An End-Of-Year Planning Guide For Taxes In Abu Dhabi
Tax planning is an integral part of the end-of-year process in the UAE, and it’s important to take the time to understand the rules and regulations to make sure you’re fully compliant. Here is a helpful guide put together by the best Management and Financial Consultants in Abu Dhabi to guide you through the process.
Tips for End-of-Year TAX Planning
1) Identify Your Tax Liability
Before you can begin the process of tax planning, you’ll need to determine your tax liability. This can be done by calculating your taxable income and any deductions or credits you are eligible for.
As a consulting firm in Abu Dhabi, these are some things you can benefit from by incorporating this process in your end-of-year tax plans:
- Helps prepare you for unexpected situations such as Audits
- Gives you a better sense of your business’s well-doing
- Prepares you for future profits and losses
2) Review Previous Years
Tax planning involves planning for the current year, but it’s also important to review your taxes from previous years. If you can create a detailed report from the data that you have saved over the years, it will only be bound to be beneficial during tax planning for the next fiscal year. This can help you spot any areas where you may have overpaid or underpaid taxes and save money.
3) Make Use Of Deductions And Credits
The UAE has a number of deductions and credits that can be used to help reduce your tax liability. Some of the common ones are listed below:
- Interest Expenditure
- Entertainment Expenditure
- Deductions from a net income expenditure of a taxable person
- Make sure to familiarize yourself with the deductions and credits available to you and make the most of them.
4) Structure Your Business Retirement Plan
One great way to optimize your business retirement plan is to work with a professional financial advisor or your in-house/outsourced accounting team. They can help you determine the best type of retirement plan for your business and provide advice on how to make the most of it. Additionally, you should review your plan regularly and adjust contributions as needed to ensure it meets your business’s needs. Finally, consider adding features such as automatic enrollment and automatic escalation to make sure employees are participating and that their contributions are increasing over time. By taking these steps, at the end of the year and the beginning of a new taxable year, you can ensure your business’s retirement plan is properly optimized after calculating your yearly taxes.
5) Get A Consultation
There is no shortage of Tax Consulting Firms in Abu Dhabi and the best way to ensure that you’re making the most of your tax planning is to consult with an accountant or a reputed accounting firm that can provide you with expert advice and make sure that you’re taking advantage of all of the deductions and credits available to you.
It is important to choose the right tax consultants for your business that understand your need and can offer valuable solutions and enhance your tax planning for 2023.
We hope this guide helps you with your end-of-year tax planning in the UAE. Good luck!
If you’re looking for assistance with your Tax planning, click here to talk with our Experts.
