UAE corporate tax: Experts urge businesses to upgrade systems – News

And remind organizations to review laws and guidelines and make necessary adjustments

More than 300 businessmen, professionals and other stakeholders attended a recent tax awareness event held at the Indian Club in Dubai.

Organized jointly by the Indian Club, IBPC and the Tax Institute, the event focuses on corporate tax schemes in the UAE.

Special guest Dinesh Kothari, vice-chairman and managing director of Delhi Private Schools, said the introduction of corporate tax in the UAE was a “very progressive step” for the country.

Bharath Chachara, chief executive of the Indian Club, said the UAE corporate tax laws are “very simple and can be easily understood even by non-professionals”.

“It is also one of the lowest tax rates and the lowest compliance requirements will further strengthen the UAE’s global standing,” he added.

Naveen Sharma, President of the Tax Institute and Director of Events and Culture at the Indian Club, applauded the start of the implementation of corporate tax.

“Companies should carefully read ministerial decisions, laws and interpretive guidelines and start ensuring compliance,” Sharma said.

He also urged companies to review the transition rules covered in the plan and improve the quality of their IT systems and documentation.

Nimish Makvana, Chairman of the Tax Association and Senior Partner at Crowe UAE, said: “The UAE corporate tax laws are valid. Business leaders and professionals need to keep in mind the General Anti-Abuse Rules (GAAR) [Article 50] Before any restructuring or restructuring at the entity level. All businesses and professionals have a responsibility to follow the law and support government initiatives. “

Jay Krishnan, Senior Partner at HLB HAMT, said: “Recent government decisions have supported all small, medium and large companies by, among other things, setting high turnover thresholds for mandatory transfer pricing compliance.”

Sahitya Chaturvedi, head of accounts and treasury at Ajmal Perfumes, said corporate tax in the UAE was “a major shift towards a cultural shift towards globalization and transparency in transactions”.

Harsh Bhojani, Associate Director, AJMS Tax, said: “It is crucial for multinational corporations to assess tax implications against international tax laws, including tax treaties.”

Thomas Scaria, general manager of finance and board member of Joyallukas Jewelry, said the implementation of the gems and jewelery industry plan should pave the way for “more professionalism, self-regulation and better compliance in procurement and supply chain management”.

Manu Palerichal, Founder Partner and CEO, Emirates Chartered Accountants Group, said: “To determine the tax treatment of a free zone company, there are three steps to follow. First, the entity’s eligibility as a Qualified Free Zone Person (QFZP) is assessed. Then , analyze the type of customers it deals with. Finally, consider the nature of the business/activity.”