How UAE businesses have prepared for corporate tax

Businesses across the UAE are preparing for the introduction of the federal corporate tax, which takes effect from June 1.

It will be the most significant tax after the UAE introduced the 5 per cent value added tax in 2018 on a majority of goods and services as part of its plans to diversify the economy and reduce its dependence on hydrocarbons.

The new corporate tax will be enacted at a standard statutory rate of 9 per cent for companies whose financial year begins on or after June 1.

The Ministry of Finance brought the income of companies exceeding Dh375,000 ($102,000) within the taxable bracket.

Taxable profits below that threshold will be subject to a 0 per cent rate.

The National takes a closer look at how businesses in the UAE have prepared for the coming tax.

The Ministry of Finance has been issuing several decisions related to the tax in recent weeks to provide more clarity.

Last week, it issued three new ministerial decisions that explained exemptions and the preparation of financial statements before the introduction of corporate tax.

“We have strengthened the due diligence process in our accounting system to weed out any anomalies,” said Rizwan Sajan, founder and chairman of Danube Group, a building materials company.

“We are conducting impact analysis for the group and adopting necessary changes, making sure that we are ready for the smooth implementation of corporate tax.”

The Federal Tax Authority, responsible for the administration, collection and enforcement of the tax, opened up the EmaraTax digital tax services platform for public joint stock companies and private companies to register from May 15.

“Early corporate tax registration will allow ample time for companies and businesses to comply with their legal obligations,” the FTA said.

Danube Properties and DLD sign an agreement to offer instant onsite Initial Sale Contract to customers

Dubai, UAE: In a historic development, Danube Properties, the UAE-based affordable housing pioneer and one of the most dynamic private real estate developers, signed a landmark agreement with Dubai Land Department to deliver on-site Initial Sale Contract (Oqood) almost instantly.

Once the necessary processes are completed, Oqood will be delivered instantly to Danube property buyers as compared to a longer standard process – saving time, hassle, and steps for investors – offering the highest level of customer happiness.

The agreement reflects Dubai Land Department’s growing confidence and trust in Danube Properties – which has emerged as one of the fastest-growing real estate developers having launched and sold six projects in a year from January 2022.

The move comes as Dubai Land Department – Real Estate Registration Sector – strengthens its service delivery to real estate buyers and will go a long way in strengthening investor confidence in Dubai’s real estate sector which has seen property transaction value jump 76.5 percent to Dh528 billion last year, compared to Dh300 billion in 2021.

Majid Saqr Abdullah Al-Marri, Chief Executive Officer of Real Estate Registration Sector at Dubai Land Department, said, the move is in line with Dubai Government’s vision to offer the best and most seamless customer experience in real estate.

“Dubai Land Department has been improving ways to make property transactions seamless and more efficient with the use of the latest technologies. This agreement with Danube Properties reflects our willingness to take our services to the customers’ doorsteps and fingertips. Instead of property buyers coming to us, we are going to them – through real estate developers – at their offices,” he, said.

“This is in line with the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council – who are constantly guiding us to innovate, evolve and excel in our service delivery to strengthen the customer experience.”

Rizwan Sajan, Founder and Chairman of Danube Group, expressed his gratitude to His Excellency Sultan Butti Bin Majren and Dubai Land Department for extending such facilities to Danube Properties.

“In other countries, developers and property buyers spent days and months to secure a property title deed due to cumbersome processes. The government and Dubai Land Department have remained at the forefront of government service innovation that simplifies government processes by delivering the services at our fingertips.”

“This new landmark initiative reflects the forward-looking and proactive vision of the Dubai Land Department to reach out to the property buyers and developers – who can now get their Oqood registered onsite and almost instantly. This is unheard of in this part of the world and makes Dubai Land Department one of the smartest land registries in the world.”

Danube Properties launched six projects, worth Dh3.42 billion from January 2022 to January 2023. The developer’s current development portfolio includes 22 projects and 10,713 units, with a combined sales value exceeding Dh10 billion.

In 2023, the developer launched two large residential projects in association with two luxury brands. The recently launched Fashionz is Dubai’s first FashionTV branded residence. In January, it launched and sold out the iconic Dh 2.05 billion project – Viewz at the Jumeirah Lakes Towers (JLT). The project will come with Aston Martin furnishings and will redefine luxury living through. In 2023 only, Danube Properties has already launched two luxury residential projects in just 4 months.

Danube Properties offers homeowners a 10-year Golden Visa – especially those who qualify as per the investment criteria – subject to government approval. As one of the most successful developers in the UAE with the highest launch-to-delivery ratio, Danube Properties has recently delivered Bayz, Glamz, Starz, Resortz, Elz, and Lawnz while it prepares to deliver three more projects this year.

Recently, Danube Properties unveiled Fashionz, a FashionTV-branded residential project. Located in the heart of Dubai, Fashionz by Danube is a luxurious residential tower featuring 700+ apartments spread over 65 floors. Each apartment is designed to embody the sophistication and glamour associated with the extravagant FashionTV brand. Fashionz is Danube’s commitment to affordable luxury for the residents of Dubai with apartments starting at Dh 850,000.

About Danube Properties

Danube Properties, part of the Danube Group, made its foray into the real estate market in June 2014, by launching the Dh500 million 171 townhouses at Al Furjan. Since then, it continued to expand its development portfolio by launching Glitz Residence I, II, III, Starz, Glamz, Miraclz, Resortz, Bayz, Jewelz, Elz, Lawnz, Wavez, Olivz, Skyz, Gemz, Opalz, Petalz, Elitz, Viewz, and Fashionz projects.

The company currently has a development portfolio of 10,713 units, with a combined value exceeding Dh10 billion. It has so far delivered 4,555 units with a combined sales value of Dh3.63 billion.

For additional information on Danube Properties, visit:

About Danube Group

Danube Group is a Dubai-based diversified business conglomerate with interests in building materials, home décor, and property development. Established in the year 1993 by Founder and Chairman Rizwan Sajan – Danube Group, an Emirati Businessman has achieved a US$1.3 billion (Dh5 billion) annual turnover in 2019.

The group’s flagship company, Danube Building Materials FZCO, is the largest supplier of quality building materials in the Gulf Cooperation Council (GCC) countries. It provides more than 25,000 products in stock and in-house value-added services in all its multiple sets of showrooms across the Middle East region and India. The company operates from its head offices in JAFZA with logistics facilities across the region which amount to 5 million square feet and includes a kiln drying facility, factory, and warehouses of the group.

From a small trading firm, Danube has grown into one of the largest building materials companies in the region, with its diversified branches worldwide including UAE, Oman, Bahrain, Saudi Arabia, Qatar, and India, in addition to procurement offices in China and Canada. Danube Home is one of the largest home décor retailers in the GCC with a growing footprint across the region. Danube Properties is one of the largest private property developers in Dubai with a portfolio of 10,713 units in 14 projects, worth over Dh 10 billion. It has delivered 7 out of the 14 projects in six years. Danube Group has a team of 4,200 plus people working across strategic locations across the GCC and India.

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