In recent years, there have been changes to taxation in the UAE. Our tax advisory services can help ensure that your organization remains compliant. It’s important for your organization to have a basic understanding of these changes to facilitate adherence to the latest guidelines.

In the UAE, individuals are not subject to income tax, but corporate tax applies to oil companies and foreign banks. Excise tax is imposed on specific goods that are harmful to humans or the environment.

In January 2018, Value Added Tax (VAT) was introduced at a rate of 5%. This aligned the UAE with over 180 other countries and affected businesses as they had to start collecting and accounting for the tax on behalf of the government. This meant that many businesses had to learn how to comply with the introduction of VAT.

Another recent change is the implementation of Economic Substance Regulations in 2019. These regulations ensure that UAE entities are transparent in their economic presence and report actual profits that reflect economic activities undertaken in the UAE.

At Darji Accounting, we can provide advice on VAT and other taxes that affect your business, offering enduring tax solutions.