Compliance complexity is a major challenge for businesses

For home-grown businesses that have thrived in the tax-free regime of the UAE, acclimatising themselves to the new corporate tax ecosystem is a huge task. Misconceptions abound about exemptions, excluded activities, qualifications for zero per cent taxation in free zones, mainland intercompany transactions, transfer pricing rules and more, said Sahil Mehta, CEO of Shuraa Tax Consultants, on the sidelines of Invest UAE, organised by Gulf News. “All these are quite new and challenging concepts for businesses. There are chances of misinterpretation if a layperson tries to understand the legislation by himself. That's where we add value.”

According to Mehta, compliance complexity is a major challenge for businesses. With the help of professional service providers such as Shuraa Tax Consultants, businesses can become compliant and safeguard their interests. “We put forward the best and simplest legislation suitable to their business requirements and help them plan their financial reporting while ensuring they adhere to the highest regulatory requirements and their books are in accordance and prepared in a fair manner," he said. "From corporate tax assessment to planning their revenue streams, expenses, advising on transfer pricing methods and filing of taxes, we help clients so that they don’t end up paying any penalties or fines.”

Moreover, becoming tax-compliant gives businesses a competitive edge. “This will give businesses an enhanced reputation, advanced access to finances as well as get lesser legal exposure," he added.