Most UAE companies are unprepared for UAE corporate tax

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  • Dubai-based CS Events brings together accounting, finance, tax lawyers, CFOs and compliance professionals at the UAE’s premier Corporate Tax Forum to be held at the Dusit Thani Hotel on September 15, 2022

Dubai, UAE: Around 85% of the 650,000 UAE-registered businesses belonging to the Micro, Small and Medium Enterprise (MSME) categories in the UAE are moving from a tax-free environment to an unprepared tax regime, as the country prepares for the UAE corporate tax which will come into force in June 2023.

The UAE will introduce a corporation tax on business profits for fiscal years beginning on or after June 1, 2023. There will be no tax on profits up to Dh375,000, which will help small businesses.

“The introduction of a corporate tax regime will help the UAE achieve its strategic ambitions and provide incentives for businesses to establish and expand their businesses in the UAE,” said H.E. Younis Haji Al Khoori, Undersecretary at the ministry. of Finance, in a statement earlier that “The new corporate tax regime takes the UAE through several steps to comply with international standards for “tax transparency” and prevent “harmful” practices.

According to the most recent estimates from the International Center for Tax and Development, total tax revenue represents more than 80% of total government revenue in about half of the countries in the world – and more than 50% in almost all countries. The GCC countries have been an exception to these rules – remaining largely exempt from corporate or personal income tax.

In 2020, tax and social security revenues fell by €215 billion in the European Union compared to 2019, to stand at €5,530 billion. Corporate tax revenue in the United States was US$372 billion in 2021. Forecasts predict that corporate tax revenue will increase to US$505 billion in 2032.

However, as a country, the UAE is new to taxation, as are the people living and businesses operating in the country.

Although businesses belonging to the MSME categories and therefore fall outside the scope of the UAE 9% corporate tax which applies to a minimum of MAD 375,000 of profits generated by businesses during one year of filing, they will still have to go through proper financial reporting and tax filing processes, even if that means “0” tax payable, experts say.

Most of them do not have a proper accounting system, let alone a financial reporting process, which will complicate the filing of their corporate tax returns.

In order to review the situation, raise awareness and help the private sector prepare for UAE corporate tax, Cogent Solutions Event Management, an innovative event management organization based in Dubai, is organizing the UAE Corporate Tax Forum on September 15, 2022, at the Dusit Thani Hotel in Dubai, which will encourage companies to start the process of auditing and financial reporting for UAE corporate tax.

“The UAE private sector transitioning from a tax-free environment to a tax regime will need to undergo a cultural shift over the next nine months. They will first have to adapt to a new mindset and way of thinking, and then get used to a proper accounting and financial reporting process – for starters,” Nizam Deen, Founder and CEO of CS Events – organizer of the UAE Forum on Business Taxation, says.

“Unfortunately, the majority of companies registered in the UAE do not have a proper accounting system and documentation, especially those that are under the value added tax (VAT) threshold of Dh375,000. introduction of VAT in 2018 has helped many businesses get used to the basic tax process, however the UAE corporate tax will push them to engage in a proper audited financial reporting process – which may become mandatory for everyone.

“The question is, does the UAE have a sufficient pool of corporate tax professionals to handle the auditing and financial reporting of over 650,000 companies spread across the UAE? The UAE Corporate Tax Forum will examine the challenges and opportunities for tax professionals in the coming months. »

Tax experts from government regulators, banks, law firms and tax authority associations register to meet at the UAE Business Tax Forum to understand the processes, implications and its impact on the economy.

Cogent Solutions Event Management’s UAE Corporate Tax Forum will help UAE companies understand the fundamentals of UAE corporate tax and its inferences in the region. Most importantly, this event will help create an understanding of UAE corporate tax in your business and how to plan for it.

The UAE Corporate Tax Forum is the most influential gathering on September 15, 2022, focused on exploring the landscape of corporate taxation and its implications.

The event will bring together over 170 senior delegates including CFO, CEO, Head of Tax, Head of Audit, Head of Finance, Area Account Manager to gain knowledge and insights from the region’s top industry leaders and experts. on corporate taxation and its challenges.

The UAE Corporate Tax Forum will feature interactive panel discussions and in-depth analysis of insights provided by experts such as Hany ElNaggar – Group Direct and International Tax Leader in a leading GCC company, Basel Abughazaleh, Regional Business Tax MENAT Leader at HSBC; Seema Sharma, Head of Tax Group at Network International; Nauman Asif Mian, CFO of Bayt.com; Francisco Sousa Soares, vice-president taxation at Taqa Group; Manish Arora, regional tax director at Schneider Electric; Faizan Dar, tax specialist in a large FMCG company; Aparna Lakshminarasimhan, Group Transfer Pricing Manager at GFG Alliance; Zeeshan Humayun, Director of Transfer Pricing at PwC, moderator.

The UAE Business Tax Forum will also provide an opportunity for tax consultants, law firms and enterprise resource planning (ERP) solution providers who are eager to showcase their products and services and respond to industry needs. Confirmed sponsors include PwC, MMJS as sponsor and exhibitor respectively and TAQA as supporting partner.

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About Cogent Solutions Event Management (CS Events)

A leading “customer-centric event management company” built on the belief of getting the right information to the right people at the right time – through business conferencing.

Delivering high quality, customer-centric conferences and conference rooms that solve immediate market problems by providing full control to our clients and customers is why we exist, “we are Cogent Solutions Event Management” , we challenge the status quo and aim to host the best events in the industry.

Established in April 2020, CS Events has become one of the most successful corporate event management companies in the UAE, working with major government entities and multinational private companies. Thanks to their unique belief in “challenging the status quo” and “truly putting customers first”.

Since its inception with just one employee, CS Events has gone from strength to strength with its deep industry knowledge, ability to understand customer needs and specifically create conferences and executive meeting rooms that solve immediate problems. of the market. It currently has a team of 17 professionals as it seeks more professionals to expand its business.

Its team of highly experienced industry professionals create distinctive and targeted virtual, hybrid and physical conferences for businesses to communicate their valuable message to a pre-qualified and targeted audience. His ‘Crowd Connect’ conferences offer companies unique access to any market, industry and high-level decision makers anywhere in the world, without access restrictions.

Web: www.cseventmanagement.com

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