“𝐇𝐎𝐖 𝐓𝐎 𝐓𝐀𝐌𝐄 𝐘𝐎𝐔𝐑 𝐓𝐀𝐗 𝐃𝐑𝐀𝐆𝐎𝐍”

Taming the Tax Dragon can be a daunting task, but with the right approach, you can transform this fire-breathing beast into a friendly tax-optimized companion and businesses can emerge from the transitional period smoothly.

📌𝐅𝐢𝐫𝐬𝐭, 𝐅𝐢𝐧𝐝 𝐘𝐨𝐮𝐫 𝐅𝐢𝐫𝐬𝐭 𝐓𝐚𝐱 𝐏𝐞𝐫𝐢𝐨𝐝: This is your dragon’s training ground. Identify your first tax period: If your fiscal year matches the calendar, it starts January 1st, 2024.

📌𝐀𝐬𝐬𝐞𝐬𝐬 𝐘𝐨𝐮𝐫 𝐃𝐫𝐚𝐠𝐨𝐧’𝐬 𝐃𝐨𝐦𝐚𝐢𝐧:❓
🎯𝐌𝐚𝐢𝐧𝐥𝐚𝐧𝐝 𝐯𝐬. 𝐅𝐫𝐞𝐞 𝐙𝐨𝐧𝐞 Is your current setup maximizing your tax benefits? Mainland companies offer access to the wider market but face the 9% corporate tax. Qualifying Free zones offer zero % CT, but restrictions on operations apply. Analyze your business needs and choose the best fit.

🎯𝐓𝐚𝐱 𝐆𝐫𝐨𝐮𝐩 𝐅𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 Do you have multiple entities? Consider forming a tax group to consolidate profits and losses, potentially reducing your overall tax burden.

📌𝐒𝐥𝐚𝐲 𝐭𝐡𝐞 𝐏𝐚𝐩𝐞𝐫 𝐃𝐫𝐚𝐠𝐨𝐧⚔️
🎯𝐂𝐥𝐨𝐬𝐞 𝐢𝐧𝐚𝐜𝐭𝐢𝐯𝐞 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬:”Paper companies” can create unnecessary tax complexities. Close them down to streamline your structure.

🎯𝐔𝐩𝐝𝐚𝐭𝐞 𝐲𝐨𝐮𝐫 𝐥𝐞𝐠𝐚𝐥 𝐟𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤: Ensure your legal documents (e.g., MoA) reflect your chosen structure.

🎥𝐍𝐨𝐰, 𝐥𝐞𝐭’𝐬 𝐓𝐚𝐦𝐞 𝐘𝐨𝐮𝐫 𝐃𝐫𝐚𝐠𝐨𝐧!🆃🆁🅰🅽🆂🅵🅴🆁 🅿🆁🅸🅲🅸🅽🅶
If you have related entities, familiarize yourself with the arm’s length principle . Treat them fairly, or the Tax Dragon might bite.

🕵️‍♀️𝐀𝐧𝐚𝐥𝐲𝐳𝐞 𝐫𝐞𝐥𝐚𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐲 𝐭𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬:Look for any deals between you and your dragon’s cousins. Were they fair market value? Did they reflect what independent dragons would charge each other?

🔍𝐑𝐞𝐯𝐢𝐞𝐰 𝐲𝐨𝐮𝐫 𝐜𝐥𝐨𝐬𝐢𝐧𝐠 𝐛𝐚𝐥𝐚𝐧𝐜𝐞 𝐬𝐡𝐞𝐞𝐭: Your opening balance sheet for tax purposes will be based on your last financial year’s closing balance sheet, prepared according to IFRS and adjusted for Arm’s Length pricing.

✍🏻𝐃𝐨𝐜𝐮𝐦𝐞𝐧𝐭 𝐲𝐨𝐮𝐫 𝐭𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐩𝐫𝐢𝐜𝐢𝐧𝐠 𝐩𝐨𝐥𝐢𝐜𝐢𝐞𝐬:This is like a dragon training manual, outlining how you value transactions with your kin. It shows the tax authorities you’re playing fair

📌𝐃𝐨𝐧’𝐭 𝐅𝐨𝐫𝐠𝐞𝐭 𝐭𝐨 𝐅𝐞𝐞𝐝 𝐘𝐨𝐮𝐫 𝐃𝐫𝐚𝐠𝐨𝐧!
🎯𝐑𝐞𝐜𝐨𝐫𝐝-𝐤𝐞𝐞𝐩𝐢𝐧𝐠 𝐑𝐞𝐠𝐢𝐦𝐞: Implement a robust system to track income, expenses & other financial data. This is your dragon’s leash, ensuring it doesn’t stray into penalty territory.

🤠𝐁𝐨𝐧𝐮𝐬 𝐓𝐢𝐩𝐬 𝐟𝐨𝐫 𝐚 𝐇𝐚𝐩𝐩𝐲 𝐃𝐫𝐚𝐠𝐨𝐧:🦐😊
🎯𝐓𝐫𝐚𝐢𝐧 𝐲𝐨𝐮𝐫 𝐭𝐞𝐚𝐦: Educate your employees on the new tax rules & their responsibilities.

🎯𝐒𝐭𝐚𝐲 𝐢𝐧𝐟𝐨𝐫𝐦𝐞𝐝: Keep up with the latest tax updates & regulations through official channels and reliable sources.

📢𝑻𝒊𝒎𝒆 𝒕𝒐 𝑻𝒂𝒎𝒆 𝒀𝒐𝒖𝒓 𝑻𝒂𝒙 𝑫𝒓𝒂𝒈𝒐𝒏?
👩🏻‍🎓𝑯𝒊𝒓𝒆 𝒂 𝑻𝒂𝒙 𝑾𝒊𝒛𝒂𝒓𝒅 𝑻𝒐𝒅𝒂𝒚🕵🏼‍♀️

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alia noor

Keynote Speaker, Author and Trainer . Having more than 13 years’ experience in Management Consultancy, VAT and External Audit with set of professional qualifications CIMA, FCMA and MBA along with Certifications in Oxford Fintech Programme, Digital Mindset, COSO Enterprise Risk Management, COSO Internal control from AICPA and GCC VAT Diploma.

Currently working as Associate Partner at Ahmad Alagbari Chartered Accountants and Director VAT at Leading Edge Alliance Tax Consultants .

Latest posts by alia noor (see all)

• “𝐇𝐎𝐖 𝐓𝐎 𝐓𝐀𝐌𝐄 𝐘𝐎𝐔𝐑 𝐓𝐀𝐗 𝐃𝐑𝐀𝐆𝐎𝐍” - January 24, 2024
• Generative AI: A powerful tool for CEOs - January 19, 2024
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