Impact Assessment under the UAE Corporate Tax Regulations in UAE (UAE CT) |
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Impact Assessment must be made in order to understand the extent of the applicability of UAE Corporate Tax Regulations implemented from 1st June 2023 in UAE, to prepare for the relevant obligatory compliance requirements correctly on time.
The Corporate Tax Regulations includes general anti-abuse rules (GAAR) intended to disregard transactions or arrangements undertaken with the main purpose of obtaining a UAE Corporate Tax advantage. These rules apply from the date the Corporate Tax Law is published in the Official Gazette.
The Corporate Tax Regulations also indicates that the opening balance sheet for UAE Corporate Tax Assessment purposes will be the closing accounting balance sheet for the financial year immediately before the relevant first tax year for the compliance under the UAE Corporate Tax Regulations.
Importance of the Impact Assessment Under Corporate Tax Regulations (UAE CT) ​​
Impact Assessment would answer some of the following relevant questions in relation to the compliance obligations under Corporate Tax Regulations . We at Gupta Accountants could assist yourselves with the Impact Assessment under the provision of the Corporate Tax Regulations implemented from 1st June 2023 in UAE. Meeting obligatory compliance requirements of the Corporate Tax Regulations, is now an essential task while operating the business in the UAE. It is a global fact that meeting the compliance obligation under the corporate taxes are challenging and require correct interpretations, timely planning and calculated decision making.
Aspects of the Impact Assessment Under UAE Corporate Tax Regulations |
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01. Tax Period :
What would be the First Tax Period of the Company, from which the Corporate Tax Regulations would be applicable to the company ?
What would be the First Tax Period of the Company, from which the Corporate Tax Regulations would be applicable to the company ?
02. Corporate Tax Rate :
What rate of corporate Tax would be applicable to the Company ?
What rate of corporate Tax would be applicable to the Company ?
03. Qualifying Free Zone Person:
Whether a company could be considered as a qualifying free zone person ?
Whether a company could be considered as a qualifying free zone person ?
04. Election to be Subject to Corporate Tax :
Whether the company should choose to be taxable as a free zone person or as a non free zone person ?
Whether the company should choose to be taxable as a free zone person or as a non free zone person ?
05. Transfer Pricing :
Whether provision related to the transfer pricing would be applicable to the company ?
Whether provision related to the transfer pricing would be applicable to the company ?
06. Exemption :
Whether the company is involved in business or business activities which are exempt under the UAE Corporate Tax ?
Whether the company is involved in business or business activities which are exempt under the UAE Corporate Tax ?
07. Basic Threshold :
Whether the basic exemption threshold of AED 375,000.00 would be applicable to the company ?
Whether the basic exemption threshold of AED 375,000.00 would be applicable to the company ?
08. Financial Year :
What could be the best, while setting the new financial year in case there is no financial year any, yet followed by the company ?
What could be the best, while setting the new financial year in case there is no financial year any, yet followed by the company ?
09. Tax Residence :
What is the tax residency status of the company?
What is the tax residency status of the company?
10. Partners in an Unincorporated Partnership:
Whether the company is a partner in any Unincorporated Partnership in UAE or outside UAE ?
Whether the company is a partner in any Unincorporated Partnership in UAE or outside UAE ?
11. Small Business Relief :
Whether the company would be subject to the Small Business Relief as specified under UAE Corporate Tax ?
Whether the company would be subject to the Small Business Relief as specified under UAE Corporate Tax ?
12. Exempt Income :
What income of the company would be exempt under UAE Corporate Tax ?
What income of the company would be exempt under UAE Corporate Tax ?
13. Foreign Permanent Establishment :
If the company has any Foreign Permanent Establishment ?
If the company has any Foreign Permanent Establishment ?
14. Qualifying Group :
Whether the company could be considered to be a member of the Qualifying Group
Whether the company could be considered to be a member of the Qualifying Group
15. Arm’s Length Principle :
Whether the company needs to meet the Arm’s Length Principle ?
Whether the company needs to meet the Arm’s Length Principle ?
16. Related Parties :
If the company is dealing with the Related Parties ?
If the company is dealing with the Related Parties ?
17. Connected Persons :
If the company is dealing with the Connected Persons ?
If the company is dealing with the Connected Persons ?
18. Tax Group :
If the company could be the part of a Tax Group ?
If the company could be the part of a Tax Group ?
19. Reporting Currency:
What is the reporting currency ?
What is the reporting currency ?
20. Withholding Tax :
If the company would be required to comply with Withholding Tax obligations as specified under UAE Corporate Tax ?
If the company would be required to comply with Withholding Tax obligations as specified under UAE Corporate Tax ?
21. Foreign Tax Credit :
If the company has foreign tax credits ?
If the company has foreign tax credits ?
22. Tax Registration :
When the company should get registered under the UAE Corporate Tax ?
When the company should get registered under the UAE Corporate Tax ?
23. Tax Returns :
When the company should submit the first corporate Tax Return under the UAE Corporate Tax ?
When the company should submit the first corporate Tax Return under the UAE Corporate Tax ?
24. Financial Statements:
If the company makes the annual financial statements ?
If the company makes the annual financial statements ?
25. Record Keeping :
If the company has a system or procedures of record keeping to satisfy the requirements of the UAE Corporate Tax ?
If the company has a system or procedures of record keeping to satisfy the requirements of the UAE Corporate Tax ?
Fore additional understanding about the Corporate Tax in general please refer to the link below : en.wikipedia.org/wiki/Corporate_tax
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Gupta Accountants competent team as UAE Corporate Tax Consultants and Advisors in Dubai, United Arab Emirates, provides support at all the stages of compliance with UAE Corporate Tax Regulations
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Why Gupta Accountants ?
- Professionally qualified Chartered Accountants with in-depth knowledge about the UAE Corporate Tax Regulations.
- Cost Effective Corporate Tax Regulation compliance services in UAE.
- Compliance to local, International standards & applicable rules and regulations.
- Comprehensive support on compliance with the UAE Corporate Tax Regulations
