A pioneer event on Taxation: Insights about UAE Corporate tax and free zones

The highlight of the event included expert speakers discussing about the intricacies of UAE Taxation and the launch of two books

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Published: Wed 28 Feb 2024, 3:53 PM

Last updated: Wed 28 Feb 2024, 3:59 PM

Taxation Society recently hosted a landmark event at India club, which brought together more than 300 tax experts, professionals, and businessmen to discuss the intricacies about UAE corporate tax and freezone. The highlight of the event included expert speakers discussing about the intricacies of UAE Taxation and the launch of two books; 'Spreading Joy' by Joy Alukkas and book by Naveen Sharma, co-founder of Taxation Society, on '3 Ps of UAE Taxation (PE, PoEM and Participation Exemption) – An Indepth dive with 50 insightful Case Studies & Scenarios incorporating OECD Model Tax Convention'.

In his welcome address, Nimish Makvana, welcomed the chief guest, Mohan Valrani, along with distinguished speakers and audience. He added that ‘With the UAE Corporate Tax already effective, events like this are of great benefits for those who wants to learn about the Corporate Tax and its implications on the businesses. It is a great way to connect with tax experts and gain valuable insights about the taxation which can help the professionals and businesses to act proactively.

Valrani, chairman, India Club, Chairman at Arcadia Education / co-founder and mentor at Al Shirawi Group shared his entrepreneurial journey from 1966 and congratulated Taxation Society on its success. He said, “I appreciate the efforts of the taxation society and the India Club in Dubai for their work in raising awareness about new tax laws in the UAE. Recognising the importance of tax planning while emphasising the immorality of tax evasion is a responsible perspective. Such initiatives play a crucial role in fostering a culture of compliance and ethical financial practices. Educating professionals, especially accountants, about the intricacies of tax laws is vital in ensuring that businesses and individuals are well-informed and can navigate the complexities of taxation. It also helps in preventing unintentional violations and fostering a sense of responsibility within the business and finance community."

Sharma talked about the importance of new guides and decisions issued by the Ministry on UAE Taxation. He said that, "It is very important for all the businesses and professionals to read the guides and decisions issued by the Ministry. Guides are comprehensive and it explains the provision with examples, which are very helpful. I applaud UAE Government’s efforts to help the businesses and professional to understand the law in more precise manner."

Two eminent speakers, Driaan Rupping, tax partner PWC and Neha Jain, associate director, KPMG shared their valuable insights about UAE Corporate Tax. Driaan talked about important aspects of UAE Corporate Tax. He emphasised the importance of identifying the difference between Resident Person and Non-Resident Person and said, "It is important to know the difference as it will have significant tax implications”. Further he discussed about the computation of taxable income. He added, "Companies should go through their Financials and check for the items which will not be taken into calculation of Taxable Income." He also touched on other tax topics related to Freezone and Exempt Persons. He concluded the session by urging the companies to proactively prepare themselves for UAE Corporate Tax and stressed upon the importance of compliance.

Neha discussed about the impact of UAE Corporate Tax on Freezone companies. She made an in-depth presentation with illustrations which helped the listeners in better understanding of the law. While discussing about the taxation of Freezone companies, she added that “companies should be aware about the differences between Qualifying, Non-Qualifying and Excluded income as it can have substantial tax impact and freezone companies might end up losing the tax benefit of zero per cent if not interpreted properly.” She added, "the freezone companies should be vigilant and make sure that at all the times they comply with the requirements of the law." She concluded the speech by stressing upon understanding the requirements and conditions which needs to be fulfilled for a freezone entity to enjoy zero per cent tax benefit.

'Spreading Joy' was launched by Alukkas followed by book signing ceremony by the author himself. Alukkas shared his life journey and how he made Joyalukkas as one of the biggest gold retail brands in the world. There are currently more than 160 stores revolutionising the gold-retail business. The book not only captures a phenomenal entrepreneurial story, but also provides rare insights into an industry that has predominantly been fragmented and unorganised.

Second launch was of the book by Sharma, 'Decoding the 3Ps of UAE Corporate Tax – Permanent Establishment, Place of Effective Management and Participation Exemption'. Sharma expressed that "I was inspired from my father, the late Shri OP Sharma, Retired IRS India. I dedicate this book to him in honor of his exceptional service in taxation.” He further added that “this book delves into the complexities of the UAE Corporate Tax focusing the three pivotal concepts. It is more than a book; it is a guide and a tool for anyone who wants to understand the concepts and practical implication of the 3 Ps on their businesses."

Valrani congratulated Sharma for publishing a book about taxation in Dubai. He said that that "the book is very useful. It’s a must-read for all accountants."

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