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Great news in the financial landscape! The Ministry of Finance has just rolled out a new game-changer – a 9% federal corporate tax in the UAE, applicable to business profits hitting a minimum of AED 375,000. Brace yourself, as this comes into play starting from the financial year kicking off on June 1, 2023.

Now, let’s dive into the nitty-gritty. Corporate Tax in the UAE is set to be levied on the profits of businesses within the UAE, as showcased in their financial statements adhering to internationally accepted accounting standards. Here’s the kicker: the financial statements must now be audited promptly.

Recognizing the paramount importance of corporate tax registration and its related services in the UAE, our company stands out as the go-to for top-notch corporate tax consulting services. Picture this – our expert consultants will hold your hand through the intricate web of tax assessment, registration, and the labyrinthine process of filing returns.

In the ever-evolving landscape of Ras Al Khaimah’s financial regulations, these changes are not to be taken lightly. Stay in the know and let us guide you seamlessly through this transformative period. Your financial success is our priority.

LOOKING FOR CORPORATE TAX ADVISORY SERVICE IN RAS AL KHAIMAH?

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In the realm of tax considerations, ensuring compliance and optimizing VAT savings take center stage with RotanaBiz Accounting:

Corporate Tax Defined

Corporate Tax, as per Article -1 of Decree Law, is applicable to a taxable person.

Taxable Person Categories

Resident Person
Resident Person

For those firmly rooted in Ras Al Khaimah’s soil:

  • Juridical person established or recognized in UAE
  • Foreign Juridical Person effectively managed and controlled in UAE
  • Individuals actively engaged in any business activity
  • Unincorporated partnership choosing to be a taxable person
Non-Resident Person
Non-Resident Person

For those navigating Ras Al Khaimah from afar:

  • Individuals or entities with UAE sourced income
  • Those with a permanent establishment in UAE
  • Entities having a nexus in UAE

Understanding these distinctions is key to navigating the intricate landscape of corporate tax in Ras Al Khaimah. Let RotanaBiz be your compass, ensuring smooth sailing through compliance and harnessing maximum VAT savings.

Scope Of Tax

Scope Of Tax

In the realm of tax considerations, ensuring compliance and optimizing VAT savings take center stage with RotanaBiz Accounting:

Corporate Tax Defined

Corporate Tax, as per Article -1 of Decree Law, is applicable to a taxable person.

Taxable Person Categories

Resident Person

For those firmly rooted in Ras Al Khaimah’s soil:

  • Juridical person established or recognized in UAE
  • Foreign Juridical Person effectively managed and controlled in UAE
  • Individuals actively engaged in any business activity
  • Unincorporated partnership choosing to be a taxable person
Non-Resident Person

For those navigating Ras Al Khaimah from afar:

  • Individuals or entities with UAE sourced income
  • Those with a permanent establishment in UAE
  • Entities having a nexus in UAE

Understanding these distinctions is key to navigating the intricate landscape of corporate tax in Ras Al Khaimah. Let RotanaBiz be your compass, ensuring smooth sailing through compliance and harnessing maximum VAT savings.

Exempt Person

Exempt Person

Government Entities

Government entities fall under this category, subject to the conditions stipulated in Article -5.

Government Controlled Entities

Entities under government control also find exemption, provided they meet the specified conditions in Article -6.

Extraction Business of Natural Resources

Individuals involved in the extraction business of natural resources can be exempted, given they adhere to the conditions outlined in Article -7.

Non-Extraction Business of Natural Resources

Similarly, individuals engaged in the non-extraction business of natural resources may qualify for exemption, subject to the conditions detailed in Article -8.

Public Benefit Entities

Entities contributing to the public good may enjoy exemption, contingent upon meeting the conditions specified in Article -9.

Investment Fund

Investment funds fall into the exempt category, provided they meet the conditions outlined in Article -10.

Public or Private Pension/Social Security Funds

Pension or social security funds, whether public or private, are eligible for exemption, given they satisfy certain conditions.

Tax Rates Overview

For taxable incomes up to 3,75,000, the RotanaBiz system implements a commendable 0% tax rate.

Progressive Taxation

However, as your taxable income surpasses the 3,75,000 mark, the Corporate Tax rate steps into action, levying a reasonable 9% on the excess. It’s a strategic approach to ensure fairness in the tax structure while allowing businesses in Ras Al Khaimah to thrive.

Corporate Tax Base and Rate:

Corporate Tax Base and Rate

Tax Rates Overview

For taxable incomes up to 3,75,000, the RotanaBiz system implements a commendable 0% tax rate.

Progressive Taxation

However, as your taxable income surpasses the 3,75,000 mark, the Corporate Tax rate steps into action, levying a reasonable 9% on the excess. It’s a strategic approach to ensure fairness in the tax structure while allowing businesses in Ras Al Khaimah to thrive.

Small Business Relief

Small Business Relief

Supporting Start-ups and Small Businesses

In the bustling business landscape of Ras Al Khaimah, RotanaBiz introduces Small Business Relief, a strategic initiative aimed at providing much-needed support to start-ups and small or micro businesses. This relief program is designed to alleviate the Corporate Tax burden and minimize compliance costs for these enterprises.

Eligibility Criteria

To avail the benefits of Small Business Relief under Article 21, a resident person must meet specific criteria outlined in Ministerial Decision NO 73 of 2023. The relief comes into play if the following conditions are met:

  1. The tax relief applies solely to tax periods concluding on or before December 31, 2026.
  2. The revenue threshold for both the relevant and prior tax periods is set at AED 3,000,000.
  3. The resident person seeking relief must not be a member of a multinational group required to prepare a country-by-country report or a Qualified Free Zone Person.

Additional Conditions

Beyond the outlined criteria, there are other conditions specified in Article 21 that must be satisfied to qualify for this beneficial Small Business Relief. It’s a tailored approach to foster the growth and sustainability of small businesses in Ras Al Khaimah.

Transfer Pricing in Ras Al Khaimah

Overview of Transfer Pricing

In the realm of Corporate Tax law in Ras Al Khaimah, a robust Transfer Pricing (TP) regime is established, aligning seamlessly with the internationally recognized OECD Guidelines and the core concept of the “arm’s length” principle. This framework comes into play specifically for transactions or arrangements involving related parties and connected persons.

Methods for Arm’s Length Range Determination

Ras Al Khaimah’s Corporate Tax (CT) Law offers a spectrum of methodologies for determining an arm’s length range in transfer pricing. These methods include:

Transfer Pricing

Transfer Pricing

Transfer Pricing in Ras Al Khaimah

Overview of Transfer Pricing

In the realm of Corporate Tax law in Ras Al Khaimah, a robust Transfer Pricing (TP) regime is established, aligning seamlessly with the internationally recognized OECD Guidelines and the core concept of the “arm’s length” principle. This framework comes into play specifically for transactions or arrangements involving related parties and connected persons.

Methods for Arm’s Length Range Determination

Ras Al Khaimah’s Corporate Tax (CT) Law offers a spectrum of methodologies for determining an arm’s length range in transfer pricing. These methods include:

1. Comparable Uncontrolled Price Method (CUP)

This method entails comparing prices charged for goods or services in a controlled transaction with prices charged in a comparable uncontrolled transaction.

2. Resale Price Method (RPM)

Under this method, the resale price of goods or services is established by applying an appropriate markup to the cost of those goods or services.

3. Cost-Plus Method (CPM)

The Cost-Plus Method involves determining the transfer price by adding a markup to the direct and indirect costs of producing the goods or services.

4. Transactional Net Margin Method (TNMM)

This method evaluates the net profit margin relative to an appropriate base (such as costs, sales, or assets) in comparable transactions.

5. Transactional Profit Split Method (TPSM)

In cases where multiple entities contribute to the creation of value, this method allocates profits among those entities.

6. Other Methods

A taxable person has the flexibility to employ any other method if none of the prescribed methods can be reasonably applied to their specific circumstances.

This comprehensive approach ensures a fair and transparent assessment of transfer pricing, aligning with international standards while providing flexibility for unique business situations in Ras Al Khaimah.

Free Zone

Free Zone in Ras Al Khaimah

Free Zone in Ras Al Khaimah

Corporate Tax for Free Zone Businesses

In the landscape of Ras Al Khaimah, Free Zone businesses are not exempt from corporate tax. However, there’s a silver lining – the corporate tax regime maintains its commitment to the incentives provided to Free Zone businesses that diligently adhere to regulatory requirements and refrain from conducting business on the mainland in Ras Al Khaimah.

Registration and Tax Return Obligations

For businesses finding their footing in a Free Zone, the path to compliance involves mandatory registration and the filing of a Corporate Tax Return. This streamlined process ensures that businesses in Ras Al Khaimah’s Free Zones contribute to the economic landscape while fulfilling their tax obligations.

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Julphar, Al Mataf Road, Ras Al Khaimah, UAE

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Valuation Services

Valuation Services: Unveiling the True Worth

Valuation, the compass guiding us through the financial landscape, is the process of determining the present value of an asset or liability. Its applications are far-reaching, spanning financial reporting, taxation, and the intricate dance of mergers and acquisitions.

Types of Valuation:

  • Market Value:
    • The anticipated selling price in an open market setting.
  • Intrinsic Value:
    • Grounded in the asset’s underlying assets, liabilities, and cash flows.
  • Book Value:
    • The recorded value on a company’s balance sheet.

Our expertise extends to comprehensive M&A services, seamlessly blending valuation into the strategic tapestry:

  • Target Identification and Valuation
  • Deal Structuring and Negotiations
  • Risk Assessment and Mitigation
  • Synergy Evaluation
  • Integration Planning and Execution

Our seasoned team, employing diverse methods including financial analysis, market research, and asset appraisal, ensures an accurate depiction of asset and liability values.

Benefits of Valuation Services:

  • Accurate Valuation:
    • Guarantee precision in valuing assets and liabilities, crucial for financial reporting, taxation, and M&A endeavors.
  • Reduced Risk:
    • Mitigate the risk of valuation errors, safeguarding against financial losses and legal entanglements.
  • Increased Efficiency:
    • Unleash efficiency by entrusting valuation processes to experts, liberating your focus for other critical aspects of your business.

    Rotana Business Center

    ADDRESS

    Julphar, Al Mataf Road, Ras Al Khaimah, UAE

    PHONE

    +971 58 8181824

    +971 7 2430438

    EMAIL

    info@rotanabiz.com

    CONTACT US