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Techday NZ
3 days ago
- Business
- Techday NZ
Why your export business should adopt AI-infused tax tech in FY2026
Smart sellers are embracing the disruptive power of AI and it's time you did too. Does your export business rely on legacy tax compliance software to support its overseas operations? If you answered in the affirmative, you're far from alone. In 2025, far too many Australian exporters continue to use manual and semi-manual processes in the back office and it's to their detriment, slowing them down, holding them back and exposing them to unnecessary and entirely avoidable risk. Smart operators, on the other hand, are embracing AI-infused compliance solutions with gusto – and getting a head start in experiencing the operational benefits of next generation tech. If you're wondering whether it's worth joining their ranks in the upcoming financial year, here are a couple of reasons why embracing this transformational technology makes a stack of sense for Aussie exporters of all stripes and sizes. HS code hassles sorted in seconds In use in more than 200 countries, Harmonised System (HS) codes enable international trade to be conducted efficiently at scale. While they make it easy for Customs services to determine what tariffs they should be levying on imports and exports, choosing the right ones to use isn't always a simple matter for exporters operating in manual mode. Coffee, for example, doesn't have a single code; it has three, depending on whether the beans in question are roasted, unroasted or decaffeinated. It's also extremely easy to make mechanical errors that result in major mess-ups in the clearing house. The HS codes for diamonds and mushrooms differ by only a single digit but the products themselves are taxed very differently in most countries. Incorrectly applied codes can result in shipments being rejected, confiscated or held up and fines being levied on the offending sellers. Exporters that have embraced and deployed AI-infused tax compliance technology from a vendor that's invested in keeping its platform ahead of the tech curve don't have to contend with these issues. Add it to your fintech stack and you too will be able to assign the right HS codes to your products, every single time. And quickly too. AI allows product catalogues comprising thousands of lines to be coded within 24 to 48 hours, rather than the weeks and months it would take to accomplish the same task manually. Tariffs and taxes determined in a trice It's a similar story when it comes to keeping on top of – and correctly calculating! – the taxes and tariffs that need to be added to goods and services before they're sold and shipped abroad. Doing so manually can be a time-consuming exercise at the best of times and a downright risky one in the unpredictable trading environment that's emerged since US President Donald Trump took office earlier this year. Getting your numbers wrong can see your parcels stuck in transit, your customers stiffed with unexpected charges and your business hit with fines from tax authorities that have zero tolerance for overseas sellers that aren't playing by their rules. And not to mention the reputational hit your brand can take in the ecommerce marketplace inextricably tied to social media platforms. Deploy AI infused compliance technology and these risks get relegated to the "done" box. That's because the right software provider can simplify and streamline the essential, mission-critical tasks associated with the tax compliance process – in addition to code and tax classification, think registration, licensing, calculation, document management, reporting and e-invoicing – for more than 100 countries around the globe. Once it's live in your back office, among other compliance tasks, your team will be able to calculate a wide range of indirect taxes in real time, including US import duties and the differing array of sales taxes and charges levied (in over 13,000 taxing jurisdictions!) by that nation's 50 states. Staying in step with the State Need more evidence that AI technology makes sense for your business? You may choose to consider the fact that governments and customs authorities around the world are themselves using AI to efficiently and effortlessly determine whether the exporters and importers they engage with are doing things properly. Equip yourself with the same tools and technologies they're using on docks and in customs clearing houses, and you'll stand a better chance of dispatching and delivering your overseas sales with zero hold-ups or hassles, secure in the knowledge you've done everything right. Strengthening your export operations in FY2026 If you're already selling your goods and services offshore, you'll likely need little convincing of the benefits: increased sales, a bigger footprint and the security that greater diversification can deliver. Optimising your operations with AI infused tax compliance technology can enhance these benefits and underpin your ongoing overseas success. If profitable growth is a priority for your business in the next 12 months, it's an investment that will pay for itself many times over.
Malaysian Reserve
12-06-2025
- Business
- Malaysian Reserve
FMM urges govt to delay SST expansion, warns of cost and inflation risks
THE Federation of Malaysian Manufacturers (FMM) has urged the government to defer the expanded Sales and Service Tax (SST) set to take effect on July 1, 2025, warning that the move is too soon, too broad, and risks pushing up costs and inflation. 'The untimely implementation of the expanded scope of taxes will exert inflationary pressure… businesses already grappling with rising costs may have no choice but to pass these additional burdens on to consumers,' said FMM president Tan Sri Datuk Soh Thian Lai. The new sales tax orders will subject 4,806 tariff lines to a 5% tax, including machinery, equipment, and technical tools used in manufacturing. Only 359 Harmonised System (HS) codes remain exempt or zero-rated – meaning about 97% of goods will be taxed. FMM warned that taxing capital goods like machinery will raise investment costs and delay industrial upgrades. Although no penalties will be imposed until Dec 31, businesses have under three weeks to adjust systems and pricing. The expanded 8% service tax now covers leasing, construction, education, healthcare, and financial services. FMM estimates this could increase annual costs by RM24,000 to RM60,000 per rented premise. 'Clearer guidelines and a broader exemption list are urgently needed,' said Soh, adding that manufacturers offering mixed goods and services face implementation uncertainty. FMM also reiterated its call to reinstate GST, calling it a more transparent and efficient tax model that avoids the cascading cost effect of SST. 'Instead of widening a narrow and cascading tax system… GST offers a more efficient, transparent and broad-based solution,' Soh said. –TMR
Hi Dubai
09-06-2025
- Business
- Hi Dubai
Dubai Chambers Equips 598 Businesses with Legal and Compliance Insights
Dubai Chambers wrapped up a series of high-impact legal and compliance sessions in May, aimed at strengthening the private sector's understanding of the UAE's evolving regulatory landscape. The initiative featured three in-person workshops and one webinar, drawing 598 participants from across various industries. The sessions focused on pressing legal topics including UAE Commercial Companies Law, VAT and excise tax compliance, and regional customs regulations. Organised to support businesses navigating regulatory challenges, the events provided practical insights into risk reduction, corporate governance, and adherence to data protection laws. Attendees also gained clarity on customs-related matters such as tariff structures, Harmonised System (HS) code classification, free zone trade treatment, and cross-border compliance strategies within the GCC. By addressing key legal and tax challenges, Dubai Chambers reinforced its role as a strategic partner to the business community, equipping companies with the tools needed to remain compliant and competitive. News Source: Emirates News Agency
Gulf Today
09-06-2025
- Business
- Gulf Today
Dubai Chambers empowered 600 business members in legal navigation
Dubai Chambers has successfully concluded a series of legal and compliance-focused events in May, designed to empower businesses with the knowledge needed to thrive in the UAE's dynamic regulatory environment. The events, comprising three in-person workshops and one webinar, addressed critical topics including UAE Commercial Companies Law, corporate compliance, UAE and GCC Customs Law, and Compliance Challenges on VAT & Excise Tax. The sessions attracted significant interest, with a total of 598 participants from across the private sector. Participants gained valuable insights and ideas on ways to reduce risks, adopt good corporate governance practices, ensure compliance with data protection regulations, customs tariff structures, Harmonised System (HS) code classification, the treatment of goods within free zones, customs valuation methodologies, customs audit procedures, and compliance strategies to overcome cross-border trade challenges within the GCC countries. Earlier Dubai Chambers has welcomed a delegation of 60 companies from Madagascar to explore investment opportunities and potential business partnerships during the Dubai–Madagascar Business Forum, which was held today at its headquarters. The event reaffirmed the significance of strengthening economic ties between Dubai and Madagascar and focused on advancing cooperation across high-potential trade and investment sectors. The forum was held in the presence of Andry Rajoelina, President of the Republic of Madagascar, who led a high-level delegation featuring ministers, senior government officials, and business leaders from Malagasy enterprises. The delegation was received by Eng. Sultan Bin Saeed Al Mansoori, Chairman of Dubai Chambers, and Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, together with representatives from Dubai's private sector. In his keynote address, President Rajoelina praised Dubai's remarkable global economic status and reaffirmed his country's interest in deepening bilateral relations across several priority sectors. During his welcome address at the forum, Eng. Sultan Bin Saeed Al Mansoori, Chairman of Dubai Chambers, stated: 'The steady growth in economic ties between Dubai and Madagascar reflects our shared commitment to strengthening bilateral partnerships and exploring new opportunities for impactful cooperation that support sustainable economic growth. Meanwhile in the first week of June, Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, announced that direct Thai investments in the Emirate of Dubai have reached approximately $626 million over the past five years. He expressed optimism that these figures will continue to grow, supported by ongoing efforts to strengthen economic relations between Dubai and Thailand, including the recent opening of a new Dubai International Chamber representative office in the Thai capital, Bangkok. In statements to the Emirates News Agency (WAM) during the 'Doing Business with Thailand' forum held on the 29th May, part of Dubai Chambers' trade mission to the Philippines and Thailand, Lootah stated that the new office is part of the Dubai Chamber of Commerce's 'New Horizons' trade mission to Southeast Asia. He described it as a strategic move to enhance the UAE business community's presence in the Thai market and to expand trade and investment opportunities with this dynamic economy. Lootah said that Thailand is among Dubai's leading trading partners in the ASEAN region. 'Through this on-ground presence, we aim to deepen ties with the private sector and strengthen collaboration between the two sides,' he said. He also noted a significant increase in non-oil trade between Dubai and Thailand in recent years, which grew by 23 per cent to $6.5 billion in 2024, up from approximately $5.3 billion in 2023. This reflects the growing momentum in bilateral economic ties and underlines the strategic importance of the Thai market within Dubai Chambers' global expansion plans. The Bangkok office launch coincided with the trade mission and included 20 Emirati companies, which were introduced to Thailand's investment environment and market opportunities, with the aim of boosting commercial ties and supporting the international expansion plans of UAE businesses. Lootah emphasised that the Bangkok office is the latest addition to Dubai Chambers' expanding network of international offices, which aligns with the chamber's strategy to open 50 representative offices worldwide by 2030. This effort is intended to support Dubai's goals of broadening its foreign trade and cementing its position as a global hub for commerce and investment. He also reaffirmed Dubai Chambers' commitment to enabling local companies to access global markets and forge strategic partnerships that align with Dubai's economic vision and support the sustainability and growth of its key sectors.
Business Recorder
22-05-2025
- Business
- Business Recorder
Experts for imposing FED on alcoholic beverages
ISLAMABAD: The government can easily generate handsome amount of revenue to the tune of billions by imposing federal excise duty (FED) on alcoholic beverages in the upcoming budget (2025-26). According to tax experts consulted by Business Recorder, the tax structure surrounding alcoholic beverages, particularly beer, has been a largely neglected topic despite its substantial potential for generating significant revenue for the government. This is especially pertinent as the government is approaching the upcoming budget for the fiscal year 2025-26, where there is a pressing need for innovative revenue generation strategies. They explained that the beer is classified under the Harmonised System (HS) code 22.03. It is currently taxed under the standard rate of value added tax (VAT) mode. This classification means that beer is not subject to taxation based on the retail price, unlike many other consumer products, which are taxed on their Maximum Retail Price (MRP). This unique approach places beer in a different category compared to aerated waters and various other beverages, leading to potential revenue losses for the government. Under the Pakistan Customs Tariff (PCT) tariff, 90 percent customs duty is applicable on the import of beer/wine. An intriguing aspect of the current tax environment is the absence of a FED on the sale of alcoholic beverages, including beer. The reasons for this omission are unclear and warrant further investigation, given the significant revenue that could be derived from such a tax. Currently, due to pressing need of generating higher tax revenue target, the Federal Board of Revenue (FBR) appears to even focusing on levying more taxes on different sectors including packaged food, dairy products, packaged milk, non-alcoholic beverages, fruit juices, aerated waters, and energy drinks as areas to enhance revenue collection for the fiscal year 2025-26. This strategy may however, overlooked the lucrative opportunity that the taxation of alcoholic beverages presents. Copyright Business Recorder, 2025
