The United Arab Emirates are well known as a nearly tax-free jurisdiction, as there is no income tax and, thanks to accurate tax planning, almost no tax burden on business. Knowing the legal requirements for entrepreneurship in the UAE and planning tax implications can help businesses maximize their tax benefits.
These are the services rendered within Law & Tax advice in the UAE:
Doing business in the UAE requires knowledge of possible tax implications. This helps to forecast tax burden and choose the best way to optimize the tax strategy of your business in the UAE. Professional tax support for a company in the UAE is a key to a successful business.
Given the rapid development of the UAE tax system and its continuous improvement, it is mandatory to take into account and constantly monitor the changes of taxation system made by the Federal Tax Authority (FTA), the Ministry of Finance and the UAE Cabinet.
We are available to provide tailor-made consultations for your situation in two formats:
If you have:
It is obligatory to register for corporate tax in the UAE. The penalty for non-registration is AED 10,000.
VAT registration in the UAE is required for companies whose amount of taxable deliveries exceeds AED 375,000. If it is over AED 187,500, registration is voluntary. VAT rate in the UAE is 5%. Some transactions may be subject to a zero rate or may be exempt from VAT.
UAE Tax Residence Certificate allows individuals and legal entities to benefit from incentives under double tax treaties, and may be required for compliance and KYC procedures with banks, brokers, other financial market organizations, counterparties, etc.
To obtain a UAE Tax Residence Certificate it is necessary to fulfill certain conditions and prepare a set of documents.
Some companies with certain activities in the UAE shall comply with UAE economic substance requirements.
ATTENTION: These are not adequate economic presence requirements for the QFZP benefit, these are other requirements existing in the UAE from 2019 and applicable to all companies conducting “relevant activities” in the UAE.
Penalties for nonfulfillment of responsibilities under the ESR requirements are AED 400,000.
To avoid these penalties, we recommend contacting Smart Advisors Group to analyze whether the ESR requirements apply to your company and to ensure that these requirements are met timely.
Interaction with tax authorities is now an inevitable part of doing business in the UAE. Timely and correct response to notifications and submission of the necessary reporting documents will help you avoid additional inquiries, fines and maintain the status of a bona fide taxpayer.
As part of communication with tax authorities, we provide the following services:
Remember: nonfulfillment of your reporting obligations can result in serious penalties. To ensure timely submission of reporting documents and save your time, please contact us.
Our tax lawyers in the UAE will help you:
