Tax

VAT Accounting Dubai
Tax, Business

UAE VAT Updates 2026: Employee Expenses, VAT Recovery, and Supplier Due Diligence

VAT accounting Dubai businesses follow is changing under new UAE rules, and companies should understand them before claiming input VAT. From 1 October 2026, new requirements under FTA Decision No. 13 of 2026 address supplier and transaction verification, while FTA Decision No. 17 of 2026 clarifies input VAT recovery on certain employee expenses. The UAE has introduced important VAT changes that businesses should understand before claiming input VAT. From 1 October 2026, new requirements under FTA Decision No. 13 of 2026 address supplier and transaction verification, while FTA Decision No. 17 of 2026 clarifies input VAT recovery on certain employee expenses. Further amendments under Cabinet Decision No. 149 of 2026 also affect areas such as composite supplies, cash payments, healthcare, capital assets, and input tax apportionment. VAT Accounting Dubai and Supplier Due Diligence – FTA Decision No. 13 Businesses claiming input VAT must take reasonable steps to verify their suppliers and transactions. Key areas include: Verify the supplier’s identity, business address, and authorised representatives. Monitor unusual transactions and changes in addresses or key personnel. For supplies exceeding or expected to exceed AED 375,000 over the relevant 12-month period, conduct additional checks, including verification of the supplier’s UAE bank account. Document the reasons for cash or third-party payments. Confirm that supplies are genuine and commercially justified. Maintain records of supplier verification procedures and supporting evidence. A small-supply exception may apply to supplies below AED 10,000, but this generally does not apply where total supplies from the supplier exceed or are expected to exceed AED 100,000 over the relevant 12-month period. Employee Expenses and VAT Recovery – FTA Decision No. 17 FTA Decision No. 17 of 2026 clarifies when input VAT may be recovered on certain goods and services provided to employees free of charge, subject to specific conditions. The covered expenses include: Employee transportation for travel between residence, workplace, client premises, or other work-related locations. Food and beverages where employees work or reside in remote, distant, or isolated areas without suitable food facilities. Employee accommodation required by operational needs and the nature of the work. Temporary accommodation for new employees for up to 30 days. Mobile phones, airtime, data, and internet access are required for work, subject to documented policies and reasonable monitoring. Business-related parking fees supported by an approved policy and appropriate payment records.  Input VAT recovery is subject to the specific conditions in the decision and is not automatic. Businesses should maintain appropriate policies, records, and supporting documentation. For VAT accounting Dubai teams, this means keeping a written policy and payment records for every covered expense category. Other VAT Changes to Watch Cabinet Decision No. 149 of 2026 introduces further amendments to the UAE VAT Executive Regulation, including changes relating to: Composite supplies Cash payments and input VAT recovery Employee-related supplies Healthcare services and medical products Capital Assets Scheme Tax Credit Notes Input tax apportionment The revised input tax apportionment methodology applies from the first tax year beginning after 1 October 2027. Finance teams handling VAT accounting Dubai filings should plan early for this revised methodology. VAT Accounting Dubai What Should Businesses Do? Businesses should review their VAT processes before claiming input VAT under the updated rules. Key steps include: Update supplier onboarding and due diligence procedures. Review employee expense and VAT recovery policies. Strengthen supporting documentation and record-keeping. Review cash and third-party payment arrangements. Train finance and accounts teams on the new requirements. Identify potential input VAT recovery gaps. Align your VAT accounting Dubai procedures with the new input tax rules before the next return. Strong VAT accounting Dubai records protect your claims. Frequently Asked Questions about VAT Accounting Dubai When do the new VAT changes take effect?Most changes apply from 1 October 2026, while input tax apportionment changes take effect later. Is input VAT automatically recoverable on employee expenses?No. For VAT accounting Dubai businesses, recovery depends on meeting the conditions under FTA Decision No. 17 of 2026. What is the AED 375,000 supplier threshold?Additional due diligence applies when supplies exceed or are expected to exceed AED 375,000 in 12 months. Is supplier verification required for small purchases?Supplies below AED 10,000 may qualify for an exception, subject to the AED 100,000 annual supplier threshold and other conditions, so VAT accounting Dubai teams should still document every supplier check. Stay Ready for the VAT Accounting Dubai Changes with GSPU   GSPU Tax Consultancy can help you review supplier due diligence, employee expenses, input VAT recovery, documentation, VAT returns, and FTA compliance. With practical experience in VAT planning, advisory, and compliance, GSPU helps businesses understand the updated requirements and strengthen their VAT processes. Contact GSPU Tax Consultancy, UAE. +971 52 853 2600 | info@gspuuae.com | https://gspuuae.com/  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 but to adopt the changes for businesses to become successful in this era of constant change.​ GSPU Auditing, a dynamic Audit & Accounting firm with 20+ 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 the UAE, our well-known & Certified Accountants & auditors, who have international expertise as well as 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

Tax

UAE E-Invoicing: Automating Accounts Payable with RPA & AI

The e-invoicing Dubai system is transforming invoice processing through digitalization, automation, and transparency. By integrating RPA and AI with ERP and accounting systems, businesses can automate invoice receipt, validation, purchase-order matching, approval, and payment processing. This reduces manual work, minimizes errors, and improves accounts payable efficiency. RPA and AI can manage high invoice volumes, identify duplicate invoices, detect unusual transactions, and flag discrepancies. Automated workflows reduce bottlenecks and ensure timely processing. Beyond efficiency, automation strengthens VAT and compliance controls, reliable electronic records, and audit trails. Businesses should review their systems, workflows, data, and compliance controls to ensure e-invoicing Dubai readiness. Choosing an e-invoicing Dubai partner early helps finance teams avoid last-minute system changes. Automating Supplier Invoice Processing for E-Invoicing Dubai With RPA & AI RPA automates receiving and processing supplier e-invoices, reducing manual data entry and streamlining the accounts payable workflow. RPA automates invoice checks, while AI identifies unusual transactions, improving accuracy, compliance, and efficiency in invoice processing. AI helps detect duplicate invoices by comparing key invoice details, reducing payment errors and strengthening accounts payable controls. AI automates invoice matching with purchase orders and goods receipts, identifies discrepancies, and flags exceptions for review before payment. RPA automates invoice routing and approvals, while AI optimizes workflows and reduces approval delays. Automation processes routine invoices and flags exceptions for human review, improving efficiency and reducing manual effort. Using AI for Supplier and Spend Analysis  Supplier performance & spending patterns Frequently purchased products or services Price variations & cash-flow requirements Unusual transactions & payment trends Processing bottlenecks Business Benefits of RPA & AI-Driven Invoice Processing  Less manual data entry and administrative workload. Faster & better invoice processing & matching. Improved data accuracy & cash-flow visibility Improved audit trails & financial insight. Better VAT and e-invoicing Dubai compliance controls. Reduced duplicate-payment  Faster approval workflows Automation also gives finance teams earlier visibility of liabilities, so payment runs can be planned around actual due dates and supplier terms instead of manual estimates. Clear ownership of each approval step keeps the process accountable What Businesses Need to Evaluate for E-Invoicing Dubai? Supplier invoice processes & purchase orders ERP, accounting & supplier data Approval workflows & VAT controls ASP integration & e-invoicing Dubai requirements Data retention & audit trails RPA, AI & analytics opportunities Finance team roles and responsibilities GSPU’s e-invoicing Dubai team helps businesses assess ERP data, approval workflows, VAT controls and ASP integration. 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 but to adopt the changes for businesses to become successful in this era of constant change. GSPU Auditing, a dynamic Audit & Accounting firm with 20+ 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 the UAE, our well-known & Certified Accountants & auditors, who have international expertise as well as 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.

Tax

UAE DMTT and Pillar Two: Key Tax Implications for Multinational Groups

DMTT services UAE cover group eligibility checks, ETR calculations, and compliance support. The UAE’s DMTT, effective from 1 January 2025, applies to qualifying multinational groups under the OECD Pillar Two framework, ensuring a minimum 15% effective tax rate. It generally covers groups meeting the €750 million revenue threshold and requires assessment of group structure, UAE entities, exemptions, and ETR. Multinational groups should also review the impact of DMTT on UAE free zone structures, as a top-up tax may apply where the ETR is below 15%. How Does the 15% Minimum Tax Rate Apply?  Determine the jurisdictional effective tax rate under the DMTT framework. Apply the required specific adjustments beyond standard corporate tax calculations in DMTT calculations. Review GloBE income/loss, covered taxes, deferred taxes, permanent differences, eligible exclusions, and other substance-based key factors. Apply other relevant adjustments required under the GloBE rules. Recognize DMTT ETR differences from the rate reflected in financial statements or standard corporate tax calculations. Key Compliance Requirements Under UAE DMTT Ensure accurate UAE ETR calculations in line with the GloBE framework. Accurate, consistent data across group entities for effective DMTT compliance. Maintain proper DMTT records to support compliance and facilitate audits. Ensure proper group-level coordination for accurate and timely DMTT compliance. Key DMTT Challenges for Businesses DMTT services UAE address these challenges with structured calculations, data review, and clear documentation.  Complex Tax Calculations Data Quality Issues Limited Internal Expertise Technology Limitations Constant Regulatory Developments DMTT Compliance: How DMTT Services UAE Help Businesses Prepare Check DMTT Group Eligibility Evaluate the UAE Business Structure Calculate the UAE Effective Tax Rate Assess Data Availability and Quality Enhance Internal Tax Controls Reassess Existing Tax Structures Obtain Professional DMTT Services UAE Guidance DMTT services UAE help keep calculations, data, and records audit-ready. DMTT Services UAE and the Future of Tax Compliance The introduction of UAE DMTT adds new compliance requirements for multinational groups, requiring accurate tax data, ETR calculations, documentation, internal controls, and cross-border coordination. Businesses should review their group structure and tax positions, strengthen reporting processes, and prepare early for ongoing compliance. Professional DMTT services UAE can help manage these requirements effectively. GSPU’s DMTT services UAE team supports groups with eligibility reviews, ETR calculations, data checks and documentation. 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 but to adopt the changes for businesses to become successful in this era of constant change. GSPU Auditing, a dynamic Audit & Accounting firm with 20+ 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 the UAE, our well-known & Certified Accountants & auditors, who have international expertise as well as 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 partnership

Tax

UAE Corporate Tax & FamilyFoundations: A New Era of Clarity

As the UAE continues to solidify its position as a globally competitive financial hub, the Federal Tax Authority’s latest Corporate Tax Guide on Family Foundations (CTGFF1, May 2025) marks a significant milestone. This comprehensive document provides long- awaited clarity on the Corporate Tax treatment of Family Foundations, Trusts, and similar entities under Article 17 of the UAE Corporate Tax Law. What Is a Family Foundation? For Corporate Tax purposes, a Family Foundation isn’t defined by a specific legal form. Instead, it refers to a foundation, trust, or similar entity that meets specific conditions, mainly serving to manage and preserve family wealth across generations, without engaging in business activities. Entities that meet these criteria can apply to be treated as Unincorporated Partnerships, gaining fiscal transparency and thus avoiding Corporate Tax in their own right. This is a game-changer for estate planning and wealth structuring in the region. Conditions to Qualify To be treated as a Family Foundation under Article 17(1), entities must:1) Benefit natural persons or public benefit entities2) Primarily manage investments or savings3) Avoid business activities (as defined by the Law)4) Not be used for tax avoidance5) Follow special distribution rules when public benefit entities are involved Meeting these criteria allows Family Foundations and even their wholly owned subsidiaries to apply for fiscally transparent status—shifting the tax liability to the beneficiaries instead. Why This Matters Clarity for families, advisors, and trustees managing intergenerational wealth Alignment with international tax standards, while preserving local flexibility Opportunities for compliant structuring for foreign and local family entities Reinforcement of the UAE & competitive advantage in private wealth planning Key Takeaways for Practitioners Family Foundations, even foreign ones, may qualify if they have a nexus in the UAE. Unincorporated Trusts (like DIFC or ADGM trusts) are fiscally transparent by default. Multi-tier structures involving LLCs or SPVs may also benefit—if held by a qualifyingFamily Foundation. Let’s Discuss: How do you see these changes influencing family offices, wealth planners, or trustees operating in the UAE? Are your clients ready to restructure?  Contact us today for expert assistance.https://gspuuae.com/contact-us/

Tax

Withholding Tax in Saudi Arabia for UAE Companies Providing Services

Can UAE Companies Recover WHT from Saudi Arabia—Even If They Pay 0% Corporate Tax? As trade and cross-border services between the UAE and Saudi Arabia grow rapidly, many UAE-based service providers are encountering an unexpected deduction on their invoices: Withholding Tax (WHT) by their Saudi clients. This situation often leads to a pressing question: “If our company pays 0% corporate tax in the UAE, can we still recover the WHT deducted in Saudi Arabia?”The answer is yes. And here’s what you need to know. What Is Withholding Tax and Why Is It Deducted? Under Saudi Arabia’s tax regulations, any payment made by a Saudi-based company to a non- resident entity—even if the service is performed remotely—is subject to WHT, deducted at the source. Common WHT Rates in Saudi Arabia: 5% – Technical or consulting services 15% – Services provided by related parties 20% – Management fees 15% – Royalties and IP-related payments These deductions can significantly impact your profit margins—especially for startups and SMEs operating from the UAE, which historically had no corporate tax until recently. The UAE–KSA Double Taxation Agreement (DTA): Your Path to Relief Thanks to the Double Taxation Avoidance Agreement (DTAA) between the UAE and Saudi Arabia, businesses have two primary ways to reduce or recover WHT: 1. Benefit at Source – Apply in advance to avoid WHT deductions entirely 2. Refund Mechanism – Claim a refund of WHT already deducted through ZATCA (theSaudi Tax Authority) This post focuses on the refund process, especially relevant for UAE companies that either fall under the 0% UAE corporate tax threshold or qualify for Small Business Relief (SBR). Can You Claim a Refund If You Pay 0% Tax in the UAE? Let’s break this down with current UAE Corporate Tax rules: Scenario UAE Corporate Tax Payable? Foreign Tax Credit (FTC) Allowed? How to Apply for a WHT Refund from Saudi Arabia If WHT has already been deducted by your KSA client, here’s how to claim it back: Required Documents: UAE Tax Residency Certificate (TRC) – attested by the Saudi Embassy Form Q/7B – completed by the UAE company Form Q/7C – completed by the Saudi client Copy of WHT return and payment receipt from the client Authorization letter for the client to receive the refund (attested) Attested letter from the client stating that the refund has not been claimed elsewhere Submission Process: 1. The Saudi client submits all documents via the ZATCA online portal2. ZATCA reviews the application, and may conduct an audit 3. If approved, the refund is paid to the client’s bank account, who then transfers it to the UAE company Deadline: Refund claims must be submitted within 5 years of the WHT payment date. Tips for UAE Businesses Working with Saudi Clients Yes, you can recover WHT even if you’re taxed at 0% in the UAE Maintain strong coordination with your Saudi client—they must file the claim Keep thorough documentation: service agreements, TRC, WHT receipts, invoices For future contracts, consider applying for Benefit at Source to bypass WHT altogether Final Thoughts: Don’t Leave Money on the Table Withholding Tax doesn’t have to eat into your profits. UAE companies—regardless of their local tax liability—can fully recover WHT from Saudi Arabia by following the proper procedures under the Double Taxation Agreement. Whether you’re a consultant, marketing firm, tech provider, or freelancer, don’t overlook this opportunity to reclaim what you’ve earned. Need Help with WHT Refunds or Cross-Border Tax Planning? GSPU Tax consultancy can guide you through the refund process and ensure full compliance across borders. Let us help you maximize your profitability and avoid tax surprises. Contact us today for expert assistance.

Tax

Corporate Tax in UAE starts from June 1st, 2023

The Finance Ministry in the UAE announced the introduction of Corporate Income tax on 31 January 2022. The UAE is a member of the OECD Inclusive Framework on Base Erosion and Profit Shifting (“BEPS”) and is hence committed to meeting the International Standards for tax transparency and preventing harmful tax practices. When Corporate Tax Applicability becomes Effective? The UAE Corporate Tax regime will become effective for financial years starting on orafter 1 June 2023. If a business has a calendar as their financial year, then the Corporate tax shall be effectivefrom 1 January 2024, which is clear. Moreover, as Corporate Income Tax is a Federal Tax, it is implemented across Emiratesuniformly. Corporate Tax Applicability is done to whom? The UAE Corporate Tax regime will apply to all UAE businesses/Commercial activitiesexcept for the extraction of natural resources. If the individuals have ongoing and regular business in UAE, they would be subject toCorporate Tax. Individuals having income from salary/employment income shall not be subject toCorporate Tax. Also, dividends, capital gains, and other income from owning shares/securities earned by individuals in their capacity would not be subject to Corporate Tax. Passive income of foreign investors, i.e., dividends, capital gains, interest, royalties, andother investment returns, may not come under the purview of Corporate Tax. Corporate Tax Rate in UAE Taxable Income Rate of Tax Taxable income up to AED 375,000 0% Taxable income above AED 375,000 9% (on portion of taxable incomeexceeding AED 375,000 For large Multination’s (havingconsolidated business revenues in excessof EUR 750 Million / AED 3.1 Billion) A different Tax Rate. (As per the Guidelinefrom OECD- Pillar 2 it will be minimum15%) Taxable Income as per Corporate Tax The taxable income = Net profit/income of a business prepared following internationallyaccepted accounting standards, subject to certain adjustments as provided by Regulation. The specific exemption would be for Dividends and capital gains earned by a UAE businessfrom its ownership interest subject to specified conditions. Carry forward of losses shall be permitted subject to fulfillment of certain conditions. Credit for the taxes paid in a foreign jurisdiction on UAE taxable income shall be allowed. Tax Group Group of Companies can elect to form a tax group and be treated as a single taxableperson, subject to fulfillment of certain conditions. Intragroup transactions and reorganizations would not be subject to Corporate Tax inUAE, provided necessary conditions are met. Free Zones and Corporate tax applicability Free Zone entities would be subject to Corporate Tax. However, Corporate Tax incentives shall be provided to honor the commitment, and such entities will have to fulfill compliance (registration and filing of Return) obligations. Transfer Pricing – Related Party TransactionUAE businesses will need to comply with transfer pricing rules and documentation requirements set concerning the OECD Transfer Pricing Guidelines to enable Calculations of Corporate Tax as per the Regulation. Corporate Tax – Compliance Registration Required Filing of Return of Income Annually Advance Tax Calculations Payment – Not Applicable Method of Filing Electronic Corporate Tax – Withholding TaxAt present, withholding tax will not be applicable on domestic and cross-border payments of any nature

Tax

Corporate Tax comforts for Free zones

A public consultation document has been released by the UAE Ministry of Finance (MoF) inviting comments from stakeholders providing the businesses to play a key role in formulating the UAE Corporate Tax law.Even Though there is no individual income, activities an individual performs with a commercial license will be tax applicable. Companies operating in the natural resource extraction, charities, pension funds, investment funds, e.t.c will be exempted by the Federal government, Emirate government & their departments. UAE Corporate Tax regime will honour the tax incentives currently being offered. Audited financials are a compulsory record for the Corporate Tax system.Corporate Tax is at 0% for the following income sources:  Transactions with businesses located outside the UAE Trading with businesses located in the same or other free zones.  Certain regulated financial services are directed at foreign market goods sale (from VAT Designated Zones) to customers on the mainland if the customers are the importer-on-record. Also, ‘Passive income’ of the FZ company, which does not have any branch on the mainland. ‘Passive income’ includes interest and royalties, dividends and capital gains from owning shares in mainland UAE companies. Income from transactions with group companies located in mainland UAE is also a passive income, but such payments/expenses made by mainland group companies to FZ company will not be a deductible expense.Free zone entities mainland branches will be taxed at the regular tax rate on mainland income. Also, if the free zone entities can be a regional sourcing hub, then the payments made by mainland entities will not be a deductible expenditure.All other Free Zones company’s income sources are likely to be CT subjected. For exact expense allocation & income determination, a robust accounting procedure must be maintained. They can reverse their decision and obey the regular corporate tax rate. We, a young and dynamic Audit & Accounting firm in Dubai, with expertise spanning every area in accounts, tax and other financial branches, adopt a professional & friendly approach and care about the success of our clients holding an enviable reputation. Every business needs expert financial and compliance advice for business innovation, success and survival. We at GSPU have prioritized offering timely and qualified auditing, accounting & consulting services to help businesses to grow by making a clear strategy, saving time, money & by generating more revenue by providing a range of external services such as financial and accounting audits of companies and projects, risk management, inventory management and valuation of tangible business assets. Being the Best Auditing Firm & TAX Consultancy in the UAE, and having a strong moral commitment through a group of well-known & Certified Accountants & Auditors in Dubai, we will take care of your Accounting, Audit, Company Formation, and VAT services and take the load off. We the Global Strategic Partners Union always welcome your Business & Financial grievances converting work into service, customers into friends & client relationships as business partnerships.

Tax

Corporate Tax Impacts for Business Owners

 The United Arab Emirates no longer offers corporate tax exemptions, the truth be told.  Corporate Tax, also known as “Corporate Income Tax” or “Business Profits Tax,” is a type of direct tax assessed on the net income of corporations and other businesses upon exceeding a predetermined threshold established by the government of the nation in which they are operating.  At the federal, state, and local levels, it is typically imposed on businesses. And around the world, tax rates differ from country to country, industry to industry, and level to level.  The UAE has designed the new CT regime to incorporate best practices from around the world while reducing the compliance burden on businesses. Following the UAE Federal Decree-Law No. 47 of 2022 on taxation of corporations and businesses (the “Corporate Tax Law”), corporations across the UAE will be subject to corporate income tax at the rate of 9% on falling under the taxable income slab, despite having one of the lowest rates in the world.  Foreign direct investment will increase as a result of the decision because many investors favour investing in nations with locally standardised tax systems that are in line with international taxation standards. Without a doubt, the new tax may compel businesses that are not granted tax incentives, such as certain free zone establishments, to raise their selling prices, which will ultimately have an impact on consumers just like VAT does. The introduction of the new tax, on the other hand, may be advantageous for MSMEs that fall below the minimum threshold required to qualify for corporate taxation because they may not need to increase their prices and can continue to compete in their respective industries. Forward-thinking SMEs, on the other hand, may want to expand their operations to countries with lower or no corporate taxes. The new tax will boost governmental revenue overall and aid in modernising the economy.                                                                For businesses, is there any merit?  Advancement of UAE FDI  Migration of investors to tax-free zones The structured corporate taxation regime Greater control over the country’s economy The tax system will now be more in line with international standards. The business environment will be uniform because all businesses operating there will adhere to the corporate tax law, not just foreign bank branches and oil companies.                                                                For businesses, is there a demerit?                                                                           Extra responsibilities A coin has two heads, likewise, every act has a positive or negative side. In this TAX regime also, businesses have to take extra responsibilities like Excessive paperwork, Work to lower taxable income, Require system and process reviews, Mandatory auditing & Demand for Compliance.  We are more concerned with the additional responsibilities that a business leader, entrepreneur, or manager must bear. This is where an expert comes in handy. 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.

Tax

Who may file for Small Business Relief under Corporate TAX in the UAE as of 9th May 2023? 

MINISTERIAL DECISION NO. 73 OF 2023 ON SMALL BUSINESS RELIEF  –  Defines the threshold and additional criteria for individuals including resident person , non resident person and members of Multinational Enterprises Groups (MNE Groups).MNE Groups are groups of companies with operations in more than one country that have consolidated group revenues of more than AED 3.15 billion. Who is eligible? Resident Person & Free Zone Persons (excluding Qualifying Free Zone Persons) Previous Tax Period Revenue is less than AED 3 million. The Current Tax Period Revenue is less than AED 3 million. Not Members of Multinational Enterprises Groups (MNE Groups). Who is not eligible? Non-Resident Person & Qualifying Free Zone Persons. If the Previous Tax Period Revenue is more than AED 3 million and the Current Tax Period Revenue is less than AED 3 million. If the Previous Tax Period Revenue is less than AED 3 million and the Current Tax Period Revenue is more than AED 3 million. Members of Multinational Enterprises Groups (MNE Groups). How does it work: Application? Assessing eligibility for relief once a year is mandatory. Starting 1st June 2023, the threshold will apply. Only valid for tax periods that end before or on 31st December 2026. How should entities proceed? Register and file corporate tax returns on time. Due to the claim of Small Business Relief, the person’s taxable income will be nil Business Relief. What kind of entities should file for relief?  Entities that make taxable profits. Entities that failed to remove net interest expenditures from such tax periods. What kind of entities should not file for relief?  Entities that have losses and want to carry those losses forward. Entities that have removed net interest expenditures from such tax periods. COMPANY DIVISION TO UTILIZE THE RELIEF  The General Anti-Abuse rule of the corporate tax law’s corporate tax advantage under Clause (1) of Article 50 is applicable if: An individual who is subject to taxation has artificially divided their business or commercial activity & The total revenue of all such enterprises or commercial operations in any tax period exceeds AED 3 million & He/she has opted to apply for Small Business Relief for a business or a business activity.      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.

Tax

EmaraTax incorporates the UAE PASS digital signature Feature !!!

Federal Tax Authority introduced the UAE PASS function on the EmaraTax platform. The Federal Tax Authority (FTA) announced the addition of the single sign-on feature of UAE PASS – the UAE’s first national digital identity – to the EmaraTax platform. Tax system registrants, whether or not they use a Tax Agent UAE, can utilise this facility in all procedures and services on the platform, which is accessible via the official FTA website, further advancing the UAE’s sweeping digital transformation.Mr Abdulla Al Bastaki, Executive Director of the Federal Tax Authority’s Information Technology Sector, urged all FTA clients to take advantage of the new feature and activate their UAE PASS accounts.  The new feature was developed in collaboration with relevant authorities and is intended to meet the highest standards of security, confidentiality, and accuracy of information and procedures in order to speed up processes, improve user experience, and meet the aspirations of customers.This feature allows TAX registrants to access the Authority’s services quickly, effortlessly, and from the comfort of their devices and smartphones, eliminating the need to create a new login and password. The UAE PASS digital signature feature, which was introduced to EmaraTax, also intends to bring added value to consumers by allowing them to save time, money, and effort while providing faster service processing time and enhanced data flexibility. Registrants can also ask a Tax Agent UAE specialist for help.What the UAE PASS Update Means for Tax Agent UAE Clients According to FTA’s Abdulla Al Bastaki, the launch of the single sign-on feature using UAE PASS is part of the UAE’s ongoing development and upgrading of government services, which makes use of the UAE’s advanced digital infrastructure, which is among the most developed not only in the region but also globally. A Tax Agent UAE can turn such updates into simple, practical steps What the UAE PASS Update Means for Tax Agent UAE Clients Working with a Tax Agent UAE businesses trust helps registrants activate UAE PASS correctly, keep tax registrations updated and file on time on EmaraTax. That is why many companies use a Tax Agent UAE for compliance checks The UAE’s knowledgeable forward-thinking vision attempts to anticipate the future with plans and activities geared to increase the efficiency of government systems, the quality of life of individuals, the establishment of a sustainable environment, and the promotion of happiness and wellness in the community. 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.

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