Tax Advisory

The UAE government introduced the Value Added Tax (VAT) regime, applicable at a minimum rate of 5%, from January 2018. Value Added Tax (VAT) is a transaction-based indirect tax imposed on the consumption of goods and services.

Per Federal Tax Authority (FTA) guidelines, UAE-resident business must register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. If the total value of taxable supplies and imports (or taxable expenses) is in excess of the voluntary registration threshold of AED 187,500, a business may register for VAT voluntarily.

As per the Federal Law No.2 of 2015 on Commercial Companies, tax-registered companies should follow mandatory regulations. These include documentation and record-keeping requirements, such as the need to issue tax invoices and submit VAT returns with the FTA. Taxable businesses must file VAT returns, usually within 28 days of the end of the ‘tax period’ as defined for each type of business. The standard tax period is quarterly for businesses with an annual turnover below AED150 million, and monthly for businesses with an annual turnover of AED150 million or more. Companies which are new to UAE, therefore need to take adequate car to manage VAT activities.

Our specialized team of VAT experts can support with all aspects related to VAT services, including registration (plus subsequent amendments), VAT accounting, return filing, refunds, auditing, filing voluntary disclosures, adjusting taxable supplies, and management of queries with FTA (including visits to FTA office). Our broader firm, KSI Shah & Associates, are registered agents with FTA with TAAN number.

Our services extend to undertaking detailed compliance verification to determine find taxable supply provided in respective Emirates as per UAE law, including imports & exports, plus taxable purchases & expenses to claim input VAT. 

We assist you in preparation of the full VAT register, drafting returns (based on documents provided) for your approval. We can then arrange submission and VAT payment process to FTA well in advance of any applicable deadlines, to ensure avoidance of any late submission or payment penalties from FTA. This way, you can focus on your growing your core business.

The UAE’s new Corporate Tax (CT) regime is effective for financial years starting on or after 1 June 2023. The system has been designed to mirror global best practices for business taxation. UAE corporate tax will be a 9% tax on the profits (revenue minus expenses) of all businesses which generate over 375,000 AED (approx. USD $100,000). Businesses that generate less than this sum of money will continue to pay a 0% tax rate.

Further, where the taxable person constitutes a qualifying free zone person (QFZP), its qualifying income is subject to a reduced CT rate of 0%. Any non-qualifying income will remain subject to CT at 9%, noting other exemptions or reliefs as may be applicable.

Our specialist team at Calculus provides the full spectrum of Corporate Tax services, including:

• Corporate Tax Registration – Helping companies with the initial registration process for corporate taxes.
• Corporate Tax Advisory – Providing expert advice on corporate tax matters to optimize financial strategies.
• Corporate Tax Impact Analysis – Evaluating the impact of corporate tax changes on a business and offering insights.
• Corporate Tax return and refunds Assistance – Assisting in the preparation and filing of corporate tax returns, as well as navigating refund processes.
• Transfer Pricing Services – Managing and advising on the pricing of transactions within a multinational group to ensure compliance.