What is the Corporate Tax rate?

Corporate Tax will be levied at a headline rate of 9% on Taxable Income exceeding AED 375,000. Taxable Income below this threshold will be subject to a 0% rate of Corporate Tax.
Corporate Tax will be charged on Taxable Income as follows:




What is the Withholding Tax rate?

A 0% withholding tax may apply to certain types of UAE sourced income paid to non-residents. Because of the 0% rate, in practice, no withholding tax would be due and there will be no withholding tax related registration and filing obligations for UAE businesses or foreign recipients of UAE sourced income.
Withholding tax does not apply to transactions between UAE resident persons.


Introduction to corporate Tax


The Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (hereinafter referred to as the “Corporate Tax Law”) was issued by the United Arab Emirates (“UAE”), on 09 December 2022.
The Corporate Tax Law provides the legislative basis for the introduction and implementation of a Federal Corporate Tax (“Corporate Tax”) in the UAE and is effective for financial years starting on or after 1 June 2023.
The introduction of Corporate Tax is intended to help the UAE achieve its strategic objectives and accelerate its development and transformation. The certainty of a competitive Corporate Tax regime that adheres to international standards, together with the UAE’s extensive network of double tax treaties, will cement the UAE’s position as a leading jurisdiction for business and investment.
Given the position of the UAE as an international business hub and global financial centre, the UAE Corporate Tax regime builds from best practices globally and incorporates principles that are internationally known and accepted. This ensures that the UAE Corporate Tax regime will be readily understood and is clear in its implications


2.What is Corporate Tax?

Corporate Tax is a form of direct tax levied on the net income of corporations and other businesses.
Corporate Tax is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions.


3.Who is subject to Corporate Tax?

Broadly, Corporate Tax applies to the following “Taxable Persons”:

●UAE companies and other juridical persons that are incorporated or effectively managed and controlled in the UAE;

●Natural persons (individuals) who conduct a Business or Business Activity in the UAE as specified in a Cabinet Decision to be issued in due course; and

●Non-resident juridical persons (foreign legal entities) that have a Permanent Establishment in the UAE (which is explained under Section 8).

Juridical persons established in a UAE Free Zone are also within the scope of Corporate Tax as “Taxable Persons” and will need to comply with the requirements set out in the Corporate Tax Law. However, a Free Zone Person that meets the conditions to be considered a Qualifying Free Zone Person can benefit from a Corporate Tax rate of 0% on their Qualifying Income (the conditions are included in Section 14).


Non-resident persons that do not have a Permanent Establishment in the UAE or that earn UAE sourced income that is not related to their Permanent Establishment may be subject to Withholding Tax (at the rate of 0%). Withholding tax is a form of Corporate Tax collected at source by the payer on behalf of the recipient of the income. Withholding taxes exist in many tax systems and typically apply to the cross-border payment of dividends, interest, royalties and other types of income.



Corporate Tax

When can a Free Zone Person be a Qualifying Free Zone Person?

A Free Zone Person that is a Qualifying Free Zone Person can benefit from a preferential Corporate Tax rate of 0% on their “Qualifying Income” only.

In order to be considered a Qualifying Free Zone Person, the Free Zone Person must:

●maintain adequate substance in the UAE;

●derive ‘Qualifying Income’

●not have made an election to be subject to Corporate Tax at the standard rates; and

●comply with the transfer pricing requirements under the Corporate Tax Law.

The Minister may prescribe additional conditions that a Qualifying Free Zone Person must meet.

If a Qualifying Free Zone Person fails to meet any of the conditions or makes an election to be subject to the regular Corporate Tax regime, they will be subject to the standard rates of Corporate Tax from the beginning of the Tax Period where they failed to meet the conditions.

Corporate Tax

What is Corporate Tax imposed on?

Corporate Tax is imposed on Taxable Income earned by a Taxable Person in a Tax Period.
Corporate Tax would generally be imposed annually, with the Corporate Tax liability calculated by the Taxable Person on a self-assessment basis. This means that the calculation and payment of Corporate Tax is done through the filing of a Corporate Tax Return with the Federal Tax Authority by the Taxable Person.
The starting point for calculating Taxable Income is the Taxable Person’s accounting income (i.e. net profit or loss before tax) as per their financial statements. The Taxable Person will then need to make certain adjustments to determine their Taxable Income for the relevant Tax Period. For example, adjustments to accounting income may need to be made for income that is exempt from Corporate Tax and for expenditure that is wholly or partially non-deductible for Corporate Tax purposes.


What income is exempt?

The Corporate Tax Law also exempts certain types of income from Corporate Tax. This means that a Taxable Persons will not be subject to Corporate Tax on such income and cannot claim a deduction for any related expenditure. Taxable Persons who earn exempt income will remain subject to Corporate Tax on their Taxable Income.
The main purpose of certain income being exempt from Corporate Tax is to prevent double taxation on certain types of income. Specifically, dividends and capital gains earned from domestic and foreign shareholdings will generally be exempt from Corporate Tax. Furthermore, a Resident Person can elect, subject to certain conditions, to not take into account income from a foreign Permanent Establishment for UAE Corporate Tax purposes.


What expenses are deductible?

In principle, all legitimate business expenses incurred wholly and exclusively for the purposes of deriving Taxable Income will be deductible, although the timing of the deduction may vary for different types of expenses and the accounting method applied. For capital assets, expenditure would generally be recognized by way of depreciation or amortization deductions over the economic life of the asset or benefit.
Expenditure that has a dual purpose, such as expenses incurred for both personal and business purposes, will need to be apportioned with the relevant portion of the expenditure treated as      deductible if incurred wholly and exclusively for the purpose of the taxable person’s business.
Certain expenses which are deductible under general accounting rules may not be fully deductible for Corporate Tax purposes. These will need to be added back to the Accounting Income for the purposes of determining the Taxable Income. Examples of expenditure that is or may not be deductible (partially or in full) include:


All about the Revised UAE Golden Visa Program

An economy that is growing faster than ever, a multifaceted technological hub, and a buzzing tourist spot- that’s what summarizes UAE. In 2019, the UAE government released the revised Golden Visa Program, a permanent residence visa for expatriates, which worked as a cherry on top to push the country’s progress further.

What is the Golden Visa Permit?

The Golden Visa allows permanent residence to foreign nationals for a tenure of 5-10 years which can be renewed further. It permits the immigrants to live, study, and work in the UAE without the need for any sponsorship from a country national. Moreover, it also gives the visa holder 100% ownership of their business, before which businesses would have to share 50% of their rights with a UAE national.

Hence, the renewed visa policy has been a boon to the expatriates in all of the Emirates. Following are some key details and other remarkable benefits of holding a Golden Visa in the UAE.

Benefits of a Golden Visa?

In addition to not requiring a sponsor and holding 100% ownership of their ventures, here are other advantages the beneficiaries of a Golden Visa are eligible for:

  • 6 months valid entry visa offering multiple entries to facilitate a smooth residence visa issuance process.
  • Permission to sponsor a visa for a spouse, children, and other family members with no restrictions on age.
  • Your visa won’t be nullified if you stay outside UAE for more than six months.
  • Permission to sponsor domestic helpers with no maximum limit.
  • If the golden visa holder in the family expires, then the family is permitted to stay till the visa expires.
  • 10 years residence visa with renewability.
  • Eligibility to apply for an insurance cover ranging anywhere between AED 2,000 and AED 50,000. A tax agent Dubai, Abu Dhabi, and other emirates can help you understand the laws better concerning different emirates.

Who are eligible to apply for the Golden Visa?

Only certain categories of immigrants are granted the Golden Residence Visa and the list is as follows:

  1. Investors (real-estate/property): Investors who purchased a completed property, an off-plan one, or have taken a loan to purchase one, from specific reputed banks which is worth at least AED 2 million are eligible. Accounting services in Dubai or any other Emirate can be greatly helpful in understanding if you fall into the category or not.


  1. Business owners or Entrepreneurs: Entrepreneurs who run a start-up registered under SMEs in the UAE, have got a permit from higher authorities to open up a new venture, or have found a business worth AED 7 million are allowed to apply.


  1. Remarkable talents and deserving students: Inventors, artists, and talent across various fields are permitted a golden visa provided they have a recommendation from their local or federal authority. Students with an excellent academic performance from top 100 universities across the globe will also be permitted.


  1. Scientists, humanitarian workers, professionals in medicine, engineering, and others: Highly qualified professionals with Ph.D., masters, and other qualifications owning reverent titles and recognition for their research and contribution to the welfare of society are also granted the golden visa with ease.

How can you apply for a Golden Visa?

Once you fit into the aforementioned categories, you can reach out to the ICP online services or the General Directorate of Residency and Foreign Affairs (GDRFA) to help you sort out the required documents and apply for a golden visa. ICP is purely online based whereas through GDRFA you can apply either online or offline. The process requires the submission of the applicant’s documents and proof stating the willingness to shift to the UAE.

The Golden Visa is your key to permanent residency

The Golden Visa permit offers immense benefits to the deserving and eligible candidates in the UAE. The availability of such residency options for foreign nationals is just one of the many ways the Emirates is implementing to foster talent from across the globe.



Why SME Businesses Require Outsourced CFO Services

Do you know why many SMEs fail to thrive in Dubai? It is because they don’t understand the right time to hire help or outsource tasks. A business runs through several strands and taking care of all of them is possible, but not fruitful in the long run. Especially when it comes to finances, you need support from experts. Outsource CFO services to ease the financial burden from your shoulders, strategize your monetary system, earn huge profit, and scale like never before!

Hiring CFO services will regulate your finances and show you endless possibilities to improve your business. Read along to find out more details on CFO services in Dubai, their importance, and why you need them for your SME.

Who is a CFO?

CFO or a Chief Financial Officer is a professional expert who is responsible to deal with all thing’s finances. Right from budgeting and managing investments to analysing the financial market and formulating growth-oriented strategies, a CFO will be your support system to carve your business’ path to success.

SMEs usually fall into the spiral of thinking that CFOs are for large-scale businesses, probably due to the cost of hiring them. If you talk about having a full-time CFO on board, then yes it can cost you a lot of bucks. But what if we say you can outsource CFO services?

Why do you need to Outsource CFO Services in Dubai?

SMEs can enjoy all the premium benefits of having a CFO while not being too harsh on their limited budget. Outsourcing CFO services and hiring them virtually for part-time will do wonders for your business’ financial stem. So here is a quick list of all the things a CFO could do:

  1. Analyse, audit, regulate, and strategize your cash flow system.
  2. Calculate investment risks and guide you towards making healthy financial decisions.
  3. Study the market thoroughly and propose a plan to endure maximized monetary benefits.
  4. Manage liquidity, strategic planning to increase ROI, financial forecasting, and reporting.

But you may question, is bookkeeping not enough? Obviously not. Gone are the days when the competition was low and markets were at peace. Today, business is all about staying at par with the trend and clever financial planning while reflecting your business’ authenticity, purpose, and ideas.

CFOs are the right people who can align your financial goals with the essence of your organization and keep up with the fast pace in the market.

When do SMEs need Virtual CFO Services?

As a business owner, it can seem overwhelming to decide whether or not now is the right time for hiring a CFO. While the decision depends on your business type, module, investment, planning, and goals, here are a few indicators to realize that it’s time to level up the game and hire a CFO virtually or part-time.

  1. You are on a growth spurt – When things in your business are moving forward and growth seems evident, then talking to a CFO can be the right step. While going along the upward spiral the chances to trip off and descale are more. So having a virtual CFO at your side to discuss the current plans and future strategies to prevent any downward flow is a wonderful idea.


  1. When the cash flow is all tangled – Cash flow issues are where many SMEs throw in the towel. If you are struggling with cash flow management, then that is a big indicator that you need the help of a CFO.


  1. A financial decision blocks our way – CFOs are critical thinkers and adept at making difficult decisions. Whether it is about expanding your business, finding the right investors or you investing in something, then CFO is who you need.


It is tough to decide if you should outsource CFO services, especially when you are running on a restricted budget while managing so many other things on your plate. But virtual CFO services in Dubai are meant to benefit you with exemplary financial support while saving you time and money. Make that big move and get yourself a virtual CFO who will work collectively with you for improving your business by multiple folds.

How Outsourced CFO Services can Add Value to your Business

Finances and their management are always one of the top concerns for businesses across all scales. To ease the hassle of regulating all the monetary ins and outs, businesses, particularly large-scale or multinational organizations have an in-house CFO or Chief Financial Officer.

However, when we talk about SMEs, they are always rugged off in deciding whether hiring a full-time CFO is worth all the money and effort. Well, not really. When you run on a limited budget, you can outsource CFO services and find the solution to all your financial issues virtually.

Virtual CFO services in Dubai are ideal to tackle your ongoing struggles with finances, strategize for the future, and work on meeting your business goals. The best part of opting for a part-time CFO is that you get to choose the type of service and get dedicated support, especially for it. Here are some ways how outsourced CFO services can bring value to your business.

1. Forecasting:

Financial forecasting is key to preparing an organization for meeting its business goals. A virtual CFO will thoroughly audit, research, plan strategies, and execute them to lead you from where you are to where you want to be.

2. Reporting:

When you outsource CFO services you hire a support system that performs efficient accounting/bookkeeping strategies and knows how to implement that data for financial betterment. CFOs are adept at churning data into effective reports that can shape the business’ budget, investments, and other related activities.

3. Budgeting:

Budgeting is the key to attaining long-term financial security and growth. With appropriate forecasting, accurate reporting, and mindful planning, a virtual CFO will help you budget your finances in a well-structured format so you maintain liquidity and enjoy a stabilized cash flow.

4. Complete financial strategy reframing:

If things seem too straining financially, then it’s time you need a fresh look at your already existing framework. Having a virtual CFO on board will give you new perspectives and ideas to realign or restructure your plans to stay at par with the current trends and market values.

5. Cash-flow management:

Improper cash flow is where many businesses fall. CFO services in Dubai will help in managing your ins and outs effectively by identifying the necessary and unwanted expenses, changing commission patterns, negotiating client/vendor contracts, renewing pricing schemes, managing the supply chain, etc.

6. Fundings and Investments:

The expertise of a CFO will help you make critical decisions in regards to when, how, and who you would need as investors. They can assist in deciding what sort of financial aid the organization requires to take that plunge and also direct the investments to better places.

7. Support for Acquisitions and Mergers:

When talking about acquisitions and mergers, you need a critical eye to observe, analyse, research, decode, and strategize– and who could do it better than a virtual CFO. Their keen observation skills can extract information on the financial health of the party, research how profitable it could turn out for you, help you through the paperwork, etc.

Key Points:

Virtual CFO services in Dubai are a boon to all organizations regardless of which scale they belong. Outsourcing CFOs will save your time, money, and effort while adding immense value to the organization. You can hire them as per your need and acquire promising solutions to any sort of financial issue you might face.

From formulating your budget and preparing financial reports, to supporting critical financial decisions and forecasting, virtual CFO services are a complete package for your organization’s growth. As a business owner with a limited budget, it may feel overwhelming to outsource CFO services, but once done, it is only going to push the business towards betterment and growth.

Why Do Companies Hire Bookkeeping Services in Dubai?

Managing and keeping track of finances is an integral part of every company. Analysing your company’s finances, bank accounts, and financial statements ensures your operations are running smoothly and helps you reduce and avoid extra expenditures. However, regardless of your business size, handling your finances alone is not easy, especially when you have a hundred different business items to manage. Hiring bookkeeping services in Dubai will help you keep track of your financial data.


Bookkeeping services provide you with a team of financial experts who remove the burden of attending to your finances from your shoulders. Businesses, especially small businesses or start-ups, find it challenging to make room in their budget to employ a qualified accountant permanently. Thus, hiring bookkeeping companies is a better choice. Bookkeeping companies assess your financial operations and offer you expert insight to manage them, which helps improve your business.

What are the Benefits of Hiring Bookkeeping Services?

Time Savings

Running a business requires looking after multiple operations simultaneously: manufacturing, advertising, security, clients, etc. Your plate is already full, so adding, finding, and employing an accountant to handle your finances would only add to your tasks. Recruiting and hiring a new person is a lengthy process. You have to spend considerable time looking for an accountant, interviewing them, and explaining tasks to them.


Outsourcing bookkeeping services will save you the time, energy, effort, and resources to look for a qualified accountant. Bookkeeping services will send a team of financial experts to analyse your financial records.


Another benefit of bookkeeping services is hiring them on a project-to-project basis. You can outsource bookkeeping companies as you take on more projects, saving you from having to keep them on permanently.


Bookkeeping services in Dubai are cost-friendly. Employing an accountant would require you to give them a salary and additional benefits such as paid leave. Outsourcing bookkeeping companies allows you to pay them per project without compromising on the quality of their services.


Scaling Becomes Easy

Bookkeeping companies have the tools that can scale your data quickly and affordably. Bookkeeping services are flexible. They can increase or decrease their workforce according to the project. If your project requires more accountants than you have or can afford, bookkeeping services will ensure there are enough qualified accounts to assist you. You would have to keep finding and employing new people with in-house accountants when you run short of personnel.

Expert Insights

Bookkeeping services provide their knowledge and expertise to assist you. Companies send a group of professionals who offer their help and work on your projects swiftly. Bookkeeping companies in Dubai work with various clients, so they have additional knowledge, experience, and qualifications to handle your finances. They know the latest accounting methods, tools, and techniques and can give you guidance and tips accordingly.


Working with qualified professionals ensures your finances are in capable hands. Bookkeeping services will offer you advice on improving your business, saving money, filing your taxes, and boosting your company cost-efficiently.

Final Thoughts

If you are setting up a business in Dubai and want to handle your finances, outsourcing bookkeeping is a better option than employing in-house accountants. Hiring bookkeeping services is cost-efficient and save you the time and resources of hiring accountants. With professional services, you would also receive their expertise and qualified tips.


Most Common Errors made While Filing a VAT Return in the UAE

The UAE government introduced VAT or Value Added Tax for businesses that exceed an annual turnover of AED 350,000. The VAT system was first introduced in January 2018, after which companies in the UAE Mainland and Freezones have levied taxes on every sale they made. Before the tax period ends, the taxable businesses must file their return through the online FTA portal. While doing so, many companies make errors and end up paying heavy penalties unnecessarily.

Businesses must take proper support from VAT registration consultancies and file the returns with zero errors. The purpose of this article is to highlight the most common mistakes you may fall into while filing your VAT return. Here are the prevalent VAT filing errors to avoid in the UAE.

1. Falling in Calculation Errors

One of the very first pitfalls could be miscalculations. Companies should realize that errors in computing the liable taxes appropriately can put them under massive loss. A well-integrated and systemized procedure must be adopted so that the right amount of taxes is levied on different goods and services. Moreover, it is mandatory for businesses to stay at par with the latest VAT rules to avoid errors and miscalculations.

2. Lack of Proper Documentary/Records

Maintaining an up-to-date record of the business’s ins and outs is key to filing VAT returns effectively. The UAE government mandated that taxable companies must have a full-fledged record of sales, purchases, imports, exports, payment receipts, bank statements, transactions, and salaries for the past five years. Failure of which could lead to unnecessary trouble and heavy penalties.

3. Missing to record Exempted and Zero-rated Sales

You may successfully file your VAT returns including every detail on the inputs, outputs, and payables or receivables at the end of the day. However, missing to record the entities that are tax exempted or zero-rated can impact your filing tremendously. Companies must file their exempted sales to the FTA appropriately in addition to their regular tax information.

4. Failing to File the Reverse Charge Mechanism (RCM) Transaction

The Reverse Charge Mechanism comes into the picture when a company imports goods or services. In normal circumstances, the supplier collects tax on every sale they make and later pays it to the government as a return filing. In the case of RCM, where imported goods/services are concerned, the customers are responsible to pay the VAT directly to the government and the supplier need not pay VAT on import items. Many businesses fail to file the RCM transactions and issues arise during filing their input VAT.

5. Lack of Planning and Delayed Submission

Having a pre-planned strategy to record the transactions and stay updated with the latest VAT rules will prevent your business from unwanted fines. Since the VAT system started very recently, businesses still struggle to ensure systemization and planning while filing returns. Due to this, many cross the deadline and are levied penalties by the government. So, make sure to get regular VAT health checks done and refine your business policies for smooth VAT filing.


VAT came into existence with the purpose of generating additional revenue sources apart from oil and hydrocarbons. The amount is then again utilized by the UAE government for advancements and improvements across the Emirate. Since all of this procedure is still new to many businesses, make sure you keep yourself away from the errors while filing your VAT return. Keep an eye on the tax deadline, be aware of the new changes, include zero-rated sales and RCM for effective VAT filing in the UAE.

5 Important Facts about VAT Consultants in Dubai

Since the time the FTA announced it to be mandatory in 2018, Value Added Tax or VAT has been the talk of the town for businesses of all levels. Filing your VAT returns in the UAE can sometimes be a pain in the neck. It is tough for the common businessman to wrap their heads around all the tax-related information with so many legal rulings and conditions and frequently changing policies. It is where VAT consultants come into the picture. The VAT consultants in Dubai are experts in decoding the complicated VAT returns stuffs and simplifying your tax filing.

An organization may reach out to VAT consultants for almost everything related to tax. VAT consultants are of great help for your organization right from identifying the appropriate VAT on your goods/services to filing the returns with every minute detail and zero errors. Here are some brilliant facts about VAT consultants that clears any misconceptions you may have.

Why VAT Consultants in Dubai are your Supporters?

1. They take up all forms of tax issues and solve them for you

VAT consultants are adept at transforming your business’ functioning in compliance with the current FTA requirements and trends. They offer assistance to deal with varied tax-related issues. It includes accounting, book-keeping, planning and strategizing your VAT processes, VAT filing and reducing liabilities, maintaining and recording your purchases, sales, etc., detecting miscalculations, and avoiding delayed submissions. They are your one-stop solution for all tax issues.

2. Save both your time and energy

When experts take to work, the time and energy invested are reduced by multiple folds. Make sure to get in touch with experienced VAT consultants to ease your tax submission. These professionals are well-equipped to analyze risks, minimize them, and reduce liabilities with appropriate accounting and filing.

3. VAT consultants help improvise your business

Joining hands with VAT experts will not just relieve your tax filing burden, but also facilitate your organization to improve financially. An efficient consultant will thoroughly examine the ins and outs of your business, formulate a robust VAT strategy, and help in identifying the loopholes. They offer exclusive ideas to improvise the profitability of your organization.

4. Prepare your VAT filing sheet with ease

Doing the filing of your VAT returns on your own is possible but that equally raises the chances of making evident mistakes which can leave you with heavy penalties. A VAT filing service provider frees you from this tedious task and takes up the responsibility of auditing your accounts. They monitor the calculations, including the exempted sales, and managing the RCM (Reverse Charge Mechanism), etc. Moreover, expert VAT consultants in Dubai ensure that your tax submissions are on time and error-free.

5. Communicating with higher tax authorities & offering accurate data

Tax consultants in Dubai do all the talking with the higher authorities to prepare the most accurate VAT filing sheet for your business. You, as an organization, will be freed from the time-consuming task of dealing with the officials. Besides, their expertise and knowledge help your tax filing stay at par with the ongoing requirements of the government.


VAT can be a very complicated process to deal with. Since it is quite new for the market holders in the UAE, it requires both time and effort to understand the compliances and abide by them. Under such circumstances, VAT consultants in Dubai are saviors. They are professionals with adequate knowledge and qualifications who keep you up-to-date with the latest norms. They help you formulate proper plans, audit your finances, assist you maintain records, and file your VAT returns with utmost accuracy and reliability.