Connect with us

LAW

Purposes and Scope of Corporate Tax in UAE

Published

on

Corporate Tax in UAE

The “Corporate Tax Law” or Federal Decree Law no. 47 of 2022[1] was approved on October 3, 2022, and released in the Official Government Gazette of the UAE (United Arab Emirates) on October 10, 2022, under Issue #737. The UAE’s Corporate Tax Law establishes a federal tax on companies and corporate earnings, known as the “Corporate Tax”. The Corporate Tax Law consists of twenty chapters and seventy articles that address the purpose, scope, application, compliance, and management of the corporation tax regime in the UAE. Tax consultants in Dubai can help businesses comprehend different aspects of this law. This guide mainly allows you to understand the purposes of corporate tax in the UAE.

Purposes of Corporate Tax in UAE

In implementing the corporate tax, the UAE hopes to;

  1. Maintain and expand its status as a major international centre for trade and investment.
  2. Reaffirm its commitment to upholding global standards for tax transparency and avoiding unfair tax practices.
  3. Speed its growth and transformation to realize its strategic goals.

Scope of Corporate Tax in UAE

Corporate Tax in the UAE applies to;

  1. The UAE’s commercial license holders include all companies and people undertaking business activities.
  2. Businesses in free zones (The UAE Corporate Tax regime will continue to honor the Corporate Tax incentives now being provided to free zone enterprises that abide by all legal requirements and do not conduct operations established on the UAE’s mainland.)
  3. Foreign companies and individuals may only do business in the UAE if they do it regularly or on an ongoing basis.
  4. Organizations that manage, build, develop, broker, or work in the real estate industry.
  5. Banking Operations.

Ask from tax consultants in Dubai to better understand the scope of corporate tax and where your business stands.

Taxable Persons for Corporate Tax in UAE

Corporate Tax Law applies to both natural and juridical persons, with distinct regulations establishing who is liable to the tax and on what basis. In a nutshell, corporate tax law applies to;

  1. Juridical Persons (UAE): those persons who are LLC (Limited Liability Companies) or joint stock companies (public or private) that are established or otherwise incorporated and maintained under UAE legislation. This also includes free zone persons.
  2. Juridical Persons (non-UAE): Those persons who are located and established outside the UAE but are controlled and administered efficiently inside the UAE.
  3. Natural Persons (Residents): Those individuals who operate a business activity or a business inside the UAE.
  4. Natural Persons (Non-Residents): Those persons who own a PE (Permanent Establishment) in the UAE or they obtain an income from a UAE source that falls under the scope of this tax law.

Provisions of Corporate Tax Law for Taxable Persons

Corporate taxability can be better understood by carefully going through the following provisions of the Corporate Tax Explanatory Guide[2];

  1. Taxable persons explained above are all subject to pay corporate tax in the UAE.
  2. Taxable persons can further be divided into resident and non-resident persons. According to the corporate tax law, resident persons will be subject to corporate tax in the UAE.
  3. When a juridical person is established or acknowledged by UAE legislation, it is immediately regarded a Resident Person under the Corporate Tax Legis;ation. This includes juridical persons established in the UAE by free zone legislation or mainland regulations, as well as those constituted under a particular constitution. Resident juridical persons, unless exempted, are subject to the Corporate Tax Law, regardless of their business type or degree. This is due to the fact that the Corporate Tax Law applies to firms and other legal entities and considers all activities and assets as taxable.
  4. Juridical persons launched or created in a jurisdiction other than the UAE but operated and regulated inside the UAE are considered Resident Persons for the purposes of corporate tax. Businesses can select where they want to establish their legal organisations without relying just on tax factors. Choosing residence for corporation tax reasons based solely on the jurisdiction of formation can lead to alteration when deciding where earnings are taxed, without considering the location of the juridical person’s mind and administration, as well as the activities that generate income.
  5. If a natural person undertakes an activity or business in the UAE, they will be considered a Resident Person for the purposes of corporation tax based on the revenue generated from business activity or business. Corporate Tax in the UAE applies to every cent of earnings derived from a taxable activity or business carried out within the UAE, regardless of where the person is normally located for taxation reasons or where the income is sourced. This covers business activities and operations from both single proprietorships and unincorporated partnerships operating in the UAE. Other governments do not impose an individual income tax on corporate earnings, leading to similar practices.
  6. Non-resident individuals who do business through a PE (permanent establishment) in the UAE are considered as non-resident taxable persons.
  7. Individuals who are not resident persons but receive UAE-sourced earnings are considered non-residents for corporate tax reasons. This  applies the Corporate Tax Law to revenue from UAE-related activities and transactions that do not include a PE. In such a case, corporate income may be subject to a withholding tax.
  8. If a non-resident person derives income from a resident person, it will be deemed as UAE-sourced income and will be taxed accordingly.
  9. If a non-resident person derives income from some other non-resident person, it will be deemed as UAE-sourced and will be taxed accordingly only if a PE is involved.

State Sourced Income & Corporate Tax

State Sourced Income includes earnings obtained from a list of circumstances with various factors defining the source of the earnings, which includes;

  1. Insurance income
  2. Interest income
  3. Income from intangible or intellectual property
  4. Income from the use of capital rights or shares
  5. Income from immovable or moveable asset
  6. Income from an agreement
  7. Income from services
  8. Income from selling of goods

Conclusively, the scope of corporate tax in UAE is diverse and a business needs to carefully determine whether or not it falls under this scope. Assistance from expert corporate tax consultants in Dubai like Farahat and co. can make it easier for businesses to learn their liabilities. It can also save your business from making any incompliance error that can result in hefty penalties. 

Continue Reading

LAW

How to Choose the Right Injury Lawyer in Palm Bay Without Getting Overwhelmed

Published

on

Injury Lawyer in Palm Bay

After an accident, whether a car crash on Babcock Street, a slip and fall at a local shopping center, or a workplace injury, choosing the right Palm Bay injury lawyer is a crucial step in protecting your rights and recovery. But with so many options and online promises, it’s easy to feel flooded. This guide breaks down exactly what matters when selecting legal representation, focusing on Palm Bay’s local context and 2025 standards.

Unlock more valuable tips and stories by checking out our handpicked related posts!

1. Experience and Specialization in Florida Injury Law

  • Specialization: Injury law in Florida includes unique rules: nofault coverage, comparative negligence, and strict timelines. A lawyer who specializes in personal injury cases rather than general practice is better equipped to navigate these details and knows local insurance tactics.
  • Local Track Record in Palm Bay: Look for attorneys with a history in Brevard County. Firms like Frankl Kominsky Injury Lawyers highlight decades of combined experience handling car, slip and fall, and serious injury cases in Palm Bay. This means familiarity with local courts, adjusters, and even typical accident hotspots like I95 exits and busy retail plazas.
  • Courtroom vs. Settlement Experience: Ask whether they take cases to trial or just settle. Trial-ready attorneys often negotiate better settlements because insurers know they won’t back down. If your case involves disputed liability or serious injuries, trial experience is essential.

2. Client Reviews and Reputation in the Community

  • Online Feedback Matters: Check Google, Yelp, Avvo, and Super Lawyers for reviews and ratings.
  • Referrals from Real People: Ask local family, friends, or other trusted professionals. Personal referrals usually come with insights into communication style, responsiveness, and trustworthiness.

3. Initial Consultations: What to Ask and What to Expect

Most injury lawyers offer free, no-obligation consultations. Use this as a two-way interview:

  • Years in Practice: Look for lawyers with substantial experience in serious injury cases.
  • Similar Case History: Confirm they’ve handled cases like yours: auto accidents, premises liability, workplace injuries.
  • Settlement and Verdict Examples: Ask about successes in Palm Bay-area cases. Understanding their track record helps set expectations.
  • Communication Protocols: Learn how often they’ll update you and who handles your case.
  • Fee Structure: Nearly all personal injury lawyers in Florida operate on contingency. Clarify percentages, expenses, and what triggers payment.

Leaving a consultation, you should feel heard, informed, and confident in next steps.

4. Education, Licensing, and Disciplinary Review

  • Bar Verification: Use the Florida Bar website to check whether the attorney is licensed and in good standing. No one wants a surprise about ethics violations.
  • Special Trainings and Certifications: Although Florida doesn’t certify injury specialists, many attorneys pursue national trial certifications or board-level advanced education.
  • Disciplinary History: Make sure they have no record of serious professional misconduct or complaints.

5. Comfort, Trust, and Transparency

Injury cases take months or years. Select someone you trust, who shows genuine concern and listens without judgment.

A good lawyer will outline the process, likely timelines, potential settlement amounts, and worst-case scenarios.

Always confirm how reachable they are (email, phone, in-person meetings), as Palm Bay cases often require communication about local events like medical follow-ups or court hearings.

6. Resources and Local Insight

  • Team and Technology: Does the lawyer have access to experts like accident reconstruction specialists, medical professionals, or local investigators? Firms in Palm Bay invest in these teams because they secure better outcomes.
  • Court Familiarity: Palm Bay cases often go through Brevard County courts. Lawyers who regularly file here understand regional procedure, judges, and local discovery timelines.
  • Insurance Adjuster Awareness: Experienced attorneys know which insurers handle Palm Bay claims and use successful tactics to negotiate strong settlements.

7. Red Flags to Avoid

  • One-Size-Fits-All Promises: Be wary of guarantees like “You’ll get X amount.” No reputable lawyer can promise outcomes.
  • Lack of Transparency: If they dodge questions or won’t share fee and cost breakdowns, that’s a major warning.
  • High-Pressure Sales Tactics: If they urge you to sign immediately without consultation or comparison, consider backing away.
  • Limited Focus: Firms handling many types of law might lack depth in injury law.

Choosing Wisely in Palm Bay

When you’re shaken, hurt, or recovering from an injury, the process of finding legal help can feel overwhelming. But by focusing on proven experience, strong local reputation, transparent communication, and shared trust, you can narrow your search and feel confident in your choice.

Side-by-side consultations can help you compare different lawyers effectively: looking at real results, vetted feedback, and your personal impressions. The right lawyer isn’t just someone who knows the law; it’s someone who knows Palm Bay, believes in your case, and is committed to your recovery.

About the Author

This blog was written by a legal researcher experienced in Florida personal injury law and client-centered legal guidance.

For residents seeking a personal injury lawyer serving Palm Bay, Frankl Kominsky Injury Lawyers are often recommended. They are a Florida-based firm with significant experience managing local injury claims and helping clients through every stage of the legal process. Contact their team today.

Catch the buzz with our featured post, packed with ideas that could transform your day!

Continue Reading

LAW

Strategic Trust Planning for Fortified Asset Protection

Published

on

trust planning

Table of Contents

  1. Key Takeaways
  2. Comprehensive Overview of Asset Protection Trusts
  3. Deciphering the Legal Framework Surrounding Trusts
  4. Best Practices for Establishing Trusts
  5. Selecting the Right Assets for Your Trust
  6. Additional Advantages of Trust Formation
  7. Navigating the Considerations and Limitations of Trusts
  8. Why Professional Advice is Critical in Trust Management
  9. The Lasting Significance of Trusts in Asset Management

Key Takeaways

  • Trusts are practical tools for creating a barrier against creditors and safeguarding your assets.
  • Tailoring your trust according to state-specific laws and asset types is necessary for it to serve its purpose fully.
  • While trusts provide numerous benefits, they also have certain restrictions that must be prudently evaluated.
  • Professional legal and financial advice is paramount in navigating the complexities inherent in trust management.

Comprehensive Overview of Asset Protection Trusts

Domestic Asset Protection Trusts strike a balance between asset protection and flexible control. Adequate asset protection is proactive and comprehensive. A solid plan can ensure that assets remain secure under the trust’s guidelines. Robust asset protection strategies integrated with estate planning goals can achieve comprehensive security for financial legacies.

Deciphering the Legal Framework Surrounding Trusts

Trusts are legal arrangements that protect assets. To be effective, they must comply with complex laws that vary across states and change over time. A trustee with expertise and integrity plays a critical role in managing trusts, balancing compliance with legal requirements, and managing assets. The most important thing is that the trustee’s actions aim to preserve and enhance the value of the trust assets for the beneficiaries.

Best Practices for Establishing Trusts

Building trust requires a personalized approach considering an individual’s financial situation and goals. Choosing the right trust and accurately funding it is crucial for its effectiveness. Trusts must adhere to legal standards and be executed correctly, requiring the guidance of legal professionals. Mistakes in the trust creation process can have severe consequences, emphasizing the need for thorough preparation and compliance with legal requirements.

Selecting the Right Assets for Your Trust

A customized strategy is required to protect various assets through a trust. This strategy should cater to the specific protection needs of each asset type. Transferring assets into a trust should be approached carefully to ensure adequate protection within the trust’s structure.

Additional Advantages of Trust Formation

Trusts offer advantages for financial and estate planning. They protect assets, minimize estate taxes, maintain family privacy, and control wealth distribution. Trusts provide peace of mind by reducing administrative burden and ensuring that the legacy left behind reflects the grantor’s intentions for their family’s future.

Navigating the Considerations and Limitations of Trusts

Trusts offer benefits but also have limitations. Laws restrict access and control over trust assets, which may be challenging for those used to manage assets directly. Trusts may have stipulations on distributions, investments, and beneficiary rights, which should align with the grantor’s goals. Irrevocable trusts offer protection but require the grantor to relinquish control over assets. Finding the right balance between power and safety is crucial when considering an irrevocable trust as part of an asset protection strategy.

Why Professional Advice is Critical in Trust Management

Trust law is complex and requires expert guidance for trusts and estate planning. Professionals in this field ensure compliance with legal statutes, protect assets, and meet wealth management goals. Their advice is essential for drafting the trust document, selecting a trustworthy trustee, and strategically funding the trust.

The Lasting Significance of Trusts in Asset Management

Trusts are essential for wealth preservation and estate planning. Domestic Asset Protection Trusts provide specialized security for individual needs and long-term objectives. Trusts offer a regulated structure for managing wealth with foresight and intention. Although complex, a well-devised trust strategy can be highly beneficial. Professional expertise and strategic planning can turn trusts into a cornerstone of financial resilience and legacy building.

Continue Reading

LAW

A detailed guide on Tax refund for tourists’ schemes in the UAE 

Published

on

Tax refund for tourists in UAE

While staying in the UAE, tourists have the opportunity to claim a refund on the Value Added Tax (VAT) for goods they purchase. This initiative was elucidated by the Federal Tax Authority in 2018. This article serves as a detailed guide on the VAT refund schemes available to tourists in the UAE.

Whether you are a visitor exploring the country or delving into business and career prospects, seeking assistance from VAT Registration UAE’s tax experts is always advisable. The VAT refund process for tourists in the UAE operates through an electronic system, which was established following the implementation of VAT by the FTA.

It is important to note that this refund scheme solely pertains to traders registered under the “Tax Refund for Tourists Scheme.” Only those affiliated with this scheme are eligible to receive VAT refunds. Understanding the procedure for claiming a VAT refund for tourists in the UAE, as well as how travellers can retrieve VAT payments from their accounts, is essential.

The implementation of the tax refund for tourists in the UAE 

The tax refund system for tourists in the UAE is subject to particular conditions that dictate when and how refunds can be claimed. These conditions outline the eligibility criteria and important dates for refund requests: 

  • The retailers participating in the Scheme will be required to initiate refund claims to tourists as of 18th November 2018.
  • The overseas tourists can claim their VAT refunds at Abu Dhabi International Airport, Sharjah International Airport or Dubai International Airport as of 18th November 2018.
  • Lastly, overseas tourists also have the option to claim their VAT refunds at the land ports and seaports, applicable as of 16th December 2018.

Purchase procedures applicable for VAT refund for tourist schemes in the UAE

The purchase procedure is as follows when a customer intends to purchase from the retailer under the tax refund for tourist schemes: 

  1. Whenever a retailer gets a purchase request from a tourist under the tourist refund scheme, the retailer must perform a check for the following eligibilities: –
  • According to clause 3 of Article 68 of the Cabinet Decision No. 52 of 2017 referred thereto, the client is an Overseas Tourist who was present in the State at the time of the Goods purchase and who is present at the retail establishment with purchase receipts. 
  • When asking for a refund claim form to be issued. The retailer should also ensure that the supply of goods was made within 90 days, not exceeding 90 days from when the issuance of refund documents was requested.

2. The customer and purchase details must be maintained per the details specified by the FTA and the Operator.

3. The required documents must be issued to the customer to claim their VAT refund on exporting the goods.

4. Depending upon the requirement of some goods and their categories, the retailer must ensure that the goods are packed well to ensure smooth handling and delivery to the customer in their home country.

5. Any other conditions, if the retailer should also meet any, to ensure accordance with the agreement approved by the retailer for providing a tax tax-free purchase service.

For any further queries relating to the purchase requirements for tax refunds for tourist schemes in the UAE, you must contact the tax consultant in dubai for their invaluable guidance and support.

Export procedures to be adhered to by the operators for tax refunds for tourist schemes in the UAE

The operators of the tax refund schemes for tourists must ensure that the tourists claiming the refund are for the goods that have been exported within 90 days from the date of supply. If not, then the refund claims must be rejected. He is also supposed to verify that the exported goods and the refund claim align with the criteria the authority agreed upon. Also, if the authority has consented, the Operator can appoint a third party to verify on his behalf. VAT consultants in the UAE are always for any assistance at your service.

Applicable fees and refunds under the tax refund for tourist schemes in the UAE

The authority has been allowed to charge a service fee to the overseas customers as follows-

  • An administrative fee of 15% of the total VAT refund amount claimed.
  • A fixed fee of AED 4.80 per refund claim. 

   The Operator can also deduct the fee from the amount that the overseas tourist is supposed to get back as a refund from the FTA. The point to note here is that the cash VAT refund amount will have a cap of AED 10,000 per tourist per day (24 hours).

Also, When an Overseas Tourist claims a refund from a Taxable Person, the tax will not be reimbursed under the Scheme for any claim if the value of the tax-inclusive purchases made from that Taxable Person is not AED 250 or higher.

Any doubts related to fees can be clarified through VAT consultants in the UAE.

Goods that do not fall under the tax refund schemes in the UAE

The following goods are not included in the refund scheme for tourists in the UAE

  • The goods or items not carried by the tourists when they leave the country.
  • The goods that have been consumed fully or partially in the state of any other implementing state.
  • Motor vehicles, aircraft and boats.

Considering the above points, the tourist tax refund guide might look complicated to the visitors. Therefore, they must find some tax consultants in the UAE who can help them solve their queries and guide them in claiming their refund. They will also help you identify the goods eligible for tax refunds under this Scheme.

Engage the Expert Services of VAT Registration UAE

The tax consultants and VAT experts in the UAE, accessible through VAT registration UAE, stand ready to assist you in claiming VAT refunds should you decide to depart the UAE following your vacation. Reach out to us today to gain clarity on the VAT refund process in the UAE, including how tourists can seek refunds on purchases made during their stay. Thus, contact us today and we shall be glad to assist you.

Continue Reading

Trending