Businesses in the UAE are expected to belt up for Corporate Tax compliance, effective from June 2023. Companies that fall under the cognizance of Corporate Tax are urged to outset formal auditing, accounting, and bookkeeping services to establish their financial credentials for tax calculation and filing tax returns. Thus, companies are highly advised to outsource approved accounting and auditing services as the primary basis of effecting Corporate Tax.
For each taxation period, corporations are obliged to prepare and submit one corporate levy return, together with any necessary supporting records. In the UAE companies are not required to submit a provisional corporation tax return or pay corporate tax UAE in advance.
Within nine months of the conclusion of the applicable Period, the business will be expected to file each levy return along with any accompanying supporting schedules to the FTA. Within 9 months of the conclusion of the applicable levy Period, taxpayers who wish to alleviate their corporate tax debt for that Tax Period must do so. They can also request the Federal Tax Authority for refund tax if they can ascertain that the corporate tax return is due.
All corporations that fall under the cognizance Corporate levy in the UAE are to register with the FTA. If an eligible entity neglects to complete voluntary corporate levy registration in the United Arab Emirates, the FTA(Federal Tax Authority) has the authority to enroll the specified company. A company might cease to be liable to corporate tax in the UAE framework for many reasons, such as expiration or liquidation. The company should submit an application for deregistration in such a circumstance. Within 3 months of the date of discontinuation, businesses must apply for deregistration with the FTA. If the relevant authority is contented that the commodity has submitted corporate levy returns and paid all of its corporate levy liabilities, it will grant the request for corporate tax deregistration. Availing the help of a corporate levy advisor is highly imperative in this instance, to ensure a seamless and efficient process of corporate tax registration and deregistration.
It’s crucial to keep accurate financial records to ensure compliance with UAE Corporate levy. The corporate levy returns must contain a detailed description of these records. Entities will also have to submit all relevant documents to the Federal Tax Authority. Corporations will still be required by applicable firm rules and regulations to have their financial statements audited by qualified audit firms in the UAE. To take advantage of the zero percent corporate tax rate, free zone enterprises must have their financial accounts audited.
The UAE’s corporate levy system is built on the self-assessment idea. It implies that companies make sure that the levy returns and affiliating records they defer to the FTA are correct, comprehensive, and in compliance with the corporate tax regime. Within the time range outlined in the Law of levy Procedures, the FTA will examine the corporate tax returns submitted by the corporations and offer an evaluation.
The landmark shift from a Non-levy environment to a levy Regime is quite burdensome for businesses. Thus, it is highly advised to seek expert consultation for taxing and accounting services from Tax Consultants in Dubai to ensure a seamless and efficient process of corporate tax registration and deregistration. So, contact us today for premiere Corporate Tax services. We shall be happy to assist you!