Self Assessment under the Corporate Tax in UAE (UAE CT)
Self assessment must be made in order to understand the extent of the applicability of Corporate Tax provisions to be implemented from 01 June 2023 in UAE, to prepare for the relevant obligatory compliance requirements correctly on time.
The Corporate Tax Law 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 Law is published in the Official Gazette.
The Corporate Tax Law also indicates that the opening balance sheet for UAE Corporate Tax 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.
Importance of the Self Assessment Under Corporate Tax (UAE CT)
Self Assessment under Corporate Tax would answer some of the following relevant questions in relation to the compliance obligations under UAE Corporate Tax
- What is the accounting - tax Period for your business ?
- By when your business would need to file a Corporate Tax Return ?
- What elections or applications your business may or should make for Corporate Tax purposes ?
- What financial information and records your business will need to keep for Corporate Tax purposes ?
- Whether the business based in Free Zone would be considered a Qualifying Free Zone Person for the Corporate Tax Purposes ?
- Whether the business has a permanent establishment out side UAE ?
- Whether the business based outside UAE is being controlled and managed from UAE ?
- If there is a need for the documentation in relation to the transfer pricing in relation to the transaction with the associated companies ?
- Whether the tax planning transaction of the company would attract the general anti abuse rules ?
- Other matters depending and arising our of the review of the legal status of the company, management and control of the company and the Core Income generating activities of the Company.
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)
Gupta Accountants provide 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.