UAE’s rollout of the tax system is part of its efforts to diversify its sources of revenue beyond oil receipts and create a more stable and sustainable revenue stream for the government. Additionally, the move reflects its wise leadership’s initiatives to align the country with the best global practices as the UAE speeds up its shift to a knowledge-based economy and continues to strengthen its non-oil sectors.
The value-added tax (VAT) was officially introduced in 2018. This year, the corporate tax law will formally take effect at a headline rate of 9%, one of the lowest globally. For businesses, especially companies belonging to the small and medium enterprise sector, this means ensuring full and proper compliance.
As the process could be cumbersome, partnering with professionals who specialize in tax law and financial-related counseling can be beneficial. Tax experts are equipped with knowledge and skills to help your company navigate tax complexities, ensuring your compliance with regulations and minimizing the risk of penalties.
Here are the top 3 reasons why collaborating with tax experts is a great investment in the short- and long-term.
- They ensure that you remain compliant despite changes in regulations. Tax laws and regulations are not only complex but can also change. If you are unable to keep up or are not updated, this will pose a major challenge. Tax experts have the knowledge and expertise to keep businesses up-to-date on any changes that may impact them. By partnering with tax experts, businesses can mitigate the risk of non-compliance and avoid costly penalties and audits.
- They help you avoid potential tax liabilities. With their knowledge, tax experts can help you assess potential liabilities and risks as well as propose solutions for better and more efficient action. They are also equipped to help you maximize tax savings, which you can use to invest in other areas of your business operations.
- They help you optimize your resources. Preparing and filing taxes are time-consuming. By partnering with tax experts, you can delegate these tasks to them. Be sure to collaborate with professionals who have the right technology to help you meet your reporting requirements. This way, you are saving valuable time and resources, allowing you and your team to focus on other tasks vital to your growth.
As a business mandated to adhere to the corporate tax law, you need to ensure that you have the right people to work with you to avoid financial and legal repercussions. Ultimately, working with tax experts will help you succeed as you adapt to the new tax regime set to be implemented in the country in June
