Overview of Tax Compliance in Fujairah

Fujairah is one of the seven emirates of UAE. Fujairah has a tax regime that is known for being investor and business friendly. In order to entice the international investment, foster economic expansion, and diversify income sources. Fujairah has developed a novel tax structure. Free zones that Fujairah has established provide significant tax breaks and advantages to companies. These free zones, like the Fujairah Free Zone and the Fujairah Creative City, provide businesses easier company registration procedures, full foreign ownership, and exemption from customs tariffs on imported goods. Incentives like this have helped Fujairah's media production, manufacturing, and logistics sectors develop quickly.

Types of Taxes in Fujairah

• Corporate Income Tax

A type of direct taxation known as corporate income tax is levied against the earnings made by corporations or other legal entities. It is usually based on a fixed tax rate and is imposed by the government on the net revenue produced by businesses. Governments depend on corporate income tax as a major source of funding for social programmes and infrastructure expansion. The tax is computed by subtracting permissible costs and deductions from the total revenue of the business to arrive at the taxable income, which is the basis for calculating the tax obligation. The tax is to be paid if the income exceeds AED 375,000.

• Value- Added Tax

Value Added Tax, or VAT is an indirect tax based on consumption that is levied on the value added at each level of the supply chain for products and services. On behalf of the government, companies collect it; eventually, the final customer is responsible for payment. As a fair and equal tax system, VAT is determined as a percentage of the cost of a good or service. Every stage of production or distribution is subject to the tax, allowing for the offset of VAT paid on inputs against VAT received on products and preventing double taxation. The standard rate of VAT is 5% in Fujairah.

• Customs and Excise

Taxes levied on items when they are imported or exported across national boundaries are referred to as customs and excise duty. While certain domestically manufactured items are subject to excise duty, imported goods are subject to customs duty. These levies are mainly intended to control commerce, safeguard domestic industries, and bring in money for the government. Rates of excise and customs taxes can differ based on the nature of the commodities, their cost, and the country of origin or destination. Customs officials often seize them at designated customs offices or bordercrossings.

• Tourist Tax

A tourist tax is a type of tax levied on people who stay in commercial lodgings like hotels, resorts, or rental homes. It is geared primarily at tourists or visitors and is gathered by lodging companies on behalf of the government Hotels in all Emirates of UAE levy an additional service charge which is equivalent to 10% of the hotel sale revenue. Depending on the destination, kind of lodging, and length of stay, the tax rate for tourist taxes may change.

• Property Tax

In various Emirates, property owners must pay municipal taxes, which are normally calculated based on the property's annual rental value. There could also be a registration charge associated with the transfer of real estate. Each separate Emirate implements and administers these taxes and levies in a different manner.

Tax Period in Fujairah

The financial year, which is ordinarily the twelve-month period which corresponds with the Gregorian calendar or the time utilized for generating financial accounts, is referred to as the tax year for a Taxable Person. A UAE Corporate Tax (CT) return has to be submitted during this time. A Taxable Person may make a request to the Federal Tax Authority (FTA) in order to alter the beginning and ending dates of their tax period or choose an alternative tax period. Any such modifications or alternative tax periods, however, will be subject to restrictions established by the FTA.

Services Offered by Enterslice

A range of tax management services are available from Enterslice. We are experts in the following fields:

• Corporate Tax Advice: To make sure that our clients comprehend and abide by tax rules, we offer complete company tax consulting services. Addressing tax-related issues, assessing transactions for tax status, developing tax-efficient structures, seeing chances for tax optimization, and giving frequent updates are all included in this. We are also experts in managing withholding tax for cross-border transactions.
• Corporate Tax Compliance: Enterslice offers a range of tax compliance services to businesses, beginning with tax registration. We manage all required tax reporting requirements, compute taxes due, and create business tax returns. In order to guarantee that our clients comply with tax regulations without any problems, our staff also assesses any queries from tax authorities and offers support.
• Tax Compliance advice: With our tax compliance advice services, we concentrate on improving quality, generating strategic value, cutting costs, and minimising risks. Our multidisciplinary staff promotes cooperation by fostering communication between the tax, financial, and legal departments. We support our clients' compliance and planning procedures while navigating regulatory changes and utilizing data to provide insightful insights.
• Tax Policy Advisory: Enterslice assists clients in managing and resolving tax issues that arise in various jurisdictions. We support the development of solutions to reduce prospective tax obligations while guaranteeing compliance with changing tax rules in light of heightened scrutiny and the need to defend tax positions. We provide necessary guidance on addressing tax disputes and propose solutions that are specifically customized to our customers' needs.
• R&D Tax Advisory: We help companies determine if they qualify for research and development (R&D) tax incentives and super-deductions. Particularly in the area of intellectual property rights, which are constantly changing, Our services guarantee that customers complete all legal requirements while maximizing their R&D tax benefits.
• Customs and Excise Advice: We provide thorough advice services for customs and excise issues. On duty disadvantages, free zone companies, duty deferral and suspension plans, client risk analyses and audits, and post-clearance audit management, we offer advice. We also provide guidance on supply chain management, market access policies, labelling requirements, authorised economic operator applications, and anti-dumping claims and defenses.
• VAT Advice: A variety of problems are covered by our VAT consulting services. To guarantee compliance, we do VAT health checks. We also provide support for VAT compliance, including the creation and filing of VAT returns. We offer assistance during the whole VAT audit or dispute procedure. Additionally, we offer support for tax authorities, VAT refunds, and the creation and filing of voluntary disclosures, requests for clarification, and reconsideration requests to the appropriate tax authorities.
• Acquisitions and Mergers: For challenging international transactions, we provide qualified counsel. We take into account the tax ramifications in various jurisdictions as we go through the mergers and acquisitions (M&A) process. We assist customers in maximizing tax results and ensuring smooth transaction execution by proactively addressing tax concerns and potential challenges.
• International Tax Planning: Organisations now confront more tax uncertainty as a result of changing international tax policy, such as the OECD's BEPS initiatives and increasing tax transparency. Our experts help customers navigate the complex local legal and regulatory landscapes. To assist businesses in managing tax risks and ensuring compliance with evolving legislation, we offer strategic advice.

At Enterslice, we are committed to assisting our customers in fulfilling their tax responsibilities at every stage of their business operations. We can provide seamless and efficient tax management solutions because to our integrated services, industry expertise, and utilization of cutting-edge techniques and technology.