CORPORATE TAX RETURN SUBMISSION ALL OVER UAE AED 599 annually

 Corporate tax is a type of tax imposed on the profits or income generated by companies. It is typically levied at a specific rate (0% to 9%) on the taxable income earned by corporations. The tax rate and regulations may vary depending on the jurisdiction in which the company operates. 

 Corporate tax is specifically applicable to companies and is based on the profits or income generated by the business. It differs from other taxes such as personal income tax, sales tax, or value-added tax (VAT), which are levied on individuals or transactions rather than the overall income of a company. 

 Companies, corporations, and other legal entities engaged in business activities are generally subject to corporate tax. The specific criteria for determining tax liability may depend on the jurisdiction’s laws and regulations, such as the company’s legal structure, annual revenue, or the type of business conducted. 

 Corporate tax is typically calculated based on the company’s taxable income, which is the revenue generated from business activities minus allowable deductions, exemptions, and credits. The applicable tax rate is then applied to the taxable income to determine the amount of tax payable. 

 There is no registration threshold for UAE CT. 

No, 0% (zero percent) on the portion of the Taxable Income not exceeding AED

375,000 and 9% (nine percent) on the portion of the Taxable Income exceeding AED

375,000.

 Only one UAE CT return will need to be filed per Tax Period. The CT return will generally be due within 9 months following the end of the Tax Period. No provisional or advance UAE CT filings will be required. 

Deductible expenses are legitimate business expenses that companies can subtract from their revenue to reduce their taxable income. These expenses may include costs related to employee salaries, rent, utilities, marketing, advertising, research and development, depreciation of assets, and interest on business loans, among others. The specific deductible expenses can vary depending on the jurisdiction’s tax laws. 

Mostly it is prementioned In MOU of the company
If not then the Tax Period is the Financial Year used for preparing financial statements, which will normally be the Gregorian calendar year (i.e. from 1 January to 31 December), unless the business applies a different 12-month period for preparing its financial statements in which case it will follow that Financial Year. 

Non-compliance with corporate tax regulations can have serious consequences for businesses. This may include penalties, fines, and interest charges levied by tax authorities. In some cases, non-compliance can lead to audits, investigations, or legal actions that may result in reputational damage and additional financial liabilities. It is essential for companies to maintain accurate records, file tax returns on time, and fulfill all tax obligations to avoid potential penalties and legal repercussions. 

 The following persons are exempt from UAE CT, either automatically or by way of application:
1. The UAE Federal and Emirate Governments and their departments, authorities and other public institutions;
2. Wholly Government-owned companies that carry out a mandated activity, and that are listed in a Cabinet Decision;
3. Businesses engaged in the extraction of UAE natural resources and related non-extractive activities that are subject to Emirate-level taxation after meeting certain conditions;
4. Public Benefit Entities that are listed in a Cabinet Decision;
5. Investment Funds that meet the prescribed conditions;
6. Public or private pension or social security funds that meet certain conditions; and
7. UAE juridical persons that are wholly-owned and controlled by certain exempted entities after meeting certain conditions.    

 For UAE CT purposes, the financial statements of UAE entities and other businesses should be prepared in accordance with accounting standards accepted in the UAE. International Financial Reporting Standards (IFRS) is the most frequently used accounting standard in the UAE.  

  In addition to a 0% CT rate for taxable income up to and including AED 375,000, small businesses with revenue below a certain threshold can claim ‘small business relief’ and be treated as having no taxable income during the relevant Tax Period and may be subject to simplified compliance obligations. To claim small business relief, an election must be made to the FTA. 

 Yes, companies can employ legal strategies to optimize their tax position and reduce their tax liability. This can involve taking advantage of available deductions, exemptions, and credits, structuring business operations efficiently, utilizing tax incentives and credits, and engaging in proper tax planning. It is important for businesses to consult with tax professionals or experts who can provide guidance on legal tax optimization strategies specific to their jurisdiction and industry.