As the UAE prepares to implement its new corporate tax, there are growing concerns from business owners regarding the potential penalties, late filing fees, and interest on overdue tax payments. These factors could create significant anxiety among companies adjusting to the new tax landscape.

According to The National, David Daly, a partner at the Gulf Tax Accounting Group in the UAE, emphasizes the need for leniency from authorities during this transitional phase. He notes that many businesses may struggle to comply with the new regulations swiftly, and a more flexible approach could alleviate undue stress.

Daly highlights that a supportive stance from tax authorities is crucial, particularly as firms navigate the complexities of the new tax system. He argues that this leniency could foster a smoother adaptation process for businesses, ultimately benefiting the economy.

The introduction of a corporate tax is a significant change for the UAE, and authorities are encouraged to consider the implications for businesses as they implement these new regulations. By adopting a more understanding approach, the government can help mitigate the challenges faced by companies during this important transition.