Virtuzone is investing Dh50 million ($13.6 million) to give free corporate tax registration and accounting services to small and medium-sized firms, assisting them in becoming compliant with the UAE's new tax legislation, which went into force this year. According to Virtuzone, the three-month initiative will enable 10,000 enterprises and entrepreneurs operating in the Emirates to comply with corporate tax requirements by December.
“Corporate tax started a few months ago, but there is a lot of confusion around it in the business community,” said John Casey, accounting and tax managing director at Virtuzone.
“Many clients and businesses come to us asking if it applies to them since they are free zone companies or just small businesses.
“We will help them comply with ease, get their books in order, and allow them to avoid penalties and fines.”
The UAE introduced the federal corporate tax with a standard statutory rate of 9 per cent starting from the financial year beginning on or after June 1. It brought the income of companies exceeding Dh375,000 within the taxable bracket. Taxable profits below that level will be subject to a tax of zero per cent, as per thenationalnews.
Exemptions are also available for enterprises working in important industries. According to the Ministry of Finance, no corporate tax would be charged on wages or other personal income from employment, whether in the government, semi-governmental enterprises, or the private sector.
The tax legislation exempts from registration government and government-controlled organizations, as well as extractive and non-extractive natural resource firms that satisfy certain criteria. A new corporation tax reduction scheme is available to small enterprises in the UAE with revenues of Dh3 million or less.