UAE Corporate Tax - what does it mean for your business?

On 31 January 2022, the UAE announced that it will introduce Corporate Income Tax (“CIT”) effective from 1 June 2023.

Although the details and the law itself are yet to be released, businesses now have a minimum of 16 months to prepare before the law comes into effect.

Join KPMG’s webinar where we will explore its implications and answer important questions pertaining to its impact on your business:

— What rate applies to my entity? What is the impact on my business plans and after tax returns to shareholders post 1 June 2023?
— Would the difference in tax regimes for free zones and mainland UAE impact my current operating model?
— Are my existing related party transactions in compliance with the arm’s length Transfer Pricing requirements?
— Will my internal organizational systems be able to cope with CIT from 1 June 2023, and what changes are needed to build sustainable processes around compliance and reporting?
— Will my organization’s entities in the UAE be able to be consolidated into one filing group and are there any benefits in doing so?
— Have we evaluated our operations and existing structure (e.g. contracts or obligations that extend into 2023, cross border activities between mainland and free zone entities etc), and if impacted, what planning and changes can be implemented prior to 1 June 2023?
— Does my entity have a detailed fixed asset register that clearly distinguishes between depreciable fixed assets and capital items so we can maximize our depreciation allowance for CIT?
— What is my entity’s current and future loss profile, if any, from a CIT perspective, and to the extent losses exist in the group, how can I maximize the benefit of these?
— Does my entity have an overall tax efficient financing structure?
— What conversations do I need to have within my organization to ensure a no-surprise transition to operating within a corporate tax environment?