Corporate Tax Planning VAT and Excise Tax in Dubai
Beginning January 1, 2018, the 350,000 companies doing business in Dubai were required to abide by a five percent levy thanks to the imposition of the VAT (value added tax). These levies including VAT and excise taxes were done in response to lower than ever oil pricing to ensure the government has sufficient resources to maintain services. For companies however, this means they must be in compliance with the new rules. Tax Planning Required One of the challenges faced by small and medium enterprises (SMEs) is that fewer than half are prepared for this change. This could mean they are subject to unexpected penalties which will impact their bottom lines. Fortunately, in some cases, the Federal Tax Authority (FTA) will waive fines and extend deadlines if they are requested to do so, but this also means your company must be prepared to complete the proper filing, only at a later date. Technology Issues We understand the implementation of the new system ...