What Are the Differences Between Net Income and Net Revenue in UAE?
In UAE, understanding the differences between net income and net revenue is crucial for businesses and stakeholders. While net revenue represents the total sales after adjustments like returns and discounts, net income is the profit remaining after deducting all expenses, including taxes and interest. Net Revenue Definition Net revenue is the total amount of money […]
Guide to Qualifying Free Zone Persons (QFZPs) in UAE
What is a Qualifying Free Zone Person (QFZP) in UAE? A Qualifying Free Zone Persons (QFZP) is a business entity established in a UAE Free Zone that meets specific conditions to benefit from a 0% Corporate Tax rate on its Qualifying Income. This tax incentive is designed to promote economic activity within Free Zones while […]
Corporate Tax Deregistration in UAE
What is Corporate Tax Deregistration in UAE? Corporate Tax Deregistration is required when a company: It ensures the FTA updates its records and stops issuing tax obligations to a non-active or ineligible entity. When a company or business activity in the UAE comes to an end, the taxpayer is required to notify the Federal Tax […]
Guide for Bookkeeping and Auditing in UAE
Running a business in UAE requires accurate bookkeeping and auditing. Proper financial records ensure compliance with local regulations. The UAE enforces strict financial reporting standards. Keeping organized records allows businesses to track performance, make informed decisions, and avoid penalties. This guide provides an in-depth overview of bookkeeping and auditing in UAE. Importance of Bookkeeping and […]
Tax Advantages in UAE
The UAE tax landscape is distinctively advantageous for residents and businesses, known for its absence of several traditional taxes. There are a lot of tax advantages in UAE. Notably, there is no personal income tax, inheritance tax, or gift tax in UAE, positioning it as a tax-friendly environment that attracts professionals and entrepreneurs from around […]
Difference Between VAT and Corporate Tax in UAE
Understanding VAT and Corporate Tax is essential for businesses in UAE. VAT is a 5% consumption tax on goods and services. Businesses collect it from consumers and pay it to the government. Corporate Tax, introduced in 2023, applies a 9% tax on net profits above AED 375,000. This tax directly impacts business earnings. Both taxes […]
Approval and Renewal of Trade License in UAE
A trade license is a legal document that allows businesses to operate in the UAE. Issued by the Department of Economic Development (DED) or free zone authorities, it is essential for conducting business activities legally. Without it, companies cannot register with government entities, sign contracts, or conduct transactions. Timely approval and renewal of trade license […]
Top Strategies to Reduce Your Taxable Income in UAE
The United Arab Emirates (UAE) has historically been known for its tax-free environment. However, with the introduction of corporate tax in 2023, businesses and individuals must find ways to minimize their taxable income legally and effectively. Understanding the complexities of taxation in UAE can help companies and professionals optimize their finances while staying compliant with […]
Is Audit Mandatory for Free Zone Companies in UAE?
Is Audit Mandatory for Free Zone Companies in UAE? While not universally mandatory across all UAE free zones, an audit is generally required for most Free Zone Companies (FZCO) in UAE. Each free zone authority has its own specific audit requirements, and many mandate audited financial statements for trade license renewal and compliance. Additionally, exceeding […]
How to Register for Corporate Tax in UAE
Corporate Tax (CT) in the UAE is a federal tax levied on the net profits of businesses operating within the country. The UAE introduced Corporate Tax to align with global tax policies and to reduce dependence on oil revenues. The standard corporate tax rate is 9% for taxable income exceeding AED 375,000, while income below […]