At the start of 2018, taxes will be formally introduced for the first time in Dubai. The implications are deeper than they may first appear.
It’s not so much the actual tax itself, I understand that there will be VAT at 5% (after a period of 0% to allow companies to implement the changes), it’s the fact that many businesses have not previously kept formal accounts.
Typically the bigger companies do have proper financial controls in place, but, it appears, that there are some companies which do not have robust financial controls in place.
Some business owners have been looking to sell their company before the requirement for more formal accounting; but who would risk buying an enterprise where you couldn’t be sure of the actual results the business has achieved.
It is a great opportunity for financial experts, accountants and bookkeepers to assist in putting proper financial management systems in place.
It will be interesting to see how Dubai develops with the new taxation approach.