What is International Tax Advisory services?

International tax advisory services refer to professional assistance that aims to help clients navigate the complexities of international taxation, optimize tax efficiency, and ensure compliance with tax laws and regulations in multiple jurisdictions.

What do these services include?

International Tax Advisory services includes various aspects such as:

  • Tax planning and tax structuring- Advice on tax-efficient structures for cross-border transactions, investments, and business operations

  • Transfer pricing compliance- Assisting in complying with transfer pricing regulations between related parties in different countries.

  • Indirect taxation- Advising clients on value-added tax (VAT) and other indirect tax matters in different jurisdictions.

  • Cross-border transactions- Advising on the tax implications, risks, and opportunities associated with cross-border deals.

  • Tax audits and disputes management- Providing advocacy, negotiation, and resolution services to resolve tax controversies and disputes effectively.

  • Tax risk management- Developing tax risk management strategies and controls to minimize exposure to tax-related risks and uncertainties.

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FAQ's

A Freezone Company in the UAE is a business entity established within a designated free zone, offering foreign investors various advantages such as 100% foreign ownership, tax exemptions, and simplified import/export procedures.

Yes, both individuals and foreign corporate entities can own a Freezone Company. This is one of the key advantages of setting up a business in a UAE free zone.

Corporate Tax is a type of direct tax imposed on the net income or profit of companies and businesses. It is also known as "Corporate Income Tax" or "Business Profits Tax" in some regions.

The UAE Corporate Tax becomes effective for Financial Years starting on or after June 1, 2023.

For example:

  • A business with a Financial Year starting on July 1, 2023, is subject to UAE Corporate Tax from that date.
  •  A business with a Financial Year starting on January 1, 2023, will be subject to UAE Corporate Tax from January 1, 2024.

Yes, UAE Corporate Tax applies irrespective of the ownership nationality. It covers entities locally or internationally owned.

The UAE introduced VAT to diversify income sources and maintain the high standard of public services. It is a 5% tax applied to most goods and services.

Let us say a mobile phone is manufactured and sold through various stages—manufacturer to wholesaler to retailer, and finally to the consumer. At each step, a 5% VAT is applied, and businesses can claim a refund on the VAT they have paid on their purchases.

The standard VAT rate is 5%, but there are categories like zero-rated (0% VAT), exempt (no VAT), and deemed supplies.

Businesses must register for VAT if their taxable supplies exceed AED 375,000 per year or voluntarily if it exceeds AED 187,500.

Accounting is the systematic recording, reporting, and analysis of financial transactions, while bookkeeping involves the daily recording of financial transactions.

Accounting provides a clear picture of your financial health, helps in making informed decisions, and ensures compliance with financial regulations.

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