Companies in the UAE are now concentrating on keeping their tax liabilities compliance with the most recent government regulations since the country introduced corporation tax on June 1.
Businesses can now more easily streamline tax procedures and maintain compliance thanks to advancements in technology. Businesses can automate tax computations, generate tax reports in the format required by the Federal Tax Authority (FTA), and maintain accounting data and documents safely with the aid of cloud-based accounting systems.
"These tools let companies cut back on mistakes and the human work needed to maintain compliance. Additionally, it offers internal control features including audit trails, access controls, and procedures for transaction approval. According to Prashant Ganti, head of product management for Zoho Finance and Operations Suite, "This ensures complete transparency and data integrity, ultimately protecting the business from misuse of sensitive information." Additionally, he continued, effective accounting software will assist companies in automatically future-proofing their operations for any potential new rules imposed by the government.
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With technological advancements, the UAE will probably employ automated tax filing, which will cut down on manual errors and streamline the overall process. Additionally, because tax laws are always changing, firms may be compelled to provide ongoing reports and cooperate actively in real-time with tax authorities.
Different industries and enterprises will be affected differently by the new law. However, while putting the law into effect, the government took that into account. Businesses with taxable incomes of up to Dh75,000 would pay no tax, and those with taxable incomes of more than Dh375,000 will pay 9% tax.
Businesses that generate less than Dh3 million in annual revenue may qualify for small business exemption. Additionally, a tax rate of 0% will be available to qualifying firms in more than 30 free zones. For smaller businesses, this lessens some of the financial strain and compliance burden. The development of the free zone's important sectors will also receive support.
We released the UAE version of Zoho Books when VAT was imposed in the nation to assist businesses in meeting their tax requirements. In Zoho Books, we recently introduced corporate tax tools that let companies automate tax computations and guarantee precise tax filings. Additionally, the model that the FTA will roll out allows for the rapid generation of business tax reports. Not only will this make tax filing simpler, but it will also require less manual work.
Businesses must also keep records and documentation for seven years in accordance with FTA requirements. Businesses can safely save supporting papers and arrange financial data online with the help of Zoho Books.
Our overall goal is to provide UAE businesses with the resources they need to understand and abide by the new corporation tax policy.
For businesses in the UAE, Zoho is dedicated to provide future-proof tax compliance. We make care to provide firms with the appropriate competencies and keep up with the most recent government initiatives. Without disturbing our clients, Zoho Books continuously and automatically updates the backend. In order to inform businesses about significant tax revisions, we will continue to offer thorough tools like manuals, articles, FAQs, webinars, and seminars. Our network of accountants and implementation partners is expanding, and they help firms build up the structures and procedures necessary for a seamless transition. These initiatives have proven useful for our customers in managing the constantly changing regulatory landscape.
The corporation tax, which complies with OECD international norms, is anticipated to boost the economy of the nation. In addition to raising government money, it will also lessen the reliance on a particular industry, encouraging long-term prosperity.
Additionally, businesses are required by law to maintain correct records, file taxes on time, and make payments. This increases responsibility and transparency among companies and is likely to draw additional investment, which will eventually lead to economic growth.
We recognise that companies are still adjusting to the new law and might not have the essential information to be compliant. For this reason, we went above and beyond just delivering corporate tax capabilities by providing a range of materials to assist firms in becoming comfortable with the new law. Our expert-led webinars, manuals, frequently asked questions, and seminars offer a thorough explanation of the rule and its obligations, assisting organisations with a smooth transition.
We recently polled UAE users of Zoho Books to better understand their level of preparation. According to the findings, 44% of the respondents are putting in place frameworks to assure compliance. More than 85% of respondents thought that comprehending the legislation and its requirements may make it difficult to comply. This highlights the importance of guidance for businesses, which helped us shape our resources to give them the assistance they require.
More importantly, over 80% of our clients expressed confidence in Zoho Books' ability to assist them in meeting their corporate tax obligations. Businesses may rest easy knowing that Zoho Books will take care of whatever new rules the government introduces. They can rely on Zoho Books to make the process of filing taxes easier and require less human work.
Zoho Books accommodates businesses of all sizes by offering simple tax setup configuration. Businesses can enter their tax registration number, choose the appropriate percentage, and choose the filing date after registering with the Emara Tax portal. The system will then generate the tax return and automatically compute the tax due. Our software is designed to make compliance processes for companies of all sizes simpler and will successfully assist them in meeting their tax requirements.
