CORPORATE TAX
IMMIGRATION | INVESTMENT | ACCOUNTING
Corporate Tax in UAE
It is a form of direct tax levied on the net income or profit of corporations and other entities from their business. It is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions.
It would typically charge annually, with the taxable person determining their self-assessed Corporate Tax liability. This means that the calculation and payment of Corporate Tax through the filing of a Corporate Tax Return with the Federal Tax Authority by the taxable person. Prism Consultancy Co Middle East DMCC is ready to provide to businesses the services related to Corporate Tax registration, Corporate Tax return preparation, and filing.
The starting point for calculating taxable income is the taxable person’s accounting income (i.e. net profit or loss before tax) as per their financial statements. The taxable person will then need to make certain adjustments to determine their taxable income for the relevant tax period. For example, adjustments to accounting income may need to be made for income that is exempt from Corporate Tax and for expenditure that is wholly or partially non-deductible for Corporate Tax purposes.
This has been introduced in the UAE and is effective for financial years starting on or after 01 June 2023. So, for companies with financial years ending 31 May, then Corporate Tax will be applicable on financial year 01 June 2023 to 31 May 2024 (first tax period). While for companies with financial year ending 31 December, Corporate Tax will be applicable on financial year 01 January 2024 to 31 December 2024 (first tax period).
Tax return filing and payment need to be made within 9 months of the end of the relevant period.
CORPORATE TAX PROBLEMS IN UAE?
Let our Accounting Team help you find the Best Solution
CORPORATE TAX PROBLEMS IN UAE?
Let our Accounting Team help you find the Best Solution
