Taxes ! This name got inked on the Dubai, UAE markets way in 2018 where business owners and consumers got introduced to Value Added Tax (VAT).  Dubai has been a Tax heaven city since long time & in 2018 the buzz in the region where many got to hear about taxes for very first time. Since then the compliance with laws got a turning point and the business owners started revisiting their financial strategies . Gone the days where bank account where their financial statements. Audits started gaining importance. Consultants started gearing up their sock's to give the best of professional advices. From the mainlands to freezone having different set of rules. Though the UAE VAT rates have been minimal i.e. 5% lowest as compared to many other regions. Since then it has been over 5years from now the UAE respective government announced UAE Corporate Tax chargeable at 9% above minimum threshold of profits, again minimal rate compared to other countries.

It is worth noting few points for business operating in Freezones. A freezone is a designated area wherein business can place & do their activities. Though the licenses are economical with the introduction of Taxes worth noting the below compliance checks.

• Option to be a qualified freezone attracts UAE Corporate Tax at 0% subject to fulfilment of certain conditions Viz.
• Qualified freezone Companies (QFC) needs to maintain adequate substance of their business.
• QFCs need to get their books of accounts audited.
• With audit being a criteria the accounts need to be prepared in line with International Financial Reporting Standards.
• Transfer Pricing rules need to be adhered to with those operating across other regions as well & international tax reporting and documents need to be adhered to.
• QFZs need to revisit their policies and pricing having regards with their tax structures & strategies.
• QFZ also doing business in mainland and having additional & varied sources of revenues need to take care of the de-minimus requirements as per the respective ministerial decisions issued by respective authority.

Coffee Evenings Taxation Consultancy Co LLC strive to provide our clients with the best advice and tax structure to ensure their compliance at all times with laws enabling business to focus more on their business with need to worry about compliances.

--Nilesh Kishore Gehi(Managing Partner Coffee Evenings Taxation Consultancy Co LLC,Dubai)