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Businesses have to be spot on with their voluntary disclosures. UAE businesses have no wiggle room when it comes to maintaining their books fair and square. The penalties for omissions are quite heavy.

As more updates emerge, business owners have clear idea of what they can - and cannot - do. More updates on UAE's Corporate Tax are coming in thick and fast from the ministry and the Federal Tax Authority. Business owners will need to put in some instant learning to be in sync with the requirements.

Those in free zones get 0% tax rate, but what if they have some mainland operations? The rules specify that free zone based logistics firms would have the 0% preferential tax rate. But they will need to be careful with any services extending to the mainland.

Some business services could see them lose out on 0% corporate tax status. Free zone businesses in the UAE by and large come under the 0 per cent corporate tax mandate. But it would do them good to brush up on the points related to 'disqualifying income'.

For overseas businesses, a lot hinges on whether they have a 'permanent establishment'. For non-UAE based individuals with investment exposures in the country, there is a good deal of flexibility within the corporate tax regime. But overseas businesses will need to engage in close scrutiny.

Dubai Free Zones Council 'hints' businesses will be allowed to switch base Businesses in Dubai have already seen significant flexibility on licensing and operational reach. Allowing companies to choose their free zone base will be part of that bigger picture.

Businesses must track all eligibility criteria, and not just the Dh3m revenue cut-off. The Small Business Relief is one of schemes SMEs are being offered to transition as smoothly as possible to the UAE Corporate Tax regime.

Free zone businesses must go into details on 'disqualifying income' under corporate tax. Free zone based businesses in the UAE have to skirt a fine line between what they can claim as 0% and what comes under 'disqualifying income'.

FTA confirms what products, parts benefit from "reverse charge mechanism" in B2B deals. What electronics parts or products get the benefit of reverse charge mechanism under updated VAT rules have been issued. It comes at a crucial time for UAE electronics and tech gadget

Staying under 90 days in UAE and doing business still makes individual liable for CT. Do not rush to make corporate tax inferences on the UAE's updated tax residency rules.

Even on processing of goods, these businesses will need feedback on 0% corporate tax. There are some grey areas related to the processing and distribution of goods from within UAE's free zones that will become clearer in the days ahead..

For Indian citizens living outside of India, determining their tax residency status is important to understand the extent to which their global incomes could be taxed in India. This article will guide you through the determination process in a step-wise approach. For simple understanding, the tax residency status is divided into two groups namely, ‘resident’ and ‘non-resident’. A ‘resident’ indi

The Foreign Exchange Management Act (FEMA) does not allow Non-Resident Indians (NRIs) to have local resident accounts in India. However, whether from India or from the UAE, an NRI can have various platforms to open investment accounts in India. Various options available to an NRI (a) Non -Resident (Ordinary) rupee account (NRO Account) (b) Non-Resident (External) Rupee account (NRE Account) (c

Even if based overseas, celebrities putting on shows need to plan tax commitments. Entertainers and sportsmen putting on shows or events in the UAE need to keep an eye out on their corporate tax obligations. This should apply even for those based overseas.

On their B2B deals, ^reverse charge mechanism^ comes into play Oct. 30. With reverse charge mechanism extended to B2B sales of tech and electronic devices, UAE traders need to go over the rules with a fresh set of eyes.

Businesses carrying high debts will find this cuts their chances to carry forward tax loss. Businesses with revenues of up to Dh3 million are eligible for the Small Business Relief. But signing up requires careful thinking on the caveats that come with taking it.

These businesses need to get feedback from their free zone authority. The tax authorities have updated the FAQs for free zone businesses, and they will need to check on their eligibility for the preferential 0% tax rate.

Financial records are what is needed - but audited statements apply only in 2 cases. Meticulous maintenance of financial records is what UAE businesses need to do on their corporate tax compliance.

Any slips will mean costly 4-year exit from 0% corporate tax on free zone status. Free zone businesses in the UAE have work to do retain their qualifying status for 0% corporate tax.

Group entities in particular need to stay on top of transfer pricing analysis. The Corporate Tax regime in the UAE will require companies to go in-depth into how they manage expenses, especially group enterprises.

While salaries are not taxed, business owners must be careful about such a step. UAE Corporate Tax laws are clear - salaries remain exempt from it. But that should not mean business owners can pay themselves a 'salary' to reduce their obligations.

Awareness of UAE Corporate Tax norms is only half of what they need to put in. The UAE Corporate Tax provisions are getting fleshed out and businesses need to gain in-depth info on how to traverse through all the requirements.

Commodity businesses at free zones will be much pleased with latest corporate tax updates. Free zone businesses are getting more clarity on the scope of their corporate tax obligations, what is covered and what^s not.

Corporate tax rules are clear on this point - business owners must factor this obligation. In UAE^s business landscape, family-owned enterprises have a significant presence. Owners and their families need to stay on top of the corporate tax rules.

Employees' medical insurance or supplied mobile phones are just two such grey areas. Many of the provisions that businesses have to follow under UAE's VAT regime might require a looking into. How businesses treat their employees' medical insurance is one such.

Corporate tax rules require free zone entities to have clearly measurable stakes on ground. Adequate substance for free zone firms will vary on a case by case basis. But each business must conform to having enough direct operational presence to qualify for preferential 0% rate.

A ready reckoner as we inch closer to June 1 and the implementation of corporate tax.

Businesses should be particularly aware of designated zones in any distribution of goods. How businesses handle their various operations out of a designated zone will have immense bearing on their corporate tax obligations.

On physical goods distribution, the corporate tax framework is still being fleshed out. There are untested parameters that come into play in the distribution of goods, especially those that involve free zone entities.

Just make sure to have FTA approval when planning a tax group. The big question for UAE businesses would be whether a newly created holding company can meet the 'tax group' guidelines.

Notion that bonuses and commissions represent 'business income' is not a fact. The UAE tax laws are a new dynamic businesses need to contend with. Business owners should keep asking the right questions to the authorities, and that will benefit all.

While first corporate tax payment is due only by Sept. ^25, much still needs to be done. Businesses and their accounts department are hard at work in computing their corporate tax processes and obligations.

Property income generated by an individual doing business is exempt - but on non-licenses. In the recent update, the UAE Corporate Tax sets out which residents/non-residents engaging in business gets to come under tax regime. It also offers clarity on personal investments and income from those.

Ecommerce portals should not get by issuing emails as ^tax invoices^. Online grocery sales in the UAE continue to push higher growth rates, with buyers sticking on once they get the hang of it. But for the portals, there are some VAT compliance measures to tick.

Small Business Relief not for ‘qualifying free zone person’, even with revenues under Dh3m. Free zones in the UAE have figured prominently in the conversations about the new corporate tax and what that means for businesses based there.

These businesses will still need to split up profits from manufacturing and their sales. UAE Ministry of Finance is taking on digital consultation to help free zone based companies to come within the corporate tax framework. Make full use of it.

After latest guidelines, individuals must keep close track on their corporate tax status. Sure, wages, real estate investment income and personal investments are not covered under corporate tax. But individuals can come under the tax net on multiple other ^business activity^.

International transportation of goods come zero-rated, but that's not all. Logistics companies in the UAE must chart their tax obligations carefully to remain zero-rated. Any omission and they are staring at penalties and arrears.

For now, businesses will on-board all info on adequate substance compliance, 'de-minims'. The UAE authorities have been holding awareness sessions for businesses to get all the insights needed on corporate tax. And there will be more vital updates too.

UAE-based businesses do carry sizeable property investments on their books What can business owners with extensive property holdings under their company name do?

Even with a wrongful transaction entry, companies can make suitable changes in ample time. What UAE businesses should guard against is when they do their expense deductions. get that wrong and it opens up chances for penalties.

It is not enough for professionals with businesses to say annual income is less than Dh1m. Salaries and personal investment income do not come under the UAE corporate tax. But individuals owning and operating multiple businesses need to check out their ^employment contracts^.

With staggered payments on leases, a cut-off period can be triggered for VAT. Here's the question - how will VAT apply on staggered payments made out for a lease contract?

Businesses await final word on 'free zone branch' and entertainment expense deductions. Another 48 hours and the UAE will usher in a corporate tax structure to govern business and business activity.

VAT on B2B deals for electronics, tech devices switches to Reverse Charge Mechanism. The ^Reverse Charge Mechanism^ for B2B on electronics devices came into effect on October 30 in the UAE. This will mean a re-learning on VAT obligations.