Corporate Tax & TAX Agent Services
Corporate Tax
On January 31st, 2022, the Ministry of Finance (MoF) of the United Arab Emirates (UAE) announced the implementation of federal Corporate Tax (CT) for financial years beginning on or after June 1st, 2023. It is expected that the CT in the UAE will be in line with international taxation best practices and will have a minimal compliance impact on businesses.
The introduction of CT in the UAE is aimed at achieving several objectives. Firstly, it aims to solidify the UAE's position as a leading global hub for business and investment. Secondly, it aims to accelerate the country's development and transformation to achieve its strategic goals. Lastly, it reaffirms the UAE's commitment to meeting international tax transparency standards and preventing harmful tax practices.
As per Ministry of Finance, CT rates are:
- 0 per cent for taxable income up to AED 375,000
- 9 per cent for taxable income above AED 375,000 and
- a different tax rate (not yet specified) for large multinationals that meet specific criteria set with reference to 'Pillar two' of the OECD Base Erosion and Profit Shifting Project.
At present, our team of tax experts is closely monitoring developments regarding the implementation of CT in the UAE. We are committed to helping businesses navigate the evolving tax landscape in the UAE and providing them with timely and accurate advice on tax planning, compliance, and other related matters. We are confident that our expertise and experience will enable us to provide our clients with the guidance and support they need to succeed in the UAE's dynamic business environment.
SERVICES TAFC CAN OFFER
Our firm provides a comprehensive range of corporate tax services to help businesses comply with UAE Corporate Tax regulations and manage their tax obligations effectively. Our services include:
- Corporate Tax Registration: We provide assistance in registering companies for corporate tax purposes.
- Corporate Tax Return Filing: Our team of tax experts prepares and assists in filing corporate tax returns in compliance with regulatory requirements.
- Tax Accounting Services: We provide tax accounting services to streamline the accounts as per CT regulations, enabling businesses to maintain accurate and up-to-date tax records.
- Initial Impact Assessment: Our experts perform an initial assessment of the corporate tax impact as per the current operational structure of the company, identifying any potential tax implications.
- Implementation/Restructuring of Changes: We assist businesses in implementing the changes required in the organizational structure to restructure the company as decided in the Impact Assessment Study.
- System Impact Analysis: We analyse the data required to be collated for corporate tax requirements, assess whether the same is being captured by the existing systems in place, and advise on any changes required.
- Applicability of Tax Rulings: Our team advises on the applicability of tax rulings and accordingly amends policies or agreements as necessary.
- Corporate Tax Governance Framework: We help businesses prepare a corporate tax governance framework to ensure compliance with regulatory requirements.
Our corporate tax services are tailored to meet the specific needs of each client, and our team of experts has extensive knowledge and experience in navigating the complexities of UAE tax regulations. We are committed to providing our clients with efficient and effective tax solutions to help them achieve their business objectives.
TAX Agent Services
A tax agent is an individual registered with the Federal Tax Authority (FTA) in the UAE. TAFC Tax agent in the UAE can enter into a contractual agreement to act on behalf of another person in complying tax obligation of his business. Further, the tax agent in the UAE has the power to represent the taxable person before the Federal Tax Authority (FTA) for any tax-related matters.
Role of a Tax Agent in the UAE
- Help save time and money
- Assist Tax implementation & Registration
- Assist in Timely Return Filing
- Acts as a long- term advisor
- Assist in Tax Assessment & Representation
A Tax Agent in UAE, registered with the authority is expected to
- Support his clientele with Tax return filing assistance, ensuring timely submission of the tax return.
- Support in submitting the refund application and assist in answering queries from the Federal Tax Authority (FTA) related to same.
- It is the responsibility of a tax agent in UAE, upon auditor’s request, to furnish all relevant documents required on the course of a tax audit in the UAE.
- Tax agent must ensure that he maintains confidentiality about the client’s information while retaining the concerned records for a period of 5 years.
- It is expected that, as a registered tax agent in UAE, he/she shall maintain a record of their “Continuing Professional Development “on a yearly basis.
