Stressed About Corporate Tax Registration ?
Get Expert Clarity And Fast Registration
Simplify UAE corporate tax compliance and focus on your business. Consultation included.
Simplify UAE corporate tax compliance and focus on your business. Consultation included.
Let us take this compliance burden off your shoulders and let the expert tax consultants do it for you from END to END.
We will understand your business and its complications and will devise a customised corporate tax compliance strategy for you.
We will determine your corporate tax registration deadline and will make an accurate registration application for your business.
We will calculate your corporate tax liability and will submit an accurate corporate tax return within the allotted timelines.
At Protax Advisors, we are determined to help businesses in complying with new Corporate Tax laws in UAE and have made our mission to not let them face any fines for non-compliance.
Corporate tax is a tax on profits of a business. Businesses need to pay a certain percentage of their business profits to the government. Government then invest these funds in defence and welfare schemes for the residents of the UAE.
Yes. All businesses in UAE, whether new or old, profitable or not, making sales or not, in free zone or mainland or offshore, need to register for Corporate Tax.
Simple answer is, since its the law. But we are not here for simple answers we are here to give clarity. Here it goes, Unlike UAE VAT (Value Added Tax), The Corporate Tax is a tax on profits, therefore the eligibility for its registration is not dependent on profits or sales. If a business exists, it will either make profits or losses, both cases will have a Corporate Tax implication. If it makes profits, it may pay corporate tax and if it makes losses, the losses can be carried forward to next year to be adjusted against that year’s profits for determining final corporate tax liability. Therefore, mere existence of a business make its eligible for Corporate Tax Registration.
If for some reason you skip relevant deadline for Corporate Tax Registration, your business may be exposed to a penalty of upto AED 10,000 (even more).
Assuming you are either a business owner or manager, let us explain this difference in that context. Simply put, Corporate Tax is a business expenses, whereas VAT is not a business expense for most businesses. How ? A business collects AED 105 for a product or service that costs AED 100 (since 5% VAT is added in the sale price) and then the business deposit that additional AED 5 with the government. Business still gets AED 100 (the full price of its product / service). In this cases, business only acted as tax collector on behalf of the government. In same example, let’s suppose the product sold was bought by that business for AED 70. Which means the business made the profit of AED 30 (105-5-70=70). Now, business is supposed to pay 9% Corporate Tax on this AED 30. So Corporate Tax laibility will be AED 2.7 (9% of AED 30). This AED 2.7 will be paid by business to the government from its own pocket (profits). That’s how the Corporate Tax is different from VAT.