The Corporate Tax law in UAE is a new tax law in the region and it is always subjected to upcoming updates. Companies that belong to the corporate system of UAE must adhere to the rules they set out. It’s common for companies to have and one may be wondering what the most important thing is to do in relation to and how they can deal with corporate tax planning. Corporate tax consultants in Dubai are a great help in this case.  

This blog will help you explore the strategies of corporate tax planning in Dubai. The tax system in the UAE, when improved with better knowledge, can benefit your business by cutting costs and reducing expenses. Recent changes that the system has faced in the marketplace benefit in understanding and identifying the main strategies for tax planning. Becoming informed of tax laws and obtaining benefits from corporate tax consultant Dubai can aid your company over time. 

Strategies for Tax Planning in the UAE 

• Greater understanding of UAE Tax Laws: Knowing the tax laws of the UAE is the first thing to take into consideration. Examining tax planning strategies could be the next step. In comparison with other nations that are like the UAE has relatively easy tax law. There are a few tax aspects that must be considered by startups. 
• The Right Business Structure: The decision to establish an enterprise can have major tax consequences, which is why it’s crucial to select the appropriate legal structure carefully. A limited liability corporation or sole proprietorship, partnership and so on. are the most common businesses that exist in the UAE. If you decide to choose one, you must consider the benefits and drawbacks of every structure.  
• Maximizing deductions and credits: Tax liability is usually at a lower rate when you take credits and deductions. To benefit from these advantages, it is essential to know your legal rights. In the UAE particularly for start-ups, there are many opportunities including the tax credits for research and development credits. To ensure you’re getting all the benefits you will require corporate tax experts in Dubai to help you. 
• Seeking help from Corporate Tax Consultants Dubai: A Corporate Tax consultant Dubai is fully aware of all the rules and regulations which are constantly being updated by the FTA. It is always beneficial to get help from such professionals. ebs Chartered Accountants are the best choice in Dubai for this purpose as the team is very professional and the reputation is great. uaetaxgpt.ae is also a great platform if you are seeking help from a professional point of view.  
• Keeping Accurate Financial Records: Tax planning can be simple, and accurate financial records are vital to warrant that you are paying the correct corporate tax in the UAE. If you follow this strategy, you will be able to reduce the tax burden, and all you need to do is keep precise records of your income and expenditures. It is crucial to remain in compliance with the laws and regulations by keeping complete financial documents. There’s a period of five years when you must keep financial records of the UAE. 
• Becoming Compliant with Tax Laws: To keep the financial benefit of a business, it is crucial to remain within the tax laws of your locality. This will help you in avoiding tax penalties too. Every deadline to file and pay taxes must be kept in good time, particularly for those who are brand new to the business. To do this, you’ll require expert guidance and assistance from a corporate tax professional in Dubai to remain current with the regulations and laws. 

FAQs  

What is the corporate tax structure in Dubai? 

0% for Taxable Income up to and including AED 375,000. 0% on Qualifying Income. 9% on Taxable Income that is not Qualifying Income as specified in Cabinet Decision No. 55 of 2023. 

What is the tax policy in Dubai? 

The UAE does not levy income tax on individuals. However, it levies 5 per cent value added Tax on the purchase of goods and services, levied at each stage of the supply chain and ultimately borne by the end consumer. 

What is the new tax law in Dubai 2024? 

The government issued new Law No. (1) of 2024 on the taxation of foreign banks operating in the emirate of Dubai. The new law, which would annul Regulation No. (2) of 1996, would apply to all foreign banks operating in Dubai, including special development zones and free zones.