Registered Free Zone firms in the UAE will be subject to the Corporate Tax UAE. This requires registered Free Zone firms to comply with the set corporate tax regulations, such as filing tax returns and registration. Thus, it is essential for UAE Free Zone Businesses to seek expert Corporate Tax advisors in order to mitigate all corporate tax essential prerequisites, preparing financial statements, filing tax returns, and performing registration on behalf of corporations.
Free Zone businesses fall under the cognizance of the UAE Corporate Tax. Free Zone businesses must actively register with Corporate Tax, submit annual tax reports, maintain legal compliance, and adhere to all other set regulations. Based on transient tax returns, firms may relinquish them electronically once every financial interval without deferring an advance Corporate Tax payment. The United Arab Emirates group of businesses can establish a tax group so that it can file a sole return for the whole group and distribute its tax expenses to the other group partners. Corporate tax registration and obtaining a Tax Registration Number are essential requirements for free zone firms liable to corporate income tax in the UAE. Companies can get support to register for Corporate Tax from approved Corporate tax specialists in the UAE.
Read more: 2023 Corporate tax planning in UAE
For each tax period, businesses must create and submit one tax return, together with essential assisting schedules, this clause assists in easing the taxpayers' managerial burden. A provisional corporation tax return and advance tax costs are optional for companies. Within 9 months of the conclusion of the applicable Tax Period, firms are required to submit each tax return together with any supporting paperwork to the Federal Tax Authority.
The free zone enterprises are subject to corporate tax in the UAE and must register and submit a Corporate Tax return to maintain their eligibility for Corporate Tax vacations and a 0% corporate tax rate. The respective industries are required to adhere to all set legal regulations and standards.
With few exclusions and changes, the UAE Corporate Income Tax will be due on the net revenue shown in the firm's financial accounts. Businesses located in the UAE Free Zones are required to register and file for corporate tax as soon as the legislation takes effect.
Also, read more: Impacts of corporate tax in UAE on Free zone companies in the UAE
It is highly vital for UAE businesses to seek expert Corporate Tax advisors in order to mitigate all corporate tax essential conditions, preparing financial statements, filing tax returns, and performing registration on behalf of corporations. Expert Corporate Tax advisors in the UAE enforce companies’ compliance with the set laws and regulations. Approved Corporate Tax consultants offer comprehensive tax services that are top-notch and highly efficient, in compliance with the client's needs.
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.