Following the introduction of the value-added tax, the United Arab Emirates has now also introduced a corporate income tax, which applies to both mainland companies and freezone companies. Therefore, not only is the so-called CT registration necessary, but also proper bookkeeping in accordance with recognized international standards.
Dubai has always stood out as an economic center with a business-friendly environment. In this quest for growth and attractiveness for investors, however, there is one significant change that affects every company owner: the new corporate tax. In this blog post, we take a look at recent developments and explain why it is crucial for every entrepreneur to address this issue.
Until now, Dubai was considered a tax-free zone for companies. But times are changing, and the government has decided to introduce a corporate tax, i.e. corporation tax of up to 9%. From now on, companies are required to carry out a so-called corporate tax registration. This is regardless of whether sales are generated or not. This change naturally raises many questions, particularly for companies that have benefited from tax exemption in Dubai so far.
The introduction of corporate tax in Dubai means that business owners are now required to properly manage their companies and meet their tax obligations. This is where the importance of careful bookkeeping comes into play. A structured and transparent accounting process is essential not only for compliance with the new tax regulations, but also for the overall management and strategic planning of your company.
In principle, both Mainland Companies and Freezone Companies are required to complete corporate tax registration. The new corporate income tax is levied from a turnover of at least 375,000 AED. However, there are special small business regulations that may exempt companies that generate a turnover of less than AED 3 million from corporate income tax by 2026. In addition, there are also special regulations for so-called Qualifying Free Zone Persons when a Freezone company engages in a specific regulated activity. This must be checked on a case-by-case basis and can be provided by our experts in consultation.
As an experienced provider of corporate services in Dubai, we understand the concerns and challenges this change poses. At EXTENT, we are ready to guide you on this new journey. Our services include not only the timely and correct processing of your corporate tax, but also comprehensive accounting, which ensures that your company is well positioned not only from a tax perspective but also in terms of business.
1. Corporate tax registration
Our team will help you register for corporate tax and ensure that you submit all required documents and information correctly.
2. Professional bookkeeping
We take responsibility for your accounting to ensure that all transactions are properly recorded and that you always have a clear overview of your financial situation. We have various packages for this purpose, depending on the size of your company.
3. Consulting and compliance
Our team of experts is here to ensure that your company not only complies with tax regulations but also follows best practices in accounting and compliance.
The introduction of corporate tax in Dubai marks a significant change in the business environment. Now is the right time to act proactively and ensure that your company not only meets regulatory requirements but also remains successful in the long term. At EXTENT, we will support you on this journey and ensure that your company is optimally prepared for the new challenges.
Contact us today to find out more about how we can help you with corporate tax and other corporate services in Dubai. Act now for a secure and successful future for your company.
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