Consultzone

  A freezone company or a business setup in Freezone operates in the designated special economic areas in Dubai called free zones. Setting up a business setup in free zone in a Dubai free zone is popular amongst investors globally as Dubai has gained the reputation of being the land of vibrant business opportunities and exceptional economic growth. The Dubai government has implemented business-friendly laws and taxation policies to help entrepreneurs flourish in the free zones of Dubai.  Setting up a free zone company in Dubai has lots of perks and opportunities for businesses. The strategic location of Dubai enables business setup in freezone in a Dubai free zone easy access to regional and international markets thus helping businesses in global expansion and sustainable growth. Additionally, the diverse business community within the free zones of Dubai (UAE) help investors and businesses in networking and business collaborations. It is reco...

  The UAE Corporate Tax Law provides a unique structure for resident companies to consolidate their tax liabilities by registering as a Tax Group. The basis of this provision is Article 40 of the Corporate Tax Law, where at least two or more resident companies can register with the authorities as a single taxable person. On fulfillment of the terms and conditions, the Federal Tax Authority accepts the application; henceforth, a Tax Group can file a consolidated CT return in the UAE, which will make the payment of taxes easier for them. However, this system has its own set of advantages and disadvantages. This blog outlines the pros and cons of forming a Corporate Tax Group in UAE. Definition of the UAE Corporate Tax Group The UAE Corporate Tax Group consists of a resident parent company and one or more resident subsidiaries, which operate as a single taxable unit when determining the corporate tax. The following listed conditions apply when forming a group: Juridical Persons – ...

  The world of UAE corporate tax is ever-evolving, making it crucial for businesses of all types and scales to understand it as never before. The UAE Ministry of Finance (MoF) introduced the UAE Federal Corporate Tax (CT) on January 31, 2022, and it became effective on June 1, 2023. Launching these new corporate tax regulations means businesses must carefully navigate the new fiscal environment and plan. It has become crucial to identify the right fiscal year for effective planning, as it forms the foundation for tax calculations. Choosing the right fiscal year is important for businesses. The wrong fiscal year can result in faulty or misaligned financial reporting, which can lead to increased tax liabilities or attract penalties. Understanding UAE Corporate Tax The introduction of the  UAE Corporate Tax  regime is based on international best practices. The compliance burden on businesses has been kept low. The CT regime marks the ongoing efforts of the UAE government to ...