We interviewed Antoine Iskandar, Paralegal at BSA to find out all you need to know regarding the new corporate tax requirements as a business owner in the UAE.
Tell us more about BSA
BSA Ahmad Bin Hezeem & Associates is a regional law firm operating in the Middle East, with a history of 20 years and nine offices spanning five countries. Our team comprises 150 lawyers from diverse cultural backgrounds, totaling 35 nationalities. Renowned for our expertise in emerging sectors, we collaborate closely with clients to foster a sustainable and progressive future.
Beyond our core legal services, we take pride in our ability to facilitate collaboration, promote synergy, and drive positive change. With two decades of experience, we continue to grow organically, prioritizing the development and investment in our talent.
At the heart of our approach lies client care. As trusted advisors, we offer flexible solutions, expert guidance, dynamic fee structures, and prioritize building personal relationships. Clients value our commitment to providing clear advice, strategic recommendations, and comprehensive risk assessment, directly contributing to their success in navigating complex challenges.
This ethos permeates every aspect of our work, from assisting grassroots startups to multinational corporations, and extending to our involvement in pro bono legal clinics and employee development programs.
What services do you provide business owners?
We offer business owners a comprehensive suite of legal services tailored to their needs. These include Corporate & M&A (Mergers and Acquisitions), Banking & Finance, Dispute Resolution encompassing Litigation & Arbitration, Regulatory & Compliance guidance, Cybersecurity solutions, Intellectual Property protection, Employment law expertise, and restructuring assistance. With expertise in these key areas, we strive to support business owners in navigating legal complexities, ensuring compliance, resolving disputes, safeguarding intellectual property rights, and fostering a conducive environment for sustainable growth and success.
What is the most in demand service you offer right now?
The most in-demand service we offer right now encompasses a broad spectrum of practices, reflecting our expertise across various legal domains. However, there is particularly high demand for litigation services due to our extensive experience spanning over 20 years in this field. Additionally, corporate-related matters such as group restructuring for corporate tax optimization, incorporation of new entities, advice on restructuring proceedings, and arbitration proceedings are also in high demand. Our ability to effectively address these diverse needs underscores our commitment to providing comprehensive legal solutions tailored to meet the specific requirements of our clients.
What has been your biggest success as a company?
Our biggest success as a company has been our remarkable growth over the past 20 years. We began as a local law firm and have evolved into a regional powerhouse, now covering five countries. Today, we proudly stand as one of the top law firms in the UAE, a testament to our commitment to excellence, client satisfaction, and continuous advancement. This expansion demonstrates our ability to adapt to changing landscapes, meet evolving client needs, and consistently deliver outstanding legal services across borders.
What makes your law firm unique?
What sets our law firm apart and makes us the preferred choice for clients is our unwavering commitment to client care. We are trusted advisors who prioritize flexibility, leveraging our strength of expertise to tailor solutions to each client’s unique needs. Our dynamic fee structures ensure accessibility to quality legal services, while our focus on personal relationships fosters trust and collaboration.
Clients value our ability to provide clear advice and strategic recommendations, including thorough risk assessments, which directly contribute to their success in overcoming challenges. Moreover, our diverse team, comprising more than 35 nationalities, enables us to adapt seamlessly to clients from different cultures and languages. We cover a comprehensive range of legal practices, ensuring that clients receive holistic support across all their legal needs.
But what truly sets us apart is our approachability and the personal connections we build with our clients. We strive to make the legal process enjoyable and engaging, fostering a rapport that goes beyond the professional realm. This combination of expertise, diversity, and personalized service makes us unique and distinguishes us as the preferred legal partner for clients seeking exceptional representation.
How can free zone companies keep in legislation with new corporate tax requirements?
Free zone companies are required to:
- Register for Corporate Tax;
- Start preparing audited financial statements;
- Determine qualification as a free zone entity or assess potential benefits of electing to be subject to corporate tax, including advantages such as tax group and small business relief; and
- If part of a national or international group, conduct analysis of position within the group to optimize tax structure
Are there any conditions that grant exemptions from the new corporate tax legislation?
In order for a free zone to be categorized as a qualified free zone person and be exempt from paying the 9%, it should satisfy the below conditions:
- Maintains adequate substance in a free zone: The free zone person shall undertake its core income-generating activities in a free zone, in addition to having adequate number of qualified employees who are physically present in the UAE (temporary or long-term contracts), possess physical assets – to carry out the activity in a free zone, which can include offices or other forms of business premises, and incur adequate and appropriate operating expenditures;
- Has not elected to be subject to corporate tax;
- Complies with “Arm’s Length Principle” and “Transfer Pricing Documentation”;
- Derives qualifying income as specified in Cabinet Decision 55, namely (i) income derived from transactions with other free zone persons, (ii) income derived from transactions with a non-free zone person, as long as such transaction does not include excluded Activities but only qualifying activities, and (iii) any other income provided that the entity (free zone person) satisfies the De Minimis requirements;
- Its non-qualifying revenue does not exceed the De Minimis requirements; and
- Prepares audited financial statements.
What are your goals as a company for the next 5 years?
Our goals as a company for the next 5 years are ambitious yet attainable. Primarily, we aim to continue our growth trajectory by expanding our presence into additional countries across the region. Opening new offices will not only increase our geographical reach but also enable us to better serve our clients’ needs in diverse markets.
Attracting additional talent is a key objective. We recognize the importance of having a skilled and diverse team to drive our expansion and enhance our service offerings. By bringing in new talents, we can leverage their expertise to further develop and innovate our services, ultimately providing greater value to our clients.
Furthermore, we are committed to strengthening our position as market leaders in the legal industry. This involves continually adapting to evolving market trends and staying ahead of regulatory changes.
Overall, our overarching goal for the next 5 years is to solidify our position as a regional powerhouse in the legal sector, while maintaining our commitment to excellence, innovation, and client satisfaction.
Visit our website to find out more: https://bsabh.com/
