Corporate tax consulting

1. The Ministry of Finance has implemented the Corporate Tax Law (Federal Decree Law no. 47 of 2022) in the UAE, effective from 1st June 2023, which imposes taxes on business profits. The corporate tax applies to both juridical persons and natural persons. It is mandatory for every taxable individual to register for corporate tax with the relevant authority prior to filing their first return.
2. In accordance with Article 61 of the Corporate Tax Law, it is mandatory to prepare opening balances for the first tax period following the International Financial Reporting Standards (IFRS). Additionally, transactions between connected persons and related parties must be reported, ensuring compliance with the arm's length principle as stated in Article 34 of the Decree-Law.
3. Qualifying Free Zone Persons are subject to 0% tax on their Qualifying income and 9% tax on their non-Qualifying income. On the other hand, businesses and professions, including those in the mainland, are subject to 0% tax on their taxable income (adjusted profits) up to AED 375,000, and 9% tax on any amount exceeding that threshold. - Corporate tax and Transfer pricing

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