Why Corporate Tax Health Checks are Critical for UAE Businesses?
The UAE businesses are now required to register for corporate tax, file returns and make tax payments. However, most often the taxpayers are not aware of the level of their tax exposure.
The UAE corporate tax law sets out various rules and conditions for taxpayers to ensure complete compliance. The Federal Tax Authority (FTA) can initiate a tax audit on an entity at any time to check whether it is adhering to the corporate tax law.
If any compliance failure is detected, the FTA may impose hefty corporate tax penalties on the UAE entity. UAE businesses can avoid this risk by conducting a corporate tax health check with the help of corporate tax consultants.
This blog provides you with detailed insights on why corporate tax health checks are critical for businesses in the UAE:
What is a Corporate Tax Health Check Service?
A corporate tax health check service is a service offered by corporate tax consultants to their clients in the UAE. During a tax health check, the tax consultants will proactively review a company’s tax compliance and identify potential risks and areas that need improvement.
Corporate tax health check services will help UAE companies manage their corporate tax obligations effectively and save them from hefty administrative penalties.
What does a Corporate Tax Health Check Service Provide?
A typical corporate tax health check service will provide you with the following:
Review of documents and records: A corporate tax health check service provider can check whether your accounting records and other relevant documents are accurate.
Risk Assessment: Identification of potential risk areas where the client is overpaying or underpaying taxes and exposure to penalties.
Compliance Check: Check whether a taxable entity is complying with the UAE corporate tax laws, decisions and other regulations.
Review of tax returns: A review to ensure the tax returns filed with the FTA are accurate and complete.
Recommendations: The corporate tax consultants can provide you with recommendations to improve tax compliance, reduce penalty risks, enhance record keeping and develop and optimize a tax strategy.
Assess Eligibility for favourable rates: The tax adviser can review a company’s corporate structure and determine whether it is eligible for the 0% tax rate.
Assess Eligibility for Exemption/Relief: Tax consultants can help you determine whether your business is eligible to avail the small business relief or tax exemptions.
Advice on Restructuring: Corporate tax advisers can help the UAE businesses determine whether they require restructuring to obtain a favourable tax position.
Advice on Tax Grouping : Tax consultants can assist in forming a tax group by advising on legal implications, benefits, and compliance requirements.
Benefits of Conducting Corporate Tax Health Checks
By availing corporate tax health check services, businesses in the UAE can leverage the following benefits:
- Detect tax issuesd early and take corrective actions
- Avoid being subjected to tax penalties
- Help you avoid or prepare for tax audits in advance
- Avoid transactional tax risks resulting from uncertainty or misinterpretation of tax laws
- Mitigate the risk of tax disputes that may dent your company’s cash flow and lead to a waste of resources
- Improve your level of compliance with the UAE corporate tax law
Hire the Best Corporate Tax Consultants
Prevention is the only guaranteed cure when it comes to tax issues. Conducting a corporate tax health check is the best way to save your entity from being subjected to FTA’s tax audits and hefty penalties.
Tax Gian, a brand of Jitendra Tax Consultants (JTC), provides a corporate tax health check service in the UAE for businesses to ensure compliance. Our tax consultants will review your tax and accounting records to determine the level of compliance with the UAE corporate tax law.
Our team can assess your tax obligations and provide recommendations to improve compliance. Furthermore, JTC is registered with the Federal Tax Authority (FTA) as a registered tax agent in the UAE. Hire our services today to stay tax-compliant.
