As many of you, I'm trying to understand the implications of the new CIT for my company registered in a free zone in UAE. Since I don't trust any agency or free zone office trying to get your money, I started consulting with different accountants, who told me a different story than what the company formation agencies were telling me.
Agencies were claiming if you don't do businesses with mainland UAE you won't be paying a dime in CIT. While the consensus between accountants was that anything below 375k AED of annual profit is exempt from CIT, no matter where the money are coming from. Anything above that is subject to 9% CIT, but it seems that you have to have a 3 millions AED revenue to trigger that. They told me though that the last point is not set in stone yet and they are waiting for clarifications from the government.
If you guys had different opinions from other accountants I will be glad to hear them.
Also, considering the cost of accounting, auditing and filing in the UAE, it seems that small and medium businesses would need to start looking at alternatives.
Agencies were claiming if you don't do businesses with mainland UAE you won't be paying a dime in CIT. While the consensus between accountants was that anything below 375k AED of annual profit is exempt from CIT, no matter where the money are coming from. Anything above that is subject to 9% CIT, but it seems that you have to have a 3 millions AED revenue to trigger that. They told me though that the last point is not set in stone yet and they are waiting for clarifications from the government.
If you guys had different opinions from other accountants I will be glad to hear them.
Also, considering the cost of accounting, auditing and filing in the UAE, it seems that small and medium businesses would need to start looking at alternatives.
