Following the introduction of VAT, the United Arab Emirates has now also introduced a corporate income tax that applies to both mainland and free zone companies. Therefore, not only the so-called CT registration is necessary, but also proper accounting according to the recognized international standards.
Dubai has always distinguished itself as a business center with a business-friendly environment. However, in this quest for growth and attractiveness to investors, there is one significant change that affects every business owner: the new corporate tax. In this blog post, we take a look at the latest developments and explain why it's crucial for every business owner to get to grips with this issue.
Until now, Dubai was considered a tax-free zone for companies. But times are changing and the government has decided to introduce a corporate tax of up to 9%. From now on, companies are obliged to carry out a so-called corporate tax registration. This is regardless of whether or not turnover is generated. This change naturally raises many questions, especially for companies that have previously benefited from tax exemption in Dubai.
The introduction of corporate tax in Dubai means that business owners now have a duty to properly manage their companies and fulfill their tax obligations. This is where the importance of careful record keeping comes into play. A structured and transparent accounting process is essential not only for compliance with the new tax regulations, but also for the overall management and strategic planning of your business.
In principle, both mainland companies and freezone companies are obliged to register for corporate tax. The new corporate tax is levied from a turnover of at least AED 375,000. However, there are special small business regulations that may exempt companies with a turnover of less than AED 3 million from corporate tax until 2026. In addition, there are also special regulations for so-called Qualifying Free Zone Persons if a free zone company carries out a certain regulated activity. This must be checked on a case-by-case basis and can be taken care of by our experts.
As an experienced provider of corporate services in Dubai, we understand the concerns and challenges that this change brings. At EXTENT, we are ready to guide you on this new journey. Our services include not only the timely and accurate processing of your corporate tax, but also comprehensive accounting services to ensure that your company is not only in a good tax position, but also in a good business position.
1. corporate tax registration
Our team will support you in registering for corporate tax and ensure that you submit all the necessary documents and information correctly.
2. professional bookkeeping
We take responsibility for your bookkeeping to ensure that all transactions are properly recorded and that you always have a clear overview of your financial situation. We have different packages for this, depending on the size of your company.
3. advice and compliance
Our team of experts is on hand to ensure that your company not only complies with tax regulations, but also follows best practices in terms of accounting and compliance.
The introduction of corporate tax in Dubai marks a significant change in the business environment. Now is the right time to be proactive and ensure that your company not only meets the legal requirements but also remains successful in the long term. At EXTENT, we will support you on this journey and ensure that your company is optimally prepared for the new challenges.
Contact us today to find out more about how we can help you with corporate tax and other corporate services in Dubai. Act now for a secure and successful future for your business.
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