Tax consultations in the UAE
- AGLIO will provide information on all available special tax zones, transparently and clearly explain their features in order to form a general idea for the client, and then, based on the specifics of the business, recommend the most profitable taxation option.
- AGLIO helps clients rationally plan and control the tax burden for businesses, calculate taxes and submit reports in a timely and complete manner, and make the most of the opportunities to optimize the tax burden.
- AGLIO will make sure that the process of registration with special authorities does not cause unnecessary difficulties for the business owner.
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- 1 Business
is plannedWe explain in an understandable language all the features of the UAE taxation, we forecast taxes, depending on the scope of the company. You get all the information you need for effective business process planning.
- 2 Business
is startedIn order to protect the business from paying fines in the future, it is important to enlist the support of specialists and establish tax accounting in accordance with the laws of the UAE. Fines for non-compliance with laws in the Emirates are significant and in some cases can reach 300% of the amount of unpaid VAT.
- 3 Business
is doingWe ensure compliance with legal requirements for accounting and payment of taxes in the UAE. We check and collect documents, calculate taxes, prepare declarations for tax authorities. Your business is protected and managed.
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VAT in the UAE
Even though the UAE is a low tax jurisdiction, the state applies 5% VAT on sales in the UAE. At the same time, there are privileges and exceptions for several transactions when it is possible not to charge VAT. This requires that the transaction be properly documented and meet the requirements of the tax authority.
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VAT in Free Zones and Special Economic Zones
There are VAT taxation specifics for sales to/from Free Zones in the UAE and between countries participating in the Persian Gulf zone. There are also Special Zones for certain types of activities. It should be understood that not every Special Zone is a tax-free zone.
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VAT on purchases
VAT offset in purchases also has its own specifics. In order not to lose money and not be fined for underpayment of tax, you need to make sure that the documents accompanying the purchase are properly executed. In addition, not all purchases made in the UAE are eligible for a VAT credit.
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Corporate income tax from 2023
The UAE government has announced the introduction of a corporate income tax from July 2023. The corporate income tax rate will be 9%. The business should be ready for the implementing of the tax and set up business processes and accounting for their operations in such a way that the tax calculation can be easily administered.
100 tax issues
- What are the penalties for non-compliance with tax legislation and how to avoid them
- VAT offset and refund - paperwork rules, how to avoid fines
- Features of obtaining tax benefits and preferences
- Taxation features of certain types of transactions
Price of services
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Are all businesses registered in the Emirates required to pay VAT?
As a general rule, if a company supplies goods and services on the UAE mainland, imports or exports, VAT registration is required. For certain types of activities, special rules or exemptions from taxation are established. For example, educational services and medical services (except aesthetic) are exempt from taxation. Each company must be registered as a taxpayer upon reaching a turnover (on taxable transactions) of AED 375,000.
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Does the status of a VAT payer oblige you to submit any reports in the UAE?
Yes, after registering as a VAT payer, the company is obliged to submit a VAT report and pay it to the budget within the established time limits. Reports are submitted on a quarterly or monthly basis, which is determined by the tax authority when registering a company as a taxpayer.
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Is there a difference in taxation between different emirates?
No. The UAE applies uniform tax rules. An exemption may apply within special tax zones. However, for sales to the UAE mainland, general laws will apply.
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Should a company be registered as a VAT payer immediately after registering a business?
Not necessary. A business is required to register for VAT if taxable supplies or imports exceed the mandatory registration threshold of AED 375,000 (approximately USD 100,000). A business may voluntarily register for VAT if the total value of its taxable supplies, imports or taxable expenses exceeds the voluntary registration threshold of AED 187,500 (approximately USD 50,000).
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If my company is registered in a free economic zone (FZE), is company required to register as a VAT payer and pay tax?
Yes, if there are taxable transactions in the company's activities. If a FEZ registered company sells goods to the UAE mainland and the sales value reaches the mandatory registration threshold, the company must register for VAT and pay tax at the standard rate. When the company supplies services, both from the FZE to the mainland, and between two FZEs, the supply will be subject to 5% VAT.
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