The UAE’s Ministry of Finance announced that they will implement a Corporate Federal Tax (CIT) on business profits from June 1st, 2023. Right from the date of the announcement, Corporate Tax has drawn a lot of attention from all over the globe.
UAE is the 4th among the GCC countries to embrace Corporate Federal Tax. The primary objective of introducing Corporate Tax is to foster UAE’s credibility as a global business hub and accelerate the pace of transformation across the country.
Additionally, implementing the corporate tax in UAE helps to meet international standards for tax transparency while evading harmful tax practices. It can be tough for businesses to understand the effects of Corporate Tax on their operations and how to comply with them.
As per the UAE’s Ministry of Finance, the rates of Corporate Income Tax are as below:
If we talk about the income statement, it is like a regular income statement having revenue on the top and net income at the bottom. However, the procedure by which revenue is derived is different from regular companies.
The differences seem to be minor. But, when accounts are written, and financial reports are prepared, significant mistakes may take place if the accountant lacks specific knowledge required to perform accounting for banks.
Compliance with the transfer pricing procedure has gained enormous significance among businesses since the introduction of Corporate Tax. Companies in the UAE must comply with the transfer pricing rules and documentation requirements.
FTA will rigorously scrutinize TP policies, procedures, inter-company and inter-group transactions, and any non-compliance leads to hefty penalties.
NR Doshi & Partners, with its 36 years of experience in the accounting and finance domain, enables you to meet all your TP requirements and smoothly carry out international business operations.
Most jurisdictions want to fuel their revenue through taxes. Managing taxes can be challenging when businesses conduct business across multiple jurisdictions. NR Doshi and partners have a comprehensive and synchronized approach to complex tax problems. No matter where you conduct your business, our services are designed to meet the unique challenges of your jurisdiction while fulfilling your requirements.
Owing to our 36 years of vast industry experience, we have gained extensive knowledge of various financial aspects like taxation, accounting, business consulting, VAT advice, and much more. Our practical advice, coupled with a robust tax compliance framework, will help you overcome challenges like corporate taxes, transfer pricing, etc.
Along with giving you coverage across multiple jurisdictions, NR Doshi & Partners helps you assess the risks, identify lucrative opportunities, minimize costs, and confidently make prudent decisions.
Our services cover the following:
Our services aim at minimizing tax burden, ensuring compliance with new laws, and smooth business operations can be demanding. NR Doshi & Partners, with over 35 years of consulting experience in various facets of financial services and deploying innovative technology, we can help you meet the UAE market’s new demands and manage multi-jurisdictional tax operations.
These challenges include compliance, reporting, and risk management for various kinds of taxes. Through a detailed analysis, we create a foolproof strategy, help customers transform their processes, technologies, and resourcing models, and offer global outsourcing capabilities.
With a coordinated tax strategy bolstered by an execution roadmap, we bring in our dedicated tax management specialists to address your critical strategies.
Our services include the following:
Technology can play an integral role in creating a holistic approach to process improvement. Departments like HR, tax, finance, and accounting can benefit from technology while improving their day-to-day business operations.
NR Doshi & Partners performs a SWOT analysis of your organization. After conducting a detailed analysis, we will design and implement operational procedures, SaaS based technologies, and resource models. The main objective of this exercise is to help you increase your productivity and make informed decisions based on business insights.
NR Doshi & Partners can help with the following:
NR Doshi & Partners is a leading financial services provider in the UAE with 36 years of experience. If you are Looking for an authentic firm to help you with corporate tax, look no further than us. Please contact our corporate tax expert on +971 50 6591233 or enquiries@nrdoshi.ae
Yes. New corporate tax started January 1, 2023, applying to businesses earning >AED 375,000 annually. The standard rate is 9%, with reduced rates for smaller businesses.
Corporate tax is calculated on taxable profit (revenue minus deductible expenses). We identify all deductible expenses, optimize tax strategy, and ensure accurate calculations.
Deductible expenses include: salaries, rent, utilities, professional services, depreciation, and business-related costs. Non-deductible items include personal expenses and fines. We provide detailed guidance.
Transfer pricing applies when related entities transact (e.g., parent company and subsidiary). We ensure pricing is arm’s-length compliant, avoiding significant tax penalties and audits.
Corporate tax returns are filed via FTA’s e-Services portal. We prepare your return, gather documentation, ensure accuracy, and file on your behalf. Deadline: within 4 months of year-end.
Tax planning optimizes your business structure, timing of transactions, and deduction strategy to legally minimize tax liability. We provide strategic recommendations aligned with your business goals.
Yes. Advance Pricing Agreements (APAs) and tax rulings clarify FTA’s position on specific transactions before they occur. We prepare APA applications and negotiate with FTA.
FTA may request documentation, conduct interviews, or propose adjustments. We represent you during audit, respond to inquiries, and negotiate favorable outcomes.
Excise tax applies to specific products (energy drinks, alcohol, tobacco, carbonated beverages) at rates 50-100%. If you import/sell these, we manage excise tax compliance and filings.
Some businesses are required to pay quarterly installments based on expected annual tax. We determine your installment obligation and manage payment schedules to avoid interest.
Sign up to receive exclusive insights, compliance updates, and strategic offers tailored for businesses in the UAE.
Delivering expert audit, assurance, and advisory services in Dubai, UAE