UAE businesses gear up for corporate tax

UAE businesses gear up for corporate tax

The UAE’s corporate sector has geared up their efforts to comply nine per cent corporate tax that will be effective in June 2023, however majority of the businesses are not yet ready to keep their accounting and auditing process up to date, experts say.

The proposed nine per cent new levy will be applied on companies generating more than Dh375,000 net profit per year from June 2023, which requires thorough accounting and auditing process. More businesses and investors are getting the commercial and trade licences to set up their base in the UAE as the government launched visa and business reforms to diversify its revenue sources.

The UAE’s National Economic Register’s latest data indicates that the total number of registered active business licences in July 2022 rose 1.9 per cent to 665,246 compared to 652,885 licences issued in December 2019.

Pratik Rawal, managing partner at Ascent Partners, said the new visa reforms, ability to obtain 100 per cent ownership with LLC setups and budget free zones have enabled startups and established businesses to build presence in UAE.

“The coming years, businesses in the UAE will have a lot to look up to and evolve as each segment will need to thrive to meet the