Overview

With the introduction of UAE Corporate Tax (CT) under Federal Decree-Law No. 47 of 2022, businesses must evaluate how the new tax regime affects their operations, profitability, and compliance obligations. A Corporate Tax Impact Assessment helps businesses understand tax implications, optimize tax positions, and ensure full compliance while minimizing risks.

Why Conduct a Corporate Tax Impact Assessment ?

• Evaluate Tax Liabilities – Identify the potential corporate tax payable based on your business structure and income.
• Assess Compliance Readiness – Ensure your business meets FTA requirements, including bookkeeping and reporting.
• Optimize Tax Strategy – Identify deductions, exemptions, and restructuring opportunities.
• Understand Transfer Pricing Impact – Analyze transactions with related entities to ensure compliance. objectives.
• Avoid Penalties & Risks – Proactively address gaps in financial records and tax filing to prevent non-compliance fines.

Key Areas Covered in a Corporate Tax Impact Assessment

• Business Structure Analysis – Determine whether your company is subject to 9% corporate tax or qualifies for exemptions.
• Financial Statement Review – Assess the impact of tax rules on income, expenses, and deductions.
• Transfer Pricing Compliance – Review related-party transactions and ensure adherence to UAE’s transfer pricing rules.
• Taxable Income Calculation – Identify how corporate tax applies to your profits and business activities.
• Compliance Readiness Check – Ensure your financial records, reporting, and documentation align with FTA requirements.
• Tax Optimization Strategies – Explore ways to reduce tax liabilities legally through tax planning.
• Risk Assessment & Mitigation – Identify any risks related to tax non-compliance and implement corrective measures.