XYZ Technology LLC Location: Dubai
Extracts from Financial Statements:
- Revenue : 14 million
- General & Admin exp. : 7 million
- Interest : 1 million
- Net profit : 6 million
Break up of G&A expenses:
Salaries and employee benefits : 2 million
Depreciation : 1 million
Hotel expenses for a Customer visit : 100,000
Other Operating expenses : 3.9 million
Calculation of Taxable Income and Tax payable:
Revenue : 14 million
Less:
Salaries & benefits : 2.00 million
Operating exp : 3.90 million
Depreciation : 1.00 million (reasonable)
Hotel Expenses : 0.05 million (50% allowed)
Interest Expenses : 1.00 million (within de-minimis rule)
Taxable Income : 6.05 million
Tax payable at 9% above the threshold of AED 375000.