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Is your Business ready for Corporate Tax in UAE?

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Is your Business ready for Corporate Tax in UAE?

Corporate Tax in UAE

The corporate tax in UAE will be effective from 1st June 2023 and the Ministry of Finance will soon release the official draft on the new tax law. Is your company ready for the new major change in UAE tax compliance? 

There are various questions yet to be clarified with regards to the compliance, tax payments and administration. However, businesses should start planning and preparing for the new regulation from NOW. 

Recommended steps to follow: 

Start NOW: The best time to start planning and preparation is NOW. 

Upskill your employees: As this is the first time a direct tax is introduced in UAE, employees should learn various principles and acts to comply with the new regulation. 

Internal controls/Audit: Have internal controls set to track all the transactions as per the compliance required. 

Documentation: Store all the business related documents and make it accessible at any time as it will become mandatory to produce documented proofs while auditing. 

Period end processes: To be compliant with the filing of returns on time, the books period-end closing books should be done on time. Have the right processes in place to record all transactions on time for early closing of books.

Cash Flow management: The primary concern of any business is management of cash flow. With the new addition of corporate tax, it directly impacts the cash flow and hence the cash flow should be carefully managed. 

Business Software: This is one of the most important steps as having a right ERP system will make the whole process of compliance and return filing easier. FactsERP is FTA accredited and locally developed software which accommodates the timely statutory updates from government authorities. Also both the technical and support team of FactsERP is based in the UAE. 

Multi Location & Currencies: Companies having branches in multiple locations and dealing in multiple currencies should update the currencies as per the filing requirements set by authorities in local currency. FactsERP supports multi-location, multi-currency, multi-companies and multi-departments. 

Inter-company transactions: With the impact of taxation on inter-company transactions, the system should be able to identify the type of transactions and support reconciliation. This is where software like FactsERP helps companies with Corporate Tax ready systems and processes.

To know more information or for a Quick DEMO of Facts ERP, call now on 052 640 3949.

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