Finance World Magazine| Edition: March 2024

Interview
is essential to factor in tax obligations
while budgeting and forecasting profits,
ensuring a smooth transition without
compromising operational efficiency.
Having said this, there is a small business
relief available under the new tax regime
to support small businesses and startups
in the UAE by offering them the
option of paying zero taxes and reduced
compliance under specified conditions.
The intent behind the small business
tax relief is to support local businesses
with lower annual revenue and reduce
their costs in order to help them thrive.
A proactive approach needs to be
adopted by businesses on the tax front.
Businesses will need to evaluate their
existing structures, accounting policies
and systems to ensure compliance with the
corporate tax regime. It is also important
to undertake an impact assessment
in the light of the new corporate tax
and transfer pricing regime to ensure
a smooth implementation, rather than
considering it as an after-thought Having
a robust IT infrastructure in place,
training in-house teams and setting-up
integrated tax system function will be
critical to smoothly navigate into the
new tax era.
Q. Are there specific industries
or sectors that you believe will
be more significantly affected by
the introduction of corporate tax,
and how should businesses in these
sectors strategize to adapt?
The UAE’s introduction of a federal
corporate tax regime will have significant
impact across all industries and sectors.
The federal tax system is applicable to
all businesses and commercial activities
operating within the country’s seven
emirates. It is essential to conduct a
thorough impact assessment of the new
corporate tax regulation in the UAE on
your company/organisation to mitigate
any potential risks and prepare for
necessary changes. Additionally, businesses
must consult with tax professionals or
seek expert advice if needed to ensure
compliance and minimise any adverse
effects on a company’s financial stability
and growth.
Q. In your interactions with clients,
what are the most common concerns
or questions they express regarding
the impact of corporate tax, and
how do you address and alleviate
those concerns?
UAE businesses face challenges in
understanding and complying with the
new corporate tax framework. Businesses
will need to establish reliable accounting
systems and processes to be able to
navigate through the new tax framework.
Accounting software plays a pivotal role
in supporting global tax compliance in
today’s complex business environment.
By centralising financial data, managing
multiple currencies, automating tax
calculations, and simplifying reporting
and filing processes, accounting software
can significantly reduce the burden of
tax compliance and minimise the risk of
penalties. The introduction of the new
transfer pricing regulations would also
be a game changer for most businesses
in the UAE as intercompany transactions
both cross-border as well as domestic
would now have to be undertaken at
arm’s length and supported by robust
documentation in line with OECD
transfer pricing guidelines.
It is crucial for companies to plan
for the new tax regime, assess their
current systems and procedures, seek
expert advice and adapt their business
strategies wherever necessary in order
to remain competitive and thrive in the
new tax regime and cost environment
in UAE.
Q. As someone with over two decades
of experience, how do you stay
motivated and inspired in your
work, and what advice do you have
for professionals entering the field
today?
Tax is a fast, exciting profession.
It’s a people business, full of change
and opportunity. Tax has always been
my passion. The adrenaline rush of
managing the needs of a client keeps
me on my toes. What I enjoy most about
tax is that it is always changing. There
is no shortage of new things to learn. It
allows me to work with a wide variety
of clients with different tax needs,
which gives me the opportunity to
problem-solve in different areas of tax.
Adapting to the changing tax system
really helps me to grow critical thinking
and problem-solving skills continually.
Professionals who are detail-oriented
and love solving problems will have a
great career and will thrive in this field.
12 www.thefinanceworld.com March 2024