Corporate tax in UAE Archives - Bin Otaiba Advisory

22 Aug 24

Navigating Corporate Tax Relief for Small Businesses in the UAE: A Strategic Advantage

The UAE’s introduction of Corporate Tax is a significant milestone for businesses of all sizes, but its implications for small and medium-sized enterprises (SMEs) are particularly noteworthy. As a fundamental component of the UAE economy, SMEs are essential to driving job creation and innovation. Recognizing their vital role, the UAE…

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

How Inter-Company Agreements Safeguard Corporate Integrity and Compliance

In today’s increasingly complex corporate landscape, inter-company agreements are more than just a formality—they are vital instruments for ensuring transparency, efficiency, and compliance within a corporate group. As regulations surrounding corporate taxation become more stringent, these agreements play a critical role in protecting companies from legal risks and enhancing their…

07 Aug 24

The Role of Corporate Tax Departments in Shaping and Implementing ESG Strategies

In recent years, Environmental, Social, and Governance (ESG) factors have become critical considerations for businesses worldwide. Companies are increasingly recognizing the importance of sustainable practices, ethical governance, and social responsibility not only for their brand reputation but also for their long-term financial performance. Among the various departments within a company,…

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…

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…

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…

03 Apr 24

A Guidance towards Corporate Tax Compliance: Election to recognize gains and losses on a realization basis for Corporate Tax Law

Case Study 1: Adjustment of Accounting Income when the taxpayer elects realization basis only for assets held on capital account Background: Company X operates in the retail sector, selling home appliances. Due to market developments, Company X anticipates the need to discount certain products to facilitate sales. Consequently, it records…