Whatever type of organization you oversee, whether it is a start-up or a global operations, it is crucial that you pay the right amount of tax. Being aware of the current rules and legislation around corporate tax in the country in which you operate will ensure you are paying the correct amount.  

However, running a business means you have a lot to consider, and keeping up to date with changes to the regulations around taxes that affect business operations can be difficult and time-consuming. Therefore, it may be beneficial for you to seek tax advice from those who are experts in the field.  

At RSM, we have a team of highly knowledgeable and experienced United Arab Emirates (UAE) Tax law experts who have in-depth, specialized knowledge of current legislation. Our team has experience in providing specialized tax services for a range of organizations in the region, and proven capabilities in providing solutions to tax issues in the UAE. 

Tax updates by the UAE government 

Here in the UAE, taxation has changed in recent years. Our Tax advisory services will ensure that your organization remains compliant, however, being aware of the changes to rules and regulations on a basic level will make it easier for your organization to follow the latest guidelines. 

Income Tax is not levied against individuals in the UAE. Excise Tax is applied against particular goods that are harmful to humans or the environment. In addition, Value Added Tax (VAT) was made effective from 2018.

UAE businesses exceeding the VAT threshold are required to charge Value Added Tax (VAT) at a rate of 5% on taxable transactions. This meant that most of the businesses have had to be compliant with VAT.

Corporate Tax (CT) which was earlier limited to oil companies and foreign banks, now has an expanded scope.

On December 9, 2022, Ministry of Finance (MoF) administered by the Federal Tax Authority (FTA),  UAE announced the Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses profits. The law is applicable for the Financial Year (FY) starting on or after June 1, 2023, with a standard CT rate of 9% on taxable income of above AED 375,000 (i.e., equivalent to USD 102,000 approx. & above). The law further talks about transfer pricing compliance requirements which specify that  transactions between 'related parties' and 'connected persons' should meet the arm's length principle as per the OECD Guidelines by the respective due date.

Economic Substance Regulations (ESR) requirements which were introduced in 2019, continue to ensure that UAE entities are transparent in their economic presence and report actual profits that reflect the economic business activity undertaken in the UAE. 

At RSM UAE, we can assist on workshop/training, Tax compliances and risk assessments that cover VAT, Corporate Tax, International Tax – Transfer pricing (subject to further decisions by Ministry) and other related analysis with supporting services that affect your business performance and providing you with suitable solutions that last.     

Our specialized tax services and solutions 

We provide pragmatic solutions to local and multinational companies for all their requirements. To do this effectively, we collaborate with other RSM member firms across the globe, leveraging our extensive knowledge of taxation practice, tax planning, and procedures followed worldwide including in the UAE.

Tax services that RSM UAE is capable of,  include: 

Tax Advisory services 

  • Impact and Risk assessment for:
    • VAT &  Excise Tax;
    • Corporate Tax;  and
    • Transfer Pricing analysis.
  • Training & workshops on UAE laws for the Group/Company.
  • Business or issue-specific Tax advisory services. 

Tax Compliance services 

  • Value Added Tax (VAT) and Excise Tax services.
  • Economic Substance Regulations service.
  • Transfer Pricing compliance assistance in the preparation of Master file, Local files and return, and Country by Country report as per OECD standard and local documentation standard obligation.
  • Corporate Tax registration and assistance in the preparation and filing of the return.
  • Review and assistance in drafting of the inter-company agreements and review operating model arrangement from the Transfer Pricing perspective.
  • Obtaining Tax registrations, de-registrations, and amendments. 
  • Obtaining Tax clearance and UAE Tax residency certificate. 

Why choose our tax solutions? 

The professional tax services support offered by RSM are designed to ensure a global range of services, suits client needs. Here is our impact owning future that matters: 

  • At RSM UAE, our purpose is to instil confidence in a world of change with a rapid growth of professionals supporting clients in over 120+ countries globally and with record growth in the Middle East & North Africa (MENA) region.
  • Offers round-the-clock availability of our resolute professional’s team by actively servicing a large number of Companies on the subject.
  • Up-to-date knowledge of the latest tax laws and regulations to provide tax consulting services for businesses & corporates.
  • Experience in Tax, Audit, Consulting services matter across various industries and service verticals.
  • Multi-disciplinary and diverse portfolio of professional’s strength in tax and other  services team.

Contact RSM’s Tax Specialists 

To find out more about how RSM can provide you with robust tax solutions, call us on +971 4 554 7423 or email [email protected]

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