Corporate Tax Solutions for Your Business
Corporate tax is a crucial element for businesses operating in the UAE, especially with the recent introduction of federal corporate tax regulations. While the UAE has long been known for its tax-free environment, recent changes are aimed at aligning the country with international standards, ensuring transparency, and fostering a pro-business ecosystem. Understanding corporate tax is essential for businesses to remain compliant and avoid penalties.
At GCC Accounting, we specialize in helping businesses navigate the complexities of corporate tax. Our team of tax experts is well-versed in the latest regulations and can provide tailored solutions to ensure that your business stays compliant while optimizing tax efficiency.
Who is Subject to Corporate Tax?
Corporate tax in the UAE applies to both onshore companies and free zone businesses that engage in commercial activities. According to the new law, a standard corporate tax rate of 9% applies to taxable income exceeding AED 375,000, while profits below this threshold are exempt. Additionally, businesses operating in designated free zones that adhere to specific regulations may continue to enjoy tax benefits, such as reduced rates or full exemptions. However, any business activities carried out outside the free zone, or trading with mainland UAE, may be subject to corporate tax.
Corporate Tax Compliance and Filing
Compliance with corporate tax laws requires businesses to maintain accurate financial records and submit annual tax returns. Companies must file their corporate tax returns within the deadlines set by the UAE Federal Tax Authority (FTA). Failure to comply can lead to significant penalties.
Our team at GCC Accounting assists businesses with everything from tax planning and filing to ensuring that your records are properly maintained and meet the necessary standards. We also keep track of any updates in tax regulations to ensure that your business remains compliant with the latest legal requirements.