Running a business comes with various responsibilities. As the UAE, Ministry of Finance introduces a federal corporate tax on business profits that will come to effect from June 1, 2023, the responsibilities of businesses based in the Arab country will soon be on the rise.

Presently, there is no corporate tax in the UAE at the federal level. However, some emirates charge a limited corporation tax from various companies based in the petroleum exploration and production industry and from international banks operating in the UAE. But this will not be the case in the coming years. With the beginning of the next financial year, all businesses will be liable to pay 9 percent UAE corporate tax.

The reason behind the new tax imposition

The idea comes amid rising competition from Saudi Arabia, which has been persuading international corporations to shift their Middle East headquarters to the country.

The state news outlet WAM revealed that the UAE corporate tax system was created to incorporate globally recognized best practices and to lessen the regulatory burden on businesses.

According to the reports, the corporate tax will be levied based on the income reported in financial accounts prepared in conformity with internationally accepted accounting standards “with limited oddities and adjustments.”

Businesses that are obliged to the tax imposition

One of the important questions you will have in mind as a business person in the UAE is whether you are required to pay the tax. We have the answer for you.

The corporate tax will apply to both businesses and commercial operations, without any exception.

Personal income from employment, real estate investments, or any other, income earned by individuals who are not from a business or other form of certified commercial activity or otherwise permitted to be conducted in the UAE, will be excluded from corporate tax. While the natural resource extraction companies will continue to be taxed at the emirate level.

The UAE corporate tax structure will be among the most competitive in the world and will incorporate a basic statutory tax rate of 9% and a 0% tax rate for taxable profits up to AED375,000 to help small firms and start-ups.

What you should do as a business?

When it comes to businesses, one of the most important things they should have in hand is an expert finance team. Being backed by a great finance team means a flawless finance account. There are leading finance providers in the UAE that acts as reliable advisor to your business and board as you work to enhance the growth of your organization, boost performance, drive digital transformation and contribute to the sustainability goals of the establishment.

With an experienced finance team, your business can never go wrong on the business profit account and finance activities. Tass & Hamjit is one of the premium finance service providers in the UAE. The service provider is well versed in tax, accounting, and everything else you desire in the form of financial assistance.

Why us?

If you are a business looking for a great finance service provider in the UAE, Tass & Hamjit is the best option you will have.

Expert taxing

Being one of the best tax service providers in UAE, Tass & Hamjit services include business tax, asset management & private enterprise tax, Indirect taxes, regional taxes, and more. We have an expert team ready to assist you in all your finance needs.

Customer-oriented

Our priority is to fulfil the needs and requirements of our customers. We understand the customer needs and work closely with them to execute them to brilliance. It is all about being dedicated to supporting customers and helping them achieve their goals. We strive to stand in your shoes and make decisions that will enhance the business. 

Flawless

Imperfectly perfect! We too have heard of this quote but we believe in absolute perfection. Being a flawless team, our actions will be flawless and accurate. We value perfection and have an excellent team who believes in the same. When it comes to numbers, we recheck and affirm them to be right.

Commitment

We are committed to what we do. And when making a commitment to a business, we are dedicating our efforts and expertise to the company. Thus, we strive to deliver it in extreme precision and prominence.

Whether the UAE is imposing new tax laws or not, a business that dreams to excel will need a finance firm. Thus, it is better to choose the best in financial service provider in the market.