Despite losses, small businesses in the UAE must register for corporate tax
Ahead of the start of the full-year tax period, UAE SMEs must make signing up for corporate tax a priority.
As UAE's first full-year corporate tax period begins, businesses must bolster auditing processes and register with the Federal Tax Authority.
The business does not have to be relatively new or be losing money. Regardless of whether their annual profits exceed or fall below Dh375,000, they must register.
Some SME owners still seem to doubt that they can wait until their profits approach Dh375,000 to register for corporate tax.
Small Business Relief: What you need to know
In order to qualify for the relief, the business's revenue must be below or equal to Dh3 million for the latest and all previous tax periods.
Business revenues exceeding Dh3 million no longer qualify for the relief package, even if they fall below the threshold in subsequent tax periods.
Corporate tax registration will remain mandatory for these businesses.
UAE tax authorities have been holding workshops and providing regular guidelines on various aspects of corporate tax, which is set at 9% of annual profits, provided the threshold of Dh375,000 is crossed.
For support with your Corporate Tax requirements, contact Zyla Accountants today.
For more info on Corporate Tax, check out our article ‘What You Need to Know About UAE Corporate Tax’ here: