Are businesses prepared for Corporate Tax in the UAE?

Are businesses prepared for Corporate Tax in the UAE?

Release of the Corporate Tax Hand Book of ECAG by ICAI Dubai Chapter Chairman CA. Anurag Chathurvedi, Vice-Chairmen of both Abu Dhabi and Dubai Chapters in presence of Manu Palerichal CEO & partner at ECAG and Ajith Kumar, partner at ECAG and others. — Supplied photo

Businesses will be required to review the ownership structure, check on impact of forming a Tax Group and review of their activities in free zone and mainland.

Published: Tue 24 May 2022, 6:09 PM Last updated: Tue 24 May 2022, 6:12 PM

Businesses in the UAE are at the doorstep of Corporate Tax. Only one year to go for the effective date, that is June 1, 2023. The MoF released a Public Consultation Document (PCD) to collect and appraise the responses of stakeholders. On review of PCD, businesses required clarity on certain aspects like, implications on MNEs, services rendered by free zone persons, purchase/sale transactions between group companies in the free zones and mainland, etc., for which the representation has been submitted by professionals and business communities in the UAE.

Since there is only one year left for applicability of the CT provisions, the businesses should start to evaluate the potential implications of CT by conducting internal assessment