Corporate Tax

The Ministry of Finance (‘MOF’) of the United Arab Emirates (‘UAE’) announced on 31 January 2022 that the UAE will introduce Federal Corporate Tax (‘UAE CT’) (applicable across all Emirates) on accounting net profits (after certain adjustments) that will be effective for financial years starting on or after 1 June 2023. UAE CT is planned to be introduced as most competitive in the world and is also the lowest amongst the other GCC countries. This is only an initial introduction to the proposed UAE CT law while the UAE CT legislation is being finalised. Details about the proposed UAE CT regime are set out in the press release and the Frequently Asked Questions (‘FAQs’) published on the website of MOF and Federal Tax Authority (‘FTA’).

PKF UAE Corporate Tax Service Offerings

  1. Trainings: Conducting knowledge sharing sessions to prepare clients/ taxpayers on the proposed Corporate Tax Regulations.
  2. Initial Impact assessment & Advisory:
    1. High level pre-implementation impact analysis (i.e., impact analysis before implementation of Corporate Tax) and advisory on applicability of proposed UAE Corporate Tax law, availability of exemption, tax grouping, Free Zone taxation, PE analysis, deductibility of expenses for calculating taxable income, etc.
    2. Detailed post implementation impact analysis and advisory (i.e., after the Corporate Tax Regulations are in force)
    3. Advise on legal entity rationalization: Review of the existing Group organization structure and suggest alternate tax optimum corporate structuring solutions within the legal permissible frameworks.
  3. International Tax Advisory services:
    1. Advising on Permanent Establishment implications for non-residents and applicability of CT
    2. Assisting in analyzing impact for group from the OECD BEPS Pillar 2 perspective and advising to optimize tax structure.
    3. Advising on tax relief/ benefit under the relevant Double Tax Avoidance Agreement.
  4. Corporate Tax Registration & Compliance Support (post enactment of UAE Corporate Tax Regulations)
    1. Assistance in tax registration/deregistration.
    2. Assist in applying for Corporate Tax Grouping/ Exemptions.
    3. Annual Compliance support
      • Review of calculation of income chargeable to tax, tax provisioning and payment of taxes.
      • Assistance in preparation and filing of annual corporate tax returns.
  5. Representation services:
    1. Advising on whether any ‘Clarification’ is required from the UAE Federal Tax Authority (FTA) and assistance in obtaining the same.
    2. Assistance in preparation and filing of written submissions against notices received from FTA.
    3. Assistance in representation before FTA.

Please wait while flipbook is loading. For more related info, FAQs and issues please refer to DearFlip WordPress Flipbook Plugin Help documentation.

Customer Story Highlight

More Stories