The insights and quality tax services STROLLA provides helps build trust and confidence in business partners and in the society we live in. We empower outstanding leaders who team to deliver tax services to our valuable business partners. In so doing, we play a critical role in building a better a long term relationship with our talent, for our business partner and for our communities.
STROLLA provides the following as its key tax services.
1. VALUE ADDED TAX (VAT)
Whether your business is operating, newly established, or currently, under restructuring, the impact of VAT should be addressed. STROLLA can guide your business through assessing the impact of the UAE VAT legislation and provide strategic VAT consultation to address your business needs and to ensure your compliance with the UAE VAT legislation.
We can conduct a comprehensive analysis to assess the impact of the VAT on your current business operations as well as your new projects in both the upstream and downstream supply chains.
In addition to the VAT advisory, we can also support you with the tax administration, including the documentation, returns filing, application for VAT refunds, and correction of erroneous tax treatments.
Our VAT services include:
- VAT Registration;
- VAT Return Filing;
- Application for VAT Refunds;
- VAT Advisory and
- Compliance Review and health check.
2. Corporate Income Tax (CIT)
The United Arab Emirates does not have a federal corporate income tax (CIT) regime; however, most of the Emirates introduced income tax decrees in the late 1960s, and taxation is therefore determined on an Emirate-by-Emirate basis.
Under the Emirates-based tax decrees, CIT may be imposed on all companies (including branches and permanent establishments [PEs]) at rates of up to 55%. However, in practice, CIT is currently only enforced in respect of corporate entities engaged in the production of oil and gas or extraction of other natural resources in the United Arab Emirates.
In addition, certain Emirates have their own specific banking tax decrees, which impose CIT on branches of foreign banks at the rate of 20%.
Although the U.A.E based entities have no income tax obligation at the federal level, yet they may be exposed to the CIT when they transact with foreign businesses or when establish foreign investments. Our tax team at STROLLA can help assist you in assessing your tax residency status, analyzing the impact of potential Double Tax Treaties applicable to your business scenario, and whether a treaty benefit can be claimed accordingly.
In addition to the international tax obligations, at the Emirate level, businesses operating the upstream oil sector and branch of foreign banks are also obligated to pay tax on their income. We can assist your business in fulfilling its tax obligation in the case that you are within that category.
Our Corporate Income Tax services include:
- Assessment of the implication of Tax residence status in U.A.E;
- Application for tax domicile certificates;
- Assessment of the applicability of the withholding tax and treaty benefits and
- Tax returns filing.
3. Base Erosion and Profit Shifting (BEPS) and Transfer Pricing:
No tax to be paid may not necessarily mean that no tax obligation. As a member of the OECD Inclusive Framework on Based Erosion and Profit Shifting (BEPS), the U.A.E is actively implementing BEPS measures to assure that the goals stipulated by the Inclusive Framework are achieved. Currently, some businesses are obligated to comply with the following legislation in the U.A.E with respect to the BEPS.
Country by Country Reporting (CbCR):This is applicable to the business which is part of a MultiNational Enterprise group (MNE group) with annual consolidated revenue of AED 3.15 Billion or more. The reporting requirements depend on whether the entity is an Ultimate (or surrogate) Parent Entity (UPE, SPE), and as a result, it shall prepare and file an annual CbC Report. In the case that the Entity is a constituent Entity, then it will be required to file an annual CbCR notification.
Economic Substance Requirements (ESR): Businesses conducting relevant activities in the UAE are required to notify their establishing authorities and also to comply with the economic substance requirements of the UAE. the ‘relevant activities’ are insurance; banking; lease financing; investment fund management; shipping; holding company; intellectual property; company headquarters, and distribution and service centers.
Other reporting obligations’ services lines:
- Assessment of the applicability of CbCR and ESR;
- Filing of CbCR notifications and reports;
- Assessment of the business’s compliance status with respect to the ESR and
- Filing of ESR
Transfer pricing refers to the setting of prices at which transactions occur involving the transfer of property or services between associated enterprises, forming part of an MNE group. These transactions are also referred to as “controlled” transactions, as distinct from “uncontrolled” transactions between companies that, for example, are not associated and can be assumed to operate independently (“on an arm’s length basis”) in reaching terms for such transactions.