The United Arab Emirates has announced plans to impose a new corporate tax from 1 June 2023. Even though the tax modifications of another country shouldn’t be a matter of interest for us, the changes that take place in the Gulf countries are closely watched by people here. With the introduction of the new tax regulations, more than 1 million companies operating in the UAE needs to keep the accounts and file for tax returns. This, in turn, is likely to open up an incredible scope for employment opportunities in the field of accounting.
Unlike in India that has multiple tax slabs, the UAE will only have a single slab. The new corporate tax will not be applicable for companies and firms that register a profit of up to 3,75,000 AED (Rs 75 million). However, the companies that make a profit of over 3,75,000 AED should pay a tax of 9%.
Three types of opportunities
Three types of employment opportunities are likely to arise after the UAE introduces the corporate tax.
* Better opportunities for those who are already working in the UAE.
* Direct recruitment to new employment opportunities.
* Related jobs like training and consultancy.
Those who are already doing accounting and finance jobs in the UAE should undergo training to improve their skills. As they are required to take care of the tax related jobs, the pay package too is likely to go up. Besides, experts in this field may be offered promotion too.
Incredible employment opportunities may be opened for chartered accountants who specialise in income tax, CA students, accountants, tax practitioners, company secretaries and those who practise company laws.
Meanwhile, training sector and consultancies too await a boom. Chartered accountants and tax practitioners could hone their skills to find well-paying jobs in the UAE.
Easy to learn
It is easier to learn the tax structure of UAE as it is not as difficult as in India. The basic structure of the taxable profit is same in all the countries; the only difference is in the process and the amount that is payable.
Notes to remember
Finance professionals who wish to explore the job opportunities in UAE need to hone their skills in tax practise. The income tax structure should be studied separately. An internship of at least six months with tax consultants or at CA firms is desirable.
Tax is included in the syllabus of BCom and MCom courses. If you train with tax practitioners while you study, then it would be easier for the aspirants to look for jobs in the UAE as soon as the course is completed.
“There may be several opportunities in the audit firms. As various certifications and attestations are required, many companies have already started recruiting. Those who specialise in company laws too may get lots of opportunities as there would be various kinds of appeals and hearings involved in the process. All the major companies that are run by Indians have back up offices in India too. If two candidates are newly appointed in UAE, then two would be appointed in their India offices too. The employment opportunities in India would go up with increase in digitisation,” TV Jayakrishnan, Partner and Tax Division Head, HLB HAMT Chartered Accountants, Dubai.