The Corporate Tax regime in the UAE will begin from June 1, 2023; however, as per leading UAE digital taxation company DgTx, businesses must start prepping for the Corporate Tax now.
Starting now can give businesses ample time to prepare for Corporate Federal Tax. Companies must comply with the new regulations and have the necessary systems and processes to calculate and pay their taxes.
DgTx warns that failure to comply with the new tax law could result in penalties and fines, significantly impacting a company's finances and reputation.
Experts at DgTx also opine that business owners need to consider the impact of Corporate Tax on their financial planning and decision-making. They may need to adjust their budgets and strategies to account for the new tax liability besides considering the effect of Corporate Tax on their profitability and growth.
Preparing for Corporate Tax in UAE may involve hiring tax experts like DgTx, who have years of experience in VAT and other taxes in the Middle East.
As per Parvez Sultan Rupani, Chairman of DgTx, "Implementing new accounting and reporting systems and training staff on the new regulations must be done at least 2-3 months ahead of the new tax regime."
It is crucial for businesses to start preparing as soon as possible to ensure a smooth transition and avoid any potential issues or penalties.DgTx encourages its clients to comply with corporate tax regulations.
As a leader in the innovation of digital taxation in UAE, Parvez Sultan Rupani shared: "Being Tax compliant demonstrates that a company is committed to operating transparently and in accordance with local regulations. It enhances a company's reputation, both locally and globally." - TradeArabia News Service