Tax Services in the United Arab Emirates

What Is Tax Compliance?

Tax compliance refers to a business's obligation to comply with applicable tax laws and regulations in the United Arab Emirates. This includes tax registration, tax return filing, maintaining accounting records, retaining supporting documents, and meeting Federal Tax Authority requirements.

A strong tax compliance framework helps businesses reduce risks, avoid penalties, and improve readiness for tax audits and reviews.

Why Is Tax Compliance Important?

• Avoid tax penalties and violations.
• Reduce risks during tax audits and reviews.
• Improve the quality of accounting records and financial information.
• Support compliance with Federal Tax Authority requirements.
• Enhance financial and management decision-making.

VAT Compliance

VAT compliance includes reviewing VAT registration status, preparing VAT returns, verifying tax invoices, reviewing input tax and output tax calculations, and maintaining required records and supporting documentation.

Corporate Tax Compliance

Corporate Tax compliance includes registration requirements, preparation and filing of Corporate Tax Returns, review of taxable transactions, required disclosures, related party transactions, and Transfer Pricing compliance.

Accounting Records and Supporting Documents

Businesses are required to maintain accounting records and supporting documents in an organized manner in accordance with applicable tax and commercial regulations.

• Tax invoices.
• Contracts and agreements.
• Accounting records.
• Bank statements.
• Financial statements.
• Import and export documentation.
• Payroll and employee records where applicable.

Periodic Tax Compliance Reviews

Regular tax compliance reviews help identify errors and risks before they result in penalties, audit findings, or compliance issues.

• Review of tax returns.
• Review of tax treatment of transactions.
• Review of accounting records and supporting documents.
• Review of tax disclosures.
• Assessment of tax risks.

Tax Risk Management

Tax risk management helps businesses identify potential issues early and implement appropriate measures to reduce financial and compliance risks.

• Incorrect tax registration.
• Errors in tax returns.
• Missing supporting documents.
• Related party transaction risks.
• Free Zone tax compliance risks.
• Late filing or payment risks.

Free Zone Tax Compliance

Free Zone companies may be subject to additional compliance requirements relating to Corporate Tax, VAT, qualifying income, related party transactions, and other regulatory obligations.

Common Tax Compliance Mistakes

• Late tax registration or deregistration.
• Late filing of tax returns.
• Incorrect tax calculations.
• Failure to maintain required records.
• Failure to disclose certain transactions.
• Failure to update tax registration information.
• Ignoring Federal Tax Authority notifications.

Tax Compliance and Tax Audits

Strong tax compliance procedures help businesses prepare for tax audits and reduce the likelihood of significant findings during Federal Tax Authority reviews.

Tax Compliance and Transfer Pricing

Businesses that engage in transactions with related parties or connected persons should ensure that appropriate documentation, disclosures, and Transfer Pricing requirements are properly addressed.

How Can We Help?

We assist businesses in establishing and maintaining a comprehensive tax compliance framework covering VAT, Corporate Tax, accounting records, compliance reviews, tax risk assessments, and ongoing support to meet UAE tax requirements.

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TimeLine for the Tax Registration for Corporate Tax for Resident Juridical Persons In United Arab Emirates

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If a business has earned taxable income of AED 1 million, what will be the UAE Corporate Tax amount payable?

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Will financial statements need to be prepared on an accruals basis?

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When will a foreign company be considered a resident person As Corporate Tax Law in United Arab Emirates?

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A new decision from the Federal Tax Authority no 3 of 2024

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Will the income of UAE branches of a UAE business be subject to UAE Corporate Tax?

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What records should I keep for UAE CT purposes?

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Who is considered non-resident for UAE CT purposes?

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The standards must be used to prepare financial statements.

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Does a person licensed in the free zone have to register for corporate income tax?

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I have a company that does not generate any income and the company is inside the UAE. Do I have to register for corporate tax and submit a tax return?

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Will an individual be subject to UAE Corporate Tax on investment returns?

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Will UAE entities owned by UAE or GCC nationals be subject to UAE Corporate Tax?

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Will I continue to pay service fees to local and Federal Governments now that the UAE has introduced Corporat Tax?

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What is the tax rate for legal or natural persons within the United Arab Emirates?

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What expenditure will be deductible for the purposes of calculating taxable income?

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What is taxable income?

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Do I have to register before 12/31/2023 to avoid violations?

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Will individuals be subject to UAE Corporate Tax?

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