Companies that are within the scope of the UAE corporate tax have to comply with the following obligations:
• Carry out corporate tax registration in the UAE
• Obtain a Tax Registration Number (TRN) from the Federal Tax Authority (FTA)
• Calculate and pay the tax liability
• File the tax return within 9 months from the end of the relevant tax period
• Maintain financial and other records that explain the information contained in the tax return
Key Areas of Impact for the Legal Persons
Companies will be impacted by the UAE corporate tax in the following ways:
Audit of Financial Statements
Mainland companies need to follow relevant laws and regulations to determine whether their financial statements need to be audited by accredited audited firms in the UAE. However, taxable income will be calculated based on the profits reported in the financial statements that are prepared as per internationally accepted standards. Moreover, free zone companies will be required to have audited financial statements if it wants to benefit from the 0% corporate tax regime.
Review of Systems and Processes
A review of the current processes and systems will be required to assess the company’s readiness for the UAE corporate tax regime. This review will be related to the accounting of income and expenditure, inter-company transactions, capital assets and inventory management, etc. Businesses will also need to think about optimising these processes to meet their reporting and compliance requirements under the UAE corporate tax regime. Corporate tax consultants in Dubai can help you in carrying out the review.
