Founder & CFO guide
Business tax planning: the questions every founder and CFO asks
Good tax planning starts early, runs all year and is built into your structure and your financial model. These are short, plain answers to the questions we hear most — from timing and structure to succession, deductions, forecasting and UAE corporate tax.
Planning timelines
Tax planning is a year-round discipline, not a December exercise. The most valuable decisions are made before a transaction, a fundraise or a year end — not after.
How early should a business start tax planning for the year?
At the start of the financial year, then review at least quarterly. Structure, pricing between group companies, founder pay and investment timing are far easier to shape in advance than to fix after the year has closed.
When should a startup first speak to a tax adviser?
Before incorporating, and again before the first priced funding round. Early choices — where the holding company sits, who owns the IP, how founders hold shares — are expensive to unwind once investors are on the cap table.
What events should trigger a tax planning review?
Opening in a new country, hiring overseas, raising capital, launching an employee share plan, intra-group transactions, a large asset purchase, an acquisition or exit, and any change in tax law in a market you operate in.
Business structures
Your legal structure decides where profits are taxed, how cash moves to shareholders and how attractive the business is to investors.
How does business structure affect tax?
Structure determines which country taxes the profit, at what rate, and what happens when money moves — dividends, interest, royalties or management fees. It also affects reporting obligations, substance requirements and how a future sale is taxed.
Should we set up a holding company?
A holding company can simplify ownership of several businesses, ring-fence risk and make future fundraising or exits cleaner. Whether it saves tax depends on the jurisdictions involved, treaty access and genuine substance — it should be designed with a specialist, not copied from a template.
Does it matter where our investors are based?
Yes. Investors in some countries — the US in particular — may have their own tax reporting requirements tied to the company's structure, which can influence where you place the top company before a raise.
Succession and family wealth
For family businesses and private clients, succession planning protects value across generations and avoids forced or rushed decisions.
When should succession planning begin?
Years before any handover. Ownership, governance and estate arrangements take time to put in place, and many of the most effective options are only available when there is no time pressure.
What are good practices for tax-efficient business succession?
Document a clear ownership and governance plan, consider holding structures such as foundations or family holding companies where appropriate, align wills and shareholder agreements across every jurisdiction involved, and review the plan whenever family circumstances or laws change.
Deductions and expenses
Knowing what is deductible — and keeping the evidence — is one of the simplest ways to avoid overpaying.
Which business expenses are typically deductible?
In most systems, expenses incurred wholly for the business — salaries, rent, professional fees, marketing, software and depreciation on business assets. Entertainment, fines and some interest costs are commonly restricted, and rules differ by country.
Are tax advisory and professional fees deductible?
Ongoing advisory, accounting and compliance fees are generally deductible. Fees tied to raising capital or acquiring another company are often treated differently, so confirm the position for each engagement.
What records do we need to support deductions?
Invoices, contracts, proof of payment and a clear business purpose for each expense. In the UAE, corporate tax records must be kept for at least seven years.
Forecasting tax in your business plan
Investors expect a financial model that shows tax honestly. Underestimating it overstates cash runway and valuation.
How do we estimate taxes for a business plan?
Forecast taxable profit — accounting profit adjusted for non-deductible items and allowable losses — then apply the rate in each country you operate in. Add indirect taxes such as VAT, payroll costs and any tax on dividends paid to shareholders.
Should a loss-making startup still model tax?
Yes. Track losses carried forward, because they reduce tax once the company becomes profitable, and model VAT and payroll obligations, which apply whether or not you make a profit.
UAE corporate tax
The UAE introduced federal corporate tax for financial years starting on or after 1 June 2023. Every in-scope business must register and file, even when no tax is due.
What is the UAE corporate tax rate?
0% on taxable income up to AED 375,000 and 9% above that. Qualifying Free Zone Persons can keep 0% on qualifying income, and large multinational groups may be subject to a 15% domestic minimum top-up tax.
Do UAE free zone companies pay corporate tax?
They must register and file. A Qualifying Free Zone Person pays 0% on qualifying income, but only if it meets substance, audit and income conditions; otherwise the standard 9% rate applies.
When is the UAE corporate tax return due?
Within nine months of the end of the tax period. A 31 December year end means filing and payment by 30 September of the following year.
What does corporate tax planning in the UAE involve?
Confirming free zone eligibility, separating qualifying and non-qualifying income, documenting transactions with related parties at arm's length, using available reliefs such as small business relief or group relief where eligible, and keeping audit-ready records.
Prepare for your adviser meeting
Enter your location, structure and growth stage to get a tailored checklist of topics to raise.
Build my checklistRelated services and guides
This guide is general information, not tax advice. Rules change and depend on your circumstances; KH Group 7 works alongside licensed tax professionals in each jurisdiction.
Talk to a partner