We are equipped to assist your business in registering with the Federal Tax Authority (FTA) and obtaining the Tax Registration Number. Our team members facilitate a smooth registration process by providing guidance on the necessary documents and information required. This service ensures that your business remains compliant with the tax laws and regulations of the United Arab Emirates, thereby mitigating potential penalties.

Fundamental Paperwork Requirements for the Registration Procedure

These are the basic requirements for the registration process. However, additional requirements or actions may be needed based on the company’s specific structure or if you are a foreign entity.

• Trade License Copy
• Owners/Partners (License Holders) Passport Copies (Must not be expired)
• Owners/Partners (License Holders) Emirates ID (Must not be expired)
• Power of Attorney (POA) or Memorandum of Association (MOA)
• Contact Details of the Concerned Person – Mobile Number & E-Mail Address
• Company Contact Details – Address and P.O. Box Details
• Business’s Annual Financial Audit Report

At our company, our dedicated team of tax professionals is committed to preparing and filing your corporate tax return every year with the utmost attention to detail and punctuality. We begin by conducting a comprehensive review of your financial statements to ensure accuracy and compliance with current regulations. Our experts meticulously calculate your tax liability, taking into account all relevant deductions and credits to optimise your tax position.

Once we have completed the assessment, we file your tax return electronically, streamlining the process to minimise the likelihood of errors or delays. We prioritise adherence to the Federal Tax Authority (FTA) requirements, ensuring that your submission meets all compliance standards. With our service, you can have peace of mind knowing that your corporate tax obligations are handled by experienced professionals dedicated to achieving the highest level of precision and efficiency.

Key Components of Corporate Tax Return Filing Services

When preparing a Corporate Tax Return filing, it is essential to provide comprehensive details regarding your company’s revenue and expenses. This information is crucial for accurately calculating the total income and expenditures. After completing this assessment, you can determine the amount of tax your company is obligated to pay to the government.

Here are some important documents you’ll need:

• Financial records: These show how much money your company made and spent.
• Calculations of taxable income: This shows any changes in your company’s profits based on accounting.
• Records and plans for tax depreciation: This is about how assets decrease in value over time for tax purposes.
• Transfer pricing records: This includes details about transactions between different parts of your company.
• Information on transactions involving relatives: This is about any business deals with family members.
• Movements of provisions: These are funds set aside for certain purposes.

Audits: We provide comprehensive support during audits to ensure that your financial records are meticulously organized, potentially reducing penalties. Our experienced professionals will assess the audit notification for completeness, prepare and acquire the necessary documentation, and represent your organisation throughout the audit process. We are committed to resolving any issues efficiently and amicably.

How Can You Prepare for a Tax Audit in the UAE?

Preparing for a Tax Audit in Dubai involves several key steps:

• Maintain Accurate Records: Ensure all financial documents, including invoices, receipts, and contracts, are meticulously organised and up to date. This will facilitate smooth verification by the Federal Tax Authority (FTA).
• Understand Tax Regulations: Familiarise yourself with the UAE tax laws and regulations to ensure compliance. This includes understanding VAT rules and corporate tax requirements.
• Review Your Tax Returns: Check your submitted tax returns for accuracy. Ensure that all taxable transactions and deductions are correctly reported.
• Implement Internal Controls: Develop strong internal controls to prevent errors and fraud, which can be critical during the audit process.
• Prepare for FTA Queries: Be ready to answer any queries from the FTA regarding your financial statements and tax filings.

Corporate Tax Audit Documents

A meticulously organised collection of documents is essential for a seamless and effective audit process. When all necessary paperwork is easily accessible, it not only accelerates the review but also shows a strong dedication to transparency and accountability. This thoughtful preparation reflects a proactive approach, fostering trust and confidence among stakeholders.

• Financial Statements: Audited financial statements for the relevant period under audit.
• Tax Returns: All corporate tax returns filed for the past few years.
• Supporting Documents: Documentation to support entries in the financial statements, such as:

• Invoices (purchase and sales)
• Receipts
• Bank statements
• Contracts
• Payroll records (if applicable)
• Depreciation schedules
• Tax payment records

Corporate Tax Audit Benefits

Corporate Tax (CT) Audits in the UAE present a win-win scenario for both the government and businesses thriving in the region. For the government, these audits enhance transparency and accountability, ensuring that everyone contributes their fair share. Meanwhile, businesses benefit from a clearer understanding of their tax obligations, which can ultimately lead to better financial management and strategic planning. Embracing CT audits can pave the way for a more robust and cooperative economic environment where trust and compliance flourish.

• Corporate Tax (CT) audits play a crucial role in enhancing tax compliance within the UAE. These audits are designed to ensure that companies adhere to the established corporate tax regulations. Through the audit process, any mistakes or inaccuracies in tax calculations and reporting can be identified and rectified, allowing businesses to ensure their tax obligations are met accurately.

• Audits play a crucial role in identifying any gaps in a company’s financial information, prompting organisations to collect the essential documentation needed for future tax compliance. This process not only enhances transparency in tax practices but also encourages businesses to adhere to legal standards, ultimately fostering a more accountable business environment.

• Minimising Penalties Through CT Audits: Conducting CT audits can be a valuable strategy for businesses to mitigate the risk of penalties. By identifying potential errors early on, companies can address issues before they escalate into serious problems. This proactive measure allows businesses to correct mistakes proactively, reducing the likelihood of facing fines from the Federal Tax Authority (FTA). Consequently, organisations can operate with greater confidence, knowing their tax affairs are well-managed and that they are less likely to encounter financial difficulties associated with non-compliance.

• Strengthening Internal Controls through CT Audits: A Strategic Approach

Conducting a (CT) audit presents a crucial opportunity for companies to critically assess and enhance their internal controls, specifically concerning tax-related matters. Throughout the audit process, various weaknesses within the organisation’s internal systems may come to light. These weaknesses could include inadequate record-keeping practices that may lead to inaccuracies in tax filings or a lack of sufficient oversight into the calculation of tax obligations, resulting in potential compliance risks.

• A detailed analysis of the findings can help businesses pinpoint specific areas that require improvement. For example, adopting more stringent documentation protocols can ensure accurate recording and convenient retrieval of all financial transactions. Furthermore, developing clearer oversight mechanisms can guarantee that tax calculations undergo thorough review and validation before submission. This proactive approach can significantly diminish the chances of incurring costly errors and penalties.

• Strengthening internal controls is essential for companies as it ensures compliance with tax regulations and improves operational efficiency. By streamlining tax processes, such as implementing automation, providing enhanced training for employees, or utilising advanced software solutions, businesses can achieve significant time and resource savings. This proactive strategy not only reduces the risk of future non-compliance but also allows companies to manage their tax liabilities more effectively. Ultimately, this contributes to stronger financial health and greater operational resilience.
• A clean CT audit report can greatly improve a company’s reputation and credibility among stakeholders. Investors typically perceive a clean audit report as indicative of the company’s financial stability and dedication to responsible business practices. This perception can enhance investor confidence and open doors to new investment opportunities. Furthermore, clean audits reflect transparency to regulators, helping to build a positive relationship with the Federal Tax Authority (FTA) and mitigating potential scrutiny. This strong reputation for tax compliance can elevate a company’s overall market value and draw in business partners who value transparency.

Our dedicated team will meticulously evaluate and respond to any tax assessments or notices issued by the FTA. We prioritise your understanding of these assessments and strive to resolve any disputes or concerns that may arise. Our ultimate goal is to significantly reduce any potential additional taxes, penalties, or interest, ensuring that you have peace of mind throughout the process.

The Process Of Corporate Tax Impact

• Reviewing current tax circumstances.
• Analysing the tax implications of transactions.
• Implementing the tax approach.
• Identifying tax risk and opportunity
• Developing a Tax Strategy

We offer special tax services to companies operating within the free zones, with due consideration to special regulations and benefits. Our experts fully understand the special needs and opportunities created by free zones and work to ensure that your business receives maximum benefits while remaining in compliance.

What is Tax Applicability for Various Types of Entities?

The UAE corporate tax is applicable to different types of entities:

• Mainland Companies: All businesses incorporated in the UAE are subject to corporate tax on their worldwide income.
• Free Zone Companies: Qualifying free zone entities can benefit from a 0% corporate tax rate on certain types of income derived from eligible activities. However, they must adhere to specific regulatory requirements to maintain this status.
• Foreign Companies with Permanent Establishments (PEs): Business entities of foreign entities operating through a PE in the UAE would be liable to corporate tax for income accruing from such activities.
• Individuals with Commercial Licenses: The persons carrying on business under a commercial license, either as a proprietor or freelancer, would be liable to corporate tax also.

What are Special Tax Rules for Free Zone Companies?

Special provisions under the UAE corporate tax regime have been provided for the free zone companies:

→ 0% Corporate Tax Rate:

• Qualifying free zone entities can benefit from a 0% tax rate on income derived from specific eligible activities. This is especially advantageous for businesses engaged in international trade or services.

→ Regulatory Compliance:

• To maintain their tax-exempt status, free zone companies must comply with economic substance regulations and ensure that their activities align with those permitted within their respective free zones.

→ Non-Qualifying Income:

• Any income not derived from qualifying activities may be subject to the standard 9% corporate tax rate applicable to other businesses.

Freezone Corporate Tax Filing Documents

In the UAE, the Corporate Tax for Freezone entities is determined by the net profit reported in the company’s financial statements. To accurately file tax returns and ascertain the Corporate Tax liability, it is crucial to maintain certain financial documents. Below is a list of the required documents to prepare for filing Corporate Tax in the UAE:

• → Financial statements for taxable income and exempt income calculation.
• → Receipts for deduction claims.
• → Records of asset depreciation for tax purposes.
• → Documentation on transfer pricing and related party transactions.
• → Information on financial reserve changes affecting taxable income.
• → Proof of exemption status.
• → Business loan documents for interest paid.
• → Records of foreign taxes paid.

Our team of accounting specialists is dedicated to ensuring the accuracy of your financial records in compliance with UAE tax laws and regulations. We provide a range of services, including bookkeeping, the preparation of financial statements, and tax accounting. These services are designed to guarantee that your business maintains valid and reliable financial records, which are essential for preparing tax filings and meeting audit requirements.

Types of Accounting Services in Dubai

The following are the different types of accounting services in the UAE, offered by Quantum Al Badi.

• Financial Accounting: Preparation of financial statements, such as balance sheets and income statements.
• Management Accounting: Analysis of financial data to provide insights for business decision-making.
• Tax Accounting: Compliance with UAE tax laws and regulations, including VAT and corporate tax.
• Auditing: Independent review of financial statements to ensure accuracy and compliance.
• Bookkeeping: Day-to-day recording and management of financial transactions.
• Financial Planning: Assistance with budgeting, forecasting, and financial modelling.
• Accounting Advisory: Expert guidance on accounting and financial matters.
• Internal Audit: Review of internal controls and procedures to ensure effectiveness and efficiency.
• Financial Reporting: Preparation of financial reports, such as annual reports and quarterly reports.
• Compliance Services: Assistance with compliance with UAE laws and regulations, including labour laws and commercial laws.
• Payroll Services: Management of payroll processing, including salary calculation and tax compliance.
• VAT Services: Assistance with VAT registration, returns, and compliance.
• Financial Analysis: Analysis of financial data to provide insights for business decision-making.
• Accounting Software Implementation: Implementation and support of accounting software, such as QuickBooks and Xero.

Accounting Services in UAE for Startups

Efficient financial management is crucial for startups operating in the UAE, as it aids in compliance with local regulations and enhances financial health. By outsourcing accounting services, startups can concentrate on growth while ensuring precise and timely financial reporting. This approach not only streamlines financial processes but also supports informed decision-making as the business evolves.

• Bookkeeping & Financial Reporting – Maintaining accurate financial records, preparing financial statements, and generating reports.
• VAT Registration & Compliance – Assisting with VAT registration, filing VAT returns, and ensuring compliance with UAE tax laws.
• Payroll Management – Handling salary processing, WPS compliance, and employee benefits calculations.
• Audit & Assurance – Conducting internal audits and ensuring compliance with UAE regulations.
• Tax Advisory & Planning – Helping startups minimise tax liabilities and adhere to corporate tax regulations.
• Financial Forecasting & Budgeting – Assisting with cash flow management and strategic financial planning.
• Accounts Payable & Receivable Management – Ensuring timely payments and invoice processing to maintain smooth cash flow.

We provide corporate tax services in Abu Dhabi at Quantum Al Badi, backed by a group of qualified and certified professional tax experts. We command the breadth of knowledge encompassed by local and international practices related to taxation. This entails keeping your business perfectly compliant with rapidly changing tax legislation. We have helped several clients minimise tax liabilities and avoid potential risks with our already successful track record in managing corporate tax matters. What makes the difference is attention: it takes time for us to delve into the peculiarities of your business and find the right approach to your tax problems. Whether you need help with complex current tax issues or long-term planning, Quantum Al Badi’s professionals and outstanding service will make sure your business receives the best possible help.

FAQs on Corporate Tax Services in The UAE

1. Is there a Corporation Tax Service in the UAE?

Yes, the UAE has introduced a federal Corporate Tax applicable to businesses. Effective from June 1, 2023, the corporate tax rate is 9% on taxable income exceeding AED 375,000. However, qualifying free zone entities may benefit from preferential tax treatment if they meet specific conditions.

2. What is the service tax in the UAE?

The UAE does not levy a service tax as traditionally defined in some other countries. Instead, businesses offering goods and services in the UAE are required to comply with Value Added Tax (VAT), which is charged at a standard rate of 5% on taxable supplies, except for exempt or zero-rated items.

3. Who will pay corporate tax in the UAE?

Corporate Tax Services in the UAE apply to:

→ UAE-based businesses: Subject to a 9% tax on taxable profits exceeding AED 375,000.