Academic institutions including schools and universities in the UAE have emerged as the first to submit their corporate tax returns, ahead of other sectors, due to their unique financial year starting in August, as stated by Al Dhaheri Jones & Clark.
This comes as the education sector is set to be brought under the UAE’s Corporate Tax (CT) regime from June 1, 2023.
Most schools, colleges, universities, and similar educational institutions in the UAE have a financial year that runs from September 1 to August 31.
As a result, they need to revisit their current financial reporting model and acclimatize it in line with UAE CT regulations to ensure they comply with the new law.
Corporate taxes in UAE
The CT regime in the UAE is a significant development, as it marks the first time that corporate taxes will be levied in the country. The new regime is part of the government’s efforts to diversify the economy. Under the CT regime, businesses are required to submit tax returns, maintain records, and pay tax on their profits.
To assist businesses in the education sector with the transition to the new regulations, ADJC is offering comprehensive support and guidance.
Compliance with the CT regime is not just a matter of submitting tax returns on time; it requires a complete overhaul of existing financial reporting models to ensure that businesses meet the requirements of the law.
ADJC understands that businesses in the education sector have different sets of requirements as they adapt to the new CT regime. It is committed to helping businesses transition seamlessly to the new regulations as the team has a deep understanding of the UAE’s CT regulations.
UAE CT regulations
Their services include conducting an in-depth review of the existing structures and practices of educational institutions to identify potential loopholes that could lead to non-compliance. Based on their findings, they provide recommendations and a complete transitional plan to ensure proper implementation of CT regulations in line with the law.
ADJC also provides close support to businesses to build their Standard Operating Procedures (SOPs), policies, and procedural documents in alignment with UAE CT regulations.
This support helps businesses to ensure they have the necessary processes and procedures in place to comply with the law.
With the CT regime set to impact a wide range of businesses in the UAE, ADJC’s services will be critical in ensuring a smooth transition to the new regulations.
The team is equipped with the necessary knowledge and expertise to provide the support that businesses need to comply with the law. Al Dhaheri Jones & Clark is a Dubai-based consultancy firm.
The company renders services as financial and accounting experts as well as advisors and consultants for specialised accounting and tax-related services.
tanvir@dubainewsweek.com
