Understanding Taxation in UAE: The UAE offers one of the most favorable tax environments globally, known for its absence of personal income tax, low customs duties, and overall tax efficiency. This pro-business environment has long attracted international investors and entrepreneurs. However, with the recent introduction of Corporate Tax, which applies a 9% rate to business profits above AED 375,000, the regulatory landscape is evolving. Businesses are now required to maintain proper accounting records, file tax returns accurately, and adhere to strict reporting deadlines. Failing to comply with these new requirements could lead to financial penalties and operational disruptions. As a result, companies must stay vigilant, understand their obligations under the new tax regime, and adopt effective strategies to remain compliant while optimizing their tax positions.

Key Tax Types in the UAE:

1. Corporate Tax:

• Introduced in June 2023
• 9% tax on net profits above AED 375,000
• 0% for profits up to AED 375,000 (to support SMEs)

2. VAT:

• 5% standard rate
• Applies to most goods and services
• Mandatory registration for annual turnover over AED 375,000

3. Excise Tax:

• Levied on harmful products such as tobacco and energy drinks

4. Customs Duties:

• Charged on imported goods based on country of origin and trade agreements

Tax Exemptions:

• No personal income tax
• No wealth or inheritance tax
• No capital gains tax for individuals

Compliance Essentials:

• Maintain financial records for at least 5 years
• Submit accurate VAT and corporate tax returns on time
• Monitor and comply with FTA regulations to avoid fines

Capital Zone’s Tax Services:

• Corporate Tax & VAT registration
• Periodic tax return filings
• Tax planning & advisory
• Transfer pricing documentation

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Let our team help you with VAT compliance, business setup, corporate banking, and taxation. Contact Capital Zone Accounting & Bookkeeping for personalized assistance

Email: info@thecapitalzone.com
Call/WhatsApp: +971 4 285 0200

Website: www.thecapitalzone.com/contact-us