Maximizing Your Tax Savings: Strategies from Expert Corporate Tax Consultants in UAE

Enterprises in Dubai are now looking for more efficient ways to potentially lower the amount of corporate tax that they need to pay. Even if the companies need to pay their corporate tax following the law, however, this does not indicate that they must pay an amount that is more than what is required. Although, the tax system in the UAE is very challenging to understand and there are numerous lawful methods to reduce the amount of corporate tax your business owes to the FTA. To effectively organise your business’s finance, you need the skills and knowledge of Dubai corporate tax consultants.

How to Reduce Corporate Tax Bill in UAE

The standard rate of corporate tax in the UAE is 9% and there are several ways to reduce the sum, which indicates that your business tax bill may be lower. Let’s explore the top strategies to reduce the tax bill.  

Claim the Smallest Business Expenditures

Recall to facilitate a claim for every one of your business’s expenses. However, it might be a difficult task to keep track of every minute things including car parking tickets, taxi rides, and limited purchase of stationery. However, it is important to document everything. The amount of these expenditures can add up quickly to a large amount over one year.

You may lose all your money if you can’t claim all the expenses. This is due to whenever you claim expenses of business operations, you may cut into the revenue of the firm. As such, the sum of the UAE corporate tax that you need to pay will wind up being lower. Effectively managing the expenses of the company, irrespective of their magnitude, simply demands some organisational effort, ultimately proving advantageous for the company in the long term. Hiring the best Dubai corporate tax consultants can make this process simple.

Remember that the definition of what comprises a legitimate business expense might differ from one firm to the next. A business need can be considered as an over-expense by another, depending on the nature of the business, it may change. The requirement that all business costs should be used solely for business purposes, instead of personal use, is the most essential point to remember within UAE tax regulations.  

Find Corporation Tax Relief on Mileage

An alternative claim is simply to seek automobile mileage. When it comes to taxes, it would be more efficient for business owners and employees to drive company vehicles and facilitate claims for mileage compensation.

Take note: we are not yet clarified with the allowable mileage and fuel costs that are eligible for businesses to claim. The amount spent by a firm on its employees will be deducted from its revenue in the form of a tax deduction. You can consult with a top UAE corporate tax consultant to know more regarding the business expenses that are referred to as tax deductible.

Use Company Phone

If your employees and managers need to make a significant number of calls from their smartphones, allow them to utilise the corporate phones instead. There is no tax liability for the employees for the cost utilised for the phone, and the business gains a corporate tax reduction for the expenses associated with the phone utilisation by the employees.

Pay Yourself

This is recommended for business owners, the capacity to figure out your compensation in a manner that is best applicable to your requirements is one major benefit of serving as the business owner. Directors are possessed with the option of accepting salary or dividends in the form of payment for their services. Since, the tax authorities consider salaries paid to staff to be a tax-deductible business expense, taking a salary would be an excellent method to reduce the amount of corporate that that your business needs to pay.

Corporate Tax Advisors in UAE

If you want to learn more about how to minimise corporate tax, it is better to consult with expert Dubai tax consultants. As your business expands, keep in mind that there may be different deductions and allowances involved in your business. Don’t miss out on achieving the benefits of these tax relief schemes. Alchemy Search is a seasoned Dubai corporate tax consultant who helps you to minimise your tax savings and helps to understand any corporate tax issue that may be unsure about.