Tax Advisory
We help our clients arrange their affairs prospectively to achieve economic, and financial goals of the business, while minimizing tax. We as tax advisers help clients make choice-of-entity decisions, structure cross-border transactions, or plan their estates. We advise our clients about how to proceed, and we also draft legal documents to effectuate the planned transactions.
1. UAE Corporate Tax Election and Understanding
As the UAE Corporate Tax is fairly news, we offer advisory services for companies for registering under the UAE Corporate Tax Law, assisting in electing registration status such as Qualified Free Zone status, Small Business relief, or regular taxpayer category through Tax Simulation.
2. UAE Corporate Tax Readiness Assistance
We can assess the Financials of the Group Companies and produce a first impact assessment and mock calculation. Our scope includes:
- a. To assess the Financials of the Group Companies and recommend Tax Groups.
- b. If the First Impact Assessment has been done, review the assessed Tax Group and implement the most Tax efficient group/Option.
- c. Preparing a Tax working memorandum of the technical position, including
- d. Supporting documentation for filing tax return,
- e. Tax methodologies and the steps to prepare the tax return
- f. Explanation of calculation to the tax grouping option,
- g. Tax deductions,
- h. Structural changes adopted prior to the first fiscal year, and
- i. an outline of the tax technical position.
- j. Advisory/ summary of the cabinet decisions impacting the group companies and branches.
- k. A Mock Corporate Tax computation for the entities and tax groups, with a list of impact of CT on accounting net profit and potential tax liability based on the last audited financial figures.
3. All Tax Advisory
Our expertise covers all aspects of UAE and Oman Tax laws, as well as International Tax Laws, including,
- UAE and Oman Corporate Tax,
- UAE and Oman Value Added Tax,
- UAE and Oman Excise,
- UAE and Oman Excise,
- UAE and Oman Country by Country Reporting,
- Pillar 2,
- Tax Treaties application,
- CRS, and
- FATCA
At DP Taxation, the tax advisors not only advise clients about what steps to be taken to achieve a tax favourable treatment, but our tax accountants also calculate the tax savings that will be achieved from implementing the favourable treatment. We are tax practitioners with broad area of practice.
Frequently Asked Questions
Corporate Tax is a form of direct tax levied on the net income or profit of corporations and other businesses. UAE introduced an indirect tax called Value Added Tax (VAT) in the year 2018.
VAT on supply of goods and services is charged at a Standard Rate of 5%, some at Zero Rated and some are Exempt Supplies.
Yes, the UAE Corporate Income Tax was introduced on 1 June 2023. Generally, the taxpayers are subject to a Corporate Tax of 9% on the Taxable Income after the standard deduction of AED 375,000. However, there are various tax exemptions under the Corporate Tax Law that will reduce the Corporate Tax Liability to as low as Zero.
Businesses with taxable supplies exceeding the mandatory registration threshold must register for VAT. As of my last update in January 2022, this threshold was AED 375,000.
UAE Corporate Tax will apply to all UAE businesses and commercial activities, except for the extraction of natural resources, which will remain subject to Emirate level corporate taxation. Government Entities are exempt to the extend carrying out sovereign function.
Engaging a tax consultant for VAT and Corporate Tax compliance is beneficial. Tax Consultants can makes a business or a taxpaying individual aware of the UAE Corporate taxation rules. Tax consultants can also help prepare tax accounting for the tax purposes and achieve full compliance.
Yes, the non-deductible expenses can be ambiguous and lead into Tax Uncertainties especially if the taxpayer has international business activities subject to foreign tax in the Source Country and Foreign Tax Credit in the UAE or in Oman. You must seek assistance from your Tax Consultant.
In April 2021, Oman introduced
DP Taxation provides both Direct and Indirect Tax Services.
DP Taxation also provides International Tax Compliance under
the Tax Compliance verticals.
Under Direct Tax, DP Taxation provides Corporate Tax
Registration, Corporate Tax Advisory, and Corporate Tax
Return filing.
Under Indirect Tax, DP Taxation provides VAT
Registration, VAT Advisory, VAT Health check, VAT Returns
and all Emaratax Applications for Refunds, Voluntary
Disclosures, Tax Grouping, Deregistrations, etc. DP Taxation
provides Excise Tax Registration, Excise Tax Advisory and
Excise Tax Returns filing.
Under International Tax Compliance, DP Taxation
provides Economic Substance Reporting, Country by Country
Reporting, FATCA filings, Common Reporting Standard filing,
etc. We assist with Capital Gain Tax form filing in foreign
countries and availing the benefit of reduced withholding
taxes under the Tax Treaty.
Businesses meeting the registration criteria should submit an online application through the tax authorities portal, providing necessary documentation.
Certain goods and services are exempt from VAT, such as certain healthcare and education services.
to file Generally, businesses in the UAE are required VAT returns on a quarterly basis. Timely and accurate filing is essential to comply with regulations.
Late or non-payment of VAT may result in penalties. It's crucial for businesses to adhere to the filing deadlines and ensure compliance to avoid any financial implications.
Yes, tourists are eligible to claim a refund on VAT paid on eligible purchases through the tourist refund scheme, subject to specific conditions.
Small businesses are also subject to VAT and Corporate Tax. Hence, they must maintain Bookkeeping.
Bookkeeping is the systematic recording, organizing, and tracking of a company's financial transactions, including purchases, sales, receipts, and payments.
Bookkeeping is required by the Tax Authorities for a reliable revenue of the businesses.
Yes, businesses often use accounting software to streamline bookkeeping processes, enhance accuracy, and generate financial reports efficiently.
It's advisable to keep financial records for a minimum of 5-7 years. However, the specific duration may vary based on legal and regulatory requirements.
Small businesses can hire a professional bookkeeper who can offer such services for as low as AED 750 per month. Your professional bookkeeper will also keep books, maintain records and archives for 5-7 years, file your tax returns and shall keep your business Compliant.
