 across UAE, it is a form of indirect tax levied on certain goods that are generally dangerous to human health or the environment. The purpose of the excise tax is to limit the use of unhealthy and hazardous items such as carbonated beverages, tobacco products, and energy drinks while also raising revenue for the government to spend on public services.
Our designated tax team at Desertbiz will provide the required assistance and clear your queries on Excise Tax.
4. Economic Substance Regulations (ESR)
The UAE government implemented Economic Substance Regulations in 2019 as a reaction to being blacklisted by the European Union (EU) for tax reasons. The objective of regulation is to ensure that UAE firms declare genuine earnings that are proportional to the amount of economic activity they engage in or undertake within the UAE.
Our designated tax team at Desertbiz will provide the required assistance and clear your queries on ESR.