A transfer pricing regulation will be part of UAE Corporate Tax Law, containing various transfer pricing methods, extensive annual documentation, and hefty penalties for non-compliance. UAE businesses will need to comply with transfer pricing rules and documentation requirements set with reference to the OECD Transfer Pricing Guidelines.
The UAE’s economy is significantly influenced by the precious metals, gemstones, and jewelry industries. But it also serves as a draw for illegal activity and financial criminality. Jewelers must therefore guard against actions that finance terrorism and money laundering.
Value Added Tax is an indirect, transaction-based tax that is levied at every stage of the supply chain. Businesses whose taxable supplies and imports from abroad exceed the mandatory registration threshold of AED 375,000 are required to register. The taxable person must submit VAT returns to the Federal Tax Authority on a periodic basis (every three months or a shorter period if the authority so decides) within 28 days from the end of the tax period in accordance with the procedures specified in the tax legislation.
To validate your business’s accounting practices with the common accounting standards. You require an external Audit to oversight of the business’s management. It will seek your reassurance that the management team is performing entirely and that your investments in your company are secure.
E-Commerce is growing in the UAE and with it the need to understand and adhere to all regulations surrounding VAT. If you are looking to start an e-commerce business in the UAE, you first need to register and get a valid VAT number. Once you have a VAT number, you will be legally obligated to collect and remit VAT on all the taxable goods you sell in the UAE. This is where AM Audit comes in.
E-commerce is not a fad that will pass away. People have discovered the comfort of getting products or services over the phone or any other device. This alternative to traditional commerce has shown an upward trend, with a whopping sum of $4.2 trillion being the total amount made with e-commerce in 2021. E-commerce accounting is the collection, analysis, and reporting of the financial transactions relating to your e-commerce business.
The new corporate tax would cover all forms of business except natural resource extraction. The taxes will apply to corporate profits that will exceed AED 375000, meaning businesses with a smaller profit margin are still tax-free. These taxes would be used for investment and headquarters purposes whereby it will facilitate for free flow of trade, capital and financial services.
Visualize internal audits as a quality management tool that helps improve and assess critical business processes. This form of auditing enables you to determine the operational aspects of
your business and identify areas that need adjustments. Essentially, an internal audit is a vital aspect of a productive quality management system.
Business owners globally prefer to set up small businesses in the UAE for several reasons. Everyone likes flexible situations, and the country offers one of the most adaptable tax mechanisms globally. Tax-free holidays and a synthetic registration procedure based on your business region are also something you should look forward to in the Emirates.
Integrating the financing of terrorism (CFT) mechanisms and anti-money laundering (AML) strategies with your business operations can be a bit challenging. It becomes even more complicated when you have the most complex business structure, especially in size. Incorporating the CFT/AML conformity program into your organization is no longer enough. Making it effective is now more critical than ever.
The concept of auditing has become a crucial aspect of modern business practices. With the increasing statistics of financial fraud, about 49% currently. Auditing helps determine how accurate a business’s financial reports are and points out loopholes in a financial statement. Auditing provides a ‘truth-test’ analysis of a company’s financial reports. Auditing is an essential aspect of the business process that mainly external entities could carry out.
Corporate tax in the UAE is a form of direct tax imposed on net income or business profit. The UAE introduced this tax with the aim of strengthening the country’s position as a leading global center for business and investment, in addition to accelerating the country’s development and transformation to achieve its strategic goals and renewing its commitment to meeting international standards of transparency tax and prevent harmful tax practices.
A TRN number check of a firm is mainly used to confirm the validity of VAT registration. If you intend to find out whether a business entity has a Tax Registration Number in the UAE, all that you need to do is search for the services of a tax representative in the UAE. A tax agent can help you in finding whether a business entity that you are about to deal with has a TRN number or not. With help from a tax agent, you’ll be in a good position to know whether to commence business with your potential firm or not.
Canceling an LLC is a step that you need to be sure about when you decide to do so. Having the right person to guide you through it is crucial to avoid such instances of fines and penalties, and we are here to help you through the process. After receiving the final certificate, the LLC will be legally dissolved, and no more legal duties will be necessary.
The procurement department plays different roles in different organizations. These roles can be procuring, acquisitions, relations building, corporate social responsibility or customer service. Though, when it comes to the hotelier industry, the role of the procurement department intertwines with nearly all aspects of the hotel. It goes with all of the roles we highlighted above and further into the inner details like the final customer experience and ways to improve their experiences while at it.
The UAE’s ministry of finance on 31st January 2022, through a press release, announced that it will start imposing federal corporate taxes on profits from business entities within the territories starting June 1st, 2023. As stated by the ministry, this will be a move to help minimize the compliance burden imposed on UAE businesses. This will be the first time businesses will remit taxes on corporate profits after introducing the sales tax in 2018.
VAT refund facility at self-service kiosks The Federal Tax Authority (FTA) has organized field tours to the ‘Self-Service Kiosks’ in Dubai International Airport-part of the Value Added Tax (VAT) Refund Scheme for tourists – to ensure The steadiness with the FTA’s strategy to provide services that meet taxpayers’ aspirations, and its commitment to abiding by Cabinet Decision No. (41) of 2018 on Introducing the Tax Refunds for Tourists Schr.
The FTA asserted that the Cabinet Decision would boost the UAE’s global business competitiveness by establishing a tax legislation environment that encourages self-compliance and offers significant support to the national economy. The Decision outlines 16 types of administrative penalties that have either been reduced or had the method of calculation amended. The amendments include administrative violations related to the application of Federal Law No. 7 of 2017 on Tax Procedures, Federal Decree-Law No. 7 of 2017 on Excise Tax, and Federal Decree-Law No. 8 of 2017 on Value Added Tax.
FTA recently Issued VAT Public Clarification on Mobile Phones, Airtime, and Data Packages Made Available to Employees for Business Use:
A business is entitled to recover input tax in respect of Phones, Airtime, and Packages acquired if these costs are incurred to make taxable supplies and the following requirements are met
FTA has issued cabinet decision No. 88 of 2021 to update the provisions related to specific Zones stipulated in Article 51 of the executive regulation of Federal Decree-law No. 8 of 2017 on value added tax by inserting additional sub-clauses to clause five and adding a new clause 7 with an effective date of 30 October 2021. These modifications clarify components of products and services within the same specific zone, as well as the movement of items from a designated area to within the state.
An external audit is a financial examination that an independent accountant conducts. The sole purpose of an external audit is to provide confidence and assurance to lenders, stakeholders, or investors about the financial statements issued by their company that they are truly and fairly present their organization’s results and financial position.
After the applicant has successfully applied for the reclamation of the refund of the VAT, the Bureau Expo 2020 Dubai performs the initial check on the refund claims received from the Office of the Official Participants in accordance with the forms prepared by the Authority. Where the refund claim is correct, the Bureau Expo 2020 Dubai makes a request to the Authority to refund the amount.
Excise tax is a flat-rate levy on the sale of particular products, services, and operations. It is an indirect kind of tax that means it is not paid by the customer directly. Instead, the producer/company that includes it in the product price will be charged excise tax. It is your obligation to collect and pay taxes to the authorities responsible for any of the items that your firm sells.
”Every company shall keep its accounting books in its head office for a period of at least 5 (five) years from the end of the financial year of the company.’’
Climate change risk must be integrated into corporate planning, finance, processes, and communications by chartered accountants and the companies they deal with.
The UAE has one of the biggest economies in the Middle East. Over time, it has developed from a primarily dependent on oil exports to one that has completely utilized its strategic geographic location and diversified to become recognized as a global centre for trade, transportation, and logistics.
Any freelancer or solopreneur requires a comprehensive plan to achieve their financial goals, including accurate record keeping, increased profitability, and tax compliance. You, too, will profit from hiring an accounting firm to help organize your finances.
There is a lot of buzz about influencers in the UAE right now, representing the global trend. Many regional and foreign influencers easily accomplish a significant involvement and follow-up within the UAE
It is no wonder that payroll outsourcing to software and service providers is becoming increasingly popular with a rising trend towards outsourcing the non-core functions of the operations to organizations
Dwelling inside the complex and constantly changing digital age, with the emergence of an era and the increasing convergence of the world through globalization, businesses must expand active and set goals adaptable to the instances.
Bogged down by the time-consuming nature of the audit, your company’s internal auditors even often suffer from ‘Audit Exhaustion.’ But all it takes is to pick the best approach to make a difference by allowing the consistency and smooth flow of the internal audit process.
Are you a Warehouse Keeper registered with the FTA or an Excise Tax Registrant? Then this article is for you.
Today’s market world’s dynamic nature has contributed to a rise in organizations’ challenges and uncertainties. The growth in consumer interest has led to a dramatic increase in rivalry, as more and more businesses are now seeking to satisfy these consumers’ demands.
We often find it reluctant to set up our own company. But creating a company in the UAE is a reasonably simple and hassle-free process. However, incorporating a business in the UAE involves a UAE resident owning 51% of the firm.
This notice is intended to provide guidance to entities undertaking one or more Relevant Activities that are required to submit a Notification (and/or Economic Substance Report) in accordance with Cabinet Decision No 57 of 2020 concerning Economic Substance Requirements…
As an opportunity for Medium-Sized Enterprise, you can choose to do formal valuations for your business ventures, projects, segments, or the whole corporation.
I understood that establishing my online fashion business would be a long-term investment. It’s something that I’m optimistic about, so it doesn’t sound like a job. Yet I didn’t know how much more time I would have wasted from not getting the correct accounting solution in place from the outset.
Tanvi Fal Dessai | Narrated by: Sara
The effect of coronavirus on companies has made us aware of the value of diversification. If a specific good or service suffers from a pandemic, you already have some to rely on, and which indeed decreases the risk factor.
Tax time is both challenging and exciting for every company. The corporation’s annual tax return gives useful information into sales and spending and yearly progress.
There is no lack of schools for businessmen of any kind: accountants, engineers, financiers, technologists, knowledge specialists, advertisers, and, of course, general managers, who have hundreds, if not thousands, of MBA programs to choose from.
Customers today can get their hands on a wide variety of consumer products and services, all available with a tap, click or swipe, as the e-commerce industry gains traction regionally and internationally.
Are you continually juggling as a business owner with things like boosting your company and paying off your business debts? You may have taken a business loan to launch a product or expand your business, sometimes having to handle a lot on your plate might have escalated to business debt.
The challenges of recent instances have highlighted how the internal audit feature remains a trusted consultant for corporations. The internal audit functions which have effectively helped the companies navigate via risks during the pandemic
The VAT Refund User Guide for Foreign Business Visitors published by the FTA states that claims made by businesses established.
Aneez Mohammed S.
Value Added Tax in the United Arab Emirates can be complicated. And understanding VAT, while you are busy running your business, can be difficult. Such a situation makes you more prone to making VAT errors and not comply with VAT rules correctly.
Enron, was an American seventh largest of its time company, bankrupt in 2001, destroyed more than $60 billion of shareholders value, more than 5,000 employees fired just after bankruptcy declared.
As the saying goes, “you ask the wrong question – You get a wrong answer. And that certainly implies in everything we say or everything we want to know. So, are you sure you are asking the right question when you tell which is the right or the best accounting software for your business?
An audit is like yearly health check-ups. You presumably don’t look forward to getting one, but they are very crucial for you (and your company) to operate accordingly in the long run.
The Federal Tax Authority (FTA) of the United Arab Emirates (UAE) has released the Cabinet Decision No. (1) of 2019 on the…
The UAE Business fraternity has welcomed measures to partially reopen offices.
UAE introduced Economic Substance Regulations (‘ESR’) under its commitment as a member of the Organization…