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Corporate Tax in Dubai

Make the Most of Corporate Tax in Dubai – Spectrum for Your Business!

Doing business in Dubai requires you to be aware of the various tax regulations and laws. Corporate tax in Dubai is one such important aspect that you need to understand, plan your corporate tax structure and transactions in a most economical way, calculate and pay the tax accurately. Spectrum will guide you through corporate tax in Dubai  in terms of planning the corporate structure of the group in UAE and the relation of the entities in UAE with the group entities outside of UAE, planning the transactional arrangement to be able get the maximum benefit of the regulations on UAE Corporate tax.

Corporate Tax in Dubai - An Overview

Dubai is a great place to start a business. With its booming economy and attractive business environment, it has become the international business hub of the Middle East. However, some of the businesses in Dubai are subject to taxation, including corporate tax to be effective 1 June 2023 onwards. Corporate tax in Dubai is levied on the profits of a company or a business operating in the city. The rate of corporate tax in Dubai is 9% on the adjusted profits exceeding AED 375,000 for the year. This is one of the lowest corporate tax rates in the world at the moment and this is mainly to attract new business to the city.

Businesses that require Corporate Taxation

  • Taxation of Companies in Dubai 

The Decree Law released on Corporate tax came up with two rates to be applicable for computation of the Corporate tax. The Corporate tax is 0% on the taxable income (adjusted profits) less than AED 375,000 and 9% on the taxable income (adjusted profits) exceeding AED 375,000.

In the United Arab Emirates, the withholding tax proposed is 0% at the moment.

  • Taxation of onshore companies 

The UAE is a tax-free country, which means that there are no taxes imposed on the profits of companies operating within the UAE at the moment.

However, some taxes are imposed on companies that operate within Dubai and in other parts of the United Arab Emirates (UAE) and are considered an “onshore company”.

A company can be considered an “onshore company” in Dubai if it has a physical presence in the Emirate. This is determined by the number of staff at the headquarters, general management and control of operations and assets in Dubai.

  • Corporate tax in Dubai free zones 

Dubai free zones are a major part of the Dubai economy. They provide a way for companies to reduce their tax liability.

Dubai is one of the most tax-efficient locations in the world. The government offers incentives for companies to set up offices in Dubai free zones, which are exempt from many taxes, including corporate and personal income taxes.

The corporate tax announced for the Dubai Free Zones is 0% on the qualified income earned by complying with the conditions mentioned in the law and 9% on the taxable income.

  • Corporate tax in Dubai Deductions

Companies in Dubai can enjoy a range of tax deductions. These deductions are available to companies that have offices and branches in Dubai, as well as those that have investments in the country.

The government also is coming with small business reliefs based on the turnover of the company. If any small business which has the turnover less than a certain to be mentioned by the government will not have to pay any corporate tax.

  • New tax rules in Dubai 

A big move for a nation that has long drawn firms from throughout the world due to its reputation as a centre of tax-free trade.

For corporate tax in Dubai, the taxable income is above 375,000 UAE dirhams ($100,000), and the nation’s corporate tax rate is 9%.

Extensive Assistance For All Your Corporate Tax Needs

Obtaining professional help with corporate tax in Dubai is essential for businesses to ensure that they are compliant with the latest tax regulations. Spectrum can provide you with professional tax professionals and advisers to businesses who provide necessary advice and guidance to ensure that their taxes are paid accurately and on time.

Moreover, Spectrum can also help businesses maximise their corporate tax in Dubai benefits by taking advantage of the various tax incentives and exemptions offered by the UAE government. We can also provide businesses with tax planning strategies to reduce their tax liabilities.

Our Comprehensive range of corporate tax services UAE include

Our Comprehensive range of corporate tax services UAE include:- H3

  1. Corporate Tax Advisory
  2. Tax Management Consulting
  3. Transfer Pricing
  4.  Business Process Solution

If you are looking for professional help with corporate tax in Dubai, call us on +971 4 2699 329. 

We pride ourselves on a team of experienced tax advisors who can help you understand Dubai’s various corporate tax regulations and ensure that your taxes are paid accurately and on time.

corporate tax in UAE

FAQs

The net income or profit of corporations and other enterprises in Dubai is subject to corporate tax, a type of direct tax.

The UAE's commitment to upholding international norms for tax transparency and avoiding unfair tax practices is reaffirmed by implementing a corporate tax regime

The UAE corporate tax policy will go into force for fiscal years beginning on or after June 1, 2023.

No, VAT and corporate tax are two distinct forms of taxes. In the UAE, both will still be applicable.

Consult Spectrum, as it can provide you best help to deal with corporate tax in Dubai, as it prides itself on having the best team to deal with corporate taxes in UAE.

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