In Profile
“Many of our clients have not fully planned for the introduction of VAT, hence why they have approached us, and we have taken various steps to not only provide them with advice and guidelines prior to the introduction, but also, as of this year, created a tax-specific department” that some entities didn’t even contemplate – even though it was discussed widely in the market – what the implications were for the introduction of VAT. “The introduction of VAT is merely the beginning of greater regulation, and indeed increased taxation of the industry – of all industries. The prospect of corporation tax is already in the early stages of discussion, but I think we should expect to see a draft law within the next two years,” he forecasts. “Many of our clients, and other players in the industry, have not fully planned for the
introduction of VAT, hence why they have approached us, and we have taken various steps to not only provide them with advice and guidelines prior to the introduction, but also, as of the beginning of this year, created a tax-specific department that is dedicated to assisting our clients across the Middle East and Africa on all aspects of tax compliance and efficient tax structuring.” Coupled with this is the UAE’s – and Dubai’s – ambition to become greener and more efficient, using smart technology and renewables. In the last few years, stringent regulations
around green building codes and energy usage have been put in place by the authorities, while government agendas and policies have been adopted to drive change across the economy. As a result, companies will have to change and adapt to keep up with the new reality. “I think part of the industry is prepared, but the ones that aren’t, are going to suffer. Many companies have had it good for too long. They haven’t had much regulation, they haven’t had to adhere to specific building codes. The region in general has been reactive rather than
proactive at times, but that is changing. Greater regulation and the adoption of internationally recognised standards is certainly on the increase. “Moving from a reactive to a proactive stance is an inevitable part of growing and developing an industry. These regulations are coming, and I think you’ll see that the companies adhering and abiding by the regulations will be singled out and rewarded with additional contracts, because the government wants to see this agenda progressed and have the private and public sector embrace best practice,” he concludes.
adapting to succeed Companies that adapt and adhere to the new rules and regulations introduced by the government will find themselves winning additional contracts as a reward for embracing best practice.
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