The Ministry of Finance has recently published the New Federal Corporate Tax Law (“CT Law”) and all businesses, whether in UAE free zone or mainland, must register for corporation tax, file annual returns with the tax authority, and comply with the CT Law, unless they are exempt.
The CT Law will apply to all financial years commencing on or after 1 June 2023.
HSBM Global has the expertise and resources to help you navigate through this crucial phase, whilst mitigating any tax exposures and optimising your corporate tax position.
As per the CT Law, corporation tax at a rate of 0% will apply on taxable income up to AED 375,000, and 9% on taxable profits above AED 375,000.
It is expected that the Ministry of Finance will issue a separate legislation that will apply a different corporation tax rate, which is anticipated to be 15%, to large multinational corporations falling within the scope of Pillar Two of the OECD's BEPS Project.
Don't wait until it's too late!
HSBM Global can help you understand your corporate tax position, its impact on your business and assist you fulfil all the compliance obligations in UAE.
Contact us today to schedule a consultation and learn how we can help you prepare for and comply with the new CT Law.
The CT Law applies to all:
If you're a business in the UAE, it's important to know that you may be exempt from paying corporate tax. The good news is that certain entities are exempt, either automatically or by way of application. The exemption applies to:
Don't pay more than you have to!
Contact us to determine if your business is eligible for an exemption from UAE Corporate Tax. Our team of experts will guide you through the process and ensure you're taking advantage of all available exemptions.
The CT Law provides that Qualifying Free Zone Persons in the UAE, which satisfy certain conditions, would be subject to 0% CT on their ‘qualifying income’ and 9% CT in respect of non-qualifying taxable income provided that certain conditions are satisfied.
However, A number of points remain unclear in the CT law, such as:
All free zone companies, unless exempt, are required to register for corporation tax and file a tax return, regardless of whether they are a Qualifying Free Zone Person or not.
To avoid unnecessary corporate tax exposure, free zone companies should conduct a thorough review of their operating model and evaluate whether they satisfy the conditions to be considered as a Qualifying Free Zone Person.
It is also crucial to identify any restructuring opportunities that could help mitigate exposure to corporate tax and/or optimize your corporate tax position.
Don't wait until it's too late!
Contact us today to discuss how we can assist you comply with the New CT Law, minimize your tax exposure and optimize your corporate tax position.
Under the new CT Law, all UAE businesses, whether in UAE free zone or mainland, must register for corporation tax, file annual returns with the tax authority, and comply with the CT Law, unless they are exempt.
The CT Law will apply to all financial years commencing on or after 1 June 2023. Taxable persons must file a tax return with the UAE tax authority no later than (9) nine months from the end of its financial year end, or by such other date as may be directed by the authority.
The tax authority further has the power to request exempt persons to submit a tax declaration. The tax authority could also by notice or through a decision issued by the authority, request a taxable person to submit the financial statements used to determine the taxable income for a tax period within the timeline prescribed by the authority.
As part of our comprehensive range of tax services, HSBM Global can assist you with the registration process and comply with the new CT Law.
Don't wait until it's too late!
Contact HSBM Global today to ensure that your business is fully compliant with UAE's CT Law. Our team of experts can guide you through the registration process and help you file your corporate tax returns accurately and on time.
With our support, you can focus on growing your business while we take care of your tax compliance needs. Contact us now to schedule a consultation.