Averyx Group

  Welcome to the UAE. The country is known for its competitive tax system and low corporate taxes. Business owners and entrepreneurs can benefit from this rate, as the UAE offers one of the most competitive tax rates in the world. The UAE has a flat corporate rate of 9%, making it an attractive destination for businesses to set up and operate. This rate is among the lowest in the world, particularly when compared to other countries in the GCC. Additionally, there is no foreign exchange risk, which helps to attract businesses from abroad. Tax in the UAE consists of three main types: Corporate tax, value-added tax (VAT) and excise tax. Corporate tax is levied on foreign nationals working in the UAE and on entities’ profits. Value-added tax is charged on goods and se… Starting a business in the UAE is an exciting opportunity. As the country continues to grow, so too does the emergence of entrepreneurs looking to establish their own business. There are many factors to consider when tak...

  It is common for companies to operate within a group. Fundamentally, the basis of a group formation is a common ownership. The basic  Corporate Tax  rules applicable on a company by company basis and could in some circumstances result in unfair tax consequences for companies within a group. The tax authority in UAE has incorporated various rules in the Corporate Tax Decree Law which aim to eliminate or minimize such unfair tax treatments by recognizing the existence of Tax Groups of companies. Let us see how a Tax group can be formed and what is its impact on the group members. Who can form a Tax Group? Two or more Taxable Persons who are Juridical Persons and resident in UAE are eligible to form a Tax Group, where one Taxable Person is a Parent Company who holds directly or indirectly at least 95% of all other Taxable Person’s (Subsidiaries): · Share Capital · Voting Rights · Profits and Net Assets Additionally, all group companies should follow the same Financial Year...