Corporate Tax Services in Sharjah

The UAE Corporate Tax applies to tax periods starting on or after 1 June 2023; whether a particular company’s obligations begin on that date depends on when the company’s tax period (financial year) starts. Corporate Tax Law in the UAE is devised by keeping in mind the importance of transparency, fairness, and economic growth. However, the complexity surrounding corporate tax has shown to be one of the biggest challenges against businesses.

Corporate tax services in Sharjah are necessary for compliance, liability reduction, and achieving tax efficiency. As the landscape of tax continues to evolve continuously, business houses need guidance from experts in order to remain ahead of the curve. This guide aims to offer a comprehensive overview of corporate tax services in Sharjah, which mainly includes essential aspects of tax registration, tax filing, compliance, and consulting.

Corporate Tax Registration in Sharjah

Eligibility Criteria for Corporate Tax Registration

To register for corporate tax in Sharjah, businesses must meet specific eligibility criteria, which generally include:

• Business Structure : The entity must be a legal business registered in Sharjah, including Free Zone companies or mainland businesses.
• Qualifying Activities : The business should engage in activities that generate taxable income as defined under the Federal Decree-Law No. 47 of 2022.
• Compliance with Local Regulations : Companies must comply with local licensing and regulatory requirements, including obtaining the necessary business licenses from the relevant authorities.

Registration Process and Required Documents

The registration process for corporate tax in Sharjah involves several key steps:

Step 1: Choose a Business Structure: Decide whether to operate in a Free Zone or as a mainland entity.

Step 2: Obtain a Business License: Apply for and secure a business license from the Sharjah Economic Development Department or the relevant Free Zone authority.

Step 3: Register with the Federal Tax Authority (FTA):

• Complete the online registration on the FTA portal.
• Provide necessary documentation, including a copy of the business license

Step 4: Receive Tax Registration Number (TRN):

 Upon successful registration, businesses will receive a TRN, which is essential for tax compliance.

Benefits of Timely Registration

Timely registration for corporate tax offers several advantages:

• Avoidance of Penalties: Registering on time helps businesses avoid fines and penalties associated with late filings or non-compliance.
• Access to Tax Benefits: Early registration allows companies to benefit from available exemptions and deductions under the corporate tax framework.
• Enhanced Credibility: Being compliant with tax regulations enhances a company's reputation, making it more attractive to investors, partners, and clients.
• Streamlined Operations: Timely registration ensures that businesses can operate smoothly without interruptions related to tax compliance issues.

Corporate Tax Filing in Sharjah

Corporate tax filing in Sharjah is subject to certain requirements and deadlines that must be adhered to by the company in order to keep up with the Federal Tax Authority (FTA). Filing requirement: For a tax period of 01/06/2023 – 31/12/2023, the corporate tax return and any tax due must be submitted within 9 months from 31-Dec-2023 (i.e by 30-Sep-2024). Businesses will have to prepare and keep all financial statements and records showing in detail all revenues and expenditures that constitute the person's income and any deductions claimed. In addition to ensuring taxpayer compliance, such records will further provide transparency of records and procedures for possible audits at the FTA level. Failure to file or meet such filing requirements may result in huge penalties and fines. Furthermore, companies can undergo an audit from the tax authority, and when errors exist within the returns of the company, then they are held with extra taxes. In this regard, therefore, timely and accurate filling of corporate tax is a fundamental

Corporate Tax Compliance in Sharjah

The UAE Corporate Tax is a federal law (Ministry of Finance) that applies to taxable persons. Natural persons who carry on business in the UAE must register if their business turnover exceeds AED 1,000,000 in a calendar year; separately, all taxable persons (legal entities and other persons in scope) must register for Corporate Tax with the FTA and obtain a TRN. Taxable profits up to AED 375,000 are subject to a 0% corporate tax rate; taxable profits above AED 375,000 are subject to the standard 9% rate.

Takeaways for businesses:

Corporate Tax is registered if the earnings are more than AED 1 million.

Corporate Tax Rates

1. Profits over AED 375,000: 9%,
2. Profits under AED 375,000: not taxed

Filing Date: Corporate tax returns are to be filed within nine months when the accounting period ends and will need to be filed with the Federal Tax Authority.

Compliance is important in order not to attract penalties which can amount to huge fines as well as reputational damage. There can be a very severe implication on business accounts if deadlines are missed and wrong data is submitted. Therefore, businesses will have to ensure that they have a Tax Registration Number TRN and also ensure proper financial records so that taxes can be submitted on time and correctly.

Corporate Tax Consulting Services in Sharjah

Corporate tax consulting services in Sharjah play a critical role in businesses navigating tax regulation. Some of the key services include:

• Tax Planning and Optimisation: The consultant will assist clients in coming up with strategies to minimize or reduce taxes owed while at the same time avoiding non-compliance with UAE tax laws. Again, at a 9% rate on profits exceeding AED 375,000, profitability improves, ensuring that businesses are up-to-date with regulatory changes.
• Tax Audits and Dispute Resolution: The consultants help firms meet the requirements of the audit provided by the FTA. The consultants make sure that compliance along with the required standards by the FTA is met while handling business as well as firm records. Therefore, it is possible for the consultants to settle disputes by presenting cases on behalf of businesses before the FTA and lowering risks associated with non-compliance which lowers the penalties.
• Financial Statement Preparation: Preparing financial statements for clients, in line with local authority regulations in place, ensures that all tax-related information is correct in terms of reporting. The service is therefore associated with compliance and a better financial position of the business, as well as well-informed decision-making and planning processes.

Benefits of Outsourcing Corporate Tax Services

• Expertise and Accuracy: Professional tax service providers have expertise in corporate tax laws and regulations. Their expertise ensures tax filing with accuracy and minimizes the chances of error, which may invite penalties.
• Saves Time and Money: Tax service outsourcing liberates in-house resources for companies to focus on their core activities. There is no recruitment or training cost for in-house tax experts, which is a massive saving.
• Minimizing Risk by Tax Law: Tax laws can be very complex and are also constantly updated in most cases. By outsourcing tax business to experts, the risk of fines and other legal complications can be totally avoided.

Conclusion

Corporate tax services are very important for businesses in Sharjah as they streamline the complex and intricate procedures in the UAE's tax regulations. Outsource an essence of corporate tax services which include expertise and accuracy, saving of time and cost, as well as risk mitigation. Companies should outsource to a reputable and experienced tax service provider in order to avoid violation of the 9% corporate tax and loss in terms of penalties. There can never be too much said about corporate tax services in Sharjah. The importance of having such services as part of business concern is to keep one compliant, with optimized tax liabilities, and then solely focus on growth. Reyson Badger, a name associated with tax consulting, offers the most comprehensive range of services in areas ranging from tax planning and financial reporting, audit support, and dispute resolution.

To have the issues of tax compliance sorted out in your company and create tax solutions tailored just for you, call Reyson Badger today to ensure your business is geared and ready to meet all the tax obligations it may be required to pay.