Corporate Tax is one of the most important variables facing a business. Meeting your tax compliance obligations and developing a robust tax-efficient strategy is crucial to the success of your business.
The tax landscape in the Middle East is undergoing major changes. While corporate taxation rules worldwide are increasingly complex and subject to frequent amendments, these can also facilitate investments and tax savings when optimally applied. To achieve this, you need to understand the tax implications of your business operations, possible alternatives and strategies in the UAE and all relevant jurisdictions to be able to control and optimize your corporate tax position. This is, however, not an easy task, and businesses may find it challenging to successfully manage it alone.
Our corporate tax advisors understand the industry specific implications of the UAE tax rules and their international dimensions. We can assist you with your corporate tax strategy, tax planning opportunities and compliance needs.
Step 1 - UAE Corporate Tax readiness assessment
- Undertaking a qualitative and quantitative impact assessment, considering potential exemptions from UAE CT, free trade zones incentives and requirements, possibility and benefits of tax grouping/consolidated filings, expenditure deductibility restrictions and requirements, taxation of cross-border transactions (withholding taxes and foreign tax credits), compliance requirements and transfer pricing;
- Undertaking an IT Infrastructure Assessment to identify changes to the financial systems that are required for UAE CT compliance.
Step 2 – Implementation
- Working with key stakeholders including Group tax, Finance, IT and legal (as applicable) to assist with the implementation of UAE CT, including (but not limited to)
- advising on required corporate restructuring, specific tax positions / decisions/ technical clarifications;
- assisting in system design and implementation (subject to initial impact assessment & IT indication/confirmation on the extent of support required);
- reviewing the tax clauses (e.g. of tax provisions, tax stabilization clauses, etc.) in contracts,
- reviewing the existing tax governance framework and tax risk policies, delivering UAE CT training sessions;
- Preparing TP policies and documentation;
- Assisting in obtaining required clarifications/ tax rulings from the FTA or MOF on uncertain CT positions/interpretations.
- CT registration support.
- Providing compliance support and providing ad-hoc tax advisory including:
- Assistance in preparing a ‘first-run’ ‘dummy’ CT returns before go-live date;
- Recommendations on appropriate documentation to prepare and maintain to support the tax returns;
- Assistance in tax audits and due diligence.
Preparation (review) of quarterly and annual income tax provision, including:
- accounting for uncertain tax positions,
- accounting for business combinations or discontinued operations,
- valuation allowance analysis,
- and fresh start accounting