Navigating Corporate Tax in UAE: Rayhan Aleem and Aunali Merchant's talk at WafeqNEXT Dubai 2025

WafeqNEXT 2025 united the brightest minds in finance for a groundbreaking exchange of ideas. This wasn't just another conference, it was a strategic gathering designed to redefine how financial professionals navigate the digital revolution. Among the standout sessions was a powerhouse panel featuring Rayhan Aleem (CEO of Taxstar) and Aunali Merchant (Associate Partner at MMJS Consulting), who explored the future of tax compliance, automation, and corporate governance in UAE. Here are the key takeaways from their insightful discussion:

The Rise of Tax Technology: Why firms can’t afford to lag behind

With VAT, corporate tax, and e-invoicing now in play across the GCC, manual processes are no longer sustainable. Tax technology solves two problems: automating computations and keeping teams updated with ever-changing laws from Rayhan’s insight. So, firms must move away from Excel and Word as accuracy and audit readiness demand dedicated tax software.

Aunali continued and warned of common red flags in filings, including poor expense categorization, hidden non-deductible costs, and lack of segmental accounting (e.g., trading vs. service income).

Even a small tax error can trigger penalties—technology minimizes human oversight.

Watch the full discussion here.

Structuring for Tax Efficiency: Business Strategy Comes First

Before restructuring for tax benefits, companies must align operations with long-term goals, as Aunali's advice is:

Tax efficiency should follow business needs, not the other way around.

Therefore, Free zone businesses must track emirate-wise income and salary costs to maintain compliance. Rayhan adds that a strong accounting system like Wafeq can help companies ensure clean data, and it's critical for accurate tax adjustments.

Automation & AI: The Future of Audit-Ready Compliance

Both panelists agreed that AI-driven tools are revolutionizing accounting. The key Applications are:

• Bank reconciliation & OCR: cutting manual data entry by 90%.
• Fraud detection: flagging suspicious invoices or employee expenses.
• Real-time reporting: identifying cash flow risks before they escalate.

Rayan’s Prediction:

In 5 years, firms using AI will outpace competitors—start small, but start now.

Corporate Governance & Transparency

The New UAE Standard has regulators cross-referencing VAT, ESR, and corporate tax data, compliance is stricter than ever. Rayhan's Warning that UAE’s tax return form is incredibly detailed and submitting inaccurate data risks audits and penalties, and spots on the Solution: Implement internal review controls and partner with specialists for complex areas (e.g., transfer pricing).

Aunalie’s Tip, due to this matter, is that the FTA uses AI to analyze filings, so businesses should ensure their tech stack keeps up.

How Firms Can Prepare Today?

The panel closed with actionable steps for accounting teams to adapt to the new regulations:

1. Adopt cloud accounting (e.g., Wafeq) for real-time data accuracy.
2. Train teams weekly. Taxstar hosts bi-weekly tax deep dives.
3. Leverage AI tools for repetitive tasks (e.g., invoice processing).
4. Partner with experts for niche areas (e.g., free zone compliance).

Redefining Tax & Accounting in the Age of Automation

We stand at a pivotal moment where technology, regulation, and advisory services converge. The insights from this panel underscore three critical imperatives:

• Automation is Non-Negotiable Manual processes expose firms to compliance risks and inefficiencies. Tools like AI-driven OCR, real-time reporting, and integrated tax platforms (e.g., Wafeq, Taxstar) are no longer optional, they’re the backbone of audit-ready accuracy.
• Advisory is the New Compliance Clients demand proactive insights, not just retrospective filings. Firms that leverage technology to provide cash flow forecasting, anomaly detection, and tax optimization will dominate the market.
• Collaboration is Key No firm can master every regulatory nuance. Partner with specialists (like MMJS for complex tax structuring) and invest in continuous team training to bridge knowledge gaps.

The UAE’s regulatory environment will only grow more complex. Firms that adopt technology, upskill teams, and pivot to advisory will thrive. Those clinging to spreadsheets and reactive compliance will struggle. The best time to modernize was yesterday, the second-best time is now."