Corporate Tax

Our all-in-one tax solution integrates finance and accounting to provide businesses with comprehensive tax compliance and advisory services, addressing their specific needs with our expertise.

We Offer

Our tax compliance and advisory services provide businesses with a powerful approach to managing tax compliance obligations and meeting deadlines. Typically, these services are combined with finance and accounting to create a comprehensive compliance and reporting solution. Our expertise in local tax regulations and extensive regional reach enables businesses to benefit from transparency and adaptability, meeting their local and regional tax requirements. By leveraging our knowledge and experience, businesses can streamline their tax compliance workload efficiently, allowing them to focus on other important aspects of their operations. Our tax compliance and advisory services empower businesses with the tools they need to succeed.

  • Corporate Tax Registration

    The Corporate Tax is a tax imposed on juridical and natural persons on their business income. Any activity conducted regularly, on an ongoing and independent basis by any person and in any location, such as industrial, commercial, agricultural, professional, services, or excavation activities or any other activity related to the use of tangible and intangible properties. A business subject to Corporate Tax must register with Federal Tax Authority and obtain a tax registration number. Where a business subject to corporate tax fails to register, the Authority may impose registration on it and may impose penalties. The introduction date for corporate tax is 1 June 2023 and it applies for the first tax period beginning on or after that date. A unique number will be issued by Federal Tax Authority for each person who is registered for Corporate Tax Purposes in the State. For more information, explore our FAQs here.

  • Corporate Tax Filing

    Corporate Tax is a form of direct tax levied on the net income or profit of corporations and other businesses. Corporate Tax is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions. The UAE CT regime will become effective for financial years starting on or after 1 June 2023. To know your Taxable Financial Year, check the table below:

    The taxable income will be the accounting net profit of a business, after adjusting for certain items to be specified under the UAE CT law. The accounting net profit of a business is the amount reported in the financial statements prepared in accordance with internationally accepted accounting standards. A Taxable person must file a Tax Return, as applicable, to the Authority in the form and manner prescribed by the Authority no later than 9 months from the end of the relevant tax period or by such other date as directed by the authority. .
    The Tax Return shall include at least the following information:
    a. The Tax Period to which the Tax Return relates.
    b. The name, address and Tax Registration Number of the Taxable Person.
    c. The date of submission of the Tax Return.
    d. The accounting basis used in the financial statements.
    e. The Taxable Income for the Tax Period.
    f. The amount of Tax Loss relief claimed.
    g. The amount of Tax Loss transferred.
    h. The available tax credits claimed.
    i. The Corporate Tax Payable for the Tax Period.

  • Corporate Tax Audit

    Taxpayers are expected to prepare and maintain financial statements for the purposes of calculating their taxable income and should maintain all documents and records that support the information in the CT return or in any other filing made with the Authority. Records and documents should be kept for at least seven years following the end of the relevant Tax Period. The Federal Tax Authority may request for the financial statements to be submitted alongside the CT tax return, or for the financial statements to be provided upon request. A taxpayer’s income, deductions and credits must be measured in the national currency of the UAE (AED), and income derived, and expenses incurred in a foreign currency need to be translated into AED.
    It is always recommended to get the books of accounts audited to have clean records to be able to comply with any law relating to the financials and to have a clear understanding of the profit or loss and the financial position of the business. Whether the financial statements of a business are required to be audited by an accredited audit firm is and will continue to be determined by applicable company laws and regulations. However, as per Ministerial Decision No. 82 of 2023 on the Determination of Categories of Taxable Persons Required to Prepare and Maintain Audited Financial Statements for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, the following categories of Taxable Persons shall prepare and maintain audited financial statements:
    1. A Taxable Person deriving Revenue exceeding AED 50,000,000 (fifty million United Arab Emirates dirhams) during the relevant Tax Period.
    2. A Qualifying Free Zone Person

  • Corporate Tax Advisory

    It is crucial for businesses operating in the UAE to evaluate the potential impact of corporate tax on their operations, corporate structure, and cash flow. Compliance with corporate tax regulations is mandatory, and businesses must assess their need to conduct an Impact Assessment at the earliest possible time. Additionally, it is essential for businesses to have proactive knowledge of the aspects that apply to almost all businesses in the UAE.
    Services offered:
    • Tax planning advisory to ensure effective tax planning and 100% compliance.
    • Corporate tax grouping and group restructuring services to optimize tax implications.
    • Advisory on domestic and cross-border transactions involving related entities, taking into account transfer pricing implications.
    • Assistance with fulfilling withholding tax obligations and minimizing tax impact.
    • Permanent Establishment (PE) advisory to ensure compliance with tax regulations in relevant jurisdictions.
    • Corporate tax due diligence services to evaluate the tax position of a company during mergers, acquisitions, and other transactions.
    Tax consultation services are especially useful for businesses that are expanding globally or establishing themselves in the UAE. With the help of tax advisers, businesses can identify proven strategies for reducing their tax burden, save time on tax return preparation, and handle complex calculations. Effective tax planning can also help businesses minimize the impact on cash flow. Finally, tax advisers can provide businesses with the latest updates about taxation policies, ensuring that they remain compliant with regulatory requirements.

  • Corporate Tax Accounting

    To calculate taxable income, taxpayers must maintain financial statements and supporting documents for at least seven years after the relevant Tax Period. The Federal Tax Authority may request these documents at any time. Income, deductions, and credits must be measured in AED, including foreign currency transactions which must be converted. Auditing the books of accounts is advisable to comply with financial laws and obtain a clear understanding of the business's profit or loss and financial position. A Taxable Person shall maintain all records and documents for a period of (7) seven years following the end of the Tax Period to which they relate that:
    a. Support the information to be provided in a Tax Return or in any other document to be filed with the Authority.
    b. Enable the Taxable Person’s Taxable Income to be readily ascertained by the Authority
    IFC can help you in several ways:
    • We can help you ensure that you comply with all tax laws and regulations in the UAE, including the Federal Tax Authority regulations. We can help businesses prepare and file tax returns, keep records, and meet all tax deadlines.
    • We can help clients plan their taxes by identifying tax-saving opportunities, optimizing tax positions, and creating tax-efficient structures. By doing so, we can help clients reduce their tax liabilities and maximize their profits.
    • We can provide a range of advisory services, such as transfer pricing, withholding tax, permanent establishment (PE) advisory, and tax due diligence. These services help you better understand the impact of tax on your businesses and identify areas of improvement.
    • We can assist you in identifying potential risks associated with your tax practices and suggest ways to mitigate them. By doing so, we can help clients avoid penalties, fines, and legal issues related to tax.
    Overall, we can provide valuable insights and guidance to businesses to ensure you meet your tax obligations, optimize your tax positions, and improve your overall financial performance.

Our Approach to Corporate Tax

  • IFC invests in training staff to ensure they are fully up to date with the new Corporate Tax laws.
  • IFC staff are experienced consultants from various tax jurisdictions and can guide you through the tax legislation in UAE.
  • We support clients by understanding their needs and the nature of their businesses.
  • IFC believes in transparency with rates and processes. After mandated by clients, IFC assigns a Corporate Tax expert who ensures timely deliveries and keeps them updated throughout the progression of service.
  • IFC understands your business operations, organizational structure, and business objectives and provide guidance on tax implications.
  • IFC ensures you are compliant with Tax Laws.
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