EU removed UAE from the list of non-cooperative tax jurisdictions on 10 October 2019. Also known as European Union tax haven blacklist, UAE worked to secure its removal from this listing of tax havens. It is important for people setting up business in the UAE during 2024 to know its financial reporting compliance.
United Arab Emirates was included in this list of the tax havens in December 2017. As a result, UAE faced restrictions in accessing European Union funding programs. While the companies from the EU that operate in the UAE had to take financial compliance and anti-abuse measures.
On inclusion into EU tax haven blacklist, the UAE government had announced their commitment to all international tax agreements. The legislative process in the UAE that seeks financial compliance took a little longer time. However, the UAE government worked thoroughly with the EU to fulfill tax cooperation and became compliant.
The big picture
People get a variety of company establishment opportunities in the UAE. Accordingly, the Emirati nationals take more interest in setting up mainland companies. Thanks to the thriving business culture in the UAE, both locals and expats can earn more money.
Achieving compliance of international standards for taxation and financial reporting is a big step in this way. UAE dealt with this issue head on to overcome obstacles in the Emirates’ development and growth of business. It let the UAE government evade the threat of EU financing and barriers to the access to its member markets.
Foreign investors are more after free zone company incorporation. Earlier, people thought of the UAE as a place to evade taxation just like a tax haven. The government has more strict laws to supervise business setup in UAE.
Taxation in the UAE
Due to the focus of the UAE on free economy, taxation has been low. Nevertheless, the UAE government has been making the changes like the implementation of value-added taxes (VAT) in 2018. The complete framework of the government ensures the process of including VAT in UAE’s system is smooth and flawless.
Business consultants help companies and entrepreneurs who want to implement VAT but do not have ample knowledge. They assist startups by providing business registration services to delivering support services. Subsequently, it aids the business breathe in the first days of its establishment.
Conclusion
The experts at KWS Middle East are your best bet from company formation to consolidation of early business operations. Among their services are opening of corporate bank account, product registration, support/PRO services and many others. Thus, they guide clients on whom VAT applies and they can pay it properly.
Connect with us now whether you’re starting a business or making your active company tax compliant.
