Corporate tax regime could boost UAE economy, experts say

The UAE’s upcoming corporate tax will further boost the country’s status as a global business hub, experts told a conference on Monday.

The Indian Club, IBPC and Tax Institute held a joint meeting on corporate tax at the Indian Club on May 15, attended by more than 450 businessmen and professionals.

Indian Club Chairman Siddharth Balachandran said the new corporate tax legislation is an important milestone in the UAE’s journey towards overall excellence and becoming a major financial metropolis. “We at the Indian Club have worked together with the governments of Dubai and the UAE to make this landmark development a smooth implementation and a success. This series of workshops is one such effort and I hope it will be invaluable in terms of a comprehensive understanding of the proposed tax laws Helps a lot,” he added.

IBPC Chairman Suresh Kumar stressed that the corporate tax will affect multiple industries. “Given the impact, there needs to be ongoing dialogue and some level of policy advocacy in addition to these awareness series. We are preparing to create a working group to be responsible for policy advocacy,” he said.

Naveen Sharma, Chairman of the Taxation Institute and Director of Indian Club Events, said the UAE has one of the lowest tax rates. “Coupled with minimum compliance requirements and clear laws, it will further enhance the UAE’s status as a global business hub,” he added.

Nimish Makvana, Senior Partner at Crowe UAE and President and Co-Founder of the Taxation Society, highlighted compliance in the new era of corporate taxation that will begin on June 1, 2023. “Businesses that thrive in this prosperous country – now is the time for them to comply with the expectations of the authorities and support government initiatives,” he said.

Nilesh Ashar, Senior Managing Director and Middle East Tax Leader at FTI Consulting, highlighted the relief in the new law. “The UAE CT Law simplifies legal compliance by allowing taxpayers with 95% direct, indirect and joint ownership and meeting certain additional criteria to form a single tax group and file a single tax return. regulatory burden,” he said.

TP Anand, Chief Strategist, Leap Business Excellence Advisory FZE, elaborates on how the Small Business Relief Package is a huge boon for start-ups and SMEs in the UAE, which make up the vast majority of the country. “Under certain conditions, business entities with an annual revenue of less than Dh3 million can receive relief,” he said.

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