Corporate Tax Pre-Assessment

Corporate Tax Assessment in UAE for UK Businesses

 

Corporate Tax Assessment helps UK businesses understand the implications of the UAE’s new Corporate Tax regime. It’s a structured evaluation of how Corporate Tax affects your company’s operations, business strategy, and financial standing.

For UK companies entering or operating in the UAE, this assessment is critical to prepare for tax planning, restructure business operations where necessary, and ensure ongoing tax compliance. It also equips your business to adapt to the UAE’s 9% corporate tax rate on profits exceeding AED 375,000, effective from June 2023.

 

Different processes of Corporate Tax Pre-Assessment

Impact Assessment

Document Assessment

Compliance Assessment

Impact Assessment

Impact Assessment for UK Companies in the UAE

 

Corporate Tax Impact Assessment is the process of analysing the potential effect of UAE tax laws, regulations, and policies on your company’s performance.

 

For UK businesses, this means:

  • Identifying potential tax risks and opportunities in the UAE market

  • Analysing your current tax position from both UK and UAE perspectives

  • Developing strategies to optimise tax efficiency and protect profits

 

The goal is to enable UK companies to make informed decisions on tax planning, enhance compliance, and avoid costly penalties. By understanding the actual impact of Corporate Tax before it’s implemented, you can minimise liabilities, take advantage of lawful exemptions, and secure long-term business growth in the UAE.

Aspects of Corporate Tax Impact Assessment for UK Businesses

Tax compliance: Reviewing your UK company’s operations in the UAE to ensure full compliance with UAE tax laws and regulations.

Tax planning: Identifying lawful opportunities to reduce your UAE tax liability, such as deductions, exemptions, and credits, while maintaining UK tax efficiency.

Transfer pricing: Analysing pricing arrangements between your UK headquarters and UAE operations to ensure compliance with UAE transfer pricing rules, particularly on goods, services, and intellectual property

Tax incentives and exemptions: Determining eligibility for UAE tax benefits such as Free Zone incentives, start-up concessions, and government-approved exemptions.

Business structures: Reviewing your UAE operational structure to identify any changes that could minimise taxes and maximise profitability.

International tax considerations: Evaluating the impact of cross-border transactions between the UK and UAE, ensuring compliance with both UAE law and international tax regulations.

Document Assessment

UK businesses operating in the UAE must maintain clear, accurate, and accessible financial and legal records to comply with Corporate Tax requirements.
Failure to meet these standards could result in significant penalties from the UAE Federal Tax Authority (FTA).

This involves:

  • Maintaining comprehensive records that support the information on your UAE Corporate Tax return

  • Keeping contracts, invoices, transfer pricing documentation, and other key records for FTA review

  • Ensuring all documents are readily available in the event of a tax audit

Proper recordkeeping not only ensures compliance but also strengthens your defence in case of disputes or assessments.

Compliance Assessment

Under the UAE’s self-assessment system, UK firms must ensure their Corporate Tax returns and payment schedules are accurate, timely, and aligned with UAE Corporate Tax Law.

Key compliance points include:

  • Preparing and filing UAE Corporate Tax returns in line with legal deadlines

  • Ensuring calculations are consistent with FTA guidelines

  • Being aware that the FTA may review your submissions and request clarifications

  • Responding promptly to any amendments or reassessments issued by the FTA

Where disputes arise, UK businesses may appeal or seek adjustments, ensuring any revisions remain compliant with UAE tax laws.

Frequently Asked Questions

Relevant Blogs

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Transfer Pricing under the UAE Corporate Tax Law

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