The UAE federal government currently imposes various taxes, including Value-Added Tax (VAT), corporate tax, and excise taxes. Additionally, certain emirates impose property, transfer, excise, and tourism taxes. Free zone businesses are exempt from federal corporate tax as long as they do not conduct business with the UAE mainland.
Key components of taxation in UAE
Value-Added Tax (VAT)
The federal government imposes a standard VAT rate of 5% on goods and services, with certain items qualifying for a 0% rate and some exemptions from VAT. VAT registration is mandatory for businesses with annual taxable supplies above a specific threshold.
Corporate Tax (CT)
Under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (UAE CT Law), natural persons conducting business or business activities in the UAE are subject to a 9% CT over AED 375,000 with exceptions for small businesses and free zones.
Excise Taxes
The federal government levies excise taxes on specific products like alcohol, energy drinks, vaping liquids, and cigarettes to discourage consumption and promote public health.
Customs Duties
The UAE charges a flat 5% customs duty on most goods based on their value, freight, and insurance (CIF), with higher rates for alcohol and cigarettes.
Other Taxes
Some emirates levy additional taxes such as property, transfer, excise, tourism taxes, and corporate taxes on oil companies and foreign banks.
Tax Exemptions
- Certain entities like UAE government entities, public benefit entities, investment funds, and qualifying juridical persons are exempt from corporate tax under specific conditions.
- Foreign investors who do not conduct business in the UAE are not subject to corporate tax.
Overview of Taxation?
Tax Planning- Our tax professional develops a tax strategy tailored to your specific needs and goals.
Tax Preparation- Gather all the necessary financial documents and receipts, and prepare your federal, state, and local tax returns.
Tax Filing- Submit the federal tax return to the Internal Revenue Service (IRS) and your state and local tax returns to the relevant tax agencies.
Tax Compliance- Provide guidance on tax matters, answer questions related to tax issues, and help you keep accurate financial records.
Tax Resolution- Involves negotiating with tax authorities, submitting an offer in compromise, or providing a payment plan to resolve your tax debt.
Benefits of Taxation
Expertise
Our team of tax professionals has extensive knowledge and expertise in all areas of tax, including VAT, income tax, and other indirect taxes.
Proactive Advice
We provide proactive tax guidance and support to our clients regarding changes to tax laws and regulations that may impact their business or tax situation.
Competitive Pricing
We offer competitive pricing for our tax services in the UAE, providing our clients with high-quality services at an affordable price.
Customized Solutions
Our tax solutions help our clients achieve their financial goals while ensuring compliance with all applicable tax laws and regulations.
Client-Focused Approach
Our team understands each client's tax situation and financial goals to develop customized solutions that meet their specific needs.
Taxation Services
Corporate Income Tax
Corporate income tax is a tax on the income of corporations or businesses, and it can be a complex and time-consuming process to calculate and pay. Corporate income tax can help businesses with a range of tasks related to their income tax, including tax planning, preparation, filing, compliance, and resolution of tax disputes.
Value Added Tax (VAT)
Value Added Tax (VAT) is a type of consumption tax that is applied to the value added at each stage of production or distribution of goods and services. It is a tax on the value added to goods or services, not a tax on the total revenue generated. VAT is generally charged as a percentage of the price of goods or services.
Custom & Excise Tax
Customs and excise taxation refer to taxes levied on the import and export of goods and services. Customs duties are taxes charged by the government on goods and imported into a country. Excise taxes are levied on specific goods such as tobacco, alcohol, fuel, and other luxury items. These taxes are designed to raise revenue for the government and also to discourage the consumption of harmful products.
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