Tally Solutions, a leading business management software provider, hosted an engaging panel discussion on UAE Corporate Tax: Connecting the Dots with the Experts. Aimed to provide an opportunity to small and medium enterprises, corporates, and individuals about pre-requisites of the upcoming corporate tax, the event witnessed registrations from 1,200+ businesses and was LIVE streamed on Tally’s social media page with over 7,000 people watching it live.
In addition, 100+ individuals attended the event in-person, where six tax experts focused on topics relating to Freezone Business, Mainland Business, Exemption, Transfer Pricing, Management Remunerations, and a lot more.
Vikas R Panchal, General Manager – MENA, Tally Solutions, said, “The UAE is witnessing a massive growth and the introduction of the corporate tax will help businesses witness highest standards of transparency, that will not only encourage more investments in various key economic sectors, but also serve as a competitive edge for their operations.
"This event was an effort to help organisations gain greater awareness and deeper insights on the impact corporate tax will have for their business. It aimed to strengthen their knowledge on key areas to be considered to comply with the new law, whilst ensuring easy communication with the experts. The event saw some of the best minds come together and we are overwhelmed with the positive response received from the business community."
Attended by a number of business representatives, the panel discussion provided a comprehensive overview of the proposed Corporate Tax Regime in the UAE. It highlighted how the introduction of the lowest corporate tax (9 per cent) on net profits of businesses, will be effective for all emirates for Financial Years starting on or after June 1, 2023. The panel discussion witnessed the presence of key experts including Chartered Accountants and Business Specialists like CA Anurag Chaturvedi, CA Manish Kothari, CA Rajiv Hira, CA Mayank Sawhney, CA Manu Palerichal and CA Manoj Agarwal.
CA Manoj Agarwal, said, “Corporate tax in the UAE is one of the lowest making it the most competitive regime in the world. In addition to the existing revenue streams of the government, taxes will not only contribute to its revenue stream but will also bring about greater transparency in businesses. With the increase in multinational corporations being established in UAE, businesses have now to evaluate their financial statements from a corporate tax perspective which also brings within its ambit the need to analyse inter-company transactions and cross border relationships to comply with provisions of transfer pricing.
"These provisions require corporations to streamline their existing process and documentation methods, in line with OECD guidelines, to ensure accurate and up to date information being captured as part of master and local files. Further, KPIs can be a useful tool for monitoring operations and to support tax positions during audits. The law also recognizes the contribution of free zones and SMEs by introducing the benefit of 0% tax rate on qualifying incomes and providing some relief to such SMEs."
Ease of doing business has always been a top priority for the UAE and the introduction of Corporate Tax will serve as a competitive advantage for organisations. It is to be noted that though the law is effective from June 1, 2023, in the case of an entity following the financial year starting from January and ending in December, such entity will be liable to pay tax only from January 1, 2024. Hence there is no tax liability for the seven-month period [June 2023 till December 2023] and no hazards to split the books of accounts for the year 2023.
Further there is enough time for the businesses for implementing CT eco system within their organizations. There is no requirement to pay advance tax like in other countries. The payment is expected to be made within nine months from the end of the financial year.
Over the coming months leading up to the launch of Corporate Tax in UAE, Tally will be taking several efforts to educate the business community on the new tax regime. The company is working closely with several tax experts and CA community to ensure that the businesses in the region can seamlessly transition with the help of technology.