UAE Corporate Tax: Technology to Assist Businesses in Remaining Compliant.

Cloud accounting tools assist firms in automating tax calculations and producing tax reports.

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. 

“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, he noted. 

*Extracted from an interview: 

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. 

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 annual revenues less than Dh3 million. 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.

When VAT was introduced in the country, we launched the UAE edition of Zoho Books to assist businesses in meeting their tax obligations. We recently added corporate tax functionality to Zoho Books, allowing businesses to automate tax computations and assure accurate tax filings. Furthermore, given the structure that the FTA will provide, corporate tax reports can be generated promptly. This will not only make the tax filing procedure easier, but it will also save time.

Businesses must also keep records and documentation for a period of seven years, according to FTA requirements. Zoho Books enables organizations to securely store supporting documents and organize financial data in the cloud.

Overall, our goal is to provide UAE businesses with the tools they need to properly navigate and comply with the new corporation tax regulation.

Zoho is dedicated to providing UAE businesses with future-proof tax compliance. We are always up to date on the newest government initiatives and make certain that we support businesses with the appropriate capabilities. Zoho Books performs continual and automatic backend updates without causing any disturbance to our customers. Furthermore, we will continue to provide comprehensive materials such as guides, articles, FAQs, webinars, and seminars to educate businesses on critical tax updates. We also have a growing network of accountants and implementation partners who assist firms in establishing frameworks and processes to ensure a smooth transition. These initiatives have proven beneficial to our customers in managing the ever-changing regulatory landscape.

The corporate tax, which is consistent with OECD worldwide standards, is projected to boost the country’s economic growth. It would not only raise government revenue but will also minimize reliance on a particular industry, promoting long-term prosperity.

Furthermore, businesses are required by law to ensure compliance by keeping accurate records and reporting taxes and payments on time. This increases transparency and accountability among enterprises, which is likely to attract more investments, resulting in economic growth.

We appreciate that businesses are currently adapting to the new law and may not have the necessary guidance to ensure compliance. This is why we went above and beyond delivering corporate tax capabilities by giving a number of materials to assist firms in becoming acquainted with the new law. Our expert-led webinars, manuals, FAQs, and workshops provide a thorough overview of the regulation and its obligations, assisting businesses in making a smooth transition.

We recently performed a study among Zoho Books users in the UAE to better understand our customers’ readiness. According to the findings, 44% of respondents are putting in place structures to assure compliance. Over 85% believed that knowing the law and its requirements would be difficult in order to become compliant. This highlights the importance of guidance for firms, which enabled us adjust our resources to offer them with the essential assistance.

More importantly, over 80% of our customers were convinced that Zoho Books will assist them in meeting their corporate tax obligations. Businesses can rest certain that any new government restrictions will be handled effortlessly by Zoho Books. They can rely on Zoho Books to make the process easier.

Zoho Books caters to businesses of all sizes by making tax settings simple to configure. After registering with the Emara Tax site, firms can submit their tax registration number, the applicable percentage, and the filing date. The system will then calculate the tax amount and generate the tax return automatically. Our program is designed to help businesses of all sizes meet their tax responsibilities by simplifying compliance processes.