FAQ
UAE Corporate Tax
Yes, businesses are recommended to conduct regular internal audits to ensure compliance with Corporate Tax regulations.
Yes, businesses must conduct an annual external audit by a licensed auditor.
The external audit ensures the accuracy and completeness of the business’s Corporate Tax return.
A licensed auditor approved by the Ministry of Economy must conduct the external audit.
The external audit will review all aspects of the business’s Corporate Tax compliance, including income, expenses, assets, liabilities, and equity.
Businesses must retain audit records for at least 5 years.
FAQ
UAE VAT
Value-Added Tax (VAT) is a consumption tax levied on the value added to goods and services at each stage of the supply chain.
The standard VAT rate in the UAE is 5%.
Businesses with an annual turnover of AED 375,000 or more must register for VAT. Businesses with a turnover below AED 375,000 can voluntarily register.
The ultimate consumer is responsible for paying VAT.
Businesses must file VAT returns every quarter.
The deadline for paying VAT is the 28th of the month following the tax period.
Yes, businesses can reclaim VAT on business expenses.
Businesses that fail to comply with VAT regulations may face penalties, fines, and legal action.
You can find more information on UAE VAT on the Federal Tax Authority (FTA) website or by consulting a tax professional.
FAQ
Common Requirements
The deadline for completing the external audit is within 5 months from the end of the tax period.
Non-compliance may result in penalties, fines, and legal action.
Yes, businesses can claim audit costs as a business expense.
Yes, businesses can request an extension of the deadline in writing, subject to approval by the Ministry of Economy.
The licensed auditor must be approved by the Ministry of Economy and meet certain qualifications and experience requirements.
The cost of an external audit can vary depending on the size and complexity of the business, as well as the location and experience of the auditor.
Regular internal audits can help businesses identify and address any compliance issues early on, reduce the risk of penalties and fines, and improve overall financial management and governance.
FAQ
UAE Corporate Tax
Corporate Tax is a tax levied on the profits of businesses operating in the UAE.
The standard Corporate Tax rate in the UAE is 9%.
All businesses operating in the UAE, including freelancers and sole proprietors, need to pay Corporate Tax.
Businesses with a annual taxable income of AED 375,000 or more must register for Corporate Tax.
All business income, including trading income, rental income, and capital gains, is subject to Corporate Tax.
Businesses must file Corporate Tax returns annually.
Yes, businesses can carry forward losses for up to 10 years.
You can find more information on UAE Corporate Tax on the Ministry of Finance website or by consulting a tax professional.
