Corporate Tax Assessment and Implementation

Corporate Tax-Assessment and Implementation

Time to Assess your business…

The Corporate Law has been published by the ministry, it is time for businesses to conduct Tax Assessments, adjust policies and procedures and implement the recommendations made by a Tax Consultant. This is a must do exercise for the business to understand the gaps, make refinements and comply the requirements.

The law is effective from June 01, 2023, when it will be applicable on your business, depends on the chosen financial year as per memorandum of the company, refer the timeline below for more clarity.

Key Dates:

•       Law Issued on Oct 3^rd, 2022.

•       Official Gazette Publication Oct 7^th, 2022.

•       Applicability of law after 15 days of publication.

•       Effective date is June 1^st, 2023.

What is a Corporate Tax Assessment:

Tax assessment is like any other assessment of a business with respect to a particular regulatory requirement, however we would rate tax assessment with elevated risk due to its nature. Tax consultants in Dubai or business internal accounting & tax team must conduct a thorough study of the business model, its operations and polices to understand how UAECT will impact and what are the necessary measures to take to improve and optimize tax liability and compliance.

Bens Assessment Process:

1.    Assessment and identification:

a)   Organization:

•       Legal personality and Structure.

•       Group structure and tax implications.

•       Operating model study.

•       Capital Structure.

•       Identify restructuring and optimization opportunities.

b)   People and Processes:

•       Related parties’ identification and impact.

•       Transfer Pricing rule policies analysis.

•       Accounting system study and readiness.

•       Existing tax function (local and foreign tax presence).

•       Financial statements analysis

-       Sales categorization

-       Expenses Categorization

-       Entity Bottomline analysis and losses.

-       Gains and losses study

-       Investment & Participation analysis.

-       Capital and Revenue positions (TP/AL impacts on opening BS).

-       BS analysis.

-       Deferred Tax Analysis.

-       Payroll structure and owners’ compensation study.

2.    Implementation and Advisory:

•       CT Registration.

•       CT Groups creation and application.

•       Preparation and filing of Tax Return.

•       Ongoing Advisory.

Timeline of tax applicability:

Below is a demo timeline of businesses with financial year ending on May31 and Dec31.

For Financial year ending on 31^st May 31:

•       Tax Registration starts from Jan2023.

•       First tax period from June2023 to May2024.

•       First return filing and tax payment date is Feb 2025.

For Financial year ending on 31^st Dec:

•       Tax Registration starts from Jan2023.

•       First tax period from Jan2024 to Dec2024.

•       First return filing and tax payment date is Sep 2025.

Similarly other financial periods will have first tax period and return filing accordingly. 

How Bens can help:

Our professional tax experts will take your business onboard after initial screening. Our approach to tax implications will be as follows:

•       Consultation and high-level engagement.

•       Detail analysis and impact analysis.

•       Implementation and realignment.

•       Tax Advisory and Partnering.

Get in touch:

info@bensauditors.com

+971 4 44 33 612