Tax Services in Dubai, UAE
Tax compliance can be quite challenging especially when you need to keep up to date with recent updates on Tax and at the same time managing your business. Our suite of tax services addresses critical challenges that burden organizations within the UAE and wider GCC, ensuring they remain ahead of the requirements. Our technical experts assist through the complete lifecycle of taxes by leveraging deep insights and experience team leaders.
With our VAT and Corporate Tax Services in Dubai, UAE, you can count on the support and objective perspective of our tax professionals to help you target areas to reduce tax burden and increase shareholder value. By applying proactive approaches, we can help businesses and private clients make sense of continually evolving issues related to local, and international tax laws. And we take advantage of the latest technology solutions to streamline processes and delivery top notch Tax Consulting Services & VAT Services in Dubai, UAE.
VAT Services in Dubai, UAE
The UAE's taxation landscape is dynamic, and businesses are required to comply with the UAE's regulatory environment.
Our expertise lies in offering VAT advisory services that are focused on maximizing tax benefits and minimizing tax burdens. Our team of VAT experts, handhold clients and offer strategic advice on leveraging VAT input taxes, tax incentives and comply with tax related regulations.
A start-up, an individual, foreign establishment providing services in UAE or an established business is required to register for VAT as per income and expense thresholds. We advise on the requirements for VAT registration with Federal Tax Authority and simplify VAT registration.
VAT Impact Assessment
Our tax professionals review operational, financial, and legal transactions to determine the VAT impact on businesses. Our advice covers VAT Accounting, record keeping, information technology changes and policies and procedures to develop a compliance model.
VAT Return Filing
A registrant is required to file VAT return on the 28th day following the end of tax period. VAT return filling requires a 360-degree review of business transactions and their treatment as per the provisions of the law before return is submitted. We offer tax return preparation, review and tax agent services.
The adoption of VAT is an ongoing process and every day businesses encounter unique transactions that might require special treatment for the recording, tax rate and claim ability of VAT. We offer flexible solutions for businesses to engage and seek transactional advice as needed.
VAT Audit & Review (Health Check)
Federal Tax Authority (FTA) can perform a tax audit on tax registrants to determine their compliance with the provisions of the relevant laws. Therefore, it is important for all registrant to be accurate with VAT fillings and ensure compliance to avoid penalties and prepare for a potential tax audit. One of the best ways to prepare for this is to perform a Tax Health Check to examine key areas of Tax Compliance and the controls thereon.
The scope of work for a VAT health check generally includes:
- Review of VAT Returns and taxable transactions
- Assessment of each category of transaction to ensure they have been duly recorded and reported.
- Reviewing VAT invoices and related documents
- Reconciliation between accounting records and VAT returns
- Review of VAT documentation
- Reviewing compliance of FTA laws and regulations
- Assistance in preparation for FTA audit documentation and audit trail;
- Identifying key risks areas
- Recommendations and remedies for areas of concern
The tax professionals at JRB are highly experienced in providing Tax Health Checks that bring together our knowledge and experience in taxation and related internal controls.
VAT Refund Support Services
Assistance with VAT refunds
Assistance with VAT penalties and appeal process
Complete assistance with VAT penalties and appeal process
Excise tax is a form of indirect tax levied on specific goods that are harmful for health or the environment. Such goods can include carbonated drinks, energy drinks and tobacco products.
Our excise tax services include:
An importer, producer, warehouse keeper or stockpiler are required to register for excise should they deal in any excisable product listed on the FTA website. We advise on the requirements for excise registration with Federal Tax Authority and simplify excise registration.
Excise Impact Assessment
Our professionals review inventory movement, export, and specific transactions (i.e., loss, damage, waste) to determine the excise tax applicability to businesses. We advise on the excise tax accounting and record keeping staying compliant to regulations.
Excise Return Filing
A registrant is required to file excise return on the 28th day following the end of tax period. Excise return filing requires a review of accuracy, completion, valuation and the cut-off of inventory, sales, purchases and production losses as per the provisions of the law. We offer preparation, review and submission service for excise returns.
Excise Tax Audit
Our professionals perform detailed reviews of business operations to ensure periodic records are maintained as per standards and excise declarations are submitted within the stipulated time to avail the benefits of tax deductions.
Excise Tax Advice
We assist in understanding the tax implications on specific business situations as the tax regime, laws and regulations continue to evolve and impact new and ongoing transactions.
Corporate Tax Services in Dubai, UAE
The United Arab Emirates (“UAE”) announced to implement the OECD’s Two-Pillar approach to reform its International Tax Framework and to implement a minimum Corporate Tax rate starting 2023.
Corporate Tax in UAE is a form of direct tax levied on the net income or profit of corporations and other businesses. Going forward, licensees operating in UAE will be required to assess the impact of the upcoming regulations to their business and undertake the necessary compliance. At JRB, our team of experts can help you in assessing the challenges and opportunities that the introduction of a Corporate Tax will bring.
Corporate Tax Rates are indicated in the below table:
|Sr. No||Taxable Income/ Category||Corporate Tax Rate (%)|
|1||Taxable income up to AED 375,000||0%|
|2||Taxable income over and above AED 375,000||9%|
|3||Large multinationals (having consolidated global revenue exceeding EURO 750 million – equivalent to AED 3.15 billion)||Different tax rate|
Applicability to free zones and financial free zones
- Free Zone (including financial free zones) businesses in UAE will be subject to Corporate Tax. However, it has been clarified that the Corporate Tax regime will continue to extend the corporate tax incentives currently being offered to free zone businesses that comply with all regulatory requirements and that do not conduct business in mainland UAE.
- Businesses established in a free zone will be required to register and file a Corporate Tax Return.
Applicability to foreign persons
- Foreign entities and foreign individuals will be subject to Corporate Tax only if they conduct a trade or business in the UAE in an ongoing or regular manner.
- Moreover, Corporate Tax in UAE will generally not be levied on a foreign investor's income derived from dividends, capital gains, interest, royalties, and other investment returns.
Applicability of Transfer Pricing Rules
Transfer Pricing rules and documentation requirements will now be aligned with the OECD Transfer Pricing Guidelines. Documentation will require groups of companies to perform benchmarking searches to justify their pricing policies of inter-company transactions. We wait for further details/clarifications on potential exemptions for qualified intra-group transactions and other compliance requirements that may be introduced.
How We Can Help
Although the press release and FAQ provided relevant information regarding some of the most relevant changes brought forward by the introduction of a UAE Corporate Tax, its technical aspects and specifics will only be known once official legislation is passed. Nevertheless, the current announcement by the UAE Ministry of Finance will change the tax landscape of the UAE Significantly and international groups with businesses in the UAE are advised to evaluate the impact of such development. At JRB, our team of experts can help you in assessing the challenges and opportunities that the introduction of a Corporate Tax will bring.
- Impact assessment of Corporate Tax on business and applicability
- Analysis of the impact of Corporate Tax on Free Zone entities
- Advise on Group Corporate Tax and how to minimize potential risks
- Assist in restructuring the business/operational model from the Corporate Tax perspective
- Advise on withholding taxes.
- Registration for Corporate Tax before the relevant authorities
- Computation of taxable income and corresponding Corporate Tax in UAE
- Preparation and filing of tax returns
- Representation services
In a historic tax reform, UAE's tax regime to introduce a Corporate Tax and Transfer Pricing for all businesses (subject to certain exceptions) in UAE.
Moreover, multinational enterprises having intra-group transactions are required to re-assess their existing pricing policy to ensure it meets with the arm's length principles. In absence of robust transfer pricing documentations, intra-group transactions can be considered to not meet arm's length price test and taxpayers may be subject to significant addition to their taxable income which may result in additional burden of taxes and penalties.
While we await the detailed law/regulation, businesses operating in UAE are recommended to proactively commence analyzing the impact of Corporate Tax and Transfer Pricing on their business.
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