Averyx Group

  Corporate Tax in Dubai is imposed on the taxable income of a taxable person during a tax period. We have seen various taxable persons coming under the purview of Corporate Tax. In this section, we will discuss taxable income and what are the adjustments to be taken into account in order to arrive at the taxable income. Taxable Income The Corporate Tax regime proposes to use the accounting net profit (or loss) as stated in the financial statements of a business as the starting point for determining their taxable income. Financial statements should be prepared in accordance with the accounting standards acceptable in the UAE. A majority of the companies in UAE are following IFRS for the preparation of their financial statements and it is mandatory to comply with IFRS for banking institutions and certain publicly listed companies. However, as it stands any other acceptable accounting standards would be allowed to follow, depending on the type and status of the company. The financia...