A brief explanation of how corporate tax is calculated
The application of corporate tax in the UAE is seen as a competitive advantage, especially for foreign investments. As such, paying corporate tax may be more beneficial for business owners than paying additional personal income tax. .

The corporate tax calculation process begins by determining adjusted gross income and allowable deductions to calculate taxable income, and then evaluates corporate taxable income using the following formula: Taxable income = adjusted gross income for all applicable deductions, multiplied by income taxes last. Proportion according to taxable income to determine corporate tax liability:

The final amount of UAE corporate tax payable to the Federal Tax Authority of the UAE is reduced by the foreign tax applicable to the relevant income.

Most Important Reports
The UAE corporate tax system proposes to use the position of net profit in a company’s financial statements as the starting point for determining taxable income.

For such evaluations, the company’s financial reports, books of account, and annual financial statements are of paramount importance. A business’ taxable income includes profits from sales of products or services, commissions, interest, capital gains, and rentals to generate corresponding taxable income.

Business management software can perform calculations while managing all records, transactions, books of account, inventory, financial reports, and asset management for planning, budgeting, reporting, auditing, or tax purposes.

How can automatic reporting help companies in the corporate tax system?
A company’s accounting net income is reported in financial statements and annual reports prepared in accordance with internationally accepted accounting standards. amount.
Automated reporting ensures consistency and transparency across all reports and ledgers provided by your company.
Ensure Automatic Reporting Makes the process of filing corporate tax returns easier and more efficient.
Accountants in your organization can use business management software to calculate taxes on business transactions, electronically file tax returns, and maintain tax-related forms, accounting ledgers, and financial reports.

You can also Register for Corporate Tax Registration on our website:
https://thevatconsultant.com/