Business
Panel on corporate tax hears of opportunities and red flags
Leading auditing and taxation firm Corporate Group sought to allay concerns over the looming regime of corporate tax in the UAE while highlighting the fact that a significant number of companies face the risk of fines in the absence of timely action.
A packed hall of entrepreneurs, CFOs and accounting heads from big companies attended a panel discussion organised by Corporate Group at the Radisson Blu Waterfront hotel in Business Bay on Tuesday. The audience heard from experts in the VAT, legal and Federal Tax Authority (FTA) domains on how time is running out for businesses to comply with the registration before the June 1 deadline.
Mohamed Osman
“It is understandable that people have all sorts of questions especially when the framework of the law is still being fine-tuned by the government,” said Mohamed Osman, chairman at Corporate Group, who also specialise in audit and VAT services. “While it is true that not all are eligible or bound to pay the corporate tax rate of 9 percent, everyone has to register if they meet certain criteria.”
The UAE’s impending implementation of a 9% corporate tax is a drastic step in the traditionally tax-free country and hence vexing for many. However, some have welcomed the move even from a neutral, larger perspective.
David McCormack, Managing Director of Asset Capital Solutions who has managed more than $200 million of real estate investment for two private equity groups, said: “Countries like the UK or Australia, where I hail from, have high rates of corporate tax while it used to be zero here. However, any dealings that we did, irrespective of the merit, attracted misconceptions by many countries that we were trying to cheat on tax money. Now, that is getting out of the equation.”
Mohamed Osman addresses the panel at a Dubai hotel on Wednesday. Supplied
Abdul Salim Seyudu, technical manager at an insurance company, said: “It was an informative session on a very relevant topic. With startups and the likes from all parts of the world coming to Dubai, everyone is looking at it with their own lens and needs. I remember VAT has now been here for five years and people are still searching for answers. Similarly for corporate tax, every piece of information is helpful at events like this.”
Questions arose from the packed hall with attendees seeking clarity on how the pending changes impacts their respective organisations or businesses. Many stayed behind much after the session to address more queries to the experts. There was also demand to have more such conferences in the near future.
“Education by way of seminars and such discussions is needed,” said Luca Angiolilli, the CG Tax Director with more than 20 years of experience in various countries. “Before starting the meet, seeing the enthusiastic response, we decided internally to have more such events.”
The presence of 45 free zones and their unique position from a taxation point of view in the economic framework of the UAE has made the introduction of CT more challenging. “The UAE has 45 free zones with some more coming up and in areas criss-crossing each other,” McCormack said.
“Many of the companies have registered where they shouldn’t have. Some free zone companies have slipped into the guise of another activity, which may have gone off the radar until now. And many don’t even have the option to open bank accounts and that is a fundamentally big problem in the current development of implementing corporate tax.”
All panelists agreed unequivocally that the initiative by Corporate Group has set the conversation going in the right direction. Yet, the lack of awareness and lackadaisical approach among business houses, SME and individuals must end soon with barely a couple of months left.
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Lifestyle
Dubai to open 10 million sq ft Al Layan Oasis with huge lake, camping and desert experiences
Dubai is getting a brand-new desert destination, and it’s massive.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, has approved Al Layan Oasis, a 10 million square foot eco-tourism and leisure project set to transform part of the emirate’s desert into a lake-centred retreat packed with walking trails, camping areas and family attractions.
Located about 50 minutes from Dubai city centre, the oasis is expected to attract 330,000 visitors a year.
A 2.5 Million Sq Ft Lake in the Desert
At the heart of Al Layan Oasis will be a 2.5 million sq ft lake, surrounded by:
- 14km of walking and cycling tracks
- Elevated pathways five metres above ground
- 1,000 parking spaces
- Sports and recreation facilities
- Camping and caravan zones
The elevated 4km track will offer panoramic desert views and connect to existing routes in Al Marmoom.
Four Zones for Families and Visitors
The destination will feature four themed areas:
- Camping Oasis: 100 caravan spots and a visitor centre
- Gathering Oasis: Open-air cinema, amphitheatre and food trucks
- Family Oasis: 28 shaded rest areas and children’s play zones
- Recreation Oasis: Retail, activities and leisure facilities
Officials say the project balances eco-tourism with environmental protection, expanding native planting and shaded areas to enhance comfort.
Part of Dubai’s Sustainability Plan
Al Layan Oasis forms part of Dubai Municipality’s Blue and Green Roadmap 2030, under a Dh4 billion package aimed at investing in nature to improve the quality of life.
The project also supports the Dubai 2040 Urban Master Plan and the emirate’s long-term sustainability and wellbeing goals.
Once completed, Al Layan Oasis is expected to become one of Dubai’s key desert lifestyle and eco-tourism destinations, offering residents and tourists a new way to experience nature without leaving the emirate.
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