Corporate Taxes Yourself in the UAE

If you are running a business in the UAE, you may wonder if you can file corporate taxes yourself. The answer is, yes, but there are some important considerations you must make before you do so. First, you must make sure you are registered with the Federal Tax Authority. This agency will have a website where you can get more information about the new tax. You can also find FAQs about the new tax on the Ministry of Finance website.

corporate tax in the UAE

While most businesses operating in the UAE do not have to pay corporation tax, there are some exceptions. For example, companies that are registered in one of the UAE’s free-trade zones are exempt from paying corporate tax in that emirate. Furthermore, businesses in a free-trade zone are exempt from paying import and export taxes for up to 50 years.

The UAE has long welcomed foreign investment. The country’s low taxes have helped the economy grow and diversify. However, the government is looking to reduce the tax burden on companies by implementing a federal corporate income tax on 1 July 2023. Most companies operating in the UAE have little experience with filing income taxes, so there is a limited amount of time to prepare.

Can You File Corporate Taxes Yourself in the UAE?

While CT applies to UAE companies, it will also apply to foreign legal entities that have an effective presence and effective management in the UAE. Similarly, partnerships, unincorporated joint ventures, and unincorporated associations of persons are also subject to CT. This means that the income from these entities will be passed through to the partners or members.

corporate tax

As it currently stands, the 9% corporate tax will apply to all businesses registered in the UAE and conducting commercial activities within mainland UAE, provided the minimum annual taxable income threshold of AED375,000 (approximately US$102,000) is reached. This corporate tax will also apply to businesses registered within UAE free zones, and it will extend to individuals on a freelance visa who meet the same threshold of annual taxable income sourced through their commercial freelancing activities.

what is the coroporate tax in the UAE

A businessman with global connections and a keen observer of the Middle East region, Menon is not at all surprised by the UAE’s latest move. “The country was a signatory to the global pact last year which set a minimum tax rate of 15% for large corporates and multinationals. So, it is only in anticipated lines. The only surprise, if you call it a surprise, is the UAE fixing the tax at 9%,” he opines.

Leave a Reply

Your email address will not be published. Required fields are marked *