Is your UAE-based business ready for corporate tax?
If you have a UAE-based business, then you might be among the businesses and tax professionals that are getting ready for the corporate tax law that is expected to go into effect on or after the 1st of June, 2023.
What is corporate tax law?
Corporate tax law is imposed on the net income or the profit of a business. It can also be termed as ‘Corporate Income Tax’, or ‘Business Profits Tax’.
What is the purpose of the UAE’s introduction of corporate tax law?
The new corporate tax regime is based on international best practices to ensure that the UAE finds itself leading the global hub for businesses and investments from various countries across the world. The new corporate tax also expects that the law imposition will accelerate the development and transformation of the UAE.
The Corporate Tax regime is also a way to strengthen the commitment that the UAE made to meet international standards of transparency in tax and its practices.
How to prepare your business for the corporate tax law?
We have a few ways that will help you make your business ready for corporate tax.
- Acceptance
What most businesses fail to do when change hits them is that they cannot leave behind the idea of old ways. And this is what most business requires first to prepare for the real scenario by understanding everything that will change their business.
- Make it known to all
Everyone who is associated with your business should know the changes that you all will face in the coming future. Although the law is not officially in effect as of yet, you can easily find important details from the announcement itself.
- Take a bottom-up approach
You might want to calculate the tax impact by applying the tax rate to the net profit. But the best way to do it is to assess it from the lowest hierarchy and individually assess the impact on every level of your business. This could include various business operations, and you can figure out our business inefficiencies and improve operations.
Conclusion
Consultycs goes above and beyond to understand your business at every level and present you with appropriate solutions when it comes to businesses in UAE.
