UAE Corporate Tax Introduction – How to get Ready?

The Ministry of Finance has announced the introduction of Corporate Tax (CT) in UAE with effect from 1^st June 2023. Businesses will be subject to CT from the beginning of their first financial year that starts on or after 1^st June 2023. This is a significant development as all business in UAE would be impacted by this new tax regime.

The detailed announcements and related links are given below:

Ministry of Finance to introduce federal corporate tax on business profits, effective for financial years starting on or after 1 June 2023
EMIRATES NEWS AGENCY – WAM 

Corporate Tax FAQ covers a wide range of common topics
UAE MINISTRY OF FINANCE

Corporate tax is a form of direct tax levied on the net income or profit of corporations and other entities from their business.
EXPLAINING CORPORATE TAX – FTA

This would require all business to be prepared for the new tax regime. The preparation would include the following:

• Maintenance of proper books of accounts and audit compliance
• Evaluating the various revenue and expense transactions for Corporate Tax applicability
• Reviewing the need for forming Tax Groups for Corporate tax efficiency
• Freezone related business and the Corporate Tax applicability
• Transfer Pricing structuring and documentation requirements