News Flash: Optimizing your SPV/PresCo’s Tax Position – Roadmap
As we navigate the evolving landscape of Corporate Tax (CT) in the UAE, we highlight key points and strategic opportunities available to your organization.
Key Compliance Dates
- CT applies to financial years starting from June 1, 2023.
- Businesses with a standard financial year (January to December) are subject to CT starting from January 2024.
Ongoing Obligations
- To maintain compliance, your organization must:
- Register for CT once
- Maintain accurate accounting records
- Ensure arm’s length transactions
- Prepare transfer pricing documentation
- Submit tax returns annually
Strategic Tax Reliefs and Exemptions
We have identified several opportunities, including:
- Tax Transparency: Eligible Foundations may exempt individuals from CT on certain income.
- Participation Exemption: Eligible dividends and capital gains may be exempt from CT.
- Free Zone Relief: Passive holding entities may benefit from 0% tax under certain conditions.
- Small Business Relief: Small businesses may elect to be treated as not having derived any Taxable Income.
Next Steps
Consult with our team to discuss how these developments may impact your organization and explore potential opportunities for tax savings and compliance. Please contact us if you require further clarification or assistance.
