UAE’s Virtuzone invests $13.6m to support SMEs in corporate tax registration

Virtuzone, a Dubai-based company, has announced its investment of Dh50 million ($13.6 million) in a three-month programme aimed at providing free corporate tax registration and accounting services to small and medium sized businesses. The initiative is designed to assist these businesses in becoming compliant with the new tax regulations that came into effect in the UAE this year. It is estimated that this programme will benefit approximately 10,000 businesses and entrepreneurs operating in the Emirates, enabling them to meet corporate tax regulations by December. John Casey, the accounting and tax managing director at Virtuzone, explained that there is a significant amount of confusion surrounding corporate tax in the business community, with many clients and businesses unsure if it applies to them. Virtuzone aims to help these businesses comply with ease, organize their financial records, and avoid penalties and fines. The UAE introduced federal corporate tax with a standard statutory rate of 9% for the financial year beginning on or after June 1. Companies with income exceeding Dh375,000 fall within the taxable bracket, while taxable profits below that level are subject to a tax rate of 0%. Certain exemptions are available for businesses operating in strategic sectors. The Ministry of Finance has clarified that no corporate tax will be levied on salaries or other personal income from employment, whether in the government, semi-governmental entities, or the private sector. Additionally, government and government-controlled organizations, as well as extractive businesses and non-extractive natural resource businesses that meet specific conditions, are not required to register under the tax law. Small businesses in the UAE with a revenue of Dh3 million or less can also take advantage of a new corporate tax relief programme. Virtuzone specializes in assisting businesses with setting up their operations.