On 5 October, specialists of PG Tax Consultancy and Pepeliaev Group held a workshop in Dubai titled “Introducing corporate tax in the UAE: Implications for business”.
Andrey Nikonov, Senior Partner at PG Tax Consultancy, touched on how to prepare to introduce corporate tax and how to set up the system. During his talk, he spoke about the actions that business should take before the first tax period starts as well as how to take into account the business parameters of the activities and fine-tune the system.
Maria Nikonova, Partner at PG Tax Consultancy, discussed corporate tax for free zone residents. She considered the conditions to be complied with and the consequences if a resident of a free zone does not comply with the conditions; then, she elaborated on what the qualifying income is of a free zone resident and what corporate tax rates apply to different types of income. Maria also shared what difficulties may arise for a business when qualifying types of activity are determined, and delved into a number of other important issues.
The talk given by Vladimir Voinov, a Senior Associate at Pepeliaev Group, was dedicated to the suspension of DTTs with hostile countries and the possibility to take advantage of the UAE as a new tax haven for Russian business. The speaker compared the tax consequences of transactions with hostile countries and the UAE and shed some light on the advantages and shortfalls of a UAE company being present in the structure of a holding.
The workshop was held offline in Russian and gathered about forty participants interested in developing Russian business in the MENA region.
“We decided to organise this workshop since we receive a lot of questions from our clients relating to the tax structuring of their business. There have recently been a great deal of changes in the regulation of the UAE's tax system which cannot easily be tackled even by professionals. We hope that during our meeting we were able to address the most topical issues which worry business, so that companies can be saved from errors on a new market”.