In the UAE, both corporations and individuals are required to pay income tax on all of their earnings. While most corporations are familiar with the concept of corporate tax in UAE, individuals may not be as well-versed in what it means for them and how they can minimize their tax bills in the United Arab Emirates (UAE). This guide outlines 3 ways you can lower your corporate tax in UAE so that you can keep more of your money and focus on growing your business.
1) Declare All Of Your Business Income
Each business needs to declare all of their income, not just profit, when it comes time for tax season. The government has many different types of taxes on different types of companies, and if you don’t declare your income correctly you could end up paying more than you should. For example, if your business is a sole proprietorship then your profits are taxed as personal income. This means that any money that goes through the company account will be taxed twice, once at corporate level and again at personal level. To avoid this double taxation Forthright Consultancy provides excise consultancy services to ensure that all incomes are declared. If you have any queries about what types of businesses need excise consultancy. They offer professional advice and assistance in how to minimize corporate tax in UAE or abroad.
What’s excise consultancy? Excise consultancy is important for every type of business operating in Dubai because it determines the rates which may apply, the types of duty which may apply, and the timing and frequency with which you need to pay duty. If you’re unsure what duty applies or whether excise clearance is required, speak with one of their professionals by phone or email today. Their consultants can help clarify matters for you so that you can get back to focusing on growing your business.
2) Take Advantage of Deductions And Allowances
The key to reducing your tax bill is by making sure you use all of the deductions and allowances that are available. These can include:
- Expenses incurred for furnishing and maintaining a residence
- Travel expenses for business purposes
- Motor vehicle running expenses
- Expenses on qualifying charitable donations and gifts
- Interest on money borrowed for the business, etc.
This is just a small list of what is available, so be sure to explore all of your options before you choose which ones you are going to take advantage of. However, be careful as not every expense will qualify for a deduction or allowance. There are limitations on what type of expenses you may deduct and it’s always best to check with an accountant before claiming anything.
Aside from taking advantage of these deductions and allowances, it’s also important to know how depreciation works when it comes to corporate taxes. Depreciation refers to an accounting method that reduces the value of an asset over time due to wear and tear or obsolescence. Depending on the type of asset, this process could happen faster than expected. It’s important to keep track of depreciation because when assets reach a certain point in their useful life they must be fully depreciated for taxation purposes. As an example, cars usually need to be fully depreciated after 4 years of owning them. When this happens there is no longer any kind of deduction on that car since its value has been reduced to zero.
At Forthright Consultancy they work with their clients to make sure they are keeping up with depreciation and maximizing deductions and allowances where possible. So contact them today if you have any questions about minimizing your corporation tax bill! We’re experts in Excise consultancy and they can help you out. If you want advice on excise consultancy and excise consultants, call us.
We’re a group of people who love providing excellent service to anyone who needs it most. Their goal is to provide great service while being cost-effective. If you want more information on excise consultants and good consulting services, give them a call right away.
3) File Your Taxes On Time
Filing taxes on time is one of the most crucial aspects of minimizing your corporate tax bill. The sooner you file, the more likely it is that you will get a refund from any taxes withheld from your salary by your employer. Plus, if you file on time, you avoid incurring late filing penalties.
Some companies have a standard process for filing all employees’ taxes together at year-end; however, some companies allow their employees to submit their own tax returns and receive a refund based on what they owe themselves. If this option is available to you, make sure that you set up an automatic bank withdrawal so that your company doesn’t accrue late fees on your behalf. If you miss withdrawing money during February because you were on vacation or something else came up but still want to be able to file as soon as possible after April 15th, then contact HR to see about catching up via paycheck deductions. While doing so may incur additional fees, being proactive about staying on top of your taxes can save you money over the long run.
If you are looking for a best consultancy for corporate tax in UAE and excise consultancy, then ForthrightConsultancy is the perfect choice for. They have experienced workers to get the best consultancy for your company. You can call them and discuss your needs, either you need an annual audit or advice on how to minimize taxation. If you do not file on time, then you might end up paying late filing penalties. Moreover, if the company withholds taxes from your paychecks but does not issue you a form, which serves as proof that those amounts have been taxed, then those funds will count towards your taxable income for the year. One way to help ensure that these things do not happen is by making sure to keep copies of every paycheck stub throughout the entire year. Doing so ensures that should anything go wrong with payroll processing down the road. Such as withholding too much in order to cover any unpaid overtime hours you’ll be able to prove your case and get reimbursed accordingly.
