Compliance & Taxation Services

Compliance & Taxation Services

    Tax Consultancy Services in UAE

    It may appear tough to manage tax concerns with ordinary and every day business. The dynamic personnel at NSRM, a professional tax consultant in UAE, can assist you with a multitude of tax specialties as well as incorporate them into your business as a strategic model.

    Your personal and commercial tax obligations will be evaluated by our qualified personnel. After that, we'll design a financial strategy plan that is specific to the requirements of your business. Our staff members possess the expertise and experience necessary to grasp the taxes system. Moreover, we use advanced technologies and processes to give services to our clients.

    Different Categories of Tax in UAE

    Due to its 0% personal income tax, a wide range of business licences, activities allowed in free zones, and low import tariffs, the United Arab Emirates (UAE) has been one of the most appealing locations for emerging companies, mid-sized businesses, and big enterprises. The UAE government has always worked to make the tax climate in the nation as appealing and affordable as possible. Over time, the United Arab Emirates has created many tax categories. (UAE) has been one of the foremost appealing destinations for budding firms, mid-sized firms, and major corporations because of its 0% personal income tax as well as a multitude of business permits and operations permitted in the free zones and cheap import tariffs. The UAE government has always made an effort to make the country's tax environment as attractive and reasonable. The United Arab Emirates has produced different tax categories over period.

    I. CORPORATE TAX

    The United Arab Emirates has agreed to introduce a tax on company earnings for the fiscal year beginning on or after June 1, 2023. The following are the planned UAE tax rate rates: 

    • There is no tax on taxable income up to AED 375,000
    • Taxable income above AED 375,000 is subject to a 9% tax rate.

    Non-Taxable Income & Exemptions

    • People who have savings accounts or other types of accounts can earn interest and other types of income.
    • People who own stocks, real estate, or other assets in their own names and get dividends, capital gains, or other types of income.
    • In the UAE, anybody can invest in real estate in their individual capacity without needing a licence or a corporate licence.
    • There won't be any withholding taxes on payments made domestically or internationally.
    • Salary or job income is what determines a person's wages.
    • Qualifying shareholdings in a UAE company result in dividends and capital gains.
    • Qualifying intra-group transfers and reorganisations.
    • Businesses that exploit natural resources while also engaging in economic activity.

    II. VALUE ADDED TAX (VAT)

    VAT (Value Added Tax) which was established on January 1, 2018 is a sort of indirect tax that is collected on the purchase and sale of goods and services. The UAE government's decision to impose VAT is part of a larger approach to minimize the nation's reliance on oil and petroleum products as a source of funding, and the VAT rate is 5% on a range of products.

    Get one-stop guidance with expert tax consultancy services in the UAE, which are as follows:

    VAT Advisory in UAE

    A VAT specialist will assess certain business transactions to determine if VAT is applicable as part of a service called VAT transaction advising services. They may then assess how the VAT affects firms and decide what adjustments to make to their accounting procedures and business practises.

    VAT Review in UAE

    We employ a practical approach to carry out a comprehensive VAT Health check of business transactions and assessments of current processes and procedures from a VAT taxation viewpoint.

    VAT Registration in UAE

    In accordance with VAT legislation, Businesses registering for VAT in Dubai must adhere to strict VAT standards. A corporation is required to register for VAT if its annual revenue exceeds AED 375,000. According to UAE VAT law, registration is optional for businesses with annual revenues between AED 187,500 and AED 375,000. The business is also excluded from this regulation's registration requirements if the value is less than AED 187,500. In the UAE, NSRM offers services for VAT registration.

    VAT Return Filing in UAE

    VAT returns must be filed monthly or quarterly, depending on the size of the business. Customers can count on NSRM to guide them through the process of settling unpaid tax issues as well as help them submit VAT returns in the UAE on time and properly.

    VAT Adoption in the UAE

    Understanding the VAT basics is crucial for businesses. Respecting VAT laws is never an easy chore. In the UAE, NSRM specialises in VAT adoption. By offering firms VAT-related advice and training, we assist the customer.

    III. EXCISE TAX

    Excise tax is a type of indirect tax levied on things that are often damaging to people or the environment. The following items must be categorized as excise commodities: 

    • Tobacco-based items
    • Carbonated drinks excluding unflavoured aerated water
    • Electronic smoking devices and equipment
    • Drinks that have been sweetened.
    • An energy drink is any beverage that is promoted or sold as such and includes stimulator ingredients that provide mental and physical stimulation.

    The following items are free from excise tax in the UAE:

    • Standard 654 of the GCC Standardization Organization recognizes beverages for particular dietary requirements.
    • Standard 1366 of the GCC Standardization Organization recognize beverages consumed for medicinal purposes.
    • Beverages that are ready to drink (with at least 75 percent milk or milk substitutes)
    • Baby formula or baby food

    In the UAE, the excise tax percentages for qualifying items are:

    • Tobacco items receive 100%
    • 100% on e-cigarettes and e-cigarette accessories
    • For carbonated beverages, 50% is the tax
    • 50% off items containing added sugar or other sweeteners
    • 100% for energy drinks

    IV. Transfer Pricing

    Due to the growing impact of transfer pricing on corporate income taxation in the UAE, the use of transfer pricing techniques has recently attracted significant global attention. In light of the fact that tax authorities across the world closely monitor transfer pricing operations, NSRM can help you create tax-efficient agreements that maximize compliance with laws and regulations while satisfying all of your transfer pricing requirements.

    Businesses who conduct cross-border business are beginning to appreciate the value of transfer pricing. The tax department's oversight and regulatory requirements have increased the danger that large, medium, and small groups now confront. Many multinational organizations are beginning to consider the potential cost management alternatives offered by a well-designed transfer pricing model.

    V. Tax Residency Certificate

    The tax residency certificate in Dubai is valid for one year from the date of issuing. Corporations and individuals can utilise the Tax Residency Certificate, often known as the TRC Dubai. Depending on the circumstances, further certificate applications may be submitted.

    Offshore corporations cannot get tax residence certificates; thus, they must obtain a tax exemption certificate.