Case studies Archives - Bin Otaiba Advisory

19 Aug 24

UAE Corporate Tax | Small Business Relief (2)

Example 7: Calculation of Revenue ABC LLC is a UAE Resident Person. During its most recent Tax Period, ABC LLC made sales of AED 1,500,000 and received AED 1,000,000 of dividends from UAE companies. It had operating expenses of AED 2,000,000. ABC LLC therefore has Revenue of AED 2,500,000, costs…

16 Aug 24

Understanding Eligibility for Small Business Relief under UAE Corporate Tax Law

Case 1: Small Business Relief for a New Business Scenario: Mr. X, a resident in Abu Dhabi, started his business on January 1, 2025. His business operates under a tax period that ends on December 31 each year. During his first year of operation, Mr. X generated revenue of AED…

19 Jun 24

Navigating Tax Perspectives Across Multiple Business Ventures

Background: Mrs. F, a natural person, is actively involved in managing two businesses within the UAE. Each business operates within the standard tax period, running from January 1 to December 31. On December 31, 2025, Mrs. F made the decision to cease operations for one of her businesses. Prior to…

12 Jun 24

Compliance Requirements for Corporate Tax Upon Business Cessation

Background: Mr. A, a UAE resident, has been operating a business in the UAE, with his tax period running from January 1 to December 31 each year. On December 31, 2025, Mr. A ceased trading and decided to apply for deregistration for corporate tax purposes. However, he only made the…

05 Jun 24

Consequences of Non-Compliance with UAE Corporate Tax Registration Requirements

Background: Mr. Y, a UAE resident, has been actively engaged in business activities in Dubai since 2014. However, during the Gregorian calendar year 2025, Mr. Y’s total turnover surpasses AED 1 million, triggering the requirement for his business to apply for registration for corporate tax for the 2025 tax period.…

29 May 24

Tax Implications of Business Investments

Background: Mr. Ahmed, a UAE resident, owns and operates a small bakery in his local community. Recognizing the importance of securing a stable supply of flour, a crucial ingredient in his bakery’s products, Mr. Ahmed decides to purchase shares in Company C, a reputable flour production company. To facilitate this…

22 May 24

Tax Implications for a UAE Resident: Balancing Employment and Investments

Background: Ms. Fatima, a UAE resident, is employed by Company A, a UAE-incorporated company. She receives a monthly salary as compensation for her employment services. Additionally, Ms. Fatima has invested in Company B, also incorporated in the UAE. In return for her investment, she receives dividends from Company B, which…

15 May 24

Navigating Various Scenarios in Corporate Tax Registration for Individuals

Scenario 1: A natural person is a shareholder in a UAE joint stock company and does not conduct business independently from the company. The income from being a shareholder will be classified as personal investment income, so the natural person will not be required to register for corporate tax. Scenario…

02 May 24

A Guidance towards Corporate Tax Compliance: Navigating Transitional Rules

Case Study: Asset Acquired before the First tax Period Background: A taxable entity acquired an asset prior to its first tax period for AED 1,000 (arm’s length amount), recorded on the historical cost basis. The market value of the asset at the start of the first tax period is AED…

20 Apr 24

Mastering Accounting Standards in the UAE: A Guidance towards Corporate Tax Compliance

Case Study : Deduction of Capitalized Expenditure Background: In Tax Period 1, Company A, a taxable entity, purchases a piece of land for AED 3,000,000 and incurs fees of AED 90,000 to a real estate agent. According to International Financial Reporting Standards (IFRS), the fees of AED 90,000 are…