The UAE’s corporate tax regime will come into effect on June 1, 2023; however, according to DgTx, a leading UAE digital tax firm, businesses must start preparing for corporate tax now.
Starting now can give businesses ample time to prepare for their corporate federal taxes. Companies must comply with the new regulations and have the necessary systems and processes in place to calculate and pay taxes.
DgTx warned that failure to comply with the new tax law could lead to penalties and fines that could seriously affect the company’s finances and reputation.
Experts at DgTx also believe that business owners need to consider the impact of corporate taxation on their financial planning and decision-making. In addition to considering the impact of corporate tax on their profitability and growth, they may need to adjust their budgets and strategies to deal with new tax obligations.
Preparing for corporate taxes in the UAE may require hiring a tax expert like DgTx who has years of experience in VAT and other taxes in the Middle East.
According to DgTx Chairman Parvez Sultan Rupani, “Implementation of the new accounting and reporting system and training of staff on the new regulations must be done at least 2-3 months before the new tax regime.”
Businesses must begin preparations as soon as possible to ensure a smooth transition and avoid any potential problems or penalties. DgTx encourages its clients to comply with corporate tax laws.
Parvez Sultan Rupani, UAE Digital Tax Innovation Leader, shared: “Tax compliance shows that a company is committed to operating transparently and in compliance with local regulations. It enhances the company’s reputation locally and globally.” – TradeArabia News Service