Case Studies
Client overview:
T G PRODUCTIONS LLC is a Limited Liability Company registered in Sharjah Media City
(Shams Free Zone), UAE, operating in advertising and market research services. The company's business activities include advertising and market research/public opinion polling.
Helping a UAE Free Zone Company Reduce Corporate Tax to 0%
Challenges
The company was registered under UAE Corporate Tax and required to file its Corporate Tax Return with the Federal Tax Authority (FTA).
During our financial review:
- Annual turnover: AED 2.8 million
- Net profit: AED 2.0 million
The client assumed they would need to pay Corporate Tax at the standard 9% rate, resulting in an estimated tax liability of approximately AED 180,000.
This created concerns regarding tax cost and financial planning for the business.
How AB Capital Services Helped The Client
1. Detailed Eligibility Review
AB Capital carefully reviewed the company’s financial records and confirmed that the annual
revenue of AED 2.8 million was below the AED 3 million threshold specified under Small Business Relief provisions of the UAE Corporate Tax Law.
2. Identifying the Right Tax Benefit
Our tax advisory team identified that the client could elect for Small Business Relief, which
allows qualifying businesses to be treated as having no taxable income for the relevant tax
period.
3. Corporate Tax Planning and Return Preparation
AB Capital prepared the Corporate Tax computation and filing strategy, ensuring that the Small Business Relief election was correctly applied while filing the Corporate Tax Return.
4. Ensuring Full FTA Compliance
We guided the client through the FTA compliance requirements, including proper documentation
and future reporting obligations.
- Experience handling international trade businesses
- A risk appetite aligned with petrochemical trading
- Flexible compliance frameworks for complex cases
Result
With AB Capital’s advisory support:
- Estimated AED 180,000 Corporate Tax liability reduced to AED 0
- Client successfully utilized Small Business Relief
- Company achieved full compliance with UAE Corporate Tax regulations
