Supporting You With Corporation Tax Compliance

Supporting Small Businesses in the UAE with Registration, Consultation and Corporation Tax Filing

Our Clients

How We Prepare Small Businesses for Corporation Tax

Key CorporateTax Considerations for Small Businesses

From the 1st of June 2023, the corporate tax rate will be 9% of net profits made by businesses in the UAE.

In order to support small businesses and start-ups, the corporate tax rate will be 0% of profits is up to the threshold of AED 375,000. 

Small Business Compliance Checklist

The new UAE Corporation Tax regime will require businesses to have comprehensive accounting and bookkeeping in place.

Our consultants and partners will work with you to support your compliance requirements using our comprehensive checklist.

Are You Prepared for Corporation Tax?

Effective 1 July 2023 Corporate Tax will affect all aspects of business including purchasing, distributions, operations and hiring. Our experts will ensure you are prepared with minimal fuss.

How We Support Your Compliance

1

Corporate Tax Registration

First step to compliance is registration. Ensuring this is correctly completed is imperative to prevent penalties. Our team will ensure supporting documentation is in order to enable a smooth registration process.

2

Corporate Tax Consulting

Our tax experts and partners will dive deep into your business to understand the parts of your business most as risk with compliance. Our team will ensure your business is tax efficient and will support any process changes required.

3

Corporate Tax Software

Tax compliance and preparation should not be a manual process without audit trails. Our software partners will provide solutions which pulls data from your accounting system to prepare your tax return with a few clicks. You will also have full transparency on your calculation.

4

Corporate Tax Audit and Submission

Our tax experts and partners manage multiple clients ranging from varied industries and can draw from their comprehensive experience in tax compliance from Saudi Arabia and the UK. Rest assured our service will ensure are full compliance with corporation tax

Have you Considered these Topics?

Corporate Tax Introduction

Corporate Tax (CT) is a direct tax levied on the net income or profit of corporations and other businesses.

What is Group Relief?

Group relief is a relief from Corporation Tax. Businesses are able to create tax groups under the UAE corporate tax framework, which will go into force in June 2023.

Do I Need to Pay Foreign Tax and Double Taxation?

Under the upcoming UAE Corporation Tax regime, foreign companies will be subject to the corporate tax rate of 9% on annual taxable income exceeding AED 375,000.

Do I need to Comply with Transfer Pricing?

Transfer pricing refers to the prices of goods and services that are exchanged between companies under common control.

Our Values when Supporting Start-ups and Small Businesses

In 2021, we supported our clients to grow their revenues by 98%. We work with 100’s of diversified clients and advise them on sustainable growth strategies.

What we offer

Invite your advisor to collaborate with you on your business in real-time. And give your staff access to the areas they need to do their job.

Our Corporate Tax Services

Service 1

Understand your business performance and how you’re doing financially with daily updates of bank balance from your bank accounts and credit cards.

Service 2

Create and send online invoices to your customers and clients with Xero– and get paid faster updated when they are opened. You can also send automated reminders to outstanding invoices to get paid quicker, it is a good accounting practice.

Service 3

Invite your accounting advisor like your accountants and bookkeepers to collaborate with you on your growing businesses in real-time using Xero. And give your staff access like invoice creation only up to advisor to the areas they need to do their job.

Access our team of experts

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Understand your real-time cash position

Understand better how you’re doing financially with daily updates from your bank accounts and credit cards.

Get paid faster with online invoicing

Send online invoices to your customers and clients – and get updated when they are opened.

Collaborate with your accountant, bookkeeper and team

Invite your advisor to collaborate with you on your business in real-time. And give your staff access to the areas they need to do their job.

Effective controls

Tools such as the assurance dashboard, reports on activity, account transactions and journals help advisors monitor the integrity of data in Xero.

Protect your business data

Xero backs up your data and protects it with multiple layers of security including industry-standard data encryption and secure data centres.

Help when you need it

If you need help, you can choose to let the Xero support team view your data and provide the advice you need on using Xero.

Data you can trust

Direct feeds from banks, software applications and financial institutions mean that data is untouched by human hand as it enters Xero. The experts at Alpha Pro Partners also educate our trainees about the effective use of this data, and how to put it to best use.

Strong access controls

Xero’s wide range of security and detection measures enable tracking of who does what – and if issues are detected, alerts are raised. Only the authorized users and bookkeepers are allowed access to certain features of the system. The overall system can be secured as per requirements by the system administrator.

Information security

Xero protects your precious business information with extra layers of security. Xero Accounting in Dubai is not different. You can now practice the ultimate security mechanism at your workplace and in your system with the integration of Xero software in your operations.

Attach files to data

Store your files and transactions in one place for easy access from anywhere.Repeat the practice during our training sessions, and you will become a pro during the Xero training. All you need to do is practice.

Reduce Manual entry & Paperwork

Don’t waste another minute on data entry chores. Work smarter and faster and remove unnecessary paperwork by including smart practices in your work patterns.Effective Xero training reduces the chances of errors that are otherwise made in manual entries and analysis.

Access our team of experts

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Access our team of experts

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Access our team of experts

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Access our team of experts

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Access our team of experts

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What we offer

What is Corporation Tax?

Corporate Tax (CT) is a direct tax levied on the net income or profit of corporations and other businesses.

Corporate Tax is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions.

By introducing CT, the UAE aims to cement its position as a leading global hub for business and investment, as well as meet international standards for tax transparency and prevent harmful tax practices.  Most countries in the world have a comprehensive CT regime, including most of the GCC Member States.

When will Corporate Tax come into effect?

The CT will apply to financial years starting on or after the 1st of June 2023, according to the UAE Ministry of Finance. 

For instance, a business that has a financial year starting on the 1st of July 2023, and ending on the 30th of June 2024, will become subject to UAE CT from the 1st of July 2023.

 A business with a financial year starting on the 1st of January 2023, and ending on the 31st of December 2023, will become subject to UAE CT from the 1st of January 2024.

What is the UAE Corporation Tax Rate?

The CT rates are

  • 0% for taxable income up to AED 375,000;
  • 9% for taxable income above AED 375,000;

and a different tax rate for large multinationals that meet specific criteria set with reference to ‘Pillar Two’ of the OECD’s (Organisation for Economic Cooperation and Development’s) Base Erosion and Profit Shifting project. 

Highly recommend working with Alpha Pro Partners

Fast and efficient service and great communication. My agency is growing with the help of Rayhan and his team, I now have more financial control and peace of mind over my business's finances.

We highly recommend Alpha Pro Partners and their team!

We found them via an online search and after a couple of meetings we were ready to give it a go with the team. Alpha Pro Partners gives us a sense of ease to work with and understand how to balance professionalism with friendliness.

Provided an excellent service when setting up Xero for us

They offered great advice particularly on integrating Xero with other softwares and making the set-up as straight forward as possible. They made us aware of all functionality and ensured the processes are as automated as possible which has saved us a significant amount of time.

Corporation Tax - FAQ

What is UAE Corporation Tax? 

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Corporate Tax (CT) is a direct tax levied on the net income or profit of corporations and other businesses.

Corporate Tax is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions. Most countries have a comprehensive CT regime, including most of the GCC Member States. 

What is the Corporation Tax rate for UAE?

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  • 0% for taxable income up to AED 375,000
  • 9% for taxable income above AED 375,000

There is also a different tax rate for large multinationals that meet specific criteria set with reference to ‘Pillar Two’ of the OECD’s (Organisation for Economic Cooperation and Development’s) Base Erosion and Profit Shifting project.

When Does Corporation Tax in the UAE come into effect? 

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Corporation tax is effective from 1st of June 2023 and it is expected that filing and payment deadlines will be 9 months after the financial year end.

Are Free Zone businesses subject to UAE Corporation Tax? 

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Companies operating in Free Zones will be subject to UAE Corporation Tax, but the UAE Corporation Tax regime will continue to apply incentives offered to free zone businesses (providing they comply with the regulatory requirements and do not conduct business with mainland UAE). 

Entities operating in Free Zones will be subject to a 0% CT rate on their taxable income. If an entity located in a Free Zone derives non-passive income from mainland UAE all its income will be subject to the general CT regime.

Are Foreign Businesses Subject to UAE Corporation Tax? 

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Under the upcoming UAE Corporation Tax regime, foreign companies will be subject to the corporate tax rate of 9% on annual taxable income exceeding AED 375,000. 

To qualify for the 9% annual tax rate a foreign company operating in UAE has

  • Their Permanent Establishment (PE); or 
  • Their Place of Effective Management; or 
  • Their source of income.

Do Small Businesses need to pay UAE Corporation Tax? 

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On the 1st of June 2023, the corporate tax rate will be 9% of the net profit made by businesses in the AUE. In order to support small businesses and start-ups, the corporate tax rate will be ‘0’ % if the net profit is up to 3,75,000 AED. 

How can I prepare my business to comply with the UAE Corporation Tax laws? 

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The best way to prepare for the new Corporation Tax is to have accounting software which covers all the necessary requirements. The best accounting software for businesses currently is Xero Accounting software.

Alpha Pro are Xero Platinum Partners and are experts in using Xero Accounting Software. Xero is continuously making improvements and enhancements to its software and we believe it's the best accounting software available for your operational and accounting needs, especially in regard to UAE Corporation Tax compliance.

Do Small Businesses need to pay UAE Corporation Tax? 

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On the 1st of June 2023, the corporate tax rate will be 9% of the net profit made by businesses in the UAE. In order to support small businesses and start-ups, the corporate tax rate will be ‘0’ % if the net profit is up to AED 375,000. 

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