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Section 2 – BUSINESS PREPARATIONS & ADAPTATIONS UAE’s corporate tax law will apply to businesses & multinational corporations operating in the country, regardless of their location. This impact on the national economy will be fascinating to monitor, as the tax-free environment & favourable rates have made the UAE a hub for trade and investment. The new tax law will also introduce significant compliance requirements for UAE businesses. This change will require companies to adapt their operations, organizational structures, and accounting systems. The tax will only apply to financial years beginning on/after June 2023. Businesses with a January to December financial year will have more time to prepare, as they must file their corporation tax returns by September 2025. Tax planning is crucial for corporate strategy, and an updated accounting system is essential for accurate tax data recording. UAE corporate tax law will require extensive compliance obligations, including transfer pricing paperwork, company registrations, tax return files, record retention, and intercompany transaction mapping. This will impact the supply chain, organizational structures, IT, and financial operations. Audit experts can suggest how the new tax will benefit the economy & guide what businesses can do to ensure proper implementation. Upgradation of UAE This will place the UAE among the 182 countries that have embraced it as having one of the lowest corporation tax rates. Public services, infrastructure improvement, and investments in important areas will all be funded by the proceeds. International corporations joined forces to solve the matter of the shifting of profits, which resulted in the BEPS 2.0 frameworks. Some measures that business entities can take to reduce their tax obligations are : Increase asset depreciation costs for the business. Invest in tax-efficient assets such as corporate bonds and diversify contributions to tax-efficient account types to reduce tax liabilities.  Consider other tax-efficient investments like tax-efficient mutual funds, zero-coupon bonds, inflation-protected bonds, and others. Choosing long-term assets to invest in. The business entity can claim the costs it incurred. Incentive programs boost employee morale, reduce tax obligations, and increase returns can be introduced. Some measures that business entities can take  before tax filing are : Before filing taxes, the company should give the authorities accurate and pertinent information for record-keeping.  The company must be knowledgeable about both the application of tax law and relevant judicial decisions. UAE’s finance ministry has emphasized that tax planning must be done following the established law. Tax planning should examine the firm’s commercial objectives as well as the flexibility of future incorporations and changes for tax benefits and future repercussions.  Before filing taxes, careful tax planning is needed as a lack of planning results in paying more than the taxable amount. The UAE introduced company tax as a significant change, but businesses can adapt with careful preparation and execution. Companies must get more familiar with the details of the tax regime, including the tax rates, applicable deductions, and compliance requirements, as corporate tax is still a relatively new idea in the UAE. Numerous changes are happening in workplaces.The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice, except to adopt the changes for businesses to become successful in this era of constant change. GSPU Auditing, a dynamic Audit & Accounting firm with 17+ years of international experience provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services adopting a professional & friendly approach and caring about the success of our clients holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in UAE, our well-known & Certified Accountants & Auditors who have international expertise as well as a comprehensive knowledge of the local market work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner obeying Integrity and professionalism. Expert financial and compliance advice for business innovation, success and survival is a basic need for every business. We at GSPU prioritize time and quality in Financial, Accounting, Audit, Company Formation, Management and VAT services to help businesses to grow by making a clear strategy saving time & money by generating more revenue. Your Success, Our Passion. We the Global Strategic Partners Union always welcome your Business & Financial grievances as we make the work into service, and turn customers into friends & client relationships as business partnerships.

Section 3 – REQUIRED FINANCIAL RECORDS Business entities registered in the United Arab Emirates are mostly subject to corporate taxes. To promptly maintain corporate tax compliance in the UAE, businesses must make the upkeep of correct financial and other pertinent records a priority. The information contained in the company tax return should be fully explained in these documents. To maintain openness and compliance with tax laws, firms must report this information to the Federal Tax Authority (FTA). Even firms that are exempt from corporate tax in the UAE are required to keep good records, as the FTA depends on these documents to evaluate their exempt status. Businesses can ensure smooth tax compliance and avoid any potential penalties or legal difficulties by prioritizing record-keeping. Before registering for corporate tax in the UAE, businesses must make sure they have all the necessary paperwork ready. Financial statements, trade licenses and permits, and certificates of company registration are some of the documents that fall under this category. To prevent any delays in the registration procedure, it is essential to have these documents ready and arranged. Businesses can proceed with online registration and tax payment once all required documents are in line. By streamlining the tax payment process through digital means, businesses can now pay their taxes conveniently and effectively. RECORDS REQUIRED FOR CORPORATE TAX REGISTRATION Copies of a valid trade license. Photocopy of the owner’s/partners’ valid passport  Valid Emirates ID of license holder/partners  Memorandum of Association (or Power of Attorney)  Contact details (email and mobile number). Contact details for the business, including full address and P.O. Annual Financial Audit Report. CORPORATE TAX GROUP – REQUIREMENTS  Through the tax grouping option, a group of enterprises can aggregate their tax liabilities and file a single tax return in the UAE, although certain requirements must be completed. Since the organization only needs to file one tax return, the filing procedure is made simpler for them. This approach also offers advantages to foreign investors. To reduce the UAE Corporate Tax Liability, the foreign corporate tax paid on taxable revenue in the UAE may be taken into account. As a result, the UAE benefits from increased international investment and a more favourable economic climate. The corporate tax system in the UAE is straightforward. Once a year, in accordance with their financial period, businesses must file their tax returns. There are neither provisions nor obligations for advance Corporate Tax Filing, in contrast to several other nations. A flawless and effective process is guaranteed by the Ministry of Finance’s insistence that the filing procedure be carried out electronically. In addition, firms are not required to pay the UAE Corporate Tax in advance. With this simplified strategy, businesses doing business in the UAE will have an easier time complying with regulations and will face less paperwork. Businesses may find excess tax losses to be a useful tool since they can carry forward any losses and use them as an offset against future taxable income. But to receive this benefit, a few requirements must be satisfied. This provision applies to tax groups as well as to specific businesses, allowing tax losses from one company to be used to reduce the taxable income of another within the group. This tactic can assist firms in reducing their tax obligations and strengthening their overall financial condition. Companies can maximize their future profitability and improve their tax planning by handling tax losses well. Numerous changes are happening in workplaces.The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice, except to adopt the changes for businesses to become successful in this era of constant change. GSPU Auditing, a dynamic Audit & Accounting firm with 17+ years of international experience provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services adopting a professional & friendly approach and caring about the success of our clients holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in UAE, our well-known & Certified Accountants & Auditors who have international expertise as well as a comprehensive knowledge of the local market work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner obeying Integrity and professionalism. Expert financial and compliance advice for business innovation, success and survival is a basic need for every business. We at GSPU prioritize time and quality in Financial, Accounting, Audit, Company Formation, Management and VAT services to help businesses to grow by making a clear strategy saving time & money by generating more revenue. Your Success, Our Passion. We the Global Strategic Partners Union always welcome your Business & Financial grievances as we make the work into service, and turn customers into friends & client relationships as business partnerships.  

Section 4 – DEDUCTIONS & CALCULATIONS Regardless of their location, businesses and multinational corporations must consider the extensive implications of the UAE’s corporate tax law. This change has the potential to have an interesting impact on the national economy, given the UAE’s status as a tax-free haven with advantageous rates, which has attracted a wide range of trade and investment opportunities. UAE companies will now have to comply with strict regulations as a result of the new tax law. It is still to be seen how this change will affect the business environment and whether it will have any unanticipated effects on the stability and growth of the national economy. Several groups are free from corporate tax because of their operations and contributions they make to society. Governments hope to enhance these organisations and their public good by exempting these categories. Natural resource extraction enterprises are excluded from CT because they will continue to be subject to the present Emirate level corporate taxation. CT will not apply to dividends and capital gains made by a UAE company from its qualifying shareholdings. Providing the necessary conditions are met, qualifying intra-group transactions and reorganizations will not be subject to CT. Salary and other employment income received by an individual, whether from public or private sources. Individuals’ interest and other income from bank accounts or savings plans. A foreign investor’s income from dividends, capital gains, interest, royalties, and other investments. Individuals investing in real estate on their own behalf. Individuals who own shares or other securities in their own capacity get dividends, capital gains, and other income. DEDUCTIBLE  EXPENSES General accounting regulations state that some expenses are not deductible from corporate taxes. The taxable income is determined by adding these costs back to the accounting income. By keeping businesses from taking use of tax breaks to lower their tax obligations, this promotes equity and openness in the tax system.Some are : Depreciation or amortization expenses for Capital Assets. Business setup, license renewal, and other government fees and charges that are paid entirely or primarily in the course of business. A value-added tax that is not recoverable under VAT legislation. 50% of the client’s leisure costs. Interest costs on debt funding up to 30%. Loans to related parties are deductible only if they serve a legitimate business purpose. Payments made to a mainland branch of the Free Zone entity may be deductible. NON – DEDUCTIBLE  EXPENSES Taxable income is computed in accordance with numerous accounting principles. The UAE Corporate Tax regime may, however, occasionally forbid or restrict the deduction of particular costs. Ensuring that only expenses necessary to produce taxable income are eligible for relief helps prevent instances of abuse or excessive deductions.Some are : Any expense that was not paid in the course of the taxable person’s business.  Any expense incurred in order to receive exempt income  Losses not incurred as a consequence of or related to the taxable person’s business  Any extra spending authorized by a Cabinet decision in response to a minister’s recommendation Numerous changes are happening in workplaces.The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice, except to adopt the changes for businesses to become successful in this era of constant change. GSPU Auditing, a dynamic Audit & Accounting firm with 17+ years of international experience provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services adopting a professional & friendly approach and caring about the success of our clients holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in UAE, our well-known & Certified Accountants & Auditors who have international expertise as well as a comprehensive knowledge of the local market work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner obeying Integrity and professionalism. Expert financial and compliance advice for business innovation, success and survival is a basic need for every business. We at GSPU prioritize time and quality in Financial, Accounting, Audit, Company Formation, Management and VAT services to help businesses to grow by making a clear strategy saving time & money by generating more revenue. Your Success, Our Passion. We the Global Strategic Partners Union always welcome your Business & Financial grievances as we make the work into service, and turn customers into friends & client relationships as business partnerships.