A business’s net income is after all expenses, including taxes. Therefore, enterprises might need to minimize their taxation expenses to increase profit after tax figures. However, it is not as easy as we say. There is a need to strike a balance between compliance and ethics. In simple words, lowering taxation as per the tax law might not be ethical in some cases. Consequently, an unethical practice within the boundaries of the tax laws might result in tax abuse. In this blog, we are recommending ways that result in corporate tax optimization, lowering your tax liabilities. What is Corporate T ..read more

Tax evasion and tax avoidance are two concepts widely used in taxation. Businesses or even individuals can save their tax liabilities through various techniques that are either tax evasion or tax avoidance. Even though these involve saving tax liabilities, there is a massive difference in terms of legality and ethical reflection. Tax Evasion vs. Tax Avoidance Tax evasion refers to avoiding tax liability through illegal, fraudulent, or impermissible means. Therefore, tax evasion, in simple terms, is illegal. It is actually a deliberate failure to comply with tax laws. Tax evasion involves conc ..read more

With the introduction of a new corporate tax regime in the UAE, there are numerous taxation topics that are under debate. A very common topic is tax deductions. It is commonly known that not all expenses are allowed under corporate tax laws; however, it is not as simple as we say. Among the tax deductions, interest expense is one of them. Generally, interest expenses are tax deductible; however, there are certain rules that every business must be aware of. For instance, corporate tax law in the UAE describes two rules that are specifically relevant to interest expenditure. These are the genera ..read more

The UAE introduced VAT on January 1, 2018, with the standard rate set at 5%. A business must register for VAT if its taxable supplies and imports exceed AED 375,000 in a year. However, a business can also register for VAT on a voluntary basis. In this case, the taxable supplies and imports should exceed AED 187,500 per year. In some cases, the business can also deregister for VAT in the UAE. This article sheds light on the cases where a business can or must deregister for VAT in the UAE. But first, we will understand the basics of VAT. What is a value-added tax (VAT)? Value-added tax (VAT) is ..read more