The UAE Ministry of Finance made the ground-breaking announcement that a federal-level corporation tax regime will be introduced in the country, effective financial years beginning on/after June 1, 2023. This caused another shift in the region’s tax landscape following the implementation of the UAE Value Added Tax. With Bahrain as an exception, the UAE has implemented the GCC’s lowest standard corporation tax rate at 9 percent.
How Corporate Tax Accountants in UAE Can Help
All registered businesses are to consult with their corporate tax advisors in UAE for guidance on financial reporting and Corporation Tax law compliance. Let’s take a much closer look at why it’s an absolute must for businesses to seek the guidance of tax professionals in the UAE.
Improving Tax Compliance
When operating a business, dealing with the paperwork necessary under UAE corporation tax law can be stressful. This is why business owners engage a tax accountant when submitting tax returns in UAE.
However, corporate tax advisors can assist in more ways aside from corporate tax return filing in UAE. They can facilitate further interactions between your company and the UAE Federal Tax Authority or Ministry of Finance.
A qualified tax accountant in UAE can
- Complete and submit your company’s mandatory legal and compliance paperwork
- Maintain compliance with the changes to UAE corporation tax law
- Prepare annual financial statements
- Maintain your business’s position in the government’s corporate registry
- Manage director and other managerial personnel records
- Organize and document share allocation e.g. when the company is created, a partner leaves, or when a new partner arrives
- Manage your company payroll and confirm that all tax codes and employee payments are entered accurately
Correctly preparing your tax information could save your company significant amounts of money – possibly more than an accountant’s fee. A qualified accountant will utilize the in-depth understanding of UAE regulations to recommend strategies to free up the cash flow, reduce expenses, and obtain expansion capital.
Expert Help in Choosing the Most Appropriate Business Legal Structure
With the upcoming implementation of corporation tax in the UAE, you are going to require professional advice regarding the best business legal structure based on your company goals.
Regardless of whether you are just starting a business from the ground up or you’re running a company with an annual taxable income of more than AED 375,000, it is essential to give careful consideration to the kind of business legal structure that will best suit your needs. Your choice of business structure will not have a significant effect on the daily operations of your company; however, it will have a massive effect on the definition of ownership, the limitation of personal liability, and the preparation for future expansion. and more importantly, the management of business taxes, including UAE corporation tax.
It is often well worth your money to speak with a tax expert for guidance on the appropriate business structure to suit your unique needs and goals. This is because there are substantial tax and legal issues associated with the various business structures.
Managing the Financial Health of the Business
When handled on your own, tax accounting for a business, regardless of the size, can quickly become extremely complicated. A tax accountant can assist you in regaining your footing if you feel as though you are losing track of account payables and receivables.
Corporation tax accountants in UAE can also help you in measuring crucial company metrics, e.g. the ratio of total revenue and total employee payments such as salary and other employee-related expenditures. A tax accountant will be able to assist you with the management of your payments and the production of graphs that will show you how various critical ratios shift over time.
Seasoned tax accountants in UAE will be able to easily and promptly share your company’s financial information with you. Additionally, they are able to develop informative tables and charts to help you in gaining a quick understanding of the present financial position of your organization. Having tax experts’ guidance will allow you to track vital aspects of your company, such as the cash flow, and allow you to better manage the pulse of the firm. You can even consult with a tax expert on how to reduce corporation tax liability in UAE.
Delegate Tax Obligations with Corporate Tax Advisors in UAE
Employing a qualified tax accountant is a wise financial decision. Managing your company’s taxes and finances can be a far more challenging endeavour than you’d expect when running a business. Corporate Tax UAE has corporate tax advisors in the UAE who are committed to exceeding the expectations of each and every one of our clients on a constant basis. They are able to anticipate client demands, understand their strategic goals, and assist in achieving their financial objectives. We provide insight and expert guidance through a comprehensive range of tax services for individuals and businesses alike, all of which are predicated on our values of ethical conduct.
To know more about how we can help, contact us today!
Abrar Ahmad holds a Master’s as well as an MPhil in Finance and has an extensive experience of 10+ years in managing all aspects of Taxation, VAT Consulting and Accounting. He also carries with him a working knowledge of corporate tax and has helped drive value and growth to the businesses of numerous clients.