Page 52 - Focus Group

TAX & REGULATORY

COMPLIANCES IN UAE-

THE CONSISTENCY DILEMMA ?

United Arab Emirates (UAE), which had over the Regulations in UAE (which have been in existence
years established its name in the whole world as even prior to these new Laws and Regulations have
a Free Trade Hub for the highly flexible business come into force) have all of a sudden gained more
environment with literally no form of Taxes (Direct relevance than before.
Taxes as well as Indirect Taxes) being imposed on
businesses and consumers at large and very little Some of the examples of the existing laws,
Regulatory Compliances required by Companies in regulations and accounting standards, which
UAE to follow, has seen a gradual shift happening in have to be evaluated and analyzed and the
the space of Tax and Regulatory sphere happening consistency with which also has to be ensured by
from 2017 onwards, starting with implementation the Businesses while implementing these new
of Excise Tax in October 2017, followed by the Tax Laws and Regulations i.e. VAT, Excise Tax and
implementation of Value Added Tax (VAT) in ESR, in their respective companies in UAE include
January 2018 and Economic Substance Regulations the UAE Commercial Companies Law, Common
(ESR) for the financial years commencing from 1st Customs Law of the GCC States, International
January 2019 onwards, coupled with a possibility of Financial Reporting Standards (IFRS) adapted by
Corporate Income Tax getting introduced in a few most of the Companies in UAE as the applicable
years’ time. accounting standards for their Financial Statement
preparations, Federal Financial Leasing Law of UAE,
These new Laws, Regulations and Accounting BEPS and Transfer Pricing Regulations etc.
Standards, which have impacted almost all
Businesses in UAE at large, have brought with them, Now the dilemma that most of the Businesses in
is that some of the other already existing Laws and UAE regularly face is that whether they can look
at each of the tax law, regulation or standard

52 TAX JOURNAL 2020 The Institute of Chartered Accountants of India (Dubai) Chapter NPIO