Corporate tax is around the corner, and it is crucial to navigate UAE corporate tax services. ebs accounting services in Dubai can help you stay compliant with the new corporate tax law in UAE.
The UAE is set to introduce a corporate tax on June 1, 2023, which is not so far. The tax will be levied at a rate of 9% on taxable income exceeding AED 375,000.
The introduction of corporate tax is a significant change for the UAE, which has previously been a tax-free haven for businesses. The tax is expected to raise an estimated AED 20 billion per year, which will be used to fund government programs and services.
The corporate tax will apply to all businesses operating in the UAE, regardless of their nationality or ownership structure. However, there are a number of exemptions, including:
- Small businesses with taxable income below AED 375,000
- Non-profit organizations
- Government entities
Businesses that are subject to corporate tax will be required to file an annual tax return. The return will include information on the business’s income, expenses, and deductions.
Corporate tax is a new and complex issue for businesses in the UAE. If you are unsure about how the tax will affect your business, you should consult with a tax advisor.
Here are some additional things to keep in mind about the UAE corporate tax:
- The tax is based on a company’s worldwide income, not just its income from the UAE.
- The tax is due on the last day of the month following the end of the company’s financial year.
Penalties For Late Or Incomplete Tax Returns Can Be Severe.
If you are a business owner in the UAE, it is important to start preparing for the corporate tax now. By understanding the tax and taking steps to comply, you can avoid penalties and ensure that your business is compliant with the law.
Here are some tips for preparing for the UAE corporate tax:
- Review your financial records to determine if you are likely to be subject to the tax.
- Gather information about your business’s income, expenses, and deductions.
- Contact a tax advisor to discuss your specific situation and get help with filing your tax return.
By following these tips, you can ensure that your business is prepared for the UAE corporate tax and avoid any potential penalties.
Don’t let the complexities of UAE corporate tax regulations stop your business growth. Partner with ebs accounting services in Dubai and get peace of mind knowing that your corporate tax matters are in capable hands. ebs is accessible to help you find out about accounting and bookkeeping in the UAE. ebs likewise offer services, such as accounting and bookkeeping services, VAT services, Auditing, Due Diligence audit services, and many more.
Feel free to contact us with any additional inquiries or requests for accounting services. A free discussion will be given to you by our specialists, who will answer your request immediately.