UAE Corporate Tax: Technology to Assist Businesses in Remaining Compliant.
Cloud accounting tools assist firms in automating tax calculations and producing tax reports.?
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Companies in the UAE are now focusing on keeping their tax liabilities comply with the latest government laws, with the UAE instituting corporation tax on June 1st.?
Technology has come a long way in assisting businesses in streamlining their tax operations and remaining compliant. Cloud accounting systems assist firms in automating tax computations, generating tax returns in the Federal Tax Authority’s (FTA) mandated format, and securely storing accounting information and documents.?
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“These capabilities enable businesses to reduce errors and the manual effort required to maintain compliance.” Internal control features include an audit trail, access control, and transaction approval workflows. This ensures complete transparency and data integrity, protecting the firm from the exploitation of sensitive information,” Prashant Ganti, head of product management at Zoho Finance and Operations Suite, told Khaleej Times. Furthermore, effective accounting software will assist firms in automatically future-proofing their operations for any new government-mandated rules that may be implemented.
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With technological advancements, the UAE will most likely see the usage of automation for tax filing, which will decrease manual errors and streamline the overall process. Furthermore, as tax regulations evolve, businesses may be expected to perform continuous reporting and engage proactively with tax authorities through real-time collaboration.?
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The new law will have distinct effects on firms of various sizes and industries. However, the government has taken this into account while enforcing the law. Businesses with taxable income of up to Dh75,000 would pay 0% tax, while businesses with taxable income of more than Dh375,000 will pay 9% tax.?
Small company relief is available to companies with less than Dh3 million annual revenues. Furthermore, qualifying entities in over 30 free zones will benefit from a 0% tax rate. This relieves some of the financial and compliance burdens on small firms. The expansion of key sectors in the free zone will also be aided.
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