Overview of tax compliance in Sharjah

With a concentration on industries including tourism, manufacturing, logistics, and services, Sharjah's tax structure complements its larger economic diversification goal. The emirate encourages free trade and provides a conducive business environment to attract both domestic and foreign businesses. UAE serves as a hub for global commerce and finance.

Benefits of Tax Compliance

• An increase in revenue from taxes for infrastructure and public services.
• Enhanced investor confidence and economic stability.
• Reduced tax evasion and enhanced tax system fairness.
• Increased accessibility to public healthcare and social security benefits.
• Improved accountability and governance in the public sector.

Types of Taxes in Sharjah

• Corporate Tax

A direct tax, known as corporate tax, is imposed on the income of entities that identify with themselves as companies. In Sharjah, the corporate tax rate is 9%.

• Custom duty

Customs taxes are charges a nation's customs authority levied on imported products.

• Most things: The amount of the customs duty is 5% of the CIF value. The cost of the item, insurance, and shipping costs are all included in the CIF value.
• Exempt Categories: Some groups may not be subject to customs taxes. The particular exemptions differ and are based on their trade agreements and customs laws.
• Alcohol: Products containing alcohol typically have higher customs tax rates. In this instance, the CIF value is increased by 50%. This indicates that 50% of the CIF value would be used to determine the customs charges on alcohol.
• Products containing tobacco: Tobacco products typically have the highest rates of customs duties. In this instance, the CIF value is increased by a 100% duty. As a result, the taxes on tobacco items would be determined at 100% of CIF.

• VAT

Value-added tax (VAT) of 5% is levied throughout the supply chain by the United Arab Emirates (UAE) on all taxable goods and services that are supplied by tax-registered companies. These companies, known as "taxable persons," are required to submit a "VAT return" to the Federal Tax Authority (FTA) at the end of each tax period.

• Property Tax

In Sharjah, residential properties are typically exempt from property tax. However, it is crucial for buyers to be aware of supplemental costs, including registration fees, service fees, and maintenance fees. A transfer fee is one such expense that is present in the Sharjah.

• Excise Duty

The UAE introduced excise tax across the board in 2017. An indirect tax, called excise tax, is levied on specific products that are recognized to be harmful to the environment or human health. The term "excise goods" is often used to describe these items. Excise taxes are levied on tobacco, alcohol products, sweetened and carbonated drinks, electronic smoking devices etc.

Services offered by Enterslice

In Sharjah, Enterslice provides a range of services that deal with different facets of tax administration. Our expertise lies in the following areas:

• Corporate Tax Advice: To make sure that our clients comprehend and abide by tax rules, we offer complete corporate tax advisory services. We address to any tax-related issues brought up by companies, examine transactions for any tax consequences, and develop tax-effective structures. Additionally, we locate opportunities for tax optimization and keep clients informed of essential updates. We can help with withholding tax on overseas transactions.
• Corporate Tax Compliance: Enterslice provides a variety of services to assist businesses in adhering to tax laws. We take care of all required tax reporting requirements, including tax registration, as well as tax calculation and corporate tax reports. Our team of experts examines the tax returns that have been accomplished and offers support in responding to any queries from tax authorities. Our goal is to make sure that tax rules are followed correctly.
• Tax Compliance advice: Through our tax compliance advisory services, we aim to improve quality, provide strategic value, cut costs, and lower risks. With the help of our diversified team, cooperation between the tax, financial, and legal departments is made simple. We assist companies in managing regulatory changes, converting data into insightful knowledge, and enhancing planning and compliance procedures.
• Tax Policy Advisory: In an era of heightened scrutiny and the need to defend tax positions, our expertise helps the clients manage and resolve tax disputes involving many jurisdictions. We design plans to reduce future tax obligations while assuring adherence to changing tax regulations. Our customized solutions take into account the unique demands of our clients, and we offer valuable guidance on how to handle tax disputes.
• R&D Tax Assistance: Taking into account the changing environment of intellectual property rights, we assist companies in determining their eligibility for R&D tax benefits and deductions. With the help of our services, customers may take full advantage of R&D tax incentives in Sharjah and other relevant jurisdictions while also complying with all regulatory requirements.
• Customs and Excise Advice: We provide thorough advice services for customs and excise matters. We provide advice on duty disadvantages, free zone companies, duty deferral and suspension plans, client risk analyses and audits, and post-clearance audit management. We also provide guidance on supply chain management, market access policies, labeling requirements, authorized economic operator applications, and anti-dumping claims and defenses.
• Acquisitions & Mergers: We provide expert guidance for complex cross-border transactions, taking into account the tax effects in local jurisdictions. By actively addressing tax concerns as well as potential problems, we assist clients in maximizing tax outcomes and ensuring smooth execution throughout the M&A process.
• International Tax Planning: Our professionals help clients navigate challenging local legal and regulatory frameworks in light of changing international tax legislation, such as the OECD's BEPS initiatives and enhanced tax transparency. To successfully manage tax risks and uphold compliance with evolving requirements, we offer strategic advice.
• VAT Advisory. We offer a variety of VAT consultation services, such as assistance with VAT returns, support during VAT audits or disputes, assistance to tax agencies, advice on VAT refunds, and the creation and submission of voluntary disclosures, requests for clarification, and reconsideration requests to tax authorities.

At Enterslice, we are committed to helping our clients at every level of their business satisfy their tax requirements. We provide streamlined and effective tax management solutions in Sharjah via the integration of our services, industry knowledge, and the use of cutting-edge tools and technology.