Impact Assessment under the Corporate Tax Regulations in UAE (UAE CT)
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.
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 ?
02. Corporate Tax Rate :
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 ?
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 ?
05. Transfer Pricing :
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 ?
07. Basic Threshold :
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 ?
09. Tax Residence :
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 ?
11. Small Business Relief : 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 ?
13. 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 ?
15. 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 ?
17. 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 ?
19. 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 ?
21. Foreign Tax Credit :
If the company has foreign tax credits ?
22. Tax Registration :
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 ?
24. 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 ?
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 ?
03. 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 ?
05. Transfer Pricing :
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 ?
07. Basic Threshold :
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 ?
09. Tax Residence :
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 ?
11. Small Business Relief : 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 ?
13. 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 ?
15. 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 ?
17. 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 ?
19. 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 ?
21. Foreign Tax Credit :
If the company has foreign tax credits ?
22. Tax Registration :
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 ?
24. 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 ?
It should be noted that the UAE Corporate Tax applies to juridical persons incorporated in the UAE and juridical persons effectively managed and controlled in the UAE, as well as to foreign juridical persons that have a permanent establishment in the UAE.
It should also be noted that the Individuals will be subject to UAE Corporate Tax only if they are engaged in a business or business activity in the UAE, either directly or through an unincorporated partnership or sole proprietorship.
Link to the UAE Corporate Tax Law ( Law No. 47 of 2022)
https://mof.gov.ae/wp-content/uploads/2022/12/Federal-Decree-Law-No.-47-of-2022-EN.pdf
Gupta Accountants is one of the best corporate tax consultants in UAE and provides a full range of services in relation to the transfer pricing, country by country reporting, compliance with the corporate tax in UAE, compliance with economic substance regulations in UAE for the entities based in Dubai, Abu Dhabi, Sharjah, RAK, Fujairah, Ajman and UAQ in United Arab Emirates and well as outside United Arab Emirates.
Aspects of the Impact Assessment Under Corporate Tax Regulations (UAE CT)
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 ?
Gupta Accountants provides the corporates tax advisory, corporate tax consulting and support services for the companies based and registered under the Dubai Aviation City, Dubai South, Hamriyah Free Zone Authority (HFZA), Media Free Zone (Abu Dhabi), Registered under Central Bank of the UAE, Jebel Ali Free Zone (JAFZA) DP World, Ajman Free Zone Authority, Abu Dhabi Airports Free Zone, Insurance Authority, Dubai World Trade center, Ajman Media Free Zone Authority, MASDAR, and Commodities Authority, International Humanitarian City (IHC) , Ras Al Khaimah International Corporate Centre (RAK ICC), Abu Dhabi Global Market (ADGM), Dubai Airport Free Zone , TECOM (Dubai Development Authority), Ras Al Khaimah Economic Zone (RAKEZ), Abu Dhabi Ports, Dubai Healthcare City Authority, Dubai Multi Commodities Centre (DMCC), Fujairah Free Zone, Fujairah Creative City, Dubai International Financial Centre (DIFC) Dubai Silicon Oasis Umm Al Quwain Free Zone (UAQ) Sharjah publishing city, Meydan Free zone, Sharjah Airport (SAIF) Zone, Khalifa Industrial Zone Abu Dhabi (KIZAD), Sharjah media city, International free zone authority Fujairah, RAK Maritime City, Sharjah Healthcare City, The Sharjah Research, Technology and Innovation Park, Dubai Internet City (DIC), Dubai Media City (DMC), Dubai Outsource City, Dubai Production City, Dubai Studio City (DSC), Dubai Design District (DDD), Dubai Knowledge Park (DKP), Dubai International Academic City (DIAC) , Dubai Science Park in addition to the assistance in the compliance with the annual audit requirements and books of accounts.
