Virtuzone is investing over AED50 million ($13.6 million) in free corporate tax and accounting services that will enable 10,000 businesses and entrepreneurs to be corporate tax-compliant by December 2023.

The UAE’s leading provider of company formation solutions, corporate services and tax consultancy will provide small and medium sized (SMEs) businesses with free corporate tax registration, free accounting services for three months that will help businesses meet their reporting requirements for corporate tax, and a region-first compliance guarantee new to the UAE.

“Corporate tax started a few months ago but there is a lot of confusion around it in the business community, many clients and businesses come to us asking if it applies to them since they are free zone companies or just small businesses,” said Virtuzone Accounting and Tax Managing Director John Casey.

New terrain

“We will help them comply with ease, get their books in order, and allow them to avoid penalties and fines. As a leading corporate service provider in the UAE, we aim to lead and guide SMEs in navigating this new terrain in the UAE’s constantly evolving business landscape.”

“As a company whose lifeblood is supporting SMEs in the UAE, we have made this pledge to demonstrate our unwavering commitment to championing the country’s start-up and SME sector,” said Virtugroup CEO George Hojeige.

“By supporting SMEs, we are also supporting the national economy, as SMEs contribute more than 63% to the UAE’s non-oil GDP and account for 94% of the companies operating in the country. We are pleased and proud to be the first in our industry to take on this trailblazing initiative and lead the UAE’s business community in tax compliance.”

Still not ready

In June, corporate tax started to take effect in the UAE and all businesses are now mandated to register for corporate tax, manage their books and keep proper accounting records, and file a corporate tax submission with the Federal Tax Authority (FTA). However, more than 50% of UAE-based companies are still not ready to comply with the new corporate tax rules, with many adamantly believing the rules do not apply to them while they do.

“To help facilitate the smooth implementation of corporate tax and ease the transition for SMEs, Virtuzone has taken this historic initiative to support the local business sector, help boost the nation’s economy and work alongside the government in making the country an even more attractive hub for foreign direct investment (FDI),” said Virtugroup Chairman and Founder Neil Petch. 

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