In January 2022, the UAE Ministry of Finance announced that it will introduce federal Corporate Tax (CT) on the net profits of businesses, across all the emirates.
The tax became applicable on 1st June 2023. (For some companies that follow the calendar year – January to December, CT will become applicable from 1st January 2024.)
Barring Bahrain, the UAE has introduced the lowest Corporate Income Tax rate within the GCC region at a standard rate of 9%.
To provide you with insights into the current job market in the UAE and the ongoing hiring trends, The Finance Story has created a synopsis.
Hiring after Corporate Tax Announcement
There are three main types of tax work: Advisory, Compliance, and Litigation.
When Corporate Tax was announced in the UAE on 31st January 2022, consultants and advisors were needed to interpret tax laws and help clients.
Advisory roles saw a hiring surge, with Boutique Tax Advisory and Big 6 firms recruiting experienced CT and Transfer Pricing professionals.
The focus was on hiring for leadership roles requiring 10-15 years of experience, and mid-level professionals possessing 7-10 years of experience.
Many hires were selected from Big 4s and specialized Tax Firms in countries like India, Egypt, Jordan, and Pakistan.
Freshers were hired as well, but not as many. They were typically hired within a budget range of AED 8,000 to AED 11,000 per month, while mid to senior-level positions commanded an average monthly salary of AED 15,000 to AED 30,000, benefits included.
Based on our observations there was a substantial amount of hiring throughout 2022 and the early months of 2023.
The compensation offered was notably generous, surpassing market norms to attract a suitable pool of candidates. Ultimately, salary is influenced by prevailing market conditions.
Recruitment following the applicability of Corporate Tax on 1st June 2023
Big 4/6 and specialized Boutique Tax Advisory Firms
- They continue to hire Tax Professionals at all levels, but not as aggressively as they once did.
- Tax Professionals with Big 4/10 experience in the GCC region – namely, Saudi, Kuwait, Qatar, and Oman are in demand. (CT was introduced to these countries long before it was announced in the UAE.)
Small and mid-sized firms
- They initially expected a significant demand for Corporate Tax-related services and hired numerous CT Professionals. However, this pace has now dropped. They are currently adjusting their hiring approach.
- Mid-sized firms are actively recruiting Corporate Tax Professionals with 2-3 years of experience, with either GCC tax experience or candidates well versed with CT tax either from India / Pakistan.
- The hiring budget has notably decreased, averaging around AED 8,000 to AED 12,000 per month, inclusive of benefits.
Industry
- Apart from large companies, few are currently exploring the establishment of an in-house tax team. Instead, they are depending on external advisors and their finance departments to manage tax-related tasks.
- Observations indicate that the demand for senior positions is limited (such as Tax Director and Senior Manager). Likewise, companies are not keen on hiring professionals with 1 to 3 years of experience.
- There is an increasing need for Tax Managers who can lead the implementation of Corporate Tax and Transfer Pricing internally.
- Numerous companies are opting to hire mid-level Finance Professionals who can also handle tax responsibilities, thereby serving as Tax cum Finance specialists to fulfill these roles.
Tax skills and qualifications to succeed in the UAE
To thrive in the UAE Corporate Tax sector, professionals must possess core competencies, which include,
- A deep understanding of the UAE tax regulations and compliance requirements.
- Analytical skills, and experience in different industries and various business models.
- The UAE’s tax law is quite similar to the European tax laws, hence Tax Professionals with expertise in the latter jurisdiction may easily find opportunities.
- Ability to keep pace with the ever-evolving tax laws and regulations.
- An understanding of Transfer Pricing and Litigation.
Qualifications:
- Employers pay closer attention to ‘relevant experience’ along with a CA or ACCA qualification.
- Acquiring recognized certifications in taxation can add credibility to your expertise and increase your employability in the UAE but they are not mandatory.
- For example, having an ADIT (Advanced Diploma in International Taxation) qualification is beneficial, but it is not a must. Similarly, having CTA (Chartered Tax Adviser) certification for a Corporate Tax role is rare and is not widely perceived to hold significant value.
Is proficiency in speaking Arabic a crucial requirement for these positions?
Since the Corporate Tax laws and regulations are issued in English, knowing Arabic is an added advantage but not a pre-requisite.
Only government entities specifically hire UAE nationals with Arabic-speaking capabilities, otherwise, MNCs and Big 6 firms in the UAE don’t necessarily have that criterion.
That being said, we are observing an increasing demand for professionals that are fluent in Arabic and have a Corporate Tax background. They should also have 7-10 years of experience in the GCC region.
Upcoming hiring trends for CT role
There are still many areas in the Corporate Tax law that are yet to be clarified. Most taxpayers and companies are adjusting to the frequent updates issued by the FTA (Federal Tax Authority) and Ministerial decisions.
The demand for the Advisory role will remain substantial for the next two years.
Hiring for Compliance and litigation roles will pick up gradually once the tax law is clearly understood and tax positions are finalized by the taxpayers/ companies.
The requirement for in-house Tax Professionals is expected to rise in the coming one or two years, driven by the companies’ need to implement tax systems, and more so in the next two to three years, as tax audits become prevalent.
How to approach employers in the UAE?
There is a large pool of candidates physically available in the country.
To enhance your job search prospects, consider visiting the UAE on a 30 or 60-day tourist visa to explore opportunities.
Having a well-established LinkedIn profile is crucial for connecting with potential employers and industry professionals.
Many companies are hiring directly without involving recruitment agencies, and LinkedIn is an excellent resource for this.
Don’t underestimate the value of networking with colleagues, hiring managers, and former supervisors in the UAE.
Here are other popular portals in the UAE where you can apply for jobs,
Sometimes you may struggle to find a job in the UAE, despite having all the relevant qualifications and skills… But don’t lose hope.
Have a compelling story that showcases your capabilities and experiences to the employer. It will set you apart in this competitive market.
Disclaimer: Please note that the information above is based on our research and may have some variations, but it broadly represents the prevailing hiring trends in the market.
