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It has been 6 weeks since Corporate Tax was implemented in the UAE. Although there have been various Cabinet Decisions released that give further clarity to the legislation/regulations we still expect further legislative decisions to be released, particularly surrounding the Free Zone regimes and the implementation of the OECD Pillar Two (global minimum tax rate).
Businesses and taxable persons should not wait for this further clarification, but should seek tax advice now to ensure they are fully aware of how corporate tax will affect them ahead of their first taxable period. Advice should also cover how they meet their compliance obligations under the new regime.
At Sanctuary, we provide our clients with tailored advisory reports, taking into account their specific circumstances and what they can do to mitigate their taxable exposure. With a team of UK-qualified tax advisers with nearly 100 years of advisory experience, we pride ourselves on our holistic approach and aim to be our clients’ first choice of adviser for all aspects of their business affairs and wealth protection.
We were approached by a UAE-based family who operate a large multi-jurisdictional business spanning a number of countries including the UAE and the UK. With the onset of UAE Corporate Tax and other legislative changes, the existing structure was no longer tax efficient nor suitable for commercial expansion. We also established that there was a potential UK Inheritance Tax exposure that the family was not aware of when first contacting us for support.
After various discussions to identify the family’s objectives and longer-term intentions, we provided a comprehensive written report that detailed how they would be impacted by the new UAECorporate Tax regime, highlighted their current tax exposure, and provided possible solutions as to how these could be mitigated. Our advice considered potential future expansion, as well as the forthcoming Pillar Two global minimum tax rate, which will soon be implemented in 136 jurisdictions worldwide.
At the same time as advising on corporate tax we also considered other types of structures, such as UAE Family Foundations, that would allow the family to protect their assets and to facilitate their succession plans to pass on their personal assets and wealth intact to future generations.
If you would like any assistance with UAE Corporate Tax, or your wider financial affairs, please do get in touch today.
For UK businesses considering opportunities in Saudi Arabia, the following steps outline the overall process:
1. Business Activity: Determine the appropriate business activity which will aligns with your business and satisfies all undertakings you will engage with in the Kingdom.
2. Local Partnerships: Consider any potential opportunities for collaborations with established local businesses to ease market entry and meet regulatory requirements.
3. Documentation: Gather the required documentation for incorporation in KSA.
4. Company Registration: Work with experts and the relevant governing bodies to assist with the incorporation process, ensuring compliance with local laws and regulations.
5. Other Requirements: Consider any other requirements for establishing in Saudi Arabia such as capital and tax requirements.
Saudi Arabia's Vision 2030 represents a significant opportunity for UK businesses to engage with an expanding market with vast potential. As the Kingdom continues to diversify its economy and expand its global influence, UK companies are well-positioned to support and benefit from this transformation. With the right strategy, partnerships, and local support, there are a wealth of possibilities.
By aligning your business with Saudi Arabia’s Vision 2030, the benefits for UK and international businesses looking to Saudi Arabia have never been greater.
At Sanctuary, we specialise in assisting businesses looking to expand into Saudi Arabia. We help navigate the complexities of the Saudi market, ensuring that you have the expertise needed to best prepare for success, so get in touch today.
Our expert team offers comprehensive support across a range of services, from company registration, advisory services, and more. Explore our services to discover how we can help you.
Vision 2030 is a strategic framework designed to diversify Saudi Arabia’s economy, reduce its dependency on oil, and transform the Kingdom into a global business hub.
Key points include economic diversification, social reforms, investment in technology and infrastructure, sustainability, and creating a competitive workforce.
The main focus of the Saudi Arabian Vision 2030 strategy is to build on key economic sectors such as hospitality, travel and tourism and build economic stability and sustainability.
Saudi Arabia’s Vision 2030 initiative is aimed at diversifying its economy through strategic investments into the non-oil sector and ensuring a more sustainable economic future.
Saudi Arabia has committed over $500 billion to Vision 2030, funding projects that span a variety of sectors, including energy, tourism, and infrastructure.
Yes, with its growing economy, reform initiatives, and investment incentives, Saudi Arabia is a highly attractive destination for foreign businesses seeking growth opportunities.
Key growing industries include renewable energy, tourism, healthcare, technology, and education.
Saudi Arabia permits foreign owned businesses and investment into the Kingdom, which has been elevated by the Vision 2030 initiative. A MISA licence is required for foreign investors or businesses to establish.
As a result of the diversification efforts of Saudi Vision 2030, the non-oil and private sector in the Kingdom have witnessed unprecedented growth in the past few years. The private sector continues to grow each quarter and the non-oil sectors continue to reach record contributions for the Kingdom’s GDP.
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