HayyaTax: FTA Approved Accounting and Tax Consultancy in Dubai
⚠️ Do you know about deductions in corporate tax? You might bepaying more tax than actual!
Corporate Tax Impact Assessment
Corporate Tax Impact Assessment in Dubai, UAE
At HayyaTax, we help you with detailed and accurate Tax Impact Assessments and other Corporate Tax Advisory Services. We conduct a detailed study and analysis of the corporate structure of the group. Based on this analysis, we can evaluate alternatives to restructure with a view to optimising the impact of Corporate Tax along with providing you with other Corporate Tax Support Services.
Our professional tax consultants also help you with all the necessary corporate tax calculations. Our CT impact assessment consultants know how to calculate corporate tax in UAE, considering your unique business structure, and thus, we ensure that you have a complete and accurate picture of your tax liability.
Understanding the Impact of UAE’s 9% Corporate Tax
Corporate Tax is levied at 9% starting from June 1, 2023, in UAE. The companies must factor the said percentage into their routine business operations. For this, they must perform the Corporate Tax Impact Assessment in UAE.
Corporate tax impact assessment helps you understand the implications of the new Corporate Tax Rate on your business units and groups. An analysis of the impact on the operations, business strategy, and financial position is also essential.
The UAE CT Impact Assessment forms the base for UAE Corporate Tax Planning for the future and ensures tax compliance. It helps you maintain cash flow in your business. Also, Corporate Tax Impact Assessment enables you to smoothly adapt to the new Corporate Tax Regime.
Areas of Corporate Tax Impact Assessment
Our detailed Corporate Tax Impact Assessment includes the evaluation of the following areas:
- Expenses allowed and disallowed as deductions to calculate the taxable income for corporate tax.
- Existing intragroup transactions, cross-border transactions, business models, and long-term agreements. It helps understand the exposure of a group or transaction to Permanent Establishment (PE) or Place of Effective Management (POEM) risks.
- Implementation of the right principles for corporate tax calculation, including segmentation of business and non-business expenditures, accounting standards, and division of capital and revenue expenditures.
- Pricing of goods and services from both the supply and demand sides to incorporate the changes with the introduction of new corporate tax.
- Readiness of existing systems, processes, control procedures, and employees related to the new corporate tax regime.
Benefits of Corporate Tax Impact Assessment in Dubai?
We conduct Corporate Tax Impact Assessments for all types of company operating in any industry sector. If you are operating in UAE for years and are confused about the new taxation, HayyaTax can resolve your queries. We can help all types of companies, including new startups, small and medium-sized entities, and large brands, with Tax Impact Assessment Services.
The UAE is new to corporate tax, making it imperative for entities to review their business operations. You need to make sure you are complying with the UAE corporate tax law and related regulations. An impact assessment of corporate tax in the UAE will enable you to plan properly and make the compliance journey smooth.
We have a track record of helping businesses in different sectors with UAE Corporate Tax Impact Assessment studies. The implications of corporate tax are not the same for every industry. So, with our Corporate Tax Assessment study, you get a customised view of the implications and actions you can take.
With HayyaTax’s Corporate Tax Impact Assessment study, you understand your business better. You get to know the areas where you can make improvements to reduce your tax liabilities. If you are a group in UAE with subsidiaries in other countries, you can identify the income on which this Corporate Tax is applicable. You also get a better idea of the following:
- Help you identify corporate tax implications on your business
- Help businesses promptly prepare for compliance requirements
- You can determine the operational challenges related to corporate tax
- Helps to identify gaps that need to be fixed
- Save you from increased charges and operational consequences
- Help you reduce tax liabilities
Why Hire HayyaTax for Corporate Tax Impact Assessment?
- We have more than a decades of experience on corporate tax.
- Highly qualified corporate tax consultants in Dubai
- HayyaTax has a dedicated team to answer your queries
- We are registered tax agents in the UAE
- We are recognized by the Federal Tax Authority (FTA) and most free zone authorities
- We follow a customer-first approach
- Cost-effective corporate tax compliance services in Dubai
- Tailor-made corporate tax services in the UAE
Finding difficulties adapting to the new Corporate Tax Structure?
Consult CT impact assessment experts at HayyaTax for quality and quick support.
FAQs: Corporate Tax Impact Assessment
Corporate tax payments form a part of government revenues. Globally, governments earn tax revenues by imposing corporate taxes on entities. The main reason for introducing the corporate tax rate in UAE is the OECD’s Action 1 Pillar 2. According to Pillar 2, a global minimum tax regime must exist to reduce incentives for entities to establish their operations in tax-free or less-taxed jurisdictions. Thus, the new corporate taxation has impactful consequences for MNCs operating in the country.
The federal corporate tax rate in UAE is 9%. It will come into effect from the financial year starting on or after June 1, 2023. This federal rate applies to all businesses operating in the country’s seven Emirates.
The standard rate of 9% applies to businesses with annual taxable profits above AED 375,000.0. If the annual taxable profits are below AED 375,000.0, the federal corporate tax rate is 0%.
The following persons are subject to UAE Corproate Tax
Resident Person
- (a) Juridical persons that are incorporated or otherwise eastablished in UAE
- (b) Foreign juridical persons that are effectively managed and controlled in the UAE.
- (c) Natural persons conducting Business or Business activity in UAE and having turnover exceeding AED 1 million during gregorian calendar year
Non-Resident Person
- (a) Permanent Establishment in the UAE;
- (b) Deriving UAE Sourced Income;
- (c) Nexus in the UAE;
- (d) Natural persons conducting Business or Business activity in UAE and having turnover exceeding AED 1 million during gregorian calendar year
As per Article 3 of the Federal Decree Law No. 47 of 2022 (UAE CT Law), read with FAQ No. 26 issued by the FTA , the corporate tax shall be imposed at the following rates :
- Natural persons and juridical persons : 0% for Taxable Income up to and including AED 375,000.
- 9% for Taxable Income exceeding AED 375,000
- Qualifying Free Zone Persons : 0% on Qualifying Income
- 9% on Taxable Income that is not Qualifying Income as specified in Cabinet Decision No. 100 of 2023
Robust tax strategies include considering shifting the operations to a free zone, changing the legal structure of the company, opting for corporate tax grouping in the UAE etc.
Request Free Consultation
Fill in the form below, and we’ll get back to you within 24 hours.