As you all are aware that the Corporate Tax Law is live. here are few FAQs and their answers

Q1) A newly established company needs to register?

A1)  Yes, all companies need to register, newly formed companies also need to register for Corporate Tax.

Q2) A Freezone company needs to register?

A2) Yes, weather in mainland, or free zone all have to register for corporate tax

Q3) The company doesn't make profits over AED 375,000, what do you think?

A3) Even if the company makes losses, registration is mandatory, however at the time of Corporate tax filing a "Nil" return will be filed means there will be no tax due.

Q4) What do I do next after registration?

A4) The Federal Tax Authority, UAE will issue you a Corporate Tax Identification number, & certificate that you may save in your records.

Q5) When do I have to pay taxes?

A5) Within 9 months from the end of the calendar year, i.e. tax period

Q6) What do I do to ensure all time compliance?

A6) It is advisable to have professional advice on your transactions "CORPORATE TAX ASSESSMENT" done. A basic level "FINANCIAL STATEMENTS" as per the international auditing standards is a recommended practice to ensure the correct accounting treatment at all times. A correct accounting treatment is KEY in deciding the tax liability. Keeping a track of all your company expenses and income is important. A sufficient documentation is vital to have a support on the transactions, especially where international transactions are involved "Transfer Pricing documents" needs to be maintained and "International Tax laws" needs to be read along with.

Q7) What are the benefits and reliefs available?

A7) Here are few benefits available depending on the activities of the organization and their size.

>Small business relief for business turnover within AED 3m.
>Qualifying freezones eligibility check to qualify for 0% rated Corporate tax.
>Charitable organizations can check the benefit of exemption to meet the definition of "Qualifying Public Benefit Entity".
>Foreign Companies need to check on their local presence by way of "Permanent Establishment" of nexus of their source of funds in the UAE Local markets.

--CA Nilesh Gehi(Managing Partner Coffee Evenings Taxation Consultancy Co. LLC)