Averyx Group

  As we know that the Corporate Tax is applicable on corporations and all other businesses carried out in the UAE. However, certain categories of persons and their activities are exempted from the Corporate Tax as per the Decree Law. Exempt persons are not required to register for Corporate Tax in UAE, and no provisions of the Federal Decree law No. 22 shall be applicable on them. Exemption can be automatic or through an application to the Authority. Automatic means these persons will be directly exempted if they meet all the conditions prescribed in the decree law. And certain category needs approval from Federal Tax Authority for the exemption, this is done through an official application to the Authority further to meeting all the conditions prescribed in the decree law. Following are the persons exempted for the purpose of Corporate Taxation. 1. Government Entities Government Entities includes the Federal and Emirate Governments and their departments, authorities a...

  When will Corporate Tax come into effect? IMPOSITION OF CORPORATE TAX & APPLICABLE RATES Federal Decree Law No. 47 of 2022 on the Taxation of Corporations and Other Businesses reaffirms the Corporate Tax shall be applicable for the financial years beginning on or after June 1, 2023. It is important to know when the law will be applicable to your organization. Following are the scenarios based on different financial years: | IMPOSITION OF CORPORATE TAX & APPLICABLE RATES · A business that has a financial year starting on 1st July 2023 and ending on 30th June 2024 will become subject to Corporate Tax from 1st July 2023 (which is the beginning of the first financial year that starts on or after 1st June 2023) · A business that has a financial year starting on 1st October 2023 and ending on 30th September 2024 will become subject to Corporate Tax from 1st October 2023 (which is the beginning of the first financial year that starts on or after 1st June 2023) ...

CORPORATE TAX IN UAE – AN INTRODUCTION  On 9th December 2022, UAE has released the much-awaited Federal Decree Law No. 47 of 2022 on the taxation of corporations and Other Businesses. The Corporate Tax Law will be effective from 1 June 2023 with a headline rate of 9%. This is the first time a direct tax being implemented in UAE. Unlike Value Added Tax and Excise Tax, Corporate Tax will directly impact the profitability of a business. The new corporate tax regime includes features that represent best practices in international taxation. Here we provide a brief about Corporate Tax and the rationale behind the introduction of Corporate Tax by UAE. What is Corporate Tax Corporate Tax is a direct tax levied on net income or profit of corporations and other businesses. The corporate tax will be payable on the profits of UAE businesses as reported in their financial statements prepared in accordance with internationally accepted accounting standards. Although the net income is the base, t...