Top 5 Corporate Tax Challenges in the UAE and How Apeiron Solves Them

Do you own a business that falls under corporate tax and operates in the UAE and struggling to understand how the latest rules apply to you? As it is now with the establishment of a 9% corporate tax on any amount of profit that exceeds AED 375,000 then firms are faced with a new context in which to operate. Even though the above tax rate is still low compared to the global average tax systems, the various exhaustive procedures of tax compliance, cross-border aspects, and administrative procedures prove to be burdensome to the various businesses, especially those that seem not to have a proper understanding and experience with the various tax legislations of the UAE. While businesses continue facing such challenges, it becomes important to identify and source for the right support.

Apeiron is here to assist you in navigating these new tax rules with a full spectrum of services to assist the business in navigating this ever-changing environment. Gradually, our expert team provides necessary support to companies to remain in compliance, avoid undesirable risks, and limit their responsibilities. The following is an overview of the 5 Greatest Corporate Tax Issues in the UAE and how Apeiron can assist your organization.

1. Understanding the New Corporate Tax Regulations: Corporate tax is among the new taxes in the UAE and among them, it occupies a distinguished place. Business entities have to realize the provisions of the new tax laws and their impact on business. It’s at 9% for any amount in excess of AED 375,000; however, the rules and regulations on the exceptions and exemptions are complicated for most companies.

2. Determining Tax Residency Status: An important problem that concerns businesses in the UAE is the issue of tax residency. Misidentification of tax residency status creates unnecessary tax exposure or misses chances of exemption and lower taxes.

3. Managing VAT and Corporate Tax Compliance: To that effect, UAE businesses are subjected not only to corporate tax, but also to the current VAT regime as well. Frequently, confusing or misunderstanding aspects of both tax systems may result in penalties or an audit of the business.

4. Transfer Pricing and Cross-Border Tax Issues: To the companies that have the international operations or those that undertake cross border transactions, issues to do with transfer pricing is very important. According to the UAE’s corporate tax law, transfer pricing exists, and corporate transactions must be in line with transfer pricing standards.

5. Tax Filing Deadlines and Penalties: One of the biggest difficulties is to meet the deadlines for tax filings and to avoid penalties which are inevitable. Delays in filing taxes or incorrect filings lead to fines, and sometimes audits, which is dangerous for your business.

How Apeiron Overcomes These Issues
Apeiron offers robust services to assist organizations in managing all these corporate tax issues effectively. Here’s how we can support your business:

• Understanding the New Corporate Tax Regulations: Our team of specialists ensures that you are informed on the recent corporate tax laws within the UAE, the regulations, and how they may affect your operations. We advise on tax laws unique to your company thus helping you to understand and follow the new laws while reducing your taxes.

• Determining Tax Residency Status: Our business tax advisors at Apeiron can provide you with the assessments of your tax residency status in the UAE. The correct approach to your operations
and ownership allows your business to leverage local taxation while avoiding international taxation.

• Managing VAT and Corporate Tax Compliance: We simplify both business and VAT compliance as our services help your organization to meet the stipulated filing and reporting deadlines. Our team will help you prepare correct tax returns and ensure that you do not have to face audits and penalties for breaking UAE rules.

• Transfer Pricing and Cross-Border Tax Issues: In transfer pricing, Apeiron provides its clients with professional services to enable them address their cross-border transactions and more so to adhere to the existing taxation laws around the globe. Integrating with your sub-ledgers, we guarantee your intercompany transactions are fairly priced and documented to avoid taxation issues.

Conclusion
The introduction of corporate tax in the UAE presents new challenges for businesses, but with the right support, your company can successfully navigate this transition. Apeiron offers expert guidance and services to help you comply with the new tax laws, minimize your tax liabilities, and optimize your business structure for success. Whether you need advice on tax residency, transfer pricing, or timely filing, Apeiron is your trusted partner in achieving tax compliance and business growth.

Are you ready to ensure your business is tax-compliant and prepared for the future? Contact Apeiron today to learn how we can help you navigate the complexities of corporate tax in the UAE and optimize your tax strategy.