- Tax
- 2023-07-11
- Risians Accounting
Everything You Need to Know About Corporate Tax
People from other countries who want to make money often go to the UAE, which stands for the United Arab Emirates. It's easy to see why, since the country is known for being a business leader and has low taxes. But the UAE just put in place a new Corporate Tax system that affects all companies in the country, whether they are based there or not. This guide will tell you about the UAE Corporate Tax on income from the government. State-sourced income is the money a business makes from doing business in a certain emirate.
What is Company Tax in the UAE?
In the UAE, companies and businesses have to pay a tax on their income called Corporate Tax. On December 9, 2022, the UAE passed the law of 2022 on Taxation of Corporations and Businesses. This law, which will be called the Corporate Tax Law from now on, takes effect for financial years that start on or after June 1, 2023.
The goal of Corporate Tax is to help the UAE meet its strategic goals and speed up its growth and change. Together, the UAE's many double tax treaties and the fact that it is sure to have a competitive Corporate Tax regime that meets international standards will make it an even better place to do business and trade.
The Federal Corporate Tax also called a Corporate Tax in the UAE is set up and enforced by the Corporate Tax Law. It is built on the best ways of doing things around the world and is made up of principles that everyone knows and agrees on.
Who in UAE has to pay Corporate Tax?
Corporate Tax must be paid by anyone who runs a company in or outside of the UAE through a permanent establishment (PE) in the UAE. This is what the Corporate Tax Law says. A person either lives in the UAE or does not.
?A resident person is a legal person that is formed or registered under the rules of the UAE or any of its emirates, or has its place of effective management in the UAE. A non-resident person is anyone who does not live in the country.
?A PE is a permanent business location in the UAE where a person does all or part of their business. This could be a branch, office, plant, workshop, mine, oil or gas well, or any other place where resources are taken out of the ground. A PE also includes:
?Any place where a person gives services through employees or other staff for more than 183 days in a 12-month period.
?A person who acts on behalf of someone else and has the power to sign contracts in their name or usually does so;
?A person who owns at least 10% of a company that does business in the UAE;
?Someone who works in business with someone else who has a PE in the UAE and does jobs that complement what that other person does.
What is state sourced income from the government?
In UAE, a business's money from doing business in a certain city is called state sourced income. This money could come from selling things or services, getting rent from properties in the emirate, or making money in other ways in the emirate.
How to quickly pay your business tax?
If you want a simple way to pay your business tax, an audit firm in UAE like Risiansaccounting can help you.
For easy understanding and payments of corporate tax in dubai accounting firms like Risians Accounting will help you with it!
Conclusion:- If you want to learn more corporate tax this post is for you. Companies like Risians Accounting can help you with your taxes as your accounting business in Dubai, UAE.
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