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Corporate Tax Assessment helps businesses understand the implications of the new Corporate Tax regulations in the UAE. It provides
a structured analysis of how Corporate Tax affects a company’s operations, business strategy, and financial position. This
assessment is crucial for businesses preparing for tax planning, restructuring, and ensuring full compliance with the law. Moreover, it
helps organizations adapt smoothly to the new Corporate Tax regime and mitigate potential risks.
Deep understanding of UAE VAT law and FTA procedures.
From eligibility to FTA approval—we handle everything.
Whether startup or enterprise, our service fits your structure.
Guidance on maintaining refund eligibility for future claims.
Guidance on maintaining refund eligibility for future claims.
Corporate Tax Impact Assessment in UAE
Corporate Tax Impact Assessment involves evaluating and analyzing the effect of Corporate Tax laws, policies, and regulations on a
company’s financial performance. It identifies tax risks and opportunities, evaluates the current tax position, and provides strategic
recommendations to enhance tax efficiency.
Objectives:
Assessing the organization’s adherence to the UAE’s tax laws and regulations.
Identifying legal methods to reduce tax liabilities and leverage benefits such as deductions and credits.
Evaluating internal transactions among related parties to ensure they comply with arm’s length principles.
Determining eligibility for government-provided tax exemptions (e.g., Free Zone benefits).
Reviewing and possibly restructuring business entities to optimize tax positions.
Analyzing the impact of cross-border activities and ensuring compliance with global tax standards.
UAE-based businesses are required to maintain proper financial and tax records in line with Corporate Tax regulations. Noncompliance may lead to penalties by the Federal Tax Authority (FTA).
The UAE Corporate Tax regime is based on a self-assessment system, which means that businesses are responsible for ensuring the
accuracy and completeness of their tax filings.
The primary reason for introducing Corporate Tax in the UAE is to comply with OECD’s Action 1 Pillar 2, establishing a
global minimum tax. It reduces incentives for companies to operate in low- or no-tax jurisdictions. This change has
significant implications for multinational corporations (MNCs) in the UAE.
Yes, transfer pricing rules apply to all related party transactions, including loans. These arrangements must reflect
market conditions such as interest rate and loan duration.
Companies must maintain detailed records of transactions with related and connected parties.
No, transactions within a Tax Group are eliminated for consolidation purposes. However, exceptions apply when
calculating pre-group tax losses or when a company leaves the Tax Group.
Tax losses can be carried forward if at least 50% ownership remains unchanged. However, if there’s a significant change
in ownership and business activities, losses may not be usable.
Yes, companies in a Qualifying Group can transfer assets/liabilities at net book value, enabling tax-neutral transactions.
Only if they are managed and controlled in the UAE and are considered UAE tax residents. Generally, only UAE-resident
juridical persons are eligible.
Understand how inter-company
transactions are valued and taxed
under UAE law
A summary of compliance requirements
under Ministerial Decision No. 97 of 2023.
Explore rules for converting foreign
currency for tax purposes under UAE
Corporate Tax
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