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Spend less on Your Company Finances with Best Accounting Services in the UAE

Are you fed up with having to shell out a fortune for accounting services for your company in the UAE? If so, you are not by yourself. In the UAE, it will be difficult for small and medium-sized enterprises to locate accounting services that are both reasonable and of excellent quality.  

You have many options to help you manage your business finances more affordably while providing the required assistance. In this article, we’ll look at some of the most affordable accounting services in the UAE & what you should know to choose the ideal one for your company.

Introduction

The UAE’s economy relies heavily on small and medium-sized businesses; however, managing a company is complex. It necessitates much effort, commitment, and focus on the small things. Managing funds is one of the most crucial components of owning a business. For making informed decisions, lowering tax obligations, and guaranteeing the long-term profitability of your firm, accurate and current financial records are crucial.

However, it can be difficult for many business owners in the UAE to obtain cost-effective accounting services of a good standard. Many accounting firms charge extravagant rates for their services, which can be costly for small and medium-sized organizations.  

The good news is that you have many options to help you manage your business finances more affordably while still providing the required assistance. In this article, we’ll look at some of the most affordable accounting services in the UAE. Emirates and what you should know to choose the ideal one for your company.

Why choose affordable accounting services in the UAE?

For various reasons, small and medium-sized firms in the UAE should consider selecting affordable accounting services over more expensive ones. Here are a few advantages:

The cost savings are the advantage of cheap accounting services that is most immediately apparent. By selecting a less expensive choice, you can save tens of thousands of dirhams annually on accounting services.

Flexibility: You can select the pricing structure most suitable for your company from the many affordable accounting services offering this feature. That may be particularly crucial for small enterprises with tight funds.

High-quality services: Just because accounting services are affordable doesn’t imply that they are of inferior quality. In the UAE, several high-quality accounting services are available at competitive pricing.

Expert support: The staff of affordable accounting firms in the UAE is frequently competent and experienced, enabling them to assist you with various accounting and financial problems.

How can I pick the top affordable accounting services in the UAE?

It might be challenging to decide which accounting service to choose when there are so many inexpensive options accessible in the UAE. When choosing an accounting service, keep the following things in mind:

Price is undoubtedly a key consideration when selecting an accounting service. Before making a choice, be careful to compare costs and obtain quotations from several different companies.

Ensure you are aware of the services offered by any accounting service you are considering using. Some service providers may provide basic accounting services, while more extensive services, such as financial statements, tax planning, and preparation, may be provided by other service providers.

Experience: The accounting service provider’s experience is a crucial aspect to consider. Choose a service provider who has a successful track record and satisfied customers.

Technology: Several low-cost accounting firms in the UAE rely on technology to streamline operations and provide more effective services. To improve their services and make their procedure more convenient, look for a supplier who employs technology.

When it comes to accounting services, effective communication is essential. Make sure you can contact a provider with questions or concerns and look for one who is communicative and responsive.

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Everything You Need to Know About Corporate Tax in UAE

Corporate tax is an essential aspect of running a business in the UAE. With its favorable tax laws and a favorable business environment, the UAE has become a hub for foreign investors. It makes it crucial to have a deep understanding and read the information on the corporate tax system in the UAE, in order to make the most of its benefits. This article will help you understand corporate tax in the UAE by explaining rules, regulations and its benefits in the UAE.

Introduction to Corporate Tax in UAE

There is no personal income tax in the UAE, because of which UAE has a tax-free environment, making it an attractive country to live in for most people. However, corporations are subject to corporate tax on their income earned in the UAE. The introduction of CT in this region was intended to help UAE with the transformation and development that the government has strategically planned to achieve. The country’s tax laws are enforced and implemented by The UAE Federal Tax Authority (FTA). The authority also provides guidelines and regulations for corporations and businesses operating in the UAE. Corporations need to be abiding by these laws and regulations to avoid getting penalized.

The Corporate Tax Law in the UAE

The corporate tax law in the UAE is regulated by the Federal Tax Authority, which oversees the implementation and enforcement of the country’s tax laws. The CT law applies to all businesses operating in the UAE, regardless of their size or structure. The tax is levied on a company’s profits, and the rate at which the tax would be at, depends on the type of business and the industry in which it operates.

Corporate Tax Rates in the UAE

The CT rate depends on the type of business and industry that it operates in, hence there is no standard CT rate in UAE. Oil and gas, insurance, and banking are however, some industries that are exempt from CT. The tax rate for other industries ranges from 0% to 55%.

Benefits of Corporate Tax in UAE

The UAE offers several benefits for corporations, including:

No personal income tax

A favorable tax environment for businesses

A stable and predictable tax system

A streamlined process for tax registration and compliance

Access to a large pool of potential customers and investors

Corporate Tax Filing and Compliance in the UAE

It is necessary for corporations operating in the UAE to file their tax returns on an annual basis. The tax returns must be filed with the Federal Tax Authority(FTA) by the end of the financial year. The tax returns must include detailed information on the corporation’s income and expenses, and must be supported by financial statements and other relevant documents.

Common Mistakes to Avoid in Corporate Tax in UAE

To ensure compliance with the CT laws in the UAE, it is important to avoid common mistakes, including:

Not registering for CT

Filing incorrect or incomplete tax returns

Failing to keep accurate financial records

Not seeking professional advice

FAQ

Q: Is there personal income tax in the UAE?

A: No, there is no personal income tax in the UAE.

Q: Who is responsible for implementing and enforcing corporate tax laws in the UAE?

A: CT laws are enforced and implemented by The Federal Tax Authority (FTA) in the UAE.

Q: What is the standard corporate tax rate in the UAE?

A: The rate depends on the type of business and the industry in which it operates. There is no standard ct in the UAE.

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Steps And Requirements VAT Registration In UAE

Under the value-added tax (VAT) system implemented on January 1, 2018. UAE VAT registration is mandatory for businesses with annual revenue exceeding AED 375,000 ($102,000).

Registration to the FTA requires a sound basis for the registration, preparation of the necessary evidence, and documentation to proceed without delays or issues. Therefore preparation and planning are key to minimising issues, potential risks, and penalties.

Here are the steps and requirements for VAT registration in the UAE:

1. Determine your business’s eligibility for VAT registration.

To determine your business’s eligibility for VAT registration, you need to consider the following:

Taxable Income: If your business has revenue exceeding AED 375,000, you must register for VAT calculated on a rolling basis, including the preceding 11 months and the next 30 days.

Type of business: All businesses operating in the UAE must register for VAT except for a few exceptions. These exceptions include businesses that are exempt from VAT, such as the sale and supply of some financial and insurance services

Location of business: Businesses operating in the UAE, regardless of location, must register for VAT if they meet the above criteria.

2. Register your business with the Federal Tax Authority (FTA).

To register your business for VAT, you must register it with the Federal Tax Authority (FTA). To do this, below is a summary of the minimum requirements:

Possess a Trade License: To register your business for VAT, you need a Trade License.

Register with the FTA: Once you have a Trade  License, you need to register your business with the FTA through their  e-Services portal. You will need to provide the following information:

Business name and address

Bank details

Type of business activity

Trade License number

Details of the business  owner(s)

3. Obtain a Tax Registration Number (TRN).

Once you have registered your business with the FTA, you will receive a Tax Registration Number (TRN). This number is unique to your business and will be used for all your VAT-related activities.

4. Set up a VAT accounting system.

To comply with VAT requirements, you need to comply with the provisions as a taxpayer as set out in the Executive Regulations. Ideally, you should set up a VAT accounting system that tracks your business’s VAT-related activities to help with the VAT reporting. This includes:

Recording the VAT charged on your sales and the VAT paid on your purchases

Maintaining detailed invoices for all your sales and purchases

Preparing and submitting VAT Returns to the FTA regularly

VAT returns must be filed regularly, typically quarterly, or monthly. To file a VAT Return, you need to:

Prepare a VAT Return form: The VAT return form     includes details of your business’s sales and purchases for the period and     the VAT charged and paid.

Submit the VAT

Payment on VAT due

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Outsourced Accounting Services in Dubai, UAE

Dubai is renowned for its vibrant business culture offering an ideal economic and tax environment for businesses. Consequently, it is home to a few accounting firms that offer a wide range of services to businesses of all sizes to support their operations. For many businesses, working with an accounting partner is an ideal model especially during the early phase of company operations to help businesses manage their finances, streamline their operations, and stay compliant with local regulations.

One of the key services offered by accounting firms in Dubai is bookkeeping. This involves the recording, classifying, and summarizing of financial transactions to provide a comprehensive overview of a company’s financial position and tax compliance.

This can include the recording of invoices, receipts, and other documents that are related to the company’s financial activities and provide deeper insight into financial performance to plan future development and cash requirements.

Another important service that accounting firms in Dubai offer are tax preparation and filing. Dubai has a growing and increasingly complex tax system, and businesses must be compliant with local regulations. This includes ensuring that tax returns are filed accurately and on time and that businesses are paying the correct amount of tax.

Accounting firms in Dubai can help businesses to navigate the local tax system and ensure that they are paying the correct amount of tax. Furthermore, 2023 will see the introduction of Corporate Tax in the UAE which will place additional requirements to manage tax affairs optimally.

Auditing is another service that is offered by accounting firms in Dubai. This involves the examination of a company’s financial records to verify their accuracy and ensure that they follow local regulations. Auditing can help businesses to identify any areas where they are not compliant and take corrective action. Audits are also Regulatory requirements to operate a commercial license, especially under UAE Free Zones.

In addition to these core services, many accounting firms in Dubai also offer a range of other services, including financial planning, business consulting, and corporate finance. These services can help businesses to better understand their financial position, identify areas for improvement, and make informed decisions about their future growth and development.

This means that businesses can be confident that they are receiving accurate and reliable advice and that their financial affairs are being managed in a compliant and efficient manner. Businesses can choose the services that are most relevant to their needs and receive expert guidance and support in these areas.

There are a few factors that businesses should consider when choosing an accounting firm in Dubai. These include the firm’s reputation and track record, the experience and qualifications of its staff, the range of services that it offers, it’s certifications such as Federal Tax Agency and an efficient working method to reduce resource and time demands. It is also important to consider the cost of these services and to ensure that they represent good value for money.

Overall, accounting firms in Dubai play a vital role in helping new and growing businesses to manage their finances, stay compliant with local regulations, and grow and develop. These firms can offer a range of services tailored to the specific needs of businesses, staffed by experienced professionals who are well-versed in local regulations and practices.

By choosing the right accounting firm in Dubai, businesses can be confident that they are receiving accurate and reliable advice, and that their financial affairs are being managed in a compliant and efficient manner.

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Outsourcing Human Resource Management Services in UAE

Outsourcing HRM refers to the practices and policies that a company puts in place to manage its employees. That can include recruiting, hiring, training, performance management, and compensation. In the United Arab Emirates (UAE), HRM practices are shaped by the country’s unique culture, labor laws, and business environment.

If you are looking for Outsourcing HRM services in the UAE, a number of companies offer a range of HR-related services to businesses in the region. These services include HR consulting, payroll management, employee benefits administration, and more. You can search online or consult with a local business association or chamber of commerce to find HRM service providers in the UAE.

Outsourcing HRM in the United Arab Emirates (UAE) refers to hiring a third-party company or individual to handle HR-related tasks and responsibilities for an organization. That can include hiring and onboarding employees, managing employee benefits and payroll, handling performance evaluations, and conducting training and development programs.

Outsourcing HRM can help organizations in the UAE reduce costs, improve efficiency, and focus on their core business activities. Some companies choose to outsource all their HRM functions, while others may only outsource specific tasks. If you are considering outsourcing HRM in the UAE, it is essential to carefully research and compare potential vendors to find one that is a good fit for your organization.

The UAE HR Solution is a comprehensive package designed to help businesses in the United Arab Emirates effectively manage their human resources. The package includes a range of tools and resources to help businesses with tasks such as:

Recruitment and selection: The UAE HR Solution offers a range of recruitment and selection tools, including job postings, resume database searches, and applicant tracking systems.

Employee onboarding: The package includes resources to help businesses effectively onboard new employees, including employee handbooks and training materials.

Performance management: The UAE HR Solution includes tools for setting and tracking employee performance goals and resources for conducting performance evaluations.

Compensation and benefits: The package includes tools for managing employee compensation and benefits, including salary and bonus calculation tools.

Employee development: The UAE HR Solution offers resources to help businesses develop their employees, including training programs and professional development opportunities.

Compliance: The package includes resources to help businesses comply with local laws and regulations, including labor laws and employment contracts.

Overall, the UAE HR Solution is designed to help businesses in the UAE streamline their HR processes and better manage their workforce.

Top of Form

Human resources (HR) consulting firms provide advice and support to organizations on HR-related issues, such as employee benefits, hiring and firing, training and development, and compliance with labor laws.

These firms typically have a team of HR experts who work with clients to assess their HR needs and develop strategies to address them.

Some HR consulting firms also offer payroll and employee benefits administration, HR technology implementation, and HR process outsourcing. HR consulting firms can be valuable resources for organizations looking to improve their HR practices and better manage their workforce.

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UAE VAT Registration Guide For 2023

In the United Arab Emirates (UAE), VAT is a consumption tax that is levied on most goods and services sold in the country. If your business is based in the UAE or you are planning to start a business in the UAE, you may need to register for VAT if your taxable supplies and imports exceed a certain threshold.

To register for VAT in the UAE, you will need to follow these steps:

Determine if your business is eligible to register for VAT. In the UAE, businesses with a taxable turnover above AED 375,000 per year are required to register for VAT.

Prepare the necessary documents. To register for VAT, you will need to have the following documents:

Trade license

Emirates ID or passport of the      business owner(s)

VAT registration application form

Submit the VAT Registration application. You can submit your VAT     registration application online through the Federal Tax Authority’s (FTA)     e-Services portal or at an FTA customer happiness center.

Wait for approval. Once you have submitted your VAT registration application, the FTA will review your application and determine if you are eligible to register for VAT. If your application is approved, you will receive a VAT registration certificate.

Charge VAT on your sales. Once you have registered for VAT, you will need to start charging VAT on your sales at the applicable rate (currently 5%). You will also need to submit VAT returns to the FTA on a regular basis to report the VAT you have collected and any VAT you have paid on your purchases.

It’s important to note that VAT registration and compliance can be complex, and it is advisable to seek the guidance of a professional tax advisor to ensure that you are following UAE VAT regulations.

VAT De-Registration in UAE

In the United Arab Emirates (UAE), businesses that are registered for value-added tax (VAT) may de-register for VAT if they meet certain conditions. To de-register for VAT, a business must first inform the Federal Tax Authority (FTA) and then submit a de-registration application through the FTA’s e-services portal.

To be eligible for VAT de-registration, a business must meet the following conditions:

The business must not have any taxable supplies or imports in the past 12 months.

The business must not expect to have any taxable supplies or imports in the next 30 days.

The business must not have any outstanding tax liabilities or penalties.

If a business meets these conditions, it can apply for de-registration by completing the de-registration application form on the FTA’s e-services portal and submitting it along with any required supporting documents. The FTA will review the application and may request additional information or documentation before deciding on the de-registration.

If the de-registration is approved, the business will no longer be required to charge VAT on its supplies or pay VAT on its imports and will no longer be required to file VAT returns. However, the business may still be required to retain certain records for a period in case they are needed for audit or verification purposes.

VAT Return Filing in UAE

VAT Return filing is a process by which businesses report the amount of VAT they have charged on sales and the amount of VAT they have paid on purchases. VAT returns are typically filed on a regular basis, such as monthly or quarterly, depending on the rules of the country where the business is located.

In the United Arab Emirates (UAE), VAT is administered by the Federal Tax Authority (FTA). Businesses that are registered for VAT must file VAT returns with the FTA on a regular basis. VAT returns must be filed electronically through the FTA’s e-Services portal.

To file a VAT return in the UAE, businesses will need to:

1.    Gather all the necessary documentation, including invoices, receipts, and other records of sales and purchases made during the relevant period.

2.    Use this documentation to calculate the total amount of VAT that has been charged on sales and the total amount of VAT that has been paid on purchases.

3.    Log in to the FTA’s e-Services portal and navigate to the VAT return filing section.

4.    Enter the required information, including the total amount of VAT charged on sales and the total amount of VAT paid on purchases.

5.    Submit the VAT return.

It’s important to note that businesses must file their VAT returns by the deadline set by the FTA. If a business fails to file its VAT return on time, it may be subject to penalties and fines.

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What Is Transfer Pricing & How Does It Impact My UAE-based Business?

What is Transfer Pricing?

Since the implementation of Corporate Tax in UAE, The notion of Transfer Pricing (TP) is receiving more attention in the Ministry of Finance (MoF) released Questions and Answers along with public Consultation documents.

This idea could be new for many local-owned companies, leading to numerous concerns and Transfer Pricing considerations for implementation. The topic of this article is Transfer Pricing, and its implications within The UAE will be reviewed to provide more information for businesses.

The standard definition of the term “transfer pricing” is commonly referred to as:

“The prices of goods and services sold or purchased between the entities with associated parties.”

When a related party refers to an entity or person who has a prior connection with a business by control, ownership, or family kinship (in instances of natural people).

Naturally, related-party transactions may allow entities to shift profits artificially. Therefore, this UAE corporate tax introduction strongly emphasizes transfer pricing.

The world’s tax justice network defines Transfer Pricing as “a technique used by multinational corporations to shift profits out of the countries where they operate and into tax havens.”

Both definitions explain that transfer prices are a way to make money. But it’s helpful to go back and expand the definition. It is essential to clarify that Transfer Pricing refers to the following:

A tax law to prevent abuse was enacted to implement the  “arm’s length” principle.

It is a requirement that the price of the goods and services  that the respective parties charge must be precisely the same as they     would have been being the parties involved in each transaction were     connected.

The goal of the arm’s-length rule and the Transfer Pricing (“TP”) regulations is to ensure that there isn’t any price mispricing of transfers, which can be due to fraudulent transfer Pricing methods, in which the prices of transfers are deliberately manipulated to obtain certain tax benefits which benefit several related entities.

Transfer pricing is of crucial importance to corporate taxation. Transfer prices directly impact the distribution of losses and profits for companies that are who are taxed by the corporate tax. The Transfer Pricing practices of taxpayers could have an immediate impact on the tax revenues of a nation.

When the corporate tax rates of the countries concerned differ substantially, related parties might be motivated to establish their transfer rates so that they can allocate profits to the less tax jurisdiction, thus reducing the total (group) global tax burden for corporations.

Even when a country has lower tax rates and is not governed by Transfer Pricing laws, transfer mispricing can take away significant tax revenue.

For instance:

Company A, a tax resident of Bangladesh, manufactures electronic devices and personal computers in a country taxed at a rate of 32.5 percent. It sells its items to the UAE-related tax-resident company B which pays 0 percent or 9% corporate tax on the resale of its products in third markets and UAE.

In this scenario, company A will be driven to offer the product at a price or with a lower profit percentage to Company B. In contrast, Company B will be able to resell the product with the highest possible profit margin and take the more significant part of the profits to ensure that both entities pay corporate taxes at a lower efficient tax rate.

Tax authorities in Bangladesh are likely to audit and modify the tax on corporate income paid by company A, thereby taxing a substantial portion of the profits that the UAE taxes.

Suppose company B was to pay taxes on corporate income in the UAE.

In that case, company B is likely to be keen to reduce the tax paid by the UAE to reduce and eliminate the phenomenon known as “economic double taxation” through the Transfer Pricing adjustment. That’s why countries with corporate tax systems should create transfer pricing laws and an administrative capacity to deal with the request for adjustment.

Additionally, as accounting and legal tax laws and practices vary from country to country, It is of the utmost importance to be aligned with the Transfer Pricing law to ensure that the adjustments to TP are based on the same rules and principles as the Transfer Pricing method.

Will It Impact A UAE-Based Business?

The simple answer is yes. The official MoF documents ( Press release  and Public Consultation) stipulate that UAE businesses must adhere to Transfer Pricing rules and the requirements for documentation by the Transfer Pricing Guidelines.

As part in the Corporation Tax introduction as part of the Corporate Tax introduction, the UAE will implement Transfer Pricing rules, which means that all transactions with related parties and those that involve connected individuals (“intercompany transaction”) will have to conform to the applicable TP requirements according to the principle of arm’s length that is outlined in the OECD Transfer Pricing Guidelines.

Who are the Related Parties?

By the UAE Corporate Tax Consultation Document [2(the (“Consultation Paper”), A related person is an individual or an entity with already established a connection to a business by control, ownership, or family kinship (in cases of natural people).

The document also lists these relationships in the form of related parties:

Two or more people connected with the 4th degree of kinship,     affiliation, or kinships such as marriage, birth, or adoption.

When alone or in conjunction with a partner, a person, or a legal entity, the individual directly or indirectly holds more than 50% of this legal entity.

A legal entity or two in which one legal entity or in conjunction with a related entity directly or indirectly, has more than 50% part in or controls each legal entity

More than two legal entities, if an individual taxpayer or together with a partner who directly or indirectly owns 50 percent of each.

A taxpayer, its branch, or permanent establishment

The partners in the same unincorporated partnership and

Business activities that are exempt and non-exempt of the same individual (for instance, an exempt-free zone-based business).

Who Are Connected Persons?

Consultation Paper Consultation Paper stresses that in the absence of taxation on personal income in the UAE, individuals who own tax-deductible companies would be encouraged to reduce the UAE corporate tax base through excessive payments to themselves and others who are associated with them.

So, benefits or payments offered by a company for the “Connected Persons” will be tax-deductible only if the company can prove that the benefit or payment conforms to “arm’s length” or the “arm’s length principle” and that the cost is incurred entirely and solely for the benefit of your business.

Connected Persons differ as Related Parties. A person is regarded as being ‘connected’ to a business in the scope of the UAE Corporate Tax regime it is:

A person who directly or indirectly holds an ownership control or interest in the taxable person

Director or Officer of a taxable person.

An individual who is related to the director, owner, and Officer of the tax-paying person in four degrees of affinity or kinship, such as through marriage, birth, or adoption.

If the tax-paying person is a member of an unincorporated partnership or any other partner of the same partnership and

The term “related party” refers to a Related Party of any of the above.

What Are the Compliance Obligations?

Transfer Pricing rules usually shift the burden of proof (burden of evidence) on the taxpayer. It is the responsibility of any taxpayer who has intercompany transactions that have more than a certain threshold, in the applicable tax year, to create documents for Transfer Pricing and demonstrate that the intercompany transactions were conducted at “arm’s length”.

The value of intercompany transactions has yet to be defined and is anticipated to be clarified following the implementation of UAE Corporate Tax Legislation. This Consultation Paper specifies the mandatory Transfer Pricing documentation consisting of a local file and a Master File (according to the formats and content required in OECD BEPS’s Action 13 and by the World’s Best practices).

Additionally, the arm’s-length nature of the transactions must be confirmed using one of the internationally recognized Transfer Pricing methods or another approach when the business can prove that the method specified can’t be used reasonably.

If the requirements are met, companies must complete and submit the Transfer Pricing disclosure form with details about their transactions with inter-company entities. It needs to be clarified how this Transfer Pricing disclosure form must be filed simultaneously with your tax returns (i.e., in the first (9) months from the expiration of the applicable period of tax) or with an earlier date.

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Federal Corporate Tax in UAE – Published Official CT Legislation

After the announcement by the government regarding the benefits of Corporate Tax in UAE (CT) and the frequently asked questions (FAQs) on January 31, 2022, as well as the publication of the Public Consultation Document in April 2022, the Federal Decree-Law no. 47 of 2022 regarding the Taxation of Corporations and Businesses UAE Corporate Tax Law has been released on December 9, 2022.

The UAE Corporate Tax Law is Federal Decree-Law No. 47 of 2022, enacted on October 3, 2022, and will be in force 15 days following its public publication by the Official Gazette. The UAE Corporate Tax law applies to profits from businesses in financial years beginning on or after June 1, 2023.

This article offers brief highlights of the new rules which were made public by The Ministry of Finance (“MoF”) and the Federal Tax Authority (“FTA”). It is important to note that the rules closely match those in the Public Consultation Document.

Additional details will be deferred to Cabinet and Tax Authority Decisions. Further guidance is expected to be issued to finalize all UAE Corporate Tax Legislation in areas such as the Free Zone and Director compensation guidelines. Following the publication of Corporate Tax Legislation, the MoF has confirmed that the implementation is scheduled for June 2023.

Scope of Corporate Tax in UAE

Corporate Tax in UAE will be applied to the adjusted net profit of the worldwide accounting of the company.

The UAE Corporate Tax regime has two rates of different types:

A tax-free rate will be applied to tax-paying earnings up to     a certain amount that is to be set in the Cabinet Decision (the FAQs relate to the threshold of AED 375,000)

The tax statutory standard rate is 9 percent.

The relative minimal tax burden of just 9% aims to ensure that the UAE has a competitive tax rate in the global marketplace.

The UAE Corporate Tax Law is silent in Article 3 on aspects governing the global minimum of 15% tax rate. That applies to MNEs that fall within the scope of Pillar Two, which is part of BEPS Pillar 2. OECD BEPS project and applies to multinational corporations (MNCs) that have consolidated worldwide revenues exceeding EUR 750 million (c. 3.15 billion AED) 3.15 billion) at any time in two of the preceding four years. The FAQs address the possibility of adopting within the UAE of BEPS Pillar 2.

Individuals:

Individuals also are affected by corporate taxation if they engage in business activities and are in line with general VAT rules of business activities. The Cabinet is expected to decide how to apply Corporate Tax in UAE to natural individuals. Thus, Corporate Tax in UAE does not apply to a person’s salary and other earnings earned through employment.

However, those who are earning income through an enterprise activity will be covered by Corporate Tax in UAE.

Free Zones

A clearly defined and specific policy (subject to a further Cabinet decision) is set out for companies established in UAE-free zones. These zones:

Maintain sufficient substance and

Earn qualifying income.

What exactly is a sufficient income will be defined by a Cabinet decision. The Public Consultation Document could refer to the requirement to not do business with the mainland UAE. It is stated that Free Zone businesses can choose to be taxed as a corporation at a rate of 9 percent.

The extensive UAE rules for sourcing are in force and essential for the Free zone companies seeking to comply with the substance requirements.

Withholding Tax

There is a possibility of a zero-withholding tax on specific categories in the UAE State Sourced income produced by a non-resident. In turn, foreign investors who do not conduct any activities in the UAE won’t be taxed within the UAE.

Foreign Entities

Foreign entities can be considered residents in the UAE if they are managed and controlled by the UAE. In the case of foreign companies that aren’t recognized as residents of the UAE and who possess a permanent establishment in the UAE, The Definitions of Permanent Establishment have been clarified as fixed PE as well as the term “agency PE. Further details on PEs will be subject to a Ministerial decision.

Exempt Entities

The UAE Corporate Tax Law has retained the exemption for Investment Managers of the Public Consultation Document. Specific rules apply to Partnerships as well, as Family Foundations can also use to increase tax transparency 

Government entities and government-controlled entities as well as qualifying public benefit entities and qualifying investment funds will be exempt from the UAE Corporate Tax Law.

Extractive companies (upstream oil and gas companies) are exempt if they earn revenue from the extraction business.

Bank operations will be restricted to Corporate Tax in UAE (unless your institution operates in a Free Zone and is eligible for the zero-interest rate).

Implementation Date

Article 69 of the UAE Corporate Tax Law provides that the Law applies to Tax Periods that begin on or after June 1, 2023.

Companies with a fiscal year that begins on January 1 are subject to CIT beginning 1. January 2024.

Financial records & Requirement to Maintain Audited Statements

Taxpayers must prepare and maintain financial statements backed by all records and documents to support UAE Corporate Tax returns. The forms should be kept for a minimum of seven years.

That will apply to every UAE entity (unless included in the Corporate Tax Group). Every entity must make separate financial statements. However, all entities will not be audited for financial information. Subsequent Cabinet Decision(s) will outline the tax-paying categories required to keep audited or certified accounts.

Small Business Tax Relief

The possibility of relief for small-sized businesses with gross or revenue less than the threshold of a specific amount is made. Qualifying businesses will be considered not to have tax-deductible income and must comply with a simplified set of requirements.

Revenues and not tax-deductible income determine the threshold. It is likely to be confirmed by an upcoming Cabinet Decision.

Deductible / Non-Deductible Expenses

The expenses incurred solely and exclusively to serve business needs (and which are not to be capitalized) can be deducted.

Deductions are not allowed for expenditures incurred to generate tax-free income. Deductibility is only permitted in the case of any price with a mixed purpose. Interest expense is deductible subject to a maximum of 30% of EBITDA.

Financial assistance rules have been implemented to prevent businesses from getting funding to pay dividends or distribute profits.

Entertainment costs are limited to 50 percent.

Non-deductible expenses include contributions to a non-qualifying Public Benefit Entity and bribes, fines, and dividends.

Importantly, amounts taken from the business by an individual who is a tax-deductible individual are not deductible.

Exempt Income & Relief

 The following income categories are exempt from Corporate Tax in UAE (Article 22 of the UAE Corporate Tax Law):

Capital Gains and Dividends, and other profits distributions     from a Resident

Capital Gains or Dividends, as well as other profits distributions     from Qualifying shareholding in a legal entity of a foreign country with a     holding time of 12 months and a minimum contribution of 5 percent, and at     an absolute minimum of 9 percent CIT for the source country. From which     they originate.

The income from a foreign PE is subject to the conditions     & an option to use an exemption (rather than credit)

The income earned by an individual, not a country resident,     comes from the operation of ships or aircraft involved in international     transport.

These transactions can be subjected to a specific reduction, i.e., it is essentially an exemption from taxation:

Restructurings and intragroup transactions that qualify as     qualifying entities are eligible when they hold 75 percent common ownership

Restructuring of businesses is a relief from the government     with specific conditions.

Transfer Pricing

Related parties’ transactions should be carried out under the arm’s-length arms-length principle outlined in Section 34 of the UAE Corporate Tax Law. It also states that the five standard OECD transfer pricing techniques are suitable to help support the arm’s-length arms-length nature of arrangements with related parties and allow alternative methods if needed.

Article 34 states that should there be an adjustment by a tax authority from a foreign country that affects a UAE entity, the application must be submitted to the FTA to request a similar adjustment that allows the UAE firm to be exempt against double taxation. The resulting adjustments relating to domestic transactions do not require an application.

The requirements for documentation on transfer pricing are covered by Article 55. UAE businesses must follow the transfer pricing regulations and the documentation requirements set by references to the Transfer Price Guidelines.

These lead to three-tier reports, i.e., master file, local file, and country-by-country reporting. The connection to a controlled transactions disclosure form is provided (details of which are to be determined).

It is important to note that no thresholds of materiality are provided. Separate legislation will be announced shortly. Advance pricing plans will become made available via the normal clarification process currently in place.

UAE has introduced provisions requiring the payment and benefits given to persons connected to be tax-deductible in the market value. The same rules are followed in section 34 of UAE CIT Law for applying this principle.

Administration & Enforcement

The MoF is the sole authority for multilateral or bilateral     agreements and the exchange of information between countries.

The FTA is responsible for the corporate tax system’s     administration, collection, and application. The Tax Procedures Law sets     fines and penalties.

Companies will require an FTA VAT     Registration UAE.

Companies affected by Corporate Tax in UAE must submit a CT     report electronically for each period of financial activity within nine     months from the close of that Financial Period. (A financial period     generally refers to any financial period that is 12 months long)

Free Zone companies that are which are subject to CIT at 0     percent CIT must also submit a Corporate Tax Return.

Foreign Tax Credits

Tax credits for foreign taxation are allowed for UAE corporate tax due as per the Public Consultation Document. Businesses are entitled to claim the lesser amount of corporate tax due and the sum of withholding tax that is effectively taken out. There is no carrying forward. There will be no credit for taxes paid to an individual Emirate.

Tax Grouping

Fiscal unity or Tax Group: UAE companies can create a “fiscal unity” or Tax Group to serve UAE purposes. The primary requirement for the formation of a Tax Group is to comply with an (in)direct minimum shareholding of 95 percent.

Free zone entities subject to zero percentage shareholding are not eligible to join the Tax Group. Furthermore, the parent (which may be intermediate) is required to be a UAE company.

Losses 

By article 37 of the UAE Corporate Tax Law, losses can be carried forward for up 75 percent of taxable income. Losses can be transferred between members of the same group of corporations if they are 75 percent direct or indirectly owned. Losses cannot be transferred from exempt people or entities in the free zone. The loss offset is subject to the cap of 75 when it comes to businesses that roll forward losses.

Tax-deductible losses may be lost in the event of an ownership change (50 percent or more); however, the new owner is operating the same or similar business. The requirements to be considered for this have been established.

Anti-Abuse

UAE will implement an Anti-Abuse General Rule known as “GAAR”. The GAAR applies to cases where one of the principal reasons for a transaction is to gain an advantage in taxation for corporations that is not in line with the intent, intent, or purpose of UAE Corporate Tax Law.

The FTA will be able to address and adjust or counteract the transaction. The GAAR only applies to arrangements or transactions made after the UAE Corporate Tax Law is published in the UAE Official Gazette on October 10, 2022, in issue #737.

Summary

The publication of UAE Corporate Tax Law and confirmation of a rate of 9 The UAE have established a global affordable Corporate Tax rate and confirmed their intention to implement Corporate Tax in June 2023.

The information to be released in the next few months will be fleshed out and provide a greater understanding of the implementation process. Nevertheless, several key elements are already confirmed, including introducing compulsory transfer pricing rules.

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UAE VAT Registration in 2021 – A Step-by-Step Guide

Since the UAE introduced the VAT on Value Added Tax (VAT) on January 1st, 2018, business owners are required to follow the rules, including UAE VAT Registration and tax filings.

Companies operating in the UAE must ensure that VAT is correctly collected and properly accounted for so that it can be paid back to Federal Tax Authority (FTA).

UAE VAT Registration means that your business is recognized by government authorities to take VAT from your customers and then transfer this to the government.

As a business owner, you must be aware of the critical aspects of VAT in the UAE.

These are step-by-step guides.

What is VAT?

Taxes on VAT are applied to the exchange of services and goods. It that is used at every stage in the chain of supply. It is calculated based on the value added at each step. This indirect tax is imposed on the Government of UAE at 5 percent on most businesses and products. However, food, education, and healthcare items are exempt from VAT.

VAT Registration UAE

If you need to declare VAT depends on your business’s turnover per year.

Exclusive from Registration for VAT Value of supplies that are less than Dh187,500

Voluntary UAE VAT Registration, The value of reserves is between Dh187.500 to Dh375,000.

Mandatory VAT Registration Value of supplies above Dh375,000

Your registered business will receive a unique tax identification number (TRN) when the UAE VAT registration is accepted. The VAT invoices on all VAT invoices will include the TRN.

UAE mainland businesses, as well as free zone companies, are taxed on VAT. The only ‘designated zones’ designated by Cabinet members of the UAE Cabinet are outside the scope of UAE VAT taxation. Moving goods within areas are free of tax.

It typically takes between 3 and 5 days for the tax registration process to complete.

VAT Return Filing

VAT-registered companies (taxable individuals) are required to submit an annual VAT return to the FTA.

A VAT return is a summary of the supplies and purchases that a tax-paying person makes during tax time to calculate the tax liability of VAT.

You can file your VAT return online every month or every quarter by visiting FTA’s official website – https://www.tax.gov.ae/.

Tax returns should be filed on time, usually by the 28-day deadline. The tax period is the time in which taxes are due and due. The tax period:

* Monthly for businesses with annual revenue of Dh150 million or greater. * Quarterly rate for companies with an annual turnover of less than Dh150 million

VAT Liability

In contrast to customer business revenues, VAT is not part of your company’s income. Instead, the VAT you collect is known as VAT liability & has to be paid to the government of the UAE.

Vat liability is the gap between the output tax to be paid (VAT applied to supplies of services and goods) and the tax on input (VAT incurred when purchasing) which is recoverable for a specific tax time.

If output taxes are more significant than input taxes, the excess must be paid to FTA. However, if there is an excess of output tax and input tax, the taxable person can recuperate the quantity and apply it to future payments to FTA.

Documents Required for  VAT Registration in UAE

You must provide duplicates of these documents to register for UAE VAT Registration.

Certificate of registration or incorporation.

Trade license

Passport and visa, or Emirates ID of director/manager

A partnership contract, memorandum association, or another document that provides information on the business’s ownership.

The profile of the named company director.

Bank account details;

Contact details;

Physical office;

List of business directories or partners in the UAE over the last five years

The Federal Tax Authority would also need to declare the following:

The actual or estimated value of transactions in the financial sector;

The registered business activities of the applicant;

Information on the anticipated turnover of the company over the next thirty days;

The turnover of the business over the last 12 months (supporting documents are required);

Information about the business’ anticipated exempt supply;

All details about the business exports and imports of the company;

Information on the customs registration process;

The business activities that take place in the GCC

The taxpayer or VAT-registered company is also required by the tax authorities to maintain the following records/documents:

Tax invoices and any other document pertinent to the receipt of the goods or services you need;

Notes on the tax credit, in addition to any other documents that the company receives about the purchasing of products or services

Record of tax-deductible products received or manufactured;

Tax invoices and any other document that is the issue concerning products or services;

Notes on the tax credit and any other type of document issued to purchase items or services

Documents of services or goods that are disposed of or used by the company to deal with matters not connected with the business, as in the tax paid for these;

Record of the imports and supply of goods or other products;

Documents of corrections or adjustments applied to tax invoices or any other account

Record of products or goods which are shipped to another country

Tax records must be kept by any tax-paying individual and include the following details:

Taxes that can be recovered on imports or supplies;

Tax recoverable subsequent adjustment or correction of error;

Tax due following adjustment or error correction

Taxes owing on all tax-deductible products

UAE VAT Registration Process

If you have your soft copies of the previously mentioned documents in hand, you’re in good shape to begin the registration procedure.

First of all,

Log in to e-service, and establish an account. Input the UAE VAT registration form

FTA (Federal Tax Authority) authorized e-service account is required to register VAT. However, it is easy to create an account through their official site.

VAT Rates in UAE

The rates of VAT in the UAE differ from product to product. The standard rate of the government is 5%, and you should charge this amount unless your product or service is in”zero-rated,” or “zero-rated” or VAT exemption.

Zero-rated rates are available on tax-exempt products; however, the buyer is not liable for VAT. Your VAT account must record and report the VAT zero-rated transactions, too.

Certain goods and services, including the construction of residential structures and land and financial services, are exempt from VAT.

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UAE Amendment of the VAT Decree-Law

The Decree-Law No. 18-2022 regarding VAT was announced on the 28th of September 2022. It announced amendments to a few aspects in the UAE Federal Decree-Law no. 8 of 2017 on VAT (Value Added Tax). The changes will take effect on January 1, 2023.

In all, 24 articles were modified and one article regarding the statute of limitations has been added to UAE VAT Law representing some important modifications to the Legislation.

The major amendments to UAE VAT Law – effective on the 1 day Jan 2023 are as follows:

Nature of Change

Amendment

Definitions

The new definitions have  been added in relation to Relevant Charitable Activity  Pure Hydrocarbons Tax Evasion Tax Audit Tax Assessment and voluntary  disclosure.

The supply of goods outside the VAT scope

A new provision has been included in Article 7  stating the Executive Regulations could define any other supply (other than  the provision of vouchers or transfers of business) as being to be outside the reach of VAT.

Goods that are subject to zero-rate

Additional products are included under Article 45  (clauses 4 5, and 6.) as being exempt from the VAT at a zero rate. It  includes import of the means of  transportation, import of products that are related to transportation and the  import of aircrafts for rescue and ship.

Input VAT recovery

Two new clauses were included in Article 55 relating  to the recovery of VAT on inputs. This stipulates  the conditions for the taxpaying person to claim back VAT that was declared  or paid on the import of goods and services.

Adjustment of VAT output

The tax adjustment for outputs stipulated under  Article 61(1) refers to the situation when the tax-payer employs an improper  tax treatment. In such situations the tax  payer must present an acknowledgement of tax credit to increase the output  tax.

When is the best time to issue An tax credit note

Article 62(2) regarding the mechanism for adjusting  output VAT has been amended to include the condition that the tax payer must issue an tax credit note within 14 days  of the date that any of the situations mentioned under  Article 61(1) is observed.

Payment of tax

65(4) of the Constitution 65(4) stipulates that it is  mandatory for the tax payer to pay tax to the  Federal Tax Authority (FTA) in the event that an individual issues an tax invoice  with VAT on it , or receives the amount in UAE VAT Law.

The timeframe for issuance of an tax invoice

Article 67(1) stipulates the date for the issuance of tax invoices in accordance  with the Article 26 (date of continuous supply) to be 14 days following the  date of supply.

The VAT registration exemption is not  required.

The provisions of Article 15 regarding the exemption  to register will be applicable to registered people in addition to those who  are not registered. This is the case when their  products are zero-rated or if they are no longer making supplies other that  zero-rated.

Supply date in certain instances

26(1). Article 26(1) determining the date of supply in  certain circumstances is the date at which the year is one-year since the  date when the service or product is supplied in addition to other  circumstances that establish the time of the delivery.

Reverse charge

The clause 3 in Article 48 specifies that the reverse charge in the domestic market will be  applicable to Pure Hydrocarbons.

Supply in specific circumstances

Article 30(8) concerning the location of supply in  certain instances, states that the source  of supply for transportation-related services is the location where  transportation begins.

The place of residence of the principal

The article 33 defines the the residence of a principal as having to be  the home for the agent. Under the current UAE VAT Law,  it was stipulated that the principal’s the agent’s residence must be the  principal’s residence. that of the principal.

Supply value

Article 36 on the specific anti-avoidance rules  regarding values of supplies or the import of products and services between  closely related parties will now take precedence over the Article 37 (value  of supply deemed to be).

New Article introduced regarding the statute of  limitations

The latest article on the statute of limitations also  covers other instances: The limitation period of five years does not apply to  situations in which the FTA issued a notice to audit the tax-paying person  provided that the audit can be completed in four years from the date of issue  in the form of a notice. 

If the taxpayer makes a voluntary disclosure within  the 5th year after the date of the applicable tax year the statute of  limitations is increased by one year. Voluntary disclosure is not able to be filed  by a tax-paying taxpayer after the expiration of  five years following the expiration of the relevant fiscal period. The  article further states that these extended times can be further amended  by the Cabinet’s separate Decision.

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UAE VAT Registration in 2022 – A Step-by-Step Guide

Since it was announced that UAE implemented VAT on Value Added Tax (VAT) 1 January 1st, 2018, business owners must follow the rules, which include UAE VAT Registration and tax filings.

Businesses operating in UAE should ensure that VAT is collected correctly and adequately accounted for so they can pay the Federal Tax Authority (FTA).

UAE VAT registration means that government officials recognize your business as a legitimate business to take VAT from your customers and then transfer this to the government.

As a business owner, you must know all the essential aspects of VAT in the UAE.

There is a step-by-step guide.

What is VAT?

The VAT tax is levied and imposed on the exchange of services and goods applied at every stage in the supply chain. The Government of UAE sets this indirect tax at a nominal rate of 5 percent on most businesses and interests. However, food, education, and healthcare items are exempt from VAT.

VAT Registration UAE

If you need to be UAE VAT registered is contingent upon the turnover per year of your business.

Exclusive from UAE VAT Registration Supply value less than Dh187,500

Voluntary VAT Registration Supply of goods between Dh187,500 to Dh375,000

Mandatory VAT Registration The value of supplies that exceed Dh375,000

After your UAE VAT Registration is approved, your registered company will receive a unique Tax Registration Number (TRN). The VAT invoices on all VAT invoices will include the Tax Registration Number.

UAE mainland businesses, as well as free zone businesses, are taxed on VAT. The only ‘designated zones’ designated by Cabinet members are outside the UAE VAT taxation. The transportation of goods within the zone is exempt from tax.

It typically takes between 3 and 5 days for the Registration of VAT to be processed.

VAT Return Filing

VAT-registered companies (taxable individuals) must file an annual VAT return to the FTA.

A VAT return summarizes the supplies and purchases of a taxpayer during the tax year to calculate the tax liability of VAT.

You can file your VAT return online every month or every quarter by visiting FTA’s official website – https://www.tax.gov.ae/.

Tax returns should be filed on time, usually by the 28-day deadline. The tax period is the time in which taxes are due and due. The tax period:

* Monthly for businesses with annual revenues over Dh150 million or greater. * Quarterly rate for companies with an annual turnover of less than Dh150 million

VAT Liability

As with other business revenues, the VAT you collect from customers is not an element of your business’s revenue. The VAT that is collected is known as VAT liability, & it has been paid back to the government of the UAE.

Vat liability refers to the gap between the output tax to be paid (VAT applied to supplies of services and goods) and the tax on input (VAT paid on purchases) which is recoverable for a particular tax time.

If the output tax exceeds the input taxes, they must be paid to FTA. If there is excess input tax above output tax, the taxpayer must recover the extra tax and apply it to future payments due to FTA.

Documents Required for VAT Registration in UAE

You’ll need to provide duplicates of these documents to be eligible for UAE VAT Registration.

Certificate of registration or incorporation;

Trade license

Passport and visa, or Emirates ID of director/manager

The partnership agreement or memorandum association, or another document that provides information on the business’s ownership;

The profile of the Director of the company who was appointed;

Bank account details;

Contact details;

Physical office space;

List of partners or directories of business in the UAE over the last five years

The Federal Tax Authority would also need to declare the following:

The actual or estimated value of financial transactions;

Business activities that the applicant has registered;

Information on the anticipated revenue of the company for the next thirty days;

The turnover of the business over the previous twelve months (supporting documents are required);

Information about the business’ anticipated exempt supply;

Information about the company’s Exports and imports;

Customs Registration Details;

The business activities that take place in the GCC

The taxpayer or VAT-registered company is also required by the tax authorities to keep the following records:

Tax invoices and any other document pertinent to the receipt of products or services.

Notes on the tax credit, along with any other documents that the company receives about the acquisition of products or services

Record of tax-deductible materials received or made

Tax invoices, as well as any other document that is issued concerning services or goods;

Credit notes for tax purposes and any other type of document issued to purchase items or services

Documents of services or goods that are disposed of or used by the company for purposes not connected with the business, as with taxes paid in connection with such;

Record of the imports and supply of goods or other products;

Record of adjustments or corrections made to tax invoices or any other account;

Documents of goods or other products exported to any other country

Tax records must be kept by a tax-paying individual and include the following details:

Taxes recoverable on imports and supplies;

Taxes that are recoverable after adjustment or correction of error;

Tax due following adjustment or modification of error;

Taxes owing on all tax-deductible items

UAE VAT Registration Process

If you have your soft copies of these documents, you’re in good shape to start the registration procedure.

First of all,

Sign up at the e-service and then establish an account Input the UAE VAT Registration form

FTA (Federal Tax Authority) authorized e-service account is obligatory to register VAT. It is simple to set up an account through their official site.

VAT Rates in UAE

The rates for VAT in the UAE differ for each product. The standard rate for the government is 5%. You should charge this amount unless the product or service is in”zero-rated” or “zero-rated” or VAT exemption.

Zero-rated rates are available on tax-exempt products; however, the buyer is not liable for VAT. Your VAT account must record and report zero-rated VAT transactions too.

Certain services and products, such as the construction of residential structures and land and financial services, are exempt from VAT.

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A Guide to Liquidation of Companies

When any business can no longer afford to operate, liquidation is a formal process done by an approved firm to ensure the business meets its obligations to shareholders and other stakeholders (e.g. debtors, employees, and Government entities).

In this guide, we take a closer look at Company liquidation to detail what it entails and how to proceed.

What You Need to Know About Liquidation of Companies

What exactly is the liquidation of companies?

In essence, company liquidation is the process of ending the business and distributing the various assets from the business to claimants. Businesses are then able to claim bankruptcy.

It can also involve the selling or auctioning of stock – often at reduced prices. Some important things to know about liquidating a business include the following:

Why liquidate?

Registered companies in severe financial difficulty can decide to claim bankruptcy. Debts and other stakeholders can be paid using cash made from selling the business.

To Read More About Our Blog Click Here

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Audited Financial Tips from the Top Audit Firms in Dubai

Your business may be obliged to present audited financial accounts to external stakeholders. These can include Licensing Authorities or other external stakeholders. If you are new to the procedure, it can initially seem daunting.

To help you get a better understanding of how audits work, how they benefit your business, and why they are important, we have prepared a helpful guide that gives you all the information you need.

In short, audits are conducted to show stakeholders that audited financial statements are reliably prepared and attested to the appropriate IFRS standards.

Audits are typically conducted by independent and accredited auditors to assure stakeholders that audited financial statements accurately represent a true reflection of the company’s financial position.

There are numerous types of audits including tax audits, investigative audits, operational audits, and financial audits. Financial audits are the most common.

Why do you need an audit?

Audits are often required to meet certain financial reporting requirements from stakeholders and some government bodies.

To Read More About Our Blog Click Here

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VAT Registration For Businesses In The UAE - SimplySolved

As a UAE business or individual receiving commercial consideration, UAE VAT Registration is mandatory if your taxable supplies exceed AED375,000 in the next 30 days.

For many businesses, Registering for UAE VAT often leads to frustration and delay. It is a common misconception the issuance of a UAE FTA TRN is a straight forward process.

The VAT system is evolving. The FTA continues to adapt the Tax system from empirical data and market experience. Consequently, due processes will also change to reflect these considerations. 

Understanding VAT Registration in the UAE

To get a better understanding of UAE VAT Registration, here are some important considerations to note.

Early Years

During the first year of VAT, it was evident that many companies and individuals operating in the UAE Registered for VAT, others waited and some (especially individuals or directors) were unclear about how they should comply.

To Read More About Our Blog Click Here

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Why Outsourcing HRM Operations Works - Top 5 Reasons

It’s common for some organisations to overlook HRM operations especially when revenue-generating operations and other priorities consume management attention. Nevertheless, human capital is critical, and the success of the organization has been strongly linked to the performance of its human resources.

A large body of empirical research, the US Bureau of Labour Statistics, has proven that an increased emphasis and investment in strong HR practices benefit the organisation through higher retention rates, better returns on employee costs, and employee satisfaction. These benefits deliver real impact to the top and bottom lines of your company.

To manage this critical function, some organisations may form an HR department and resource HR specialists operate their HR functions. While others consider outsourcing their HRM functions to specialist companies. In this blog, we discuss which option is better suited to your business.

Read More About Outsourcing HRM Operations Work

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Implementing Odoo Accounting to Meet UAE FTA Compliance

Implementing Odoo Accounting provides significant capabilities in managing a range of accounting operations in a more advanced manner than standard cloud-based accounting systems. These include multi-company support, automation of intercompany transactions, advanced reconciliation, budget management, and reporting. Therefore, as an all-in-one platform with this accounting functionality, Odoo offers a robust and cost-effective solution for enterprises.

Since the introduction of VAT Registration in 2018, demands on accounting systems to meet compliance obligations under the UAE Executive Regulations are specifically detailed under Requirements Document for Tax Accounting Software specification.

To Read More About Implementing Odoo Accounting click the link above

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How Odoo Accounting Is Going to Benefit Your Business?

It’s been a while since you managed your accounts using a single worksheet or notebook. As your company grows, so make your demands. The decision to switch the accounting software you use may appear to be a major one. However, Odoo comes with its accounting software to make it easier.

Odoo Accounting is state-of-the-art accounting software that manages your finances with absolute precision. It assists you in meeting every accounting requirement, including invoices and payments reports, bank reconciliations, and more.

In assessing the significance of finance and the efficient functioning of an organization, Accounting is a crucial element. It is a necessary procedure that is complex and has extensive functions in the design of the business. The accounting system in an enterprise includes essential features like keeping ledgers up-to-date, counting liabilities and assets, and recording them.

Odoo ERP, as an all-in-one software for business management, allows an organization to manage the essential business functions on a single platform. Furthermore, Odoo has various inbuilt tasks that act as modular tools to manage an enterprise effectively. Odoo Erp’s accounting module is an integrated solution that helps streamline and automate a company’s accounting and financial aspects.

Why Odoo ERP for Accounting?

In addition, as we mentioned earlier, the Odoo ERP is an all-in-one business management application, and a modular solution provider seamlessly connects to other modules like Manufacturing Inventory, Invoicing Selling, ECommerce, etc.

These are of the utmost significance to Odoo ERP for Accounting.

Odoo accounting is the most popular open-source program of its kind. It is entirely customizable according to the unique business needs of the company.

Beginning with the basics such as creating journal entries and budget management. In addition to producing extremely attractive BI Reports, Odoo acts as a highly efficient software framework.

Despite its size business and its business-related complexities, Odoo ERP provides its seamless modular solutions in two distinct versions.

Advanced Features of Odoo Accounting

Odoo Accounting comprises multiple advanced features with each version it releases. Here are a few of the top features available in the latest version of Odoo.

Double Entry Bookkeeping

Odoo has introduced the double-entry feature for bookkeeping by which all journal entries can be made automated.

BI Reports

With the advanced Business Intelligence Reports feature, various standard reports include cash flow statements, Profit/Loss and executive summaries, cash reports, and aging payable/receivables. They can be easily created.

Tax Audit Report

Odoo Accounting helps in simplifying the tax audit process with just a single click that lets users verify how the tax return is calculated for audit purposes.

Invoices & Payments

All invoices and payments are handled in the appropriate applications in Odoo. Additionally, the invoices and payments are divided into various fractions according to the user’s requirements using an integration of the Odoo Accounting module.

Reconciliation

Consolidate your invoices with the respective bank accounts and other systems in a seamless manner with the advanced Odoo accounting tools.

OCR

It scans all your receipts and bills with The Optional Character Recognition available in Odoo’s accounting, which simplifies the accounting process. That helps to reduce the manual work of accountancy.

Our Customized Odoo Accounting Solutions

As mentioned earlier, Odoo ERP is an open-source software entirely customized to meet specific business requirements. That is why the modular accounting solutions in Odoo are also modified to meet the user’s specifications.

These are the customized accounting solutions that Odoo provides by PPTS.

Customized Intuitive Dashboard

The accessible Odoo dashboard is fully customizable to display the totality of the reports created. That makes the customizable dashboard aids in getting more business insight that ultimately results in better business decisions.

Automatic Batch Payment Scheduler

Today, it is easy to make payments to several employees at once using the custom scheduler function in Odoo. In addition, the system could be automated to reconcile automated payments.

Customized Payroll System

The custom payroll system functions as a simple solution to many processes, including filing payroll taxes and reporting.

Reconciliation

Automate all of your essential operations with the ability to schedule your transactions, which means that reconciliation is made with ease.

It is essential to establish a reliable accounting system to organize your company’s budget and requirements efficiently. Additionally, it is crucial to set up a user-friendly and user-friendly design that is easy to integrate into the existing system. That is why the Odoo application suite is the only modular solution for the accounting requirements of a business.

SimplySolved. As the official Odoo Gold Partner, has an experience of more than nine years of providing Odoo services that meet specific customer requirements across different industries.