With the introduction of corporate tax in the UAE, businesses now face new responsibilities that require attention, planning, and professional support. At Zenesis Corp, we specialize in guiding businesses through the evolving regulatory landscape, including Business Setup, Accountancy, and Corporate Services—to ensure complete compliance and peace of mind.
Understanding UAE Corporate Tax
In January 2022, the UAE Ministry of Finance announced the implementation of a federal corporate tax, marking a significant shift in the country’s fiscal policy. Effective from financial years starting on or after June 1, 2023, this tax applies to the net profits of businesses operating within the UAE.
Key features of the UAE Corporate Tax regime:
- Tax Rate:
- 0% on taxable income up to AED 375,000
- 9% on income above AED 375,000
- Different rates may apply to large multinational enterprises under OECD BEPS Pillar Two
- Scope:
Applies to all UAE-based businesses and commercial activities, including those in Free Zones, though many Free Zones retain tax incentives subject to compliance with relevant conditions.
What Businesses Need to Do
Compliance is not optional. Here’s a checklist every business in the UAE must follow:
- Corporate Tax Registration
- All taxable entities must register with the Federal Tax Authority (FTA) and obtain a Tax Registration Number (TRN).
- Maintain Accurate Financial Records
- Businesses must maintain audited financial statements and proper bookkeeping, in line with International Financial Reporting Standards (IFRS).
- File Tax Returns Annually
- A single annual tax return must be submitted to the FTA within 9 months of the financial year-end.
- Identify Exemptions or Special Cases
- Certain entities like government bodies, qualifying investment funds, and public benefit organizations may be exempt.
- Free Zone entities must meet “Qualifying Income” criteria to benefit from a 0% tax rate.
- Transfer Pricing Compliance
- Related party transactions must be conducted at arm’s length, with proper documentation and reporting for businesses that meet the threshold.
🛡 How Zenesis Corp Can Help
At Zenesis Corp, we offer end-to-end Corporate Tax Compliance Services tailored for businesses of all sizes, from startups to multinational corporations. Here’s how we support you:
- Business Setup Advisory:
Structuring your company optimally to align with tax efficiency and compliance.
- Accountancy & Reporting:
Implementing robust accounting systems that meet FTA requirements.
- Tax Registration & Filing:
Assisting with registration, timely filing, and interaction with tax authorities.
- Free Zone Guidance:
Ensuring your Free Zone business qualifies for available tax benefits.
- Transfer Pricing Support:
Helping businesses draft and maintain the required documentation for related party transactions.
⚠️ Avoid Penalties – Stay Compliant
Non-compliance with corporate tax laws can lead to substantial penalties, business disruptions, and reputational damage. The earlier you begin preparation, the smoother your transition will be.
Get Expert Help Today
Zenesis Corp is your strategic partner for navigating corporate tax in the UAE. Whether you’re a new entrepreneur or a seasoned business leader, our experienced consultants are here to make compliance simple, efficient, and stress-free.
📧 Email: in**@*********rp.com
🌐 Website: www.zenesiscorp.com
