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Under corporate tax in UAE, specific conditions have been established for businesses to qualify for exemption from corporate tax. The criterion includes the determination of the nature of the business activity, the type of industry sector, and the business’s size, to mention a few. To add on, taxable persons must meet distinct requirements related to … Read more Exempt businesses under corporate tax in UAE
Ministerial Decision No. 26 of 2023 stipulates the conditions and criteria for conducting electronic commerce business for the purpose of keeping delivery records. The requirement is applicable to taxable persons whose e-commerce taxable supplies are more than 100 million AED in a financial period of 12 months (calendar year). Therefore, it is advisable for e-commerce … Read more Maintenance of Electronic Data for VAT purposes
For corporate tax in UAE, transfer pricing rules aim to ensure that transactions between Related Parties are conducted in compliance with the arm’s length principle, such as transactions performed between independent parties. To avert the manipulation of taxable income, corporate tax law, the UAE requires taxable persons to determine transactions with Related Parties and Connected … Read more Transfer pricing rules in UAE
Commencing from June 1st 2023, UAE corporate tax will be effective. The corporate tax rate is set at 9% for accrued taxable income above 375,000 AED and 0% for taxable income below 375,000 AED. To effectively implement corporate tax standards and to stay compliant, it is advisable for taxable persons to outsource corporate tax functions … Read more Advantages of Corporate Income Tax Outsourcing in the UAE
The UAE Ministry of Finance passed Ministerial Decision No.43 on 10 March 2023, in relation to exemptions from corporate tax registration. The decision furnishes detailed conditions to qualify for corporate tax registration exemptions. Therefore, taxable persons are advised to consult UAE Tax Consults to establish their exemption status as per the corporate tax law and … Read more UAE Corporate Tax Registration Exemptions
The process of determining the price involved in International transactions between two or more related parties with reference to Corporate Tax UAE is referred to as “Transfer Pricing.” When an associated company barters goods or supplies services to its main company or another party concerned business, the trade value charged by the principal corporation to … Read more Transfer Pricing Under Corporate Tax in UAE
The UAE corporate tax was introduced by virtue of Federal Decree Law No. (47) of 2022. UAE corporate tax is a form of direct tax imposed on taxable income that exceeds the amount of 375,000 at the rate of 9%. Thus, taxable persons are advised to seek the expert services of Tax Consultant UAE to … Read more How is corporate tax calculated in UAE?
Under the UAE’s comprehensive corporate tax regime, businesses can manage their taxes in a streamlined manner. By forming a corporate tax group, companies or entities can share profits, losses, and assets within the same corporation as well as operate under stand-alone concepts with their own distinct operations. To make use of this scheme effectively and … Read more Tax Group Formation Under the UAE Corporate Tax Regime
The UAE corporate tax is applicable to all taxable persons. However, income accrued from state entities, social security funds, activities involved in extracting or non-extraction of natural resources, private pension institutions, public welfare institutions, and qualifying free zone persons is exempted. Tax Consultants Dubai assist taxable persons to establish their tax presence and stay compliant … Read more Application of Corporate Tax UAE on Free zone entities