Tax Consultancy Services

Managing tax issues in addition to typical business operations may seem challenging. Reddy’s consultancy is a seasoned tax advisor in Dubai with a talented staff who can assist with a variety of tax specialties as well as incorporate them into your company as a strategic model.

Your personal and commercial tax obligations will be evaluated by our qualified personnel. After that, we’ll design a financial strategy plan that is specific to the requirements of your business. Our staff members possess the expertise and experience necessary to comprehend the taxation system. Furthermore, we use sophisticated technologies and processes to give services to our clients.

Tax Consultancy Services in UAE

How do Tax consultants add benefits to a business in UAE?

A corporate entity is better off hiring a tax consultant because they become knowledgeable of the nation’s tax laws. The preparation of tax-related problems is helped by tax professionals.

They accomplish the following for your business’s benefit:

By remaining informed on the most recent tax changes, you can reduce your tax obligation.
Helping you decide if the VAT system is the right option for you – required or optional
examining the tax benefits and drawbacks of your business’s operations
putting in place a metrics-based examination to evaluate market developments and their effects on taxes.

Different Categories of Tax in UAE

Due to its 0% personal income tax, a wide range of business licences, operations allowed in free zones, and low import tariffs, the United Arab Emirates (UAE) has been one of the most alluring locations for emerging companies, mid-sized companies, and major enterprises. The UAE government has always worked to make the tax climate in the nation as appealing and affordable as possible. Over time, the United Arab Emirates has created various tax categories.

I. CORPORATE TAX

The United Arab Emirates has agreed to introduce a corporate tax on business earnings for the fiscal year beginning on or after June 1, 2023.

The following are the planned UAE corporation tax rates:

Up to AED375,000 in taxable income, there is no tax.
Over AED375, 000 in taxable income, there is a 9% tax rate.

Non Taxable Income & Exemptions

Businesses that exploit natural resources while also engaging in economic activity
There won’t be any withholding taxes on payments made domestically or internationally.
those who personally own shares or other assets and receive dividends, capital gains, or other types of income.
People who have savings accounts or other financial vehicles can earn interest and additional income.
Salary or job income is what determines a person’s wages.
Qualifying shareholdings in a UAE firm result in dividends and capital gains.
Qualifying intra-group transfers and reorganisations
In the UAE, anybody can invest in real estate in their individual capacity without needing a licence or a corporate licence.

II. VALUE ADDED TAX (VAT)

A type of indirect tax called VAT, which went into effect on January 1, 2018, is collected on the purchase and sale of goods and services. The decision to impose VAT by the UAE government is a part of a bigger effort to lessen the country’s reliance on oil and petroleum products as a source of financing. The VAT rate is 5% on a variety of goods.

Zero-rated materials consist of:

medical equipment and supplies
Trading in natural gas and crude oil, as well as gold, silver and platinum Residential sales were made for the first time.
Exports of healthcare also include foreign travel and education

Exempt supplies include:

The provision of certain financial services as defined under VAT legislation
Residential real estate
Vacant land
Passenger service in the local area

III. EXCISE TAX

Excise taxes are an indirect tax type applied to products that frequently harm people or the environment. The things listed below must be classified as excise commodities:

tobacco products
flavoured aerated water except for carbonated beverages
Equipment and devices for electronic smoking
alcoholic beverages with added sugar.
Any beverage that is marketed or sold as a “energy drink” and contains substances that stimulate the body and mind is considered to be one.

In the UAE, the following products are exempt from excise tax:

The GCC Standardization Organization’s Standard 654 recognises beverages for specific nutritional needs.
The GCC Standardization Organization’s Standard 1366 recognises alcoholic beverages used for therapeutic purposes.
drinks that are prepared for consumption (with at least 75 percent milk or milk substitutes)
or infant formula

Importance of tax consultants in UAE

help you with tax returns and financial accounts that have been audited
Detailed guidelines on how to calculate tax payments correctly
Create plans to prevent future penalties and interest on your tax returns.
assist you in obtaining new licences and rights for your business and conduct audits
gives the most recent information on any newly updated tax policy issues
supports the preparation of tax-adjusted balance sheets and the resolution of tax issues