Fintedu: Nimish Goel: From Growth to Compliance: Understanding Tax Impacts on UAE's Expanding Hospitality Sector

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The UAE's hospitality sector is a key driver of the nation's non-oil economy, contributing significantly to GDP. Expected to grow from $7.37 billion in 2023 to $9.46 billion by 2028, the sector benefits from government investments in infrastructure, attracting both international and local hotel brands. This growth includes $32 billion in investments to add 48,000 hotel rooms, increasing the total to 200,000 across the UAE.

However, the hospitality industry faces a complex tax environment with federal taxes like VAT (introduced in 2018) and corporate tax (from June 2023), as well as emirate-level levies like municipality tax and tourism fees.

Dhruva Consultants' report provides an in-depth analysis of these taxes, focusing on VAT, corporate tax, and transfer pricing. It offers insights into the challenges and opportunities these taxes present, covering VAT treatment, financial planning under corporate tax, and the need for strong transfer pricing documentation. The report serves as a valuable guide for stakeholders in the hospitality sector to ensure compliance and effectively navigate the evolving tax landscape.

Access the Full Report:

For a detailed exploration of these insights, read the Dhruva Consultants full report - The UAE's Hospitality Sector: A Key Economic Driver

Disclaimer: Content posted is for informational and knowledge sharing purposes only, and is not intended to be a substitute for professional advice related to tax, finance or accounting. The view/interpretation of the publisher is based on the available Law, guidelines and information. Each reader should take due professional care before you act after reading the contents of that article/post. No warranty whatsoever is made that any of the articles are accurate and is not intended to provide, and should not be relied on for tax or accounting advice.

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Nimish Goel

Nimish Goel is a seasoned Chartered Accountant with over 16 years of expertise in indirect taxes, specializing in VAT and GST implementation across the UAE and India. He has advised clients in sectors like real estate, healthcare, and telecom, with a focus on credit optimization, classification, and entry strategy. With extensive experience at top firms like PwC, EY, and KPMG, Nimish currently serves as a Partner at WTS Dhruva Consultants, driving tax solutions across the GCC.