Taxation & Regulatory Advisory
Taxation & Regulatory Advisory
Our Taxation and Regulatory Services are designed to support businesses across all stages of growth, from start-ups to established multinational groups. We provide end-to-end support in tax structuring, compliance management, regulatory filings, and strategic advisory across both local and international frameworks.
Our expertise spans corporate tax, indirect tax (including VAT), transfer pricing, and cross-border taxation, enabling us to develop solutions that are aligned with your commercial objectives while ensuring full regulatory compliance. We work closely with clients to design efficient tax structures, streamline reporting processes, and manage ongoing compliance obligations with accuracy and timeliness.
In an environment of constantly evolving regulations, we help businesses stay ahead by proactively identifying risks, interpreting new laws, and implementing practical solutions. Our team also supports clients during tax audits, assessments, and regulatory reviews, ensuring a well-prepared and confident approach.
With a strong focus on governance, transparency, and sustainability, we aim to not only minimize risk and enhance compliance but also create long-term value by improving operational efficiency and supporting informed decision-making.
The UAE Ministry of Finance introduced a federal Corporate Tax (CT) on business profits effective for financial years starting on or after 1 June 2023.
Proposed CT rates are:
- 0% - for taxable income up to AED 375,000
- 9% - for taxable income above AED 375,000
- A different tax rate (to be specified) for large multinationals generating consolidated global revenues above EUR 750m (AED 3.15 bn) in line with Pillar II of the OECD BEPS project.
Our comprehensive Corporate Tax support services include:
- Assessing the applicability and impact of UAE Corporate Tax on your business and transactions
- Assistance in computation of taxable income
- Preparation and filing of Corporate Tax returns
- Assistance with relevant submissions, clarifications, appeals, and representation before authorities
- Evaluation of restructuring or tax optimization opportunities
- Review of contracts and inter-company arrangements
- Ensuring accounting, compliance, and reporting readiness
Introduced on 1 January 2018, VAT is levied on the supply of goods and services that transformed the UAE’s regulatory landscape. Administered by the Federal Tax Authority, compliance now dictates core accounting systems, internal controls, ERP configurations, and overall business strategy.
Impact of VAT on Businesses
The implementation of VAT has significantly influenced:
- Product costing and service pricing structures
- Cash flow management and working capital planning
- Procurement and supply chain decisions
- Contract structuring and commercial arrangements
- IT systems, ERP integration, and financial reporting processes
Adapting to the VAT Environment
Compliance requires revised operating models and strengthened internal controls. Organizations must invest in structured employee training to ensure finance, procurement, and operations teams possess the technical understanding necessary to minimize financial risks and penalties.
KB Business Advisory VAT support services include:
- Training and guiding key personnel to build in-house VAT competency
- Assisting in the design, development, and maintenance of VAT-compliant records, including supplies, purchases, and expense documentation
- Advising on and supporting required changes in IT systems, ERP platforms, and accounting applications
- Providing timely advisory support as and when required
- Developing and implementing customized VAT manuals, policies, and procedures
- Assistance with VAT registration and deregistration processes
- Preparation and filing of periodic VAT returns
- Working closely with businesses during the VAT implementation phase
- Establishing compliance frameworks aligned with legislative requirements
Effective 1 October 2017, Excise Tax targets specific goods deemed harmful to health or the environment. This regime discourages the consumption of unhealthy products while generating revenue for public infrastructure.
Current Excise Goods and Applicable Rates:
The implementation of VAT has significantly influenced:
- Tobacco and tobacco products – 100%
- Energy drinks – 100%
- Carbonated drinks – 50%
(Additional categories may be introduced or amended by the authorities from time to time.)
How We Can Assist:
- Assistance with Excise Tax registration and deregistration.
- Ongoing compliance support and advisory services.
- Preparation and review of Excise Tax returns.
- Support during audits and verification procedures conducted by the Federal Tax Authority.
- Industry-focused business reviews to assess Excise Tax risk and exposure.
- Advisory on structuring business transactions in line with legislation, including cross-border transactions.
- Strategic guidance leveraging the global expertise of the Reanda International network’s Customs and Excise specialists.
As of June 2022, the UAE has entered into Double Taxation Avoidance Agreements (DTAAs) with over 137 countries. Our tax team assists multinational groups in navigating these complex local and international regulations to structure operations efficiently.
We help international clients maximize treaty benefits and design sustainable structures aligned with evolving global standards. Our expertise ensures that cross-border investors mitigate tax risks while maintaining full regulatory compliance.
KB Business Advisory International Tax Services Include:
- Advisory on corporate tax implications for cross-border structures
- Withholding tax analysis and compliance assistance
- Assistance in obtaining Tax Residency Certificates (TRC)
- Transfer pricing risk assessments and preparation of transfer pricing studies
- Benchmarking analysis and economic analysis
- Review and documentation of related party transactions
- Advisory on applicability and utilization of Foreign Tax Credits
- Cross-border transaction structuring and advisory
- Interpretation and applicability of Double Taxation Treaties and local tax laws
- Assistance with Country-by-Country Reporting (CbCR) compliance
- Economic Substance Regulations (ESR) advisory and compliance support
- Global tax compliance coordination through our international network spanning over 50 countries
- Advisory on the impact of the OECD Base Erosion and Profit Shifting (BEPS) initiative on your operations and transactions
- Representation before tax authorities, regulatory compliance management, and statutory filings
Transfer Pricing governs the pricing of goods, services, and intangibles exchanged between related entities in a multinational group. The core objective is to prevent profit shifting and ensure transactions occur across different jurisdictions in accordance with international standards.
The Arm’s Length Principle
The global benchmark, endorsed by the OECD, requires that transfer prices reflect conditions agreed upon by independent parties in comparable circumstances. Robust transfer pricing policies are now critical to mitigating tax risks and disputes.
Under this principle, businesses are required to:
- Identify related party transactions
- Perform functional, asset, and risk (FAR) analysis
- Select the most appropriate transfer pricing method
- Benchmark transactions against comparable independent transactions
- Maintain adequate documentation to demonstrate compliance
Our Compliance Advisory Services for ESR, AML & UBO Include:
- Assistance in understanding and interpreting newly introduced regulatory requirements and their applicability to your business.
- Advisory support on regulatory reporting and statutory filings with relevant authorities
- Designing and integrating compliance controls within your existing accounting, operational, and governance frameworks.
- Development and implementation of compliance policies and procedures.
- Staff training programs to ensure awareness and effective execution of compliance obligations.
- Assistance with submission of declarations and documentation through official portals and authority platforms.
