Transaction Support under UAE Corporate Tax (CT)

Transaction support in the UAE Corporate Tax (CT) context involves advisory services during mergers, acquisitions, restructurings, and other corporate changes to ensure tax efficiency and compliance with UAE CT laws.

Key Aspects of Transaction Support:

1. Tax Due Diligence: Assessing potential tax risks and liabilities in target companies during mergers or acquisitions.
2. Corporate Tax Structuring: Advising on the optimal structure of deals to minimize tax liabilities and maximize tax efficiency.
3. M&A Support: Providing tax guidance during mergers and acquisitions, including handling capital gains, tax losses, and PE considerations.
4. Transfer Pricing: Ensuring intercompany transactions comply with UAE transfer pricing regulations.
5. VAT & Excise Tax Advisory: Addressing VAT and excise tax implications during asset transfers and corporate reorganizations.
6. Tax Compliance and Reporting: Helping with UAE CT filings, financial statements, and meeting regulatory requirements post-transaction.

Key Areas of Focus:

• Corporate Tax Rate: UAE’s 9% tax rate on profits above AED 375,000 and free zone exemptions.
• Tax Loss Carryforward: Preserving tax losses for future use in acquisitions or restructurings.
• Asset Transfers: Assessing capital gains tax and VAT on asset transfers.
• Restructuring: Ensuring tax-efficient restructuring, including treatment of intangible assets.

Why Transaction Support is Important:

Transaction support helps businesses:

• Navigate UAE CT regulations.
• Optimize tax structures for M&A and other transactions.
• Ensure compliance with UAE tax laws, avoiding penalties and minimizing liabilities.

Incorporating transaction support into corporate decisions is crucial for tax efficiency and smooth business operations under the new UAE CT regime.