Introducing of new regulations has resulted in new and elaborate compliance procedures and filing requirement for the entities doing business in these countries.
UAE has already introduced Value Added Taxation (VAT) in 2018. In addition, UAE also levies Excise Tax on certain goods that are considered harmful to human health.
The UAE joined the OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on 16 May 2018. By joining the Inclusive Framework, the UAE has committed to implement BEPS minimum standards.
As a process of implementing BEPS minimum Standards, UAE has introduced Economics Substance Regulation to initiate adherence to Action 5 and CbCR to adherence to Action 13. Possibility of the introduction of Transfer Pricing Regulations also cannot be rules out.
UAE has also been the signatory to join the most powerful multilateral treaty against off-shore tax evasion and avoidance in the process of preventing Treaty Abuse (Action 6).
Further, the introduction of Beneficial Owner Procedure in 2020 is in accordance with the Anti Money Laundering Regulations.
In November 2020, the Minister of Justice issued ministerial resolutions on setting up specialised courts for money laundering crimes within the framework of the federal judiciary in the courts of Sharjah, Ajman, Umm Al Quwain and Fujairah. Each court will have minor, major and appeals circuits for hearing these types of crimes.
With the rapidly shifting tax and regulatory environment, and unprecedented changes in the market scenarios, professionals at MNI ACCOUNTANTS will offer solutions across all tax disciplines and at other regulatory compliance to help you thrive and concentrate on your goals.