Virtuzone is investing Dh50 million ($13.6 million) to provide free corporate tax registration and accounting services to small and medium sized businesses and help them become compliant with the new tax regulations that took effect in the UAE this year.
The three-month programme is expected to enable 10,000 businesses and entrepreneurs operating in the Emirates to comply with corporate tax regulations by December, Virtuzone said.
“Corporate tax started a few months ago, but there is a lot of confusion around it in the business community,” said John Casey, accounting and tax managing director at Virtuzone.
“Many clients and businesses come to us asking if it applies to them since they are free zone companies or just small businesses.
“We will help them comply with ease, get their books in order, and allow them to avoid penalties and fines.”
The UAE introduced the federal corporate tax with a standard statutory rate of 9 per cent starting from the financial year beginning on or after June 1.
It brought the income of companies exceeding Dh375,000 within the taxable bracket. Taxable profits below that level will be subject to a tax of zero per cent.
Several exemptions are also offered for businesses operating in strategic sectors.
There will be no corporate tax levied on salaries or other personal income from employment, be it in the government, semi-governmental entities or the private sector, according to the Ministry of Finance.
Government and government-controlled organisations as well as extractive businesses and non-extractive natural resource businesses that meet set conditions are not required to register under the tax law.
Small businesses in the UAE with a revenue of Dh3 million or less can also benefit from a new corporate tax relief programme.
Virtuzone is a Dubai company that helps businesses to set up their operations.