GCC Tax Theatre | UAE Corporate Tax | Serial: “The Tax Long Withheld” | Episode 01 | "Death and Taxes are Inevitable" | 02 February 2022

Jo: “Hi there Gerry. Long time! How’ve you been? How’s your VAT practice going? Hey, I heard UAE brought in Corporate Tax? What exactly is it man?”

Gerry: “Hey Jo. I’m swell! And the VAT practice is boomin’. How’s your company Jo & Folks LLC? Hmmm, about your question … Yup … Corporate Tax is finally here my friend. Lemme make it simple for ya. You make your financial statements for Jo & Folks LLC, right? The ones that you get audited? There’s a Profit and Loss account in it, right? So, the net profit that you see at the bottom of it … you’re gonna have to pay a chunk of it to the government now. That chunk you pay to the government…. that’s “corporate tax”.

Jo: “O’ man… :(”

Gerry: “Well… To be precise, it’s not exactly the same net profit as shown in your company’s Profit & Loss Account mate! ... We’ll need to take a few things off of it … add a few things to it … We call ‘em tax adjustments … and then that Accounting Net Profit will become something we call Taxable Net Profit … The money you pay as Corporate Tax will actually be piece of that pie. Got it?”

Jo: “I’m scared man! How will I know what to take off and what to add? They put a lot of penalties in VAT if you do mistakes in that return filing.”

Gerry: “Have no fear buddy! It ain’t that complicated. You would agree that VAT law was pretty damn scary at the beginning? Wasn’t it? But then eventually everybody got the gist of it, didn’t they? These UAE folks are pretty good in making things simpler for guys like you.”

Jo: “Yeah man, you’re right. I guess it will become easier with time. Well...Gotta go man… 'will catch ya later at the bar in the evening yeah? We’ll talk more about it then, OK? See ya!”

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(Jo will meet Gerry soon in the next episode to talk about Corporate Tax. Don’t miss the next episodes ! Ciao!)

Episode 1 | "...and Taxes are Inevitable":?https://lnkd.in/eBjZVE2D

Episode 2 | "To Whom It May Concern":?https://lnkd.in/eB6XjkVd

Episode 3 | "Make an Impact":?https://lnkd.in/ezcG2CU5

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The author, Muhammad Altaf Hussain, is a seasoned Tax practitioner, heads an international consulting firm in Oman and is their Chief HR Officer. He may be contacted through a LinkedIn message.

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