Requirements, processes related to new corporate tax system examined

Dubai Chamber of Commerce recently hosted a workshop on the UAE Corporate Tax system at its headquarters, which was attended by over 330 participants from the business community, representing various economic sectors.

Organised in collaboration with leading law firm Al Tamimi & Co., the workshop supported the Chamber’s efforts to keeping companies informed of key legal developments that are transforming the business environment.

During the event, participants were briefed on how corporate tax will be implemented in the UAE, highlighting the expected impact it will have on corporate profits. The session also sought to educate attendees on how to comply with tax requirements and plan for a smooth transition for when the new tax comes into effect.

The UAE had recently announced the introduction of the Corporate Tax system, set to be implemented in June 2023, where tax will be collected at a basic rate of 9 per cent on company profits exceeding Dhs375,000, while a rate of 0 per cent will be calculated for companies whose profits fall below the threshold, in an effort to support startups and SMEs.

During the workshop, Shiraz Khan, partner, and Eunice Nanos, advisor, at Al Tamimi & Co, provided a detailed overview of the new corporate tax system, along with guidelines and recommendations for businesses to follow in order to prepare for implementing the system and complying with its requirements. The speakers also outlined exceptions and exemptions, as well as the effects the system is expected to have on companies and businesses.

Addressing participants, Jehad Kazim, Vice President of Legal Services at the Dubai Chamber of Commerce, noted that the UAE Corporate Tax system is aligned with best international practices, and mentioned that the tax rate is relatively low in comparison with international markets.

She added that the strong turnout to the workshop reflected a growing awareness of the new tax system among businesses in Dubai, as well as their interest in learning and adopting best practices.

For his part, Shiraz Khan said: “The introduction of federal Corporate Tax marks a significant shift in the UAE’s tax system. It is crucial for companies to understand the rules and how they will be applied to ensure they are in full compliance with the system’s requirements. We are certainly delighted to be collaborating with the Dubai Chamber of Commerce on this training workshop, which is designed to provide a comprehensive overview of the system and how to prepare companies to implement it.”

Dubai Chamber of Commerce regularly organises workshops around topics of interest to the business sector in the emirate, in a bid to raise awareness among them about legal developments that impact the business environment, while striving to establish an ecosystem that incentivises and supports businesses.

Established in 1965, Dubai Chamber of Commerce continues to represent, support, and protect the interests of the business community in Dubai, create a stimulating business environment and promote the emirate as a global business hub.

Dubai Chamber of Commerce recently hosted a meeting at its headquarters that was joined by members of the Hatta Traders Council.

Representatives from both sides discussed new projects, plans and initiatives to support Hatta’s entrepreneurial ecosystem and drive the area’s economic growth and development.

Participants explored new ways to collaborate and align efforts to achieve the objectives of the Hatta Master Development Plan, which is based on the Dubai Urban Plan 2040 launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, and provide support to Emirati entrepreneurs in the area.

Abdul Aziz Al Ghurair, Chairman of Dubai Chambers, noted that Dubai Chambers is fully committed to implementing the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and the Ruler of Dubai, which aims to drive Dubai’s sustainable economic growth and development and achieve sustainability. He stressed the comprehensive plan for the development of Hatta, which is included within the Dubai Urban Plan 2040, as “an important step in accelerating the pace of growth in the region and enhancing the competitiveness of its business environment.”

He said that the Chamber is coordinating with the Hatta Traders Council to transform the development model in Hatta into a comprehensive economic development plan. He revealed there would soon be a number of renewable projects to be launched in Hatta, and added that Dubai Chambers would offer its valuable expertise and resources to support the implementation process.

Mana Ahmed Al Kaabi, Chairman of the Hatta Traders Council, said, “We are working closely with Dubai Chamber of Commerce as we develop plans and strategies for the next phase which contributes to achieving the ambitions of the Emirate as well as enhancing the process of transforming Hatta into a new centre for pioneering development projects.”