IFRS 16 Explained: What It Means for Your Business (and Why It’s More Than Just Accounting)
IFRS 16 might sound like another technical accounting standard, but for many businesses, it’s a fundamental shift in how leases are viewed on the balance sheet — and how decision-makers interpret their company’s financial position. Whether you lease office space, vehicles, machinery, or IT equipment, IFRS 16 has likely changed the way you report and […]
Freezone vs Mainland Company. Which one to choose?
What is a Mainland Company in UAE? Mainland companies are legal entities registered with an Emirate authority (Department of Economy and Tourism). As a result, these companies enjoy a certain level of freedom in their operations and setup. They can issue visas, do business freely with other companies in and outside the UAE, and potentially […]
What are the audit requirements for a company incorporated in Dubai?
To understand this, we should know about the different kinds of audits normally performed in UAE. Lets have a brief introduction of these. Regulatory Audit A regulatory audit focuses on ensuring that a company complies with the various laws, regulations, and standards set forth by the local authorities and regulatory bodies. These include compliance with: […]
How to start your business in UAE?
We advise you to read through this guide to fully understand the steps required on how to incorporate a company in Dubai. The process of establishing a company in the UAE involves only a few simple steps, in all seven emirates. Steps involved in incorporating a business. Starting a business in ordinary ways involves a […]
What is Tax Residency Certificate (TRC)?
Since UAE follows residency-based taxation, where resident entities are taxed with respect to their worldwide income, double taxation may occur where income is taxed in both the source country and resident country. To avoid this UAE has entered into Double Taxation Avoidance Agreement (DTAA) with multiple countries. An updated list of DTAs can be found […]
Corporate Tax Compliance – What are the important administrative requirements?
CT registration/deregistration, Tax return and Payments Every Taxable Person will be required to electronically register for UAE CT with the Authority before applicable tax period and obtain a Tax Registration Number. The registration would need to be undertaken even if the Taxable Person has already been registered for VAT purpose. In order to keep the […]
Do individuals have to pay Corporate Tax?
General rule As per Cabinet Decision No. (49) of 2023, business owners in the country will be subject to corporate tax only if their combined turnover in a calendar year exceeds Dh1 million (around $272,294). The aim of the decision is to clarify how the corporate tax regime will apply to UAE residents and non-residents. For instance, […]
Adjustments to Taxable income – Explained
Summary on calculation of taxable income Set out below is an illustrative/indicative summary of how Taxable Income will generally be computed for UAE CT purposes: Net accounting profit/(loss) before tax Fair value accounting and capital asset adjustments (subject to election) less/add: unrealised gains/losses less/add: foreign exchange gains/losses Exempt income less: Dividends and profit distributions received […]
Is Corporate Tax applicable on Freezone Persons?
In the UAE, a Free Zone Person is defined as an individual or corporate entity that is licensed to conduct business activities in the UAE free zones. Free zones are designated areas in the UAE that offer a multitude of incentives to foreign investors, including 100% foreign ownership, tax exemptions, and more. These free zones […]
What taxes are applicable in UAE?
Corporate Tax (CT) In January 2022, the UAE Ministry of Finance announced the implementation of Corporate Tax all over the United Arab Emirates. As per the Ministry, the Corporate Tax law will be effective from the 1st of June 2023. The Corporate Income Tax will be applicable on or after 1st June 2023, depending on […]