Corporate Tax Consultancy in UAE

Every business is unique, and so are its tax needs. At Ald Alawl a prominent tax consultancy in Dubai and the UAE, we believe in tailored solutions. Our dedicated team takes the time to understand your specific situation, providing personalized guidance and expert advice on navigating the national tax landscape. We handle all the heavy lifting, from handling payments to navigating legal complexities, ensuring your business stays compliant with international standards. Choose Al Alawl as your tax partner and experience the peace of mind that comes from knowing your finances are in expert hands.

What is a Tax Consultant?

A tax consultant, also known as a tax advisor, is a professional who helps individuals and businesses navigate the often complex world of taxes. They provide expert advice and guidance on a wide range of tax matters, from filing tax returns to minimizing tax liability to planning for the future.

What Tax Consultants Do For You? Why Tax Consultancy?

Tax consultants play a pivotal role in ensuring legal compliance for individuals and businesses by meticulously adhering to relevant tax laws and regulations.

Beyond mere compliance, these professionals actively engage in strategic tax planning, anticipating changes in tax laws, identifying opportunities for savings, and crafting long-term strategies to minimize tax burdens, especially vital for businesses optimizing their financial structures.

Providing customized advice, tax consultants tailor their recommendations to the unique financial situations of clients, whether it involves identifying specific deductions for individuals or suggesting tax-efficient business structures.

They also contribute significantly to risk management by helping mitigate the potential consequences of audits and penalties through accurate and compliant financial reporting.

Acting as intermediaries during interactions with tax authorities, tax consultants reduce stress, ensuring a smooth process. Leveraging advanced tax software and technology, these experts streamline processes, enhancing efficiency and accuracy, thereby contributing to the overall financial well-being of individuals and businesses.

What a Tax Consultant Can Do for Your Business:

Identify legal deductions and credits to optimize tax returns, saving significant money.
Keep your business compliant with federal, state, and local tax regulations to minimize audit risks and penalties.
Manage all tax-related tasks, from filing returns to payments, freeing up your time and resources.
Advise on tax implications for major business decisions, investments, and transactions.
Advocate for your business in audits or tax disputes with expert representation and negotiation skills.
Decode complex tax laws, translating them into practical actions for your business.
Anticipate tax changes and recommend adaptive strategies for future benefits.
Identify and minimize potential tax pitfalls, protecting your business from financial repercussions.
Focus on core business operations, trusting qualified professionals to handle your tax affairs.
Taxes In Dubai/UAE:
The tax system in the UAE is diverse, encompassing various taxes for individuals and businesses. Here’s a breakdown:

Taxes applicable to all:
Value Added Tax (VAT):
5% tax on most goods and services, applied at each supply chain stage, ultimately borne by the end consumer. Here is a concise breakdown of Value Added Tax (VAT):

Exempt supplies: –
➔The supply of some financial services that explained in VAT legislation
➔Residential properties
➔Bare land
➔Local passenger transport

Taxable supplies: –
➔Commercial property
➔Retail purchase
➔Car sales and rentals
➔Hotels and restaurants
➔Repairs and maintenance services

Zero-rated: –
➔Education
➔Healthcare
➔Medicine and Equipment,
➔Investment in Gold, Silver, and Platinum,
➔Exports and International Transports,
➔Crude Oil and Natural Gases,
➔First Sale of Residential.

Taxes mainly for businesses:
Corporate income tax:
The UAE introduced a federal corporate income tax (CT) in January 2023, applicable to businesses starting on or after June 1st, 2023 (or January 1st, 2024, depending on their financial year). Here’s a summary of the key points:

Tax Rates:
➔0%: For annual taxable income up to AED 375,000.
➔9%: For annual taxable income above AED 375,000.
➔A different rate (not yet specified): For large multinationals meeting specific criteria under “Pillar Two” of the OECD Base Erosion and Profit Shifting Project (BEPS).

Who is Liable?
The corporate income tax applies to all types of business and commercial activities, except for:
➔UAE Government entities
➔Government-controlled entities
➔Businesses engaged in extractive or non-extractive natural resource activities in the UAE
➔Qualifying public benefit entities
➔Qualifying investment funds
Excise tax:
In 2017, the UAE introduced excise tax targeting specific goods deemed detrimental to health or the environment, classified as ‘excise goods.’ If you intend to import, produce, stockpile, or release these items in the UAE, obligatory registration as excise goods is required.

Here’s an overview of Excise Goods in the UAE:
➔Carbonated drinks
➔Tobacco products
➔Energy drinks
➔Electronic smoking devices and tools
➔Liquids used in electronic smoking devices and tools
➔Sweetened drinks

Excise Tax Rates:
➔50%: Carbonated drinks and sweetened drinks.
➔100%: Tobacco products, energy drinks, electronic smoking devices and tools, and liquids used in such devices and tools.
Tourism taxes:
The UAE levies several taxes on tourists, impacting their expenses in hotels, restaurants, and general spending. Here’s a breakdown:

Types of Tourist Taxes:
➔6% nationwide, added to hotel bills. Some Emirates have additional surcharges:
➔”Tourism Dirham Fee” per room per night, ranging from AED 7 to AED 20 depending on hotel grade.
➔Additional 4% fee on hotel bills and AED 15 per room per night.
➔Ras Al Khaimah, AED 15 per room per night.
➔Municipality fee, 10% nationwide, typically included in hotel bills.
➔City Tax: 6-10% depending on the Emirate, often included in hotel bills.
➔Service Charge, 10% in most restaurants and hotels, added to the bill.
➔Value Added Tax (VAT), 5% on most goods and services, including restaurant bills and some hotel charges.
Importance of Tax Consultancy Services in Dubai:
➔UAE’s corporate income tax is recent, and tax consultants guide businesses through its complexities, ensuring compliance.
➔Identify legal deductions and tax planning strategies to reduce the tax burden, especially with the 9% tax rate.
➔Ensure understanding and compliance with filing requirements, deadlines, and reporting obligations to avoid penalties and audits.
➔Provide ongoing support on tax implications of decisions, expansions, and investments as businesses grow in the UAE.
➔Experienced professionals handling taxes allow businesses to focus on operations without the stress of tax compliance.
➔Minimize tax liabilities and efficient tax planning to improve the bottom line and boost profitability.
➔Offer insights into the UAE tax landscape, aiding informed decisions on investments, structures, and operations for optimized tax positions.
➔Deep knowledge of UAE tax code, legislative updates, and precedents ensures businesses stay current with the latest tax developments.
(FIRM NAME) Tax Services:
We provide following services:
➔Prepare balance sheets aligned with tax requirements.
➔Undertake projects ensuring tax compliance and accuracy.
➔Regularly update accounting practices based on legal changes.
➔Address and manage potential tax risks effectively.
➔Manage and submit tax returns promptly.
Why Choose Ald Alawl for Tax Consultancy Services in Dubai?
Ald Alawl has been a trusted provider of tax consultancy services in the UAE for many years. Our experts offer tailored solutions for your business’s tax structure, providing advice on effective management and minimizing payments. Services include Tax Returns, Audited Financial Statements, permit renewals, and audits. As a reliable partner, we also offer CFO services, auditing, bookkeeping, and more.

Corporate Tax Consultancy in UAE