Corporate Tax Assessment Services in UAE

A tax assessment verifies the authenticity and completeness of the filed tax returns and calculates the total tax payable. The Federal Tax Authority enforces authority for Corporate Tax Law including audits and assessments in the UAE. The taxable entities including companies operating in the UAE are required to perform the self-assessment, fill in the corporate tax returns, and provide the necessary additional documents for the UAE corporate tax purposes. The federal tax authority can assess all data i.e. returns, self-assessment clarification, impact assessment report, and corporate tax assessment with all relevant details under the corporate tax UAE. When performing the corporate tax impact assessment in the UAE, it is crucial to assess the potential impact on different areas of business and identify compliance with the regulations and the most suitable strategies concerning corporate tax assessment taxation, therefore, the companies must come up with a corporate tax impact assessment report to assess how the regulations will impact their balance sheets, transactions and activities for the corporate tax assessment purposes.

Self-Assessment and Corporate Tax Clarification

The self-assessment regime has been introduced by the Federal Tax Authority (FTA), and through this, taxable entities can compute, declare, and pay taxes. The FTA has introduced a clarification service through the EmaraTax digital platform to expedite this procedure, improving customer satisfaction and speeding up the process of requesting explanations about business tax registration.

Clarification service with the UAE Federal Tax Authority

From August 1, 2023, taxpayers will be able to use the FTA’s Clarification Service through the EmaraTax digital platform. The platform has a simple design and does not give users much difficulty when it comes to submitting questions.

Methodology For Clarification Service

• Fill out the Request for Clarification Form:- When asking a question, be sure to provide all the relevant details about the question so that you can get a quick response to your question.
• Send in the Required Documents:In this case, the FTA should be presented with any relevant documents or information that would help them in considering your situation. Accuracy is crucial here.
• Cover the Service Fees:: The service is available for a small fee. The payment method is very convenient and safe.
• Objectives:- The primary role of the Clarification Service is to assist taxpayers in meeting their legal requirements under the corporate tax code to perform all their tax activities legally for the financial years beginning on or after 1 June 2023.

What Are the Qualifications to Make Clarification Requests?

• Corporate Taxpayers:- This service will be very helpful for all kinds of businesses because if they do not have any clue about their corporate tax obligations.
• Authorized Representatives:- Businesses can expedite the process by having tax agents and attorneys seek clarifications on their behalf.
• Exclusion: -Tax specialists who are not formally registered as tax agents cannot make requests, ensuring that clarifications are handled exclusively by qualified individuals.

Private Clarifications:-

For additional details on some of the technical tax issues, the FTA provides signed and stamped technical assistance or special circumstances documents. When the FTA fails in offering the necessary clarification owing to the lack of sufficient information, they can decide to refund the fee to ensure the correct and prompt replies.

Completing the Corporate Tax Assessment for the UAE:-

The self-assessment is the major method of the UAE corporate tax system under which a company is liable for the correctness of the data provided in the tax returns and schedules filed with the FTA. However, taxpayers may contest a revised corporate tax assessment with procedures outlined in the Tax Procedure Law. The taxable entities may determine the process of assessment as per law. 

Compliance of UAE Corporate Tax Law:-

Any business entity needs to understand what they must do to be compliant with the UAE corporate tax law. The tax system must function properly and for any matters concerning business taxes, the business people must contact the FTA. Federal tax authorities need to clarify the decision to make corporate tax clarification available to businesses.

Record-Keeping UAE Corporate Taxes

The UAE laws in this respect demand that businesses retain all the financial and other necessary documents needed for the preparation of the UAE business tax return.

• Passport of the owner
• Trading license Document 
• Business Address (Email and phone number)
• Annual financial audit report
• Memorandum of Association (MOA)
• Power of Attorney (POA)
• Owner's Emirates ID

Maintaining Records for Employees in Free Zones

People living in free zones have to make sure they are eligible to pay corporate taxes although taxes may not apply. These companies must monitor their financial documents and accounts, and leading bookkeeping and accounting firms in the UAE are ready to support them. Exempt individuals must have documentation on file for FTA verification.

 Requirements for Business Audits:-

Companies need to determine if they must have their financial accounts audited by an established audit firm.To get and maintain the status of “qualifying person” to avail corporate tax rate @ 0%,  it is mandatory to have audited financial statements. Corporate tax experts in Dubai can assist with audited financial accounts.

Corporate Tax Efficiency Techniques for Business in the UAE

Here are the essential techniques to help you for assessment under corporate tax system:The following are some of the features of the proposed bill:

• Determine Your Taxable Income:-To calculate your taxable income you should refer to your financial statements. To arrive at this figure, it is necessary to deduct the allowable expenses under the UAE corporation tax regime from the overall income earned.
• Utilizing Tax Rates:-In order to compute the total tax which you are required to pay you should multiply the corporate tax rate of your country with your taxable income. The FTA has special provisions on the taxes and how they are supposed to be levied.
• Filing Tax Forms:-After you have calculated the tax that you are supposed to pay, you should complete the tax return forms and submit them to the FTA. It is very important to be very careful with the dates of filing so that one is not charged a fee for the same.
• Seeking professional assistance:- If you have any questions about any aspect of the tax assessment process, you may wish to consult with Farhat and Co. We have certified tax consultants who can assist you on how to behave in compliance with the tax laws in the UAE.
• Compliance of Corporate Taxation for the UAE Companies;-With the help of such knowledge, it will be possible to manage the corporate tax position and meet all the legal requirements associated with the taxation policy, as well as receive the maximum profit. Companies can therefore be confident with their self-assessment when they follow the above plus the FTA tax clarifications. This will assist them in a stand to pay their taxes and also improve their financial position.

Corporate Tax Advisory Services  and Leading Business Tax Consultants In Dubai

Corporate tax was first implemented in the UAE in the calendar year of 2022 and now it is applicable all across the UAE. The corporate tax is important for any company to understand the tax structure of its firm. Now it is compulsory for corporations to register for corporate tax in the UAE and therefore it is compulsory for businesses to get more familiar with the corporation tax so that organizations can avoid the issues of tax compliance.  Farhat and Co. corporate tax consultant and specialized in corporate tax assessment in the UAE among the most professional in the UAE. They assist the taxable persons in comprehending every aspect of the assessment and assist them in coming up with the most appropriate method of completing their business objectives and making more profits.

 FAQ

Is self-assessment a corporation tax?

Self-assessment is a method where businesses calculate, report, and remit their taxes to the tax authorities. It is a process under the broader category of corporate tax administration and compliance.

Corporate taxation in the UAE is one of the significant shifts in the fiscal policy of the region to diversify the economy, bring the region into line with the global taxation system, and set up a sound and transparent business environment. They should know about their taxes, how to claim the relief, and the current legislation. corporate tax UAE has the essential function of offering support for such matters so that businesses can focus on their growth. Corporate tax UAE provides consultancy on all the laws that are relevant to the taxation of business profits in the territory of the United Arab Emirates. This entails awareness of the current taxation systems in the company, the issues and prospects of taxation, and the development of strategies for taxation. The goal is to reduce taxes, increase incentives, and have clarity in future taxation.