Corporate Tax Impact Assessment Services in the UAE: How Proficient Can Help Your Business Prepare

As the UAE Corporate Tax Law comes into effect in June 2023, it’s crucial for businesses to understand how these changes will impact their operations, compliance, and financial strategies. Proficient’s Corporate Tax Impact Assessment services are designed to help businesses prepare and adjust to the new tax regime, ensuring they remain compliant and optimize their tax position.

Why Corporate Tax Impact Assessment is Crucial for Your Business

A Corporate Tax Impact Assessment is a detailed process that evaluates how corporate tax will affect your business operations, revenue, and compliance requirements. This assessment enables businesses to make necessary adjustments, reduce tax liabilities, and avoid penalties as the new tax laws are implemented.

At Proficient, we specialize in guiding businesses through this assessment process, helping them navigate complexities and identify tax-saving opportunities. Here’s why it’s important to conduct a Corporate Tax Impact Assessment:

• Identify Tax Liabilities: Understand how corporate tax will affect your bottom line.
• Plan for Tax Savings: Take advantage of tax credits, deductions, and exemptions available to reduce tax burdens.
• Ensure Compliance: Stay ahead of the regulations and avoid costly fines by adjusting your operations early.

The UAE’s Corporate Tax Law sets the tax rate at 9% for taxable income over AED 375,000, with a 0% rate for profits under this threshold, benefiting small businesses and startups. Proficient’s services can help your business adapt to these new regulations effectively.

What Is a Corporate Tax Impact Assessment?

A Corporate Tax Impact Assessment helps businesses analyze how the new corporate tax will affect their operations, revenue, and overall tax obligations. The process includes:

• Calculating Tax Liabilities: Understanding how much tax your business will owe.
• Reviewing Exemption Eligibility: Determining which exemptions or incentives you may qualify for.
• Making Necessary Adjustments: Identifying operational or structural changes that could optimize tax positions.

Proficient’s Corporate Tax Impact Assessments cover three main areas:

1. Impact Assessment: Evaluating the overall impact of corporate tax on your business.
2. Document Assessment: Ensuring your records meet the FTA’s documentation requirements.
3. Tax Compliance Assessment: Assessing current tax compliance to avoid penalties.

The Corporate Tax Impact Assessment Process

Our assessment process at Proficient involves a thorough review of your business operations to ensure you're well-prepared for the UAE's corporate tax laws:

1. Tax Compliance Check: We assess whether your business meets the UAE tax laws and ensure all filings, returns, and payments are properly submitted.
2. Tax Planning: We help identify opportunities to minimize tax liabilities, such as utilizing tax deductions, credits, or exemptions.
3. Transfer Pricing: We review your intercompany pricing policies to ensure they comply with UAE tax regulations.
4. Business Structure Evaluation: We analyze your business setup and recommend changes that could help reduce your tax liabilities or increase benefits.
5. Tax Incentives and Exemptions: We assess your eligibility for tax benefits available in Free Zones or through other exemptions.
6. International Tax Compliance: We review cross-border transactions to ensure compliance with both local and international tax laws.

By conducting a comprehensive Corporate Tax Impact Assessment, Proficient helps you ensure your tax strategy is in line with the new regulations and minimize any potential risks.

Document Assessment for Corporate Tax Compliance

In the UAE, accurate record-keeping is critical for tax compliance. All financial documents related to business transactions, income, and expenses must be maintained properly to avoid penalties. Proficient can assist with:

• Document Review: We’ll ensure your records are in order and ready for tax filing.
• Compliance Support: We help you maintain accurate documentation to back up your corporate tax returns.

Corporate Tax Compliance Assessment in the UAE

The UAE tax system operates on a self-assessment basis, where businesses are responsible for the accuracy of their tax returns. The Federal Tax Authority (FTA) may review your tax returns, and any discrepancies could lead to penalties.

Proficient’s tax consultants help businesses navigate this self-assessment process:

• Accurate Tax Filing: We ensure all returns are submitted correctly and on time.
• Minimizing Penalties: We help prevent errors that could lead to fines and ensure that your business is fully compliant.

How to Seek FTA Clarification for Tax Matters

If you’re unsure about a transaction or need clarification on tax matters, the FTA offers an online portal where businesses can request tax clarifications. However, working with Proficient ensures that your filings are correct and compliant from the start, reducing the need for clarifications and minimizing risk.

Proficient Corporate Tax Assessment Services

Proficient offers expert Corporate Tax Impact Assessment services to help businesses understand and prepare for the UAE’s corporate tax system. Our tax consultants are well-versed in the latest tax laws and can provide personalized support to help your business stay compliant and optimize its tax strategy.

Our services include:

• Tax Impact Analysis: We assess the overall impact of corporate tax on your business and identify potential opportunities.
• Exemption Evaluation: We review your eligibility for corporate tax exemptions, particularly for businesses in Free Zones or offshore jurisdictions.
• Tax Grouping Strategy: We explore the possibility of forming tax groups to maximize tax benefits and reduce liabilities.

Why Choose Proficient for Corporate Tax Impact Assessments?

Proficient Accountants is committed to offering businesses the best guidance for managing the UAE's corporate tax regulations. With our experienced consultants and detailed assessments, we ensure that your business is fully prepared for the corporate tax changes ahead.

Contact Proficient today for a comprehensive Corporate Tax Impact Assessment and take the necessary steps to keep your business compliant, optimized, and ready for the future of taxation in the UAE.