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Tax Planning Strategies for UAE Companies

The corporate system in UAE is never something new in the region and it is always subjected to upcoming updates as well. All the companies registered to fall under the corporate system in UAE need to strictly follow the guidelines they put forward. It is a common concern to exist and wonder what the exact need to have with and need to do with corporate tax planning. 

In our blog, we take an attempt to explore the strategies of corporate tax planning in Dubai. The UAE’s tax system when getting ahead with a better understanding can help your business save money and cost. The recent changes it has been subjected to in the market help in defining and identifying the key strategies associated with tax planning. Staying updated on tax laws and seeking professional help would benefit your business in the long run. 

Strategies for Tax Planning in UAE

  • Better Understanding of the UAE Tax Laws


Having an understanding of the tax laws in the UAE is the first priority to have the consideration on. Diving into the tax planning strategies can be your next step to follow. When compared to other countries, the UAE has relatively simple tax laws. Among them, there are certain tax considerations to be taken note of by the startups, value-added tax (VAT) and customs duties. VAT value is currently about 5% and an extra custom duty on the imported goods but then also you get to see variations based on the different countries from which they are getting imported. 

  • Choosing the Right Business Structure


The decision to start a business can have significant tax implications, so it’s important to choose appropriate legal structure wisely. The limited liability company, sole proprietorship, partnership etc. are the few business structures in UAE. While choosing any one of them you need to cover up the benefits and drawbacks of each structure. To rule out the confusion a food tax professional can bring you the help. 

  • Keeping Accurate Financial Records


Effective tax planning happens to be easy, accurate financial records are essential for effective corporate tax in UAE. With such an approach you would succeed in reducing the tax liability for which all that is required is to keep detailed records of your income and expenses. As an extended helping hand with tax planning, it is also important to stay compliant with laws and regulations with accurate financial records. It is a time of five years for which you need to keep the financial records in UAE. 

  • Maximizing Deductions and Credits


Tax liability happens to be at a low rate with deductions and credits. To take advantage of these benefits it is important to understand your legal eligibility. In the UAE, especially for startups there exist a lot of opportunities including the research and development tax credits. To ensure you are reaping the full benefits without doubt you need VAT consultants in Dubai to assist you. 

  • Staying Compliant with Tax Laws


To maintain the financial help of a startup it is essential to stay compliant with local tax laws. Such an approach would guide you along to avoid penalties as well. All the deadlines to file and pay the taxes are to be in perfect track of notice especially if you are new in the industry. For this as well you will need perfect guidance as well as assistance from a  tax consultant in Dubai to stay relevant to the laws and regulations.