Effective From: 1st June 2023
Authority: The Finance Ministry in the UAE announced the introduction of Corporate Income Tax on 31 January 2022.
The UAE is a member of the OECD Inclusive Framework on Base Erosion and Profit Shifting (“BEPS”) and hence committed to meeting the International Standards for tax transparency and preventing harmful tax practices.
Applicability:
applicable to all UAE businesses / Commercial activities
Individuals would be subject to Corporate Tax only if they have ongoing and regular business in UAE.
Non Applicability:
- Individuals having income from salary/employment income shall not be subject to Corporate Tax. Also, dividends, capital gains and other income from owning shares/securities earned by Individuals in their capacity would not be subject to Corporate Tax.
- Passive income of foreign investors i.e. dividends, capital gains, interest, royalties and other investment returns may not come under the purview of Corporate Tax.
Corporate Tax Rates:
| Income | Rate of Tax |
|---|---|
| Taxable income up to AED 375,000 | 0% |
| Taxable income above AED 375,000 | 9% (on portion of taxable income exceeding AED 375,000) |
| For large Multinationals (having consolidated business revenues in excess of EUR 750 Million/ AED 3.1 Billion) | A different Tax Rate. (As per the Guideline from OECD- Pillar 2 it will be minimum 15%) |
Value Added Tax
Our Taxation experts can perform VAT impact assessment and structure your business in the most tax-efficient manner with respect to the utilization/refund of input VAT and in accordance with federal tax authority’s requirements
All businesses will require in maintaining their books of accounts and will have to do audit for financial statement for tax purpose. We help you in managing all matters of VAT and taxation. We, at ASP Auditing, follow the professional approach in planning and executing the audit assignment.
We are helping you to be VAT Ready
ASP Auditing have a team of tax specialists who can help your business structure in-house recording and filing processes to ensure that your company does not incur any penalties from improper compliance. We will help you identify the potential financial challenges you might face in the implementation of VAT. We can also assign you a dedicated VAT consultant to update you on the latest developments regarding the legislation.
Evaluate & Plan
Business Impact Assessment, review of key documents like existing contracts and incorporation of VAT clauses in the existing and new contracts and related documents.
Design Develop & Train
Advise, develop and assist in restructuring transactions, supply chain and other related processes, Advise and support for requisite changes in the IT systems and applications.
Implementation & Compliance
Assist in VAT registrations and the preparation and filing of VAT returns. Align compliance practices with VAT requisites.