Explainer: How Corporate Tax is Reshaping the UAE Economy and SME Sector
Insights from UAE Experts
To understand the impact, we spoke with Paul Bryson, Managing Director at Virtuzone, and Maryia Vinahradava, Head of Corporate Services at Virtuzone.
Why Corporate Tax and Its Impact on SMEs
Paul: The UAE government aims to diversify the economy and reduce reliance on traditional markets. The corporate tax scheme can amplify the momentum of non-oil sectors, fostering focus on knowledge and innovation.
Maryia: SMEs benefit from simplified reporting obligations under the new law. Minimal requirements enhance their appeal to investors, domestically and abroad, facilitating operational ease and future investments.
Impact on Visa-Driven Businesses
Paul: Businesses targeting visas are unaffected, falling under the zero revenue category. While exempt from tax, registration and annual filing remain mandatory.
Maryia: Alternatives exist for visa seekers, including the 10-year golden visa for AED2 million deposit or property purchase. Existing property owners can also qualify for the Golden Visa with valuations exceeding AED2 million.
Common Questions and Sentiments
Maryia: Businesses seek guidance on optimizing tax situations, understanding obligations, and potential exemptions. Small Business Relief, offering exemption for revenue below AED3 million, is often overlooked.
Paul: The high revenue threshold benefits small businesses, setting the UAE apart from other countries with higher tax thresholds.
Legal and Compliance Obligations
Maryia: Apart from corporate tax, businesses must address VAT compliance, goAML registration (for certain sectors), and adhere to Economic Substance Regulations (ESR) for maintaining UAE presence. Guildhall’s executive search can help businesses build teams knowledgeable in these compliance areas.
Staying Compliant and Agile in a Dynamic Environment
Paul: The UAE’s evolving regulatory landscape demands expert guidance. Guildhall, as the largest corporate service provider, educates clients on compliance, simplifies transitions, and ensures frictionless adherence to corporate tax, VAT, and other regulatory requirements.
Build Compliant and Agile Teams with Guildhall
Explore Guildhall’s executive search and recruitment services to build teams equipped with the knowledge of corporate tax, VAT, and regulatory compliance. Contact us to ensure your business stays agile and compliant in the evolving UAE business landscape.