Expansion of business globally may have the advantage of a wider market share and probably increased revenue, but to reap the benefits, not only the basic understanding of International Taxation but also an insight into the same is needed to evaluate the impact of changing International Taxation rules on the bottom-line or the financials of the concerned individuals.
Evolution of International Taxation in the UAE
International Taxation in the UAE has changed in the last few years and it is but imperative for businesses or individuals to be abreast of the latest amendments, inclusions and other modifications.
Globally there has been a tendency among some business houses to strategist their financial structuring towards avoiding tax by utilizing the gaps as well as certain loop-holes in taxation rules. However, ever since the UAE has become a part of “IF”, Inclusive Framework on “BEPS”, Base Erosion and Profit Shifting, it has implemented measures to deal with tax avoidance or siphoning off of profits.
The UAE has become a member of the global forum and thus is the signatory to the “EOIR”, Exchange of Information on Request as well as a participant to the initiatives by the OECD for Automatic Exchange of Information Compliance. Certain international standards need to be followed and submission of requisite financial information and compliances for International taxation, in line with the existing tax treaties between the UAE and other countries, has become mandatory.
With the introduction of VAT & Excise duty, the UAE has now shifted to an economy backed up by taxation. The UAE has also entered into an agreement with the USA under the Foreign Account Tax Compliance Act (FATCA), for better international tax compliance. Under this agreement, the Foreign Financial Institutions (FFIs), Non-FFIs and the host country tax authorities are obliged to submit periodic returns regarding foreign financial accounts and assets held by the US Expats in the UAE to the US authorities over the International Data Exchange Service (IDES).
Solutions for International Taxation UAE
With the international taxation reforms and the ever-evolving taxation rules in the UAE, it is prudent to engage a team of qualified and knowledgeable professionals to assess, audit and relevantly advise and also provide the appropriate solutions towards making timely compliances related to BEPS and compliances with FATCA apart from VAT registration and compliance.
The International tax experts in the UAE can facilitate the evaluation of the developments related to BEPS and its application to your business, ensure proper compliance regarding the exchange of information for taxation under internationally agreed standards and also analyze tax treaties between the UAE and other foreign countries to circumvent dual taxation.
Engaging professionals to handle matters related to International Taxation will surely leave you with more productive time to devote on the key business operations activities instead of trying to gather information on your own and run the risk of non-compliance and the end up with consequential penalties.
One such VAT filling professional firm is GCC Filings which is based out of Dubai in the UAE.
About GCC Filings
GCC Filings is a professional firm engaged in accounting, finance, management, VAT, taxation, business analysis and other core business aspects of its clients. They keep upgrading the skills and technical knowledge of their members and associates and employ the best brains in the business.