Tax

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/

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.

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

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.

 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.

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.

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 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. 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.  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.

Section 1 – APPLICABILITY Corporate Income Tax is a type of income-based direct tax. The UAE Ministry of Finance said in January 2022 that corporate taxes would be implemented throughout the United Arab Emirates as of June 1, 2023, depending on the financial year of the businesses. There are other nations like the US, India, France, and also other GCC countries such as Oman, Kuwait, and Qatar that levy corporate taxes on a worldwide scale besides the United Arab Emirates. In addition to aiming to improve corporate governance and so support the nation’s economy, the implementation of corporate tax has always assisted in sustaining their economy. The corporate tax is viewed as the strategic economic transformation’s propeller as well. By implementing Corporate tax, the UAE hopes to strengthen its position as the world’s top business and investment hub, speed up national development, and reaffirm its commitment to adhering to international standards for tax transparency and preventing unethical tax practices. While the Ministry of Finance will continue to be the competent authority for the purpose of any bilateral or multilateral agreements as well as the international exchange of information for tax purposes, the Federal Tax authority will be in charge of administering, collecting, and enforcing UAE Corporate Tax.  Businesses or incomes that are not subject to Corporate tax Any enterprises that make more than the 3,75,000 AED profit threshold are required to pay corporation tax but some kinds are not subject to corporate tax. The exempted ones are : Corporate taxes will not be applied to individuals and to any income received from employment, real estate, stock investments, or other sources of personal income not connected to a trade or business in the UAE. Exemptions apply to foreign investors who don’t do business in the UAE. If a business operating in a free zone complies with all regulatory requirements, the current corporate tax benefits would be maintained. Businesses in the UAE are not taxed on capital gains or dividends they earn from eligible shareholdings. The qualified intragroup transactions and restructurings are not covered by this exception. Liable for corporate tax Every business that generates a taxable profit (net) of more than 375,000 AED is liable to corporation tax, which must be paid as a percentage of net profit. This group includes some entities in a free zone as well as UAE businesses that were incorporated in the UAE or that are managed and controlled there. If the net profit is less than 3,75,000 AED, the corporate tax rate will be 0% to aid small businesses and start-ups. Rates for corporate tax  Taxable income up to AED 375,000 =  0%. Taxable greater than AED 375,000 =  9%. For multinational corporations that satisfy the “Pillar Two” requirements of the Base Erosion and Profit Shifting Project of the OECD, an extra tax rate (yet to be determined). 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 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.