PRO solutions UAE

The UAE PRO assistance can help you with employment agreements, immigration requirements, license renewals, and visas. They also guide businesses through the legal processes that the Department of Economic Development (DED) requires. The PRO services in dubai guarantees a prosperous beginning for your company and seamless operations for the duration of your endeavor.

You need a skilled business consultant to set up and handle your company’s formalities. BestaxCA offers outstanding UAE PRO assistance. They assist their clients with business and immigration processes, public relations services, and other government-related duties. They support you through every phase of your company’s development and prosperous operation, offering a comprehensive selection of document clearance and professional services in Dubai.

Importance of UAE PRO Assistance

It is essential for a foreign worker employed by an organization in the United Arab Emirates to have a current resident visa and work permit. Furthermore, to complete other non-business-related duties like opening a bank account, obtaining an Emirates ID, obtaining a power connection, etc., these documents are also needed. PRO services in dubai are also essential to the operation of commercial buildings. 

An efficient service Businesses and business concerns should always assign the PRO-related duty to a business consultant. The many legal requirements that come with forming and operating a business take a lot of time and energy to handle.

Advantages of PRO Services in Dubai

A business seeking UAE PRO assistance has two choices: hiring a full-time PRO employee or contracting out the work to a PRO business in Dubai. However as several businesses have shown, outsourcing is the superior option out of the two. The following justifies the need to outsource PRO services in Dubai:

  • Cost savings while using PRO services in Dubai

Many SMEs and startups begin with an internal PRO before transitioning to an outsourced model later on. Due to its ability to reduce labor expenses associated with employing professionals, outsourcing has shown to be advantageous for small firms in Dubai. A company’s internal PRO should get compensation, benefits, insurance, and everything.

  • Companies Can Save Time by Outsourcing

It takes time to run around government offices submitting paperwork and getting permission. Additionally, it robs investors of valuable time that they could use to focus on their main skills. For entrepreneurs, things would get much more complicated if the inside professional is ineffective. Here’s where UAE PRO assistance providers may assist businesses. 

PRO companies may have developed friendly connections with government representatives and are well-versed in all relevant laws. Investors may quickly get government and immigration clearances with the assistance of PRO businesses.

  • There Are less Risks When Outsourcing

A PRO firm helping entrepreneurs means no surprises or shocks for them. Certain risks, such as late license renewal fees and visa expiration penalties, are to be assumed when hiring an inside executive. PRO businesses, however, have a group of experts who will promptly remind clients to renew their licenses, visas, and other documents. 

The top PRO firms in Dubai keep careful watch of every little detail, such as staff visa expiration dates and any necessary compliances, and promptly notify the corporate management of these things.

  • Transparency Is Guaranteed

PRO service in dubai providers  are renowned for upholding efficiency and openness in their client interactions. Appropriate original invoices, bills, and copies of bills will be provided with the services. Investors won’t be overcharged for the services they have subscribed to if the system is functioning properly. 

On the other hand, problems like fraud and embezzlement might surface when using an inside employee as a PRO. Occasionally, a person’s inefficiency might result in important mistakes that cost the business money.

PRO Services in Dubai by BestaxCA 

UAE PRO assistance is important for businesses, whether they are established in the mainland of Dubai or operate out of a free zone. A PRO enhances the worth of the businesses by offering the following services:

  • Company Establishment
  • Annual Licence Renewal
  • Activity Addition and Withdrawal
  • Licence Amendment
  • Employment Visa and Investors Visa
  • Family visa
  • Visas for partners or employees 
  • Labour Card Cancellation (New, Renewal, and Amendment)
  • Emirates Identity

Outsource the Best UAE PRO Assistance in Dubai with BestaxCA!

In Dubai, professional services are essential to starting and maintaining a business without any legal issues. Entrepreneurs need PRO businesses in Dubai not only at the moment of incorporation but also in the future. To establish and run a business effectively, entrepreneurs need to hire top-tier PRO assistance experts in Dubai, such as BestaxCA

Conclusion

“In summary, Businesses may assure compliance, simplify processes, and confidently concentrate on their main business by contracting out these jobs to qualified experts. Regarding Dubai’s constantly changing regulatory environment, using UAE PRO assistance not only makes processing paperwork and legal requirements more effective but also offers insightful advice and seamless assistance through any changes. In the end, investing in PRO services is a calculated move that increases productivity, lowers risk, and promotes long-term success in Dubai’s vibrant business environment.”

FAQs

How can using PRO services help my company?

Using PRO services may help your company in some ways, including reducing paperwork mistakes, guaranteeing compliance with UAE legislation, expediting administrative processes, saving time and money, and offering professional advice on navigating the complexity of governmental procedures.

Are PRO services exclusive to large businesses?

No, PRO services in dubai are available to companies of all kinds, including multinational organizations, SMEs, and startups. Whatever the size of your company’s activities, PRO services in dubai may be a great help in effectively handling administrative duties.

Why are PRO services in dubai necessary for firms in the UAE?

To manage several government processes including visa processing, company registration, license renewals, labor contracts, and other legal documents, businesses in the United Arab Emirates must use PRO services in dubai. These services lessen the administrative load on businesses, guarantee compliance, and save time.

Offshore Company Formation in UAE

In general, every need for setting up a business would be met. Certain needs, such as those related to profitability, security, and privacy, are different. Appropriate Offshore company setup in UAE satisfies these requirements.

What advantages are offered by starting an offshore company?

Businesses looking to expand into the Middle East might use offshore corporations as a means of accessing the UAE’s growing economic environment. Furthermore, Offshore company setup in the UAE offers some significant benefits.

Increase your market share abroad

Without a physical infrastructure, it is possible to start an offshore firm, increasing international trade and cooperation.

Privacy in the Workplace

It may remain anonymous and has little responsibility due to the offshore corporate arrangement. It is not required of you to provide to the public your company’s financial information or ownership data.

Provides several tax advantages

You may set up an offshore firm and be able to pay less taxes, including corporate, income, sales, and property taxes. In addition, you might avoid the unacceptable practice of double taxation. You do not have to pay the same tax twice while doing business abroad outside of the United Arab Emirates.

Simple Assembly

The Offshore company setup in UAE has created the best circumstances for investors globally. An offshore firm is not only tax-free but also exempt from yearly auditing, which eliminates the requirement for you to produce audited financial statements in the majority of UAE emirates. 

Obtaining improved global funding 

The offshore company structure is strategically positioned worldwide. Its outstanding reputation has a significant influence on how a foreign investor would see your company. Additionally, the current state of the UAE economy promotes the success of your company. 

The Procedure for Setting up an offshore company in UAE

The following are the steps to establish a business in offshore UAE:

1. Choose a Name for Your Company

The Registrar must first be consulted to confirm the company’s name. The terms insurance, bank, building society, cooperative, fund, municipal, Chamber of Commerce, trust, Royal, chartered, finance, mutual fund, and Emirates cannot appear in the name of the firm. Ultimately, the business will be known as Ltd. or Incorporated.

2. Complete the Application

The following are the documents to be completed for Setting up an offshore company in UAE business in UAE:

  • Evidence of the directors’ and shareholders’ identities
  • Provide evidence of the directors and shareholders.
  • The directors’ and shareholders’ resumes
  • A carefully thought-out business plan
  • Copies of the directors’ and shareholders’ signatures

The way that corporate business organizations and individuals submit documents varies. Complete information is provided in the next section.

3. Turning in the Relevant Documents

The necessary paperwork must be gathered and then submitted to the relevant authorities for examination and issuance of any necessary permissions.

4. Complete the AOA and the MOA.

Following approval, the English language must be used to construct the Memorandum of Association (MOA) and the Articles of Association (AOA), since this is useful for conducting business internationally.

After preparation, the authorities review the documentation; if approved, you may formally launch your business.

5. Open a Bank Account Abroad

The last step is to register an offshore bank account for an Offshore company setup in the UAE, which makes it easier for business setup owners to do transactions. 

Additionally, business owners can create offshore bank accounts and businesses in various countries with the assistance of offshore authorities. To create an anonymous offshore bank account, follow these steps.

The offshore business types in the UAE

There are three types of offshore business in the UAE:

  1. RAK International corporate center
  2. Jabel Ali Free Zone
  3. Ajman Free Zone

BestaxCA Offshore business setup in UAE service

You have now seen the necessary procedures and documentation needed to start an offshore business in the United Arab Emirates. Now, if you are not familiar with legal restrictions, moving forward with the procedure may be difficult.

The majority of international business investors choose to move forward under the direction of business specialists who possess certified expertise in the company incorporation procedure. The company investors may complete the procedure more accurately if they proceed with the assistance of a recognized specialist.

BestaxCA Company Setup Services, Dubai, UAE has been established to support company owners establishing their ventures in the United Arab Emirates. 

Conclusion:

“In summary, the benefits of Offshore company setup in UAE are abundantly evident and include decreased taxes, greater asset protection, less administration, fewer capital needs, and secrecy. UAE’s attractiveness as a worldwide commercial hub is further enhanced by its advantageous location and business-friendly environment.”

FAQs

What reporting and compliance standards apply to UAE-based offshore companies?

Offshore firms must uphold suitable accounting documentation, present yearly financial reports, and adhere to relevant rules and regulations within the offshore jurisdiction.

Can an offshore business possess UAE real estate?

Subject to certain rules and limitations, offshore companies may acquire real estate through leasehold agreements or in select specified locations known as freehold zones.

Is travel to Dubai required to complete the registration process?

The entire procedure may be completed by mail as long as you send in the required documentation and have a certified signature on it. The main paperwork that has to be sent in is a copy of your passport, a utility bill, a bank reference, and your resume.

Business setup in UAE Free Zones

UAE is well known for its prosperous free zones. Within the United Arab Emirates, free zones are separated regions overseen by authorities who possess the authority to grant business licenses. As the phrase suggests, an entrepreneur is free to develop while conducting business without interference from authorities. An entrepreneur may calculate the exact cost of operating his business at Freezone.

A vast array of multinational corporations from all over the world are concentrated in each free zone. Freezones’ multiethnic and multinational corporate environment gives the impression that they are a typical global cross-section.

As a consequence of the business assistance programs that the UAE Government and the Free Zone Authorities have implemented, the UAE Free Zones have emerged as the region’s principal commercial hub. With an affordable business registration cost, anybody may easily do business set up in the UAE Free Zone

A Free Zone Company

A legal company registered in any of the United Arab Emirates’ more than 45 Free Trade Zones is known as a Free Zone Company. In the Free Trade Zone, the most popular corporate form is the Free Zone Establishment (FZE).

A FZE corporation will have a single shareholder. However, if many shareholders exist, the company will be registered as a Free Zone Company (FZC). Investors may easily simplify trade and other commercial activities by using the Free Zone Company in the United Arab Emirates.

Free Zone Company License

An investor may carry out a trade or any other type of commercial activity in the approved region with a Free Zone Licence in the United Arab Emirates, which is a legitimate company document. The entrepreneur may apply for a special Free Zone Licence based on the nature of their particular company activity.

After the UAE Free Zone company registration, the investor receives a Free Zone Licence from the relevant Free Zone Authority. Selecting the appropriate business activity for the foundation of a firm is crucial. 

Setting up a company in UAE free trade zones

Let’s now get to the main point of the discussion. The following is a list of advantages of forming a corporation in a free zone. 

Tax benefits

Free zone corporations are onshore businesses that meet all requirements to conduct business internationally and domestically in the United Arab Emirates, subject to the customs regulations that govern the transit of products. An investor who registers a free zone firm is granted a two-year Investor Residence Visa and, subject to the visa quota (which may be increased if needed), may employ staff via the company.

Every Free Trade Zone in the United Arab Emirates is overseen by its own Free Zone Authority. These licensing authorities are autonomous and have their laws, even though they are normally governed by UAE law. They assess employee visa applications, provide trade licenses, supply the necessary business infrastructure, and offer instructions for great business operations.

Lack of currency rules:

The government places limitations on the exchange of foreign currencies through currency laws. In UAE free zones, there are no restrictions of any type regarding cash. Financial transactions are now simpler as a result.

Exemption from import and export duties: 

The UAE’s free zone jurisdictions are exempt from taxes on imports and exports. This facilitates the growth of global trade.

Easy and economical labor hiring: 

UAE Free Zone company setup can handle labor hiring procedures with ease. Employers are permitted to hire foreign nationals.

Workspaces that are conveniently accessible: 

In free zone jurisdictions, warehouses and office spaces are readily available. Free zones in the UAE are perfect for SMEs and startups. 

Excellent infrastructure and communication: 

UAE free zones company setup can boast the best infrastructure and most modern communication technologies. Free zones have abundant and reasonably priced energy.

The ease of incorporating a business: 

The processes for incorporating a business in a free zone are easy to understand. In comparison to other countries, the licensing procedures might be completed in a shorter amount of days. 

Easy immigration processes: 

The immigration offices associated with the UAE Free Zones are productive, saving time. 

Company formation services in UAE Free Zone with BestaxCA

You can finish your UAE Free Zone company setup quickly and easily by working with BestaxCA, a business setup expert. In all of Dubai’s and other Emirates’ main free zones, BestaxCA can help you with business creation. The documents and legal requirements for forming a corporation differ depending on the free zone. Contact the BestaxCA‘s team right away if you want any help with business creation or related services.

Conclusion

“In conclusion, the free zones of the United Arab Emirates are thriving hubs of global business, drawing in international firms and entrepreneurs. Encouraging growth and innovation are fostered by these zones’ superior infrastructure, favorable tax perks, and simplified business creation procedures. Startups and SMEs find UAE free zone company registration appealing due to their flexibility, convenience in immigration processes, and availability of contemporary workplaces. In addition, the absence of import/export taxes and currency limitations promotes a favorable environment for global trade. Setting a shop in these zones is not only simple but also presents chances for quick growth and success due to the support of the UAE government and free zone officials.”

FAQs

What tax implications exist for businesses that are registered in free zones in the UAE?

Companies operating in free zones are often excluded from income and corporation taxes for a specific time, which varies based on the free zone. They frequently get an exemption from import and export customs taxes as well.

Which Freezone is ideal for starting a business?

The United Arab Emirates is endowed with around forty-five free zones, each of which possesses pros and cons. Only after receiving the criteria from investors can the optimal free zone be determined.

How to Identify Ultimate Beneficial Owner in UAE?

Every small or large enterprise has the desire to maximize revenue and prevent its earnings from being tainted by fraud. There are many instances when multi-structured firms in the UAE fail to detect unauthorized accounts, which results in financial crimes.

To counter fraud, each business should acclaim Anti-money laundering and anti-terrorist financing laws. That is why the United Arab Emirates regulatory authorities require UBO compliance for all registered businesses. Unfortunately, it is often difficult to identify the ultimate beneficial owner in UAE, due to the entire ownership structure of the company. Here we will guide you in the identification of UBO under relevant authorities.

What is the Ultimate Beneficial Owner?

The ultimate beneficial owner meaning is a legal or a natural individual who ultimately owns and controls the transactions being conducted in a company. The UBO indirect ownership has effective control over the legal person.  Get to know more about Registration of Ultimate Beneficiary Ownership.

Main Objective of UBO

Entities must register for the role of Ultimate Beneficial Owner with their respective licensing authorities under the applicable legislation. The primary objective of ultimate beneficial owner UAE regulation is to increase accountability and transparency of business accounts. It also facilitates to:

  • Expose the origin of the criminal proceedings.
  • Fight against financial terrorism.
  • Stopping the access of unauthorized accounts.
  • Enhances financial transparency.
  • Ensure partners about UBO compliance.
  • Prevent institutions from money laundering.

To combat the risk associated with terrorist funding, each business entity must consider AML Laws and Penalties in the UAE. This is will save your financial records from unauthorized access and stop money corruption.

Essential Requirements for UBO Compliance

The ultimate beneficial owner UAE registration requires a piece of accurate information and documents. The real beneficiary details should include:

  1. Full Name, nationality, and place & date of birth.
  2. Residential Address
  3. Passport & ID number, date of issue, and date of expiration.
  4. Cessation of beneficiary status, at which point he became a UBO

Along with UBO registration, a company should also maintain a register of its shareholders or partners. It includes the following details of shareholders/partners.

  1. The number or class of shares that each shareholder or partnership owns.
  2. The date of the acquisition of the shareholder’s capacity.
  3. Basic information like ID, Passport, Nationality, Address, Place of birth, and other information should also be included along with a true copy.
  4. Detail about the members of the board who are nominated by their shareholders or partners.

UBO Declaration in Dubai, UAE

In order to operate a business in the United Arab Emirates, all entities are obliged to the declaration of the ultimate beneficial owner. It is compulsory before the identification of the real beneficiary of the company. According to the new resolution, all licensed businesses must acknowledge their ultimate beneficial owner declaration. The institute responsible or exempted from UBO compliance:

  • Legal Entities are responsible if located on the mainland and non-financial free zones.
  • Legal entities exempt from UBO that are directly or indirectly owned or may affiliate with the Emirate or Federal government and licensed institutes in free zones.

How to Identify Ultimate Beneficial Owner in UAE?

The chartered accountants in UAE, always follow a comprehensive way to identify the UBO under all regulatory authorities. This step-by-step procedure will help you a lot in the identification ultimate beneficial owner:

1- Get Info of Employees & Company

In order to identify the ultimate beneficial owner in UAE, the foremost step is to access the official information regarding company’s name, registration number, address and no of top-level management employees. This exact status of the organization helps the financial consultants to understand the structure of employees/ shareholders. The details should be up-to-date and authentic to combat financial frauds in Dubai, Sharjah, Abu Dhabi and other emirates.

2- Determine the Chain of Ownership

The next step is to analyze the ownership chain of the firm. The certified accountants in UAE, shortlist the natural or legal person who meets the ultimate beneficial owner requirements as per regulations. It determines whether the ownership of the beneficiary is direct or indirect depending upon the percentage of shares and interests.

3- Identify the Ultimate Beneficial Owner

Lastly, compare all selected entities’ ownership, share, and percentage of management control to determine who has the most control. The result of this analysis identified who had the highest amount of control over the company as the ultimate beneficial owner.

ultimate beneficial owner

BestaxCA Assist you in UBO Consultancy in Dubai

Bextax Chartered Accountants and financial advisors are highly productive in the compliance of the ultimate beneficial owner in Dubai. With over 15 years of experience, the consultants help businesses to regulate their records and company structure as per UAE laws. The team of experts provides UBO consultancy to all registered entities of the United Arab Emirates. They assist individuals and businesses in complete UBO compliance in the following ways, such as:

  • Understand your company’s multilayer structure
  • Identification and verification of the ultimate beneficial owner who holds 25% ownership.
  • Help entities in the filing and declaration of ultimate beneficial owner.
  • Prepare the required information related to real beneficiaries, and shareholders/ partners, and nominee/manager directors.
  • Provide 24/7 guidance until the UBO registration is approved by regulatory.
  • Cost-effective charges as well as high-quality UBO compliance service.
  • Safeguard your business from sanctions and penalties.
  • Assist you in follow-up queries from UAE relevant authorities.

Step-by-step guide on registering an e-commerce business in the UAE

Dubai is an enchanted location to launch a business and achieve your goals as an entrepreneur. Every type of business offers several expansion opportunities. In Dubai, starting an online company may be the path to financial success. Let’s discover the specifics of registering an e-commerce firm in the United Arab Emirates in this step-by-step instruction, emphasizing the necessary legal requirements, business structures, and success milestones.

Also, Check: Business Valuation services in UAE

The steps to consider for an E-commerce Business license in UAE

1.  Determine the Market’s Potential

You must choose a suitable business model, considering factors such as industry developments, client wants, and your company’s unique value proposition (UVP). Depending on the market potential, you can select the business model.

2.  Select the jurisdiction

Either the Free Zone or the Mainland of Dubai. This is quite important. Choose the appropriate jurisdiction based on the goods or products you wish to trade.  Mainland There are rules and procedures for forming businesses in Dubai, including free zones.

3.  Rent or buy an office in Dubai

Starting an e-commerce firm in Dubai might not necessitate a distinct commercial facility. However, to apply for a business license in Dubai, you must have a registered address there.

4.  Get a Dubai E-commerce business license

After deciding on a good location, the next step is to apply for a Dubai e-commerce license. An eCommerce license is issued by the Department of Economic Development, which is the regulatory authority. Using various social media platforms, you may conduct diverse company operations with an eCommerce license in Dubai.

You can work with a local distributor if you have a free zone license, or you can start selling goods and services directly to the local market if you possess a mainland license.

5.  Register your E-commerce company’s trading name

Remember that the government established which types of names are acceptable and unacceptable. Follow the rules while selecting the name of your company. Three choices are available for submission to the authorities for registration.

6.  Create an E-Commerce Website

One of the most important factors when establishing your online business in Dubai is a website with a registered domain. After that, you may quickly create your website using one of the many online website builders. You don’t need to know any code to create your website with their assistance.

7.  Create a Gateway for Payments

A merchant account from a nearby bank or a payment service provider is required to connect a payment gateway to your website. You must have payment gateways that are optimized to manage user traffic by the rules set out by the Telecommunications Regulatory Authority (TRA) since they are the major authority in charge of overseeing electronic transactions in the United Arab Emirates.

Additionally, confirm that your website developer offers customer support services around the clock in case your payment fails.

Documents needed to register an E-commerce license

The following documentation is needed to register with the E-commerce business license:

  • All the shareholders’ copies of their passports or visas
  • Passports or Emirates IDs belonging to local partners and sponsors
  • Local sponsor or NOC from the appropriate authorities for a local service agreement
  • The MOA draft has been approved by every shareholder.

What Are the Advantages of Getting a Dubai E-Commerce License?

The following are the advantages of having an E-commerce license in Dubai:

  • If you have a mainland license in Dubai, you can set up an affordable office there.
  • You can operate without a physical office location if you have an eCommerce license.
  • If you possess an E-Commerce license for the free zone, you will be able to use customized warehousing facilities.
  • The import and export duties and taxes are waived for you.
  • You may deal in more than one currency if you possess an E-Commerce license.
  • For transactions done within the UAE, the VAT rate is merely 5%.
  • You have greater options with an eCommerce license when it comes to growing your company.

BestaxCA’s Business Setup Services for Starting an E-commerce Business in Dubai!

BestaxCA experts will launch your E-commerce business and offer you advice on the finest business concepts. The most important step to unlock your route to wealth is to choose them. BestaxCA guarantees that you will receive devoted and committed help when your e-commerce company platform is being set up and running.

Conclusion

“To sum up, obtaining an E-commerce license in the United Arab Emirates is not as difficult as it may seem. It’s simple to become a licensed business selling in the United Arab Emirates by following the above procedures.”

FAQs

What are the initial requirements for setting up an E-commerce store in the United Arab Emirates?

To start, have a good understanding of the regulatory environment by completing extensive market research. Select a company structure that works for you, such as a mainland entity or free zone, and make sure local regulations are followed.

What kind of documentation is needed in the UAE to complete the registration process?

A business plan, copies of the shareholders’ passports, proof of address, and information about the planned company activities are frequently needed documents. The requirements could change based on the jurisdiction that is selected.

How can I get updates about changes to the UAE’s e-commerce laws?

To keep updated about any changes or updates to rules impacting your e-commerce firm, visit the official websites of key government bodies regularly, subscribe to newsletters, and think about consulting with legal or business advising services.

How do taxes impact e-commerce companies in the UAE?

Tax incentives are typically granted to e-commerce enterprises that operate in free zones. There may be a company tax in places on the mainland. Learn about the tax regulations that apply to the location you have chosen for your business.

 

Seek Expert Advice on Corporate Tax Planning Strategies in UAE

Looking for the best advisor for corporate tax planning strategies in the UAE? BestaxCA is a globally recognized and FTA-approved agency providing tax consultancy services in Dubai to small, medium, and large businesses. With the assistance of an experienced team of qualified accountants and bookkeepers, you can achieve corporate tax compliance and implement corporate tax planning strategies in the UAE.

Our professional experts help businesses with tax reduction services, UAE Tax planning, and corporate tax registration services in UAE. Hiring a reliable and trustworthy tax consultant is not easy. However, Bestax is an authentic tax consultancy service provider in the UAE to ensure compliance with corporate tax laws.

In this article, we will dive into the effectiveness of using expert advice for corporate tax planning strategies to ensure compliance in the UAE. Moreover, we will investigate the accepted procedures that organizations can take for viable assessment compliance.

Compliance with Corporate Tax Services in Dubai

  • Tax compliance is an essential part of corporate tax planning strategies in UAE business. Understanding the duty guidelines and carrying out accepted procedures guarantees lawful compliance but also adds to the financial stability of your company.
  • According to the Ministry of Finance UAE, a 9% Corporate Tax was introduced for businesses with profits exceeding the AED 375,000 threshold. Corporate Tax Implementation in UAE is administered and collected by the Ministry of Finance MOF.
  • UAE Corporate Tax is just like a direct tax on the net profit or loss, imposed on many companies. Under this regime, there will also be a survey conducted by the FTA and the Ministry of Finance to reinforce its implementation.
  • Moreover, resistance to comply with the regulations of Corporate Tax in Dubai may hold the businesses accountable, and UAE Tax Authorities impose fines on them.

Bestax is a trusted tax consultation firm that helps with UAE corporate tax implementation. In this way, we protect your business from corporate tax fines and penalties in UAE and help it meet its goal effortlessly.

Corporate Tax Planning Strategies

Bestax experts are qualified to provide corporate tax planning strategy services in UAE. Following are the tax services provided by our tax advisors.

  • Ensure eligible Tax optimization while staying within the legal framework.
  • Implementing international tax planning strategies tailor-made to the needs of business operations.
  • Effective management of tax risks.
  • Keep your business updated with regular corporate tax planning strategies and techniques.
  • Doing accurate tax filing through reliable tax planning services.
  • With tax experts’ advice, use legal tax exemptions to minimize tax liabilities for many business setups.
  • Design your corporate tax planning strategies in such a way that it brings out long-term tax benefits as provided by the federal authorities.

How Bestax Help with Corporate Tax Planning Strategies?

The introduction of corporate tax totally modified the regulatory landscape in the UAE. It has been preparing companies to comply with Corporate Tax regulations. Bestax offers professional Corporate Tax Planning Services in Dubai to ensure compliance with tax laws and tax advisory services.

Our top-notch and qualified tax consultants help with Corporate Tax assessment services, tax advisory services, and tax compliance services. Following are the corporate tax planning services in UAE by Bestax.

  • We Assess your Corporate tax planning system and advise suitable solutions on tax implications for your company.
  • We assess the eligibility of the corporate tax and corporate tax planning strategies to advise businesses on tax exemptions.
  • However, the corporate tax exemptions depend upon the mainland, offshore, and free zone companies in the UAE.
  • Bestax not only assesses but also analyzes the capacity of companies to get tax benefits.
  • We advise businesses on the restructuring of corporate companies in the UAE including foreign subsidiaries/branches.
  • You will also seek quality advice on how to cater to foreign tax credits, withholding taxes, and other deductions of expenses and interest.

Bestax is a leading corporate tax consultancy firm with a team of qualified Chartered Accountants CA. We are dedicated to providing you with tailor-made corporate tax planning strategies and Corporate Tax Registration Services in Dubai.

Specialized Corporate Tax Reduction Services in UAE

  • Creating tax groups for effective business management and tax compliance. However, there is a need to understand the advantages attached to joining the tax group.
  • It is essential to keep in mind the international agreement on double tax avoidance for tax planning purposes.
  • According to Corporate Tax Law, the corporate tax payable is calculated on the taxable income of a person within a specific period. For small businesses with taxable income below a certain threshold may be subject to small business relief.
  • Therefore, corporate tax planning is important to strategically choose a business in the UAE.
  • Your business is subject to corporate tax liabilities under UAE corporate tax law. However, you can get relief from certain tax obligations such as capital gains and dividends obtained from foreign or domestic shareholdings.
  • Moreover, if certain requirements are fulfilled, Investment funds and regulated UAE investment managers are exempted from corporate tax under CT law

As per, the above-mentioned tax reliefs, Bestax offers specialized corporate tax planning strategies in Dubai to local companies in the UAE and multinational companies. To get complete and effective corporate tax services in Dubai, you can leverage our detailed taxation knowledge, tax planning, tax practice, and procedures to boost your business in the UAE.

We provide tax advisory services for Corporate Tax in UAE, and Excise Tax. Our tax consultants assist throughout the issuance of Corporate Tax registration number and process of document preparation, and filing of the return.

Bestax financial advisors are well-equipped to provide corporate tax registration services. We assist them with details on documents required for UAE corporate tax registration, de-registration, and amendments. We help you through tax clearance including UAE tax residency certificates.

With timely planning of corporate tax compliance, we help businesses reduce their overall cost and tax liabilities. Our tax consultants have complete knowledge and understanding of corporate tax laws UAE and assist you in compliance with tax rules.

Professional Corporate Tax Planning Services in UAE

Choosing the right platform to utilize corporate tax planning services in UAE is a win-win situation. Bestax is not only aware of reforms in taxation policies but also understands the importance of tax consultancy for small, medium, and large companies. We ensure to deliver quality in this regard and promise to add value to many businesses.

BestaxCA helps you in an effective manner through the following services

  • Keeping up with tax legislation to reduce your overall tax obligation
  • Adopting strategies that work to minimize costs and increase the company’s profit.
  • We undergo performance evaluations to find market trends and help your business achieve its final objective
  • Providing accounting & bookkeeping services in Dubai to help you save time and money

Our highly qualified tax agents in Dubai promise to help companies through complex areas of corporate tax. Hence, our tax consultants and finance professionals help mitigate the risk of non-compliance with tax regulations.

If you want your business to grow in UAE, it is suggested to seek advanced tax consultation from qualified Chartered Accountants CA. Bestax CA is an FTA-approved tax agent in Dubai that offers professional corporate tax services in Dubai.

How to Start a Business Setup in Dubai-2023

Business setup in Dubai 2023 requires a lot of planning, research, budgeting, decision-making, and complete assistance. For complete guidance to establish your company, you can rely on Bestax Business setup services in UAE. For business setup, you have to choose a business activity and trade license to establish a company in Dubai. In this article, we have listed down the step-by-step process for easy business setup in 2023.

Dubai has now become an ideal place for many businesses and entrepreneurs. It has bragged an important position among other business hubs in the Middle East. The reasons for its being business-friendly are tax advantages, government rules, and regulations encouraging investments throughout the globe.

How to Open a Business Setup Company in Dubai?

Company formation in the UAE is carried out with a structured process. Experts at Bestax will guide you in business setup, making it a lot easier for you. Moreover, we will assist you throughout the business account setting and handle the paperwork on your behalf.

Step-by-step Process to Start a Business Setup in UAE 2023

Choose a Business Activity

Before setting up a business in Dubai, you have to keep in mind the dynamic UAE economy. You will find numerous business opportunities in Dubai such as real estate, finance, technology tourism, etc. It is better to conduct in-depth research and assess the feasibility, profitability, and long-term results of that business activity.

Select the Economic Business Zone

After choosing the specific business activity for business setup, you select a suitable economic zone. Selecting between Business Setup Dubai mainland, low-cost Business Setup in Dubai Free Zone, or Offshore jurisdictions is subject to different rules and regulations depending upon the business you opt for.

Selecting the right economic zone for your business is vital as it decides the future of your business. You can choose any of the business jurisdictions based on your company’s requirements. However, if you are facing difficulty, you can contact Bestax business setup consultants in Dubai.

Shortlisting the Right Business Structure

Your decision to choose the right business structure is driven by other factors like your business activity, expansion plans, and long-term objectives. Choosing the legal structure for your company requires you to understand the updated laws, policies, and regulations of your UAE business setup.

Selecting a suitable legal structure for your company ultimately decides your business track, structure, resource allocation, profit, losses, and management. You can choose the following company structure for a simplified UAE business setup.

  • Limited Liability Company LLC
  • Branch Office
  • Representative Office
  • Free Zone Company
  • Foreign Company Branch
  • Sole Proprietorship
  • Holding Company
  • Civil Company
  • Offshore Company
  • Local Company Branch
  • Private Joint Stock Company
  • Public Joint Stock Company
  • Branch of GCC Company

If you are confused about choosing the right legal form for business setup in Dubai, you can trust Bestax’s business consultants.

Seek Approval For Your Business Name and Activity

The trade name of your business must be approved by the Department of Economic Development and the Ministry of Economy. Make sure that your business name must align with the business activity that it is unique and that no other business contains that name. After approval of your business name, you can proceed with the rest of the steps to complete the company setup process in UAE.

Apply for Trade License

There are six kinds of trade licenses that you can apply for based on your business activity in UAE. At this stage, you have to submit the documents to apply for a trade license.

  • Commercial License
  • Professional License
  • Tourism License
  • Industrial License
  • Occupational License
  • Agricultural License

You will find over 2000 business activities in UAE. Choosing a license for your business setup depends upon the company activity you select. If you get stuck in this process to get a license and registration, you can contact experts like Bestax to assist in the process.

Register Your Company

The whole process of registering your business in UAE requires you to submit documents. It also requires you to seek relevant approval from government authorities like the Department of Economic Development. Remember that you have to submit different documents for the business activity you have selected earlier in this business setup process.
For hassle-free registration, you can contact Bestax for quality Bank Assistance Services in UAE.

Seek External Approval

The Department of Economic Development DED may proceed to seek approval for your business activity from government and non-government authorities.

Memorandum Of Association

This stage includes the preparation of a memorandum of association MOA, which is an important step for business setup. You can also seek expert advice to draft a memorandum to ensure it is according to the UAE mandate. You create an LSA or MOA of your company as per its legal structure and take your business activity into account while preparing a memorandum.

Take Initial Approval

Before proceeding further to set up official business in Dubai, your company must seek approval from the Department of Economic Development. This approval indicates that you can proceed with the application process of starting a new business in UAE.

Renting Office and Tenancy Contract

You can also rent office premises for your business setup in Dubai. However, it is not a mandatory step to start a new business in the UAE.

If you choose a business location, it must follow the requirements listed by the Department of Economic Development and other regulations by relevant authorities.

After you find a registered place to start a business, you must register your tenancy contract from the Ejari Portal of the Land Department Dubai.

Collect Trade license

You can collect your trade license after submitting the following essential documents;

  • Memorandum of Association MOA
  • Tenancy Contract
  • Initial Approval Certificates
  • Application for trade license
  • External Approval if required
  • Ejari Registration Certificate
  • Passport copies of partners
  • NOC of partners if required

Contact Bestax for Company Formation Services to start a business in Dubai

Bestax business consultants have been assisting many entities to start a new business in Dubai. We provide a hassle-free and structured procedure to help you assist in submitting documents and fill out applications.

To find out more about business setup services, contact us anytime for better business assistance. We are here to meet your business requirements and provide complete assistance for setting up a stable and profitable business in Dubai.

Get Bank Assistance in UAE with Our Help

Bestax is a leading consultancy company in Dubai, providing Bank Assistance in UAE to many business setups. UAE is a global hub for company formation services and financial stability for startups and entrepreneurs. Bestax professionals offer complete support to companies looking for Business Setup Services, business solutions, and related requirements in this regard.

We provide comprehensive innovative support to companies setting up new businesses in the United Arab Emirates. You will get banking services in Dubai from account opening to complete banking solutions in international banking in UAE. Bestax-qualified accountants and financial advisors are trained to offer financial and offshore banking services in UAE.

UAE banking sector is fully equipped with innovative financial products for both domestic and foreign customers. It offers complete banking solutions for corporate and personal purposes with more benefits for offshore companies. These benefits may include asset protection and reduced taxes.

Bank Assistance in UAE- Account Opening

Many business entities inside the UAE and individuals from other nationalities always struggle with opening Bank accounts in UAE.

However, Bestax can help you find the best Bank Assistance in UAE to open your bank account without any hassle. With Bestax, opening a bank account in Dubai for non-residents and other corporate entities is a lot easier.

Bestax ensure that you face no issues while opening a bank account in UAE and fulfill all the mandatory requirements through the end of account creation. Whether it is about a simple reporting system, high-quality banking services, low tariffs on banking facilities, or competitive prices, we cover every aspect.

Documents Required For Bank Assistance in UAE

Bestax Bank Assistance in UAE service provides hassle-free account opening and operating support to numerous FreeZone companies. Our affinity with UAE bankers, helps you easily open an account and manage it effectively. We also proved to be helpful in arranging Business or Personal loans for startups, business expansions, or other entrepreneurs.

Here is the list of documents required for opening accounts

  • Passport Copy
  • Proof of residence anywhere
  • Proof of Business anywhere (if the beneficiary has any current Business)
  • If it is a trading business, provide information of 3 suppliers & 3 buyers.
  • Brief Profile of Owner (CV)

Opening an account and submitting documents is a complex process. Therefore, you can rely on Bestax Bank assistance service in UAE and focus more on the core activities of your business.

How Bestax Helps You with Bank Assistance in UAE?

Bestax-qualified chartered accountants and financial advisors provide complete assistance with company formation services, VAT, and Corporate Tax services. With our Bank Assistance Dubai, you get professional guidance in not only financial decisions but also strategic planning.

We have a list of tailor-made bank assistance services to meet the needs of your business or enterprise. Let’s see how our banking consultants and experts provide Bank Assistance Services in Dubai.

Opening or Setting up a Bank Account

We provide complete Bank assistance Dubai as per your account creation needs. Whether, it is a company current account, savings account, or foreign currency account, we are here to provide all the services.

Preparation of Documents

Bestax experts assist you with all the paperwork and filling required documents for your bank account in UAE. We ensure that all the legal and regulatory criteria are fulfilled.

Selection of Suitable Bank

We advise you to choose a suitable bank depending on your business scale, scope, financial objective, and other relevant factors. Moreover, choosing the right bank also takes into account the costs incurred, benefits, and features offered by each bank.

Offshore Banking Solutions

Our Bank Assistance Services in UAE help you make the best financial and strategic decisions on the offshore banking system. Your offshore business will get banking solutions, asset protection, tax reduction, and global financial diversification to help you achieve business objectives.

Access to International Banking Services

We provide you with complete assistance for cross-border transactions, any foreign currency accounts, and trade financing options on behalf of enterprises.

Consultancy on Investment Banking Services

We give you an impactful and wise consultancy on capital structure, raising funds, mergers, acquisitions, and other investment portfolio management.

Financial Planning

We suggest the most suitable banking solutions for your new business setup to help with growth strategies and achieve financial goals.

Compliance

Bestax ensures that companies are compliant with banking rules, regulations, and general UAE standards.

Risk Assessment

We carry out risk assessment analysis to understand the monetary problems regarding the banking sector and propose suggestions to mitigate them.

Optimization of Taxes

Our professional financial advisors are experienced in making financial arrangements in such a way that businesses minimize tax liability.

Financial Reporting

We help your UAE business devise financial reporting in such a way that it works smoothly with the banks. Moreover, Bestax also assists financial management and completes reporting procedures throughout the year.

Conflict Resolution

If you have been facing any conflicts or banking disputes, we are also here to assist you and guide you through it. Bestax-qualified accountants and tax consultants know what is best for your business and help navigate effective banking solutions.

Bank Assistance in UAE With Us

If you want customized banking solutions in UAE tailor-made for your business needs, you can contact our qualified business consultants. We use cost-effective techniques to provide our customers with customized strategic planning and bank assistance Dubai.

Bestax with its proficient team empowers firms to settle on very much educated decisions. We help businesses work on better management of finances, and accomplish their targets in the UAE market. With complete bank assistance services in Dubai, we help improve their capacity to bring in cash and boost their entire organization plan.

For Business Setup Services, you can talk to our highly qualified business consultants in UAE. They will provide you with a complete guide on Bank assistance services in Dubai or even offshore banking services.

Contact Us Now!

Company Formation Setup in Dubai, UAE

Bestax’s professional business consultants have specialized in providing Company Formation Services Dubai. We have the best business setup consultants in Dubai who understand the complexities of company formation in UAE. We offer personalized solutions for your company formation and aim to deliver quality business consultancy to meet your overall objective.

Company formation in the UAE requires a thorough understanding of business location, culture, and local guidelines to establish a successful company. We guide you on how to set up a suitable business in the right location and form an authentic company at affordable rates.

In this article, we will discuss how to do company formation in UAE in an easy, fast, and affordable way.

Bestax is a leading business consultancy firm that is determined to provide services like setting up companies in the UAE. We help you set up your company from scratch in the UAE while complying with the legal procedures and local authorities.

Bestax helps develop businesses by following company formation services and a suitable business model as per your business activity. Here are the company formation services that assist you in getting an affordable business setup in Dubai;

  • Company formation
  • Registration, tax
  • Accounting and bookkeeping
  • Audit and assurance
  • Legal (including intellectual property rights)
  • Branding advice
  • Account Opening Assistance
  • PRO Services

Easy & Fast Company Formation in Dubai

Looking for a stable, affordable, easy, and fast-growing Affordable Business Setup in Dubai? Look no further!
You can now get the advantage of low-cost business setup services in the UAE. A true dynamic region is specifically feasible for entrepreneurs, start-ups, and small or large multinational corporations.

Whether it is a Free Zone Company formation in Dubai or any other affordable business setup in Dubai, it offers equally super-fast and easy services. No matter which business setup services you avail, you can choose any location, license, package, or jurisdiction based on your company activity.

If you get stuck in Company Formation Services UAE, Bestax professional business setup consultant Dubai guides you throughout the process.

Dubai Company Formation Services Cost

The cost of Business Setup Services in UAE depends upon the business activity you are running and the location of your company. The costs of licensed businesses in the UAE are as follows;

  • IFZA – AED 12900
  • RAKEZ – AED 6500
  • SHAMS – AED 5665
  • Meydan Dubai – AED 12500
  • Mainland DED – AED 20,000

However, this cost of Company Formation Services UAE may vary at the time of setup. Total expenditure on Business Setup in UAE can fluctuate due to the pre-launch or post-launch promotions or discounts. The above-mentioned cost can be altered based on the approval procedure, attestations, or any certifications at the time of company formation.

Types of Entities in Company Formation Dubai

If you are planning to set up ventures in Dubai, then there are around eight legal entity options to begin with company formation.

  • Limited Liability Company
  • Free Zone Company Formation
  • Onshore and Offshore Company Formation
  • Shareholding Companies
  • Mainland Company Dubai
  • Professional Firms Dubai
  • Branch and Representative Offices
  • Joint Ventures Company

Types of Company Formation Services in Dubai

There are three different types of company formation in Dubai with their regulations and benefits.

  • Free Zone Company
  • Mainland Company
  • Offshore Company

Free Zone Company Formation

For Free Zone Company formation, business owners and investors can receive many incentives. Some of them are listed below:

  • Tax exemptions
  • 100% Foreign Ownership
  • Cost-effective and affordable business setup
  • Custom Privilege
  • Convenient for transportation due to road connectivity
  • Low-cost business network
  • Affordable labor

Mainland Company Formation

If you are planning to form a Mainland company, then it comes with its jurisdiction incentives and regulations. Setting up your business in a region other than Free Zone is Mainland Company which is licensed by the Department of Economic Development. However, you can do business outside the UAE, whether you are opting for a Mainland region or a Free Zone, and seek Company formation services in Dubai.

Offshore Company

For non-resident Company Formation Services, you can choose the offshore company option. Under this option, you can operate, expand, and carry out business activities internationally. You cannot do business inside the UAE while setting up an offshore company.

Bestax understands that businesses who want to set up offshore companies a holding companies. If you want to hold your shares, intellectual property, and licensed franchises.

Benefits of Company Formation Services Dubai

Company formation services in Dubai are a profitable business choice as it comes with numerous long-term benefits. Here are some of the amazing benefits you get with your new business setup in Dubai;

  • Premium location
  • 100% foreign ownership
  • Premium infrastructure with complete access to nearby seaports and airports
  • Tax savings
  • Tax exemptions on Free Zone and offshore company setup
  • Good UAE governance
  • Low-cost business setup
  • High Profile Lifestyle
  • Simple and fast company registration process
  • Cheap and competent labor force
  • Multi-currency bank accounts allowed
  • Top-class residential and commercial structures available
  • Reliable telecommunication and utility services are available.

Company Formation Services Dubai Solutions

Bestax is here to guide you through the Company Formation process so that you know inside and out of your business dealings. Our business setup consultants Dubai offer Dubai business setup services to help you save your time and speed up the whole procedure. In this way, you can gain access to our services of company setup consultants in Dubai easily, and at affordable rates.

Apart from that Company formation services Dubai careers are also available to facilitate startups and newbies. Bestax chartered accountants have vast experience in Company Formation Services UAE. We have been promoting and helping startups in Dubai to get maximum benefit out of this business hub. Your business setup company in Dubai facilitated by Bestax will be able to achieve more reach internationally. Bestax is a highly professional provider of company formation services and business setup services. We also provide VAT services, Corporate Tax Compliance services, Golden Visa services, and other registration services to cater to your business needs.

To take advantage of our top-notch corporate services Dubai, please contact our Company Formation consultants.

Business Setup in UAE – The Easy Way

Over the past few years, the UAE trading industry has outgrown into a famous and prestigious business hub for international trade. You will find numerous businesses and startups blooming in UAE, from tourism, technology, trading, and healthcare to manufacturing top-notch products.

Setting up a business from scratch is a time-consuming procedure, However, you will find a simplified UAE Business Setup to cater to your entrepreneurial needs through a hassle-free registration process. If you have been planning for a business setup in the UAE and you don’t know how to begin it, then this guide is for you.

How to do Easy Business Setup in UAE?

Here is a step-by-step guide to setting up a business in the UAE

Step 1: Define the nature of your Business Activity

This step includes choosing your business activities keeping in view the types of business licenses. You will find many options for business activities from which you can decide and prepare a complete business plan before the UAE business setup. It is advised to choose the name of your business prior to license application to make sure that your business name is available for registration.

Step 2: Mainland Zone or Free Zone Business Setup

The next step involves choosing between the mainland zone and the free zone to set up your business in the UAE. Setting up your desired business in mainland or free zone subjects under their rules and regulations respectively.

Free Zone Business Setup

If you choose to trade B2B outside the Free Zone region, you won’t be allowed to do B2C outside Free Zones. With a Free Zone license, you cannot establish a physical office outside the Free Zone.

However, you are allowed to do B2C business, if a customer reaches out to you through a virtual source online.

Mainland Business Setup

On the other hand, choosing a Mainland region that is outside Free Zones gives you permission to start a business in UAE or outside the UAE. However, making a choice between the two zones depends upon the business activity.

Step 3: Determine the Legal Structure of your Business

Defining the legal structure of your free zone or mainland business is important. If you have a business setup in UAE for a free zone company, you have 3 legal structures;

Free Zone Limited Liability Company (FZ LLC)

Free Zone Company (FZ Co.)

Free Zone Establishment (FZE)

If your UAE business setup is in the mainland, then you can select legal structures from 9 given options.

  • Sole Establishment
  • Branch of a GCC company
  • Civil company
  • Branch of a local company
  • Limited liability company
  • Public joint stock company
  • Private joint stock company
  • Holding company
  • Representative office of a foreign company

Step 4: Register your Trade Name

This step involves choosing a Trade Name for your easy business setup in Dubai. While making a choice about Trade Name, you must abide by the following terms and conditions;

  • The trade name must contain an abbreviation stating the suffix for the legal structure of a company such as, an LLC.
  • It must not contain any inappropriate words that may offend the general public.
  • Your trade name must be in line with your chosen business or economic activity.
  • It must not be registered as a name of any other business.
  • Make sure that the trade name must not be the name of government bodies, rulers, or logos and names of government authorities.
  • The trade name and trademarks must be approved by the concerned authorities such as the Ministry of
  • Economy and Department of Economic Development.
  • These certificates are also subject to renewal

Step 5: Initial Approval for the Business Setup in Dubai

You have to apply for the initial approval of your business setup for a no-objection certificate from the UAE government. This step is a way forward for the investors to set up a business and get your business a license to perform business activities in the region.

LSA or MOA Creation

For limited liability, public shareholding, civil or private shareholding company, a Memorandum of Association (MOA) is required. On the other hand, Sole proprietorship requires a Legal service agent agreement (LSA).

Step 6: Business Location and Office Space Selection

In this step, you have to rent an office, purchase land to set up an office, or use a business activity to start your business activities. Choose your office place according to your workforce and business type. Moreover, make sure that the office has all the services and facilities such as; Telecommunications, labor accommodation, meeting rooms, printing facilities, and internet connection.

Your physical office must abide by the requirements of the Department of Economic Development of Emirates. It must follow the policies and regulations of concerned authorities and local municipalities. Once your business location is finalized, you must register your tenancy contract from the Ejari Portal of the Land Department Dubai.

Step 7: Business License

Choose your business license, as per your business activity. Dubai company formation services offer 6 economic licenses for business activities.

  • Commercial License
  • Professional License
  • Tourism License
  • Agriculture License
  • Occupational License
  • Industrial License

Step 8: Documents Submission

You must submit the following documents to reach the final stage of business setup.

  • Copies of previous documents with receipt of initial approval.
  • Attested copy of lease contract
  • Memorandum of Association
  • Approval received from other government entities

Step 9: Pay Fees and Collect your License

After completion of the approval process and fee submission, you can receive a license from the economic department’s service center or online through the website.

Step 10: Registration from the Chamber of Commerce Industry

Your business or company must be registered by the Chamber of Commerce Industry as mentioned.

Make sure that your business or company is registered in the same emirate where the office is located physically. Your company must be registered under any one of the following Chamber of Commerce Industry.

  • Federation of UAE Chambers of Commerce & Industry
  • Abu Dhabi Chamber of Commerce and Industry
  • Dubai Chamber of Commerce and Industry
  • Sharjah Chamber of Commerce and Industry
  • Ajman Chamber of Commerce and Industry
  • RAK Chamber of Commerce & Industry
  • UAQ Chamber of Commerce and Industry
  • Fujairah Chamber of Commerce and Industry

Conclusion

Business setup in Dubai is an amazing opportunity to expand your company operations in UAE. Extending your professional business network in UAE requires you to fulfill above mentioned requirements and complete procedures.

Business setup services in UAE help you gather knowledge about already established businesses as well as startups. Bestax is considered one of the leading business consultancy firms in Dubai. Choosing Bestax will help you get high-quality business setup services in UAE.

However, if you need any guidance for easy business setup in UAE, you can reach out to Bestax for business consultancy services. Bestax Chartered Accountants has experienced professionals who are dedicated to providing Business Setup Services in the UAE. From paperwork, registering your business, choosing an office place to fee submission, and acquiring a business license, Bestax assure you to give you a complete guide until you start your business operations smoothly in UAE. Contact us right now, and let us setup your business in UAE in no time!

Why do Small Businesses Need Dubai Company Registration Experts?

In recent years, Dubai has become a hub for many offshore and onshore small businesses. These small businesses employ a large part of the workforce. The UAE economy depends heavily on them. This is certainly an understandable reason for simplifying SME laws aimed at the growth of these small businesses. This should introduce many creative business ideas to the Dubai market. However, to take advantage of these laws, small entrepreneurs need to register a company in Dubai. While this used to seem like a complicated process, now the task is simple, thanks to the BestaxCA that has Dubai company registration experts on staff to help interested parties through the process.

While there was no trend of business consultancy services some time ago, there are now Dubai company registration experts available to help small entrepreneurs understand the intricacies of doing business and the laws and regulations in the UAE. These experts not only help SMEs understand registration but also identify it. The necessary knowledge that businesses need to develop a feasible business plan.

The trend of business consultancy is relatively new, so some SMEs may be skeptical about seeking their services. However, the need for Dubai company registration experts is not new.

There are many advantages associated with seeking the help of these experts:

For a new entrant to the UAE market. It is almost mandatory to seek advice BestaxCA. We are expert in registration, research and provide market information to prospective SMEs who need to know the laws and protocols of the UAE market before starting their business. In addition, we help entrepreneurs understand the UAE’s amended laws when registering a company in Dubai. Business consultancies can play an important role in making the best use of SME legislation.

SMEs also have more advantages in using Dubai company registration experts as they can relatively facilitate the company registration process by helping entrepreneurs through the documentation process, which can be quite cumbersome for a budding entrepreneur. There are many legal requirements that need to be met when setting up a company in Dubai. Therefore, business advisory services can definitely prove useful in such cases. In cases where individuals are familiar with business tactics but are not aware of the regional requirements that need to be met when registering a company in Dubai.

BestaxCA will support and guide you through all the procedures of setting up a company in the UAE.

Taking care of business with the judicial authorities

There has been significant economic growth as well as developments in innovation. Small and Medium Enterprises (SMEs) are receiving a lot of help from the government and the judicial system. The Dubai government has amended the SME legislation to encourage growth by waiving minor expenses throughout the registration procedure. It is advisable to obtain guidance from a business consultancy firm to find out about these favorable measures.

Documentation, paperwork, and other legal requirements

If you do not have the necessary knowledge, setting up a company in Dubai can be a time-consuming and costly exercise. BestaxCA offers everything you need – including legal requirements, documentation processes, paperwork to run a successful business.

Increase profits in the market.

Small and medium-sized enterprises (SMEs) can benefit from the help of BeataxCA’s specialists by learning marketing and business skills that are unique in the field. As a result, the company will gain greater market visibility while expanding its customer base.

An action plan for growth that is coherent

BestaxCA in Dubai helps small and medium-sized enterprises (SMEs) gain clarity on their vision for growth. We also look at growth opportunities, which helps to understand the potential of the business concept more fully.

Important Business Expenses that Entrepreneurs Ignore to Prepare for

Important Business Expenses That Entrepreneurs Ignore To Prepare For.

Starting a business or establishing a new company has always been an expensive undertaking. Every individual who plans to start a business should always anticipate all the expenses that may come his way, he should prepare for such expenses in advance. An amateur entrepreneur always focuses on the revenue he is likely to earn from his business rather than on the costs that may unexpectedly affect the business.

Sometimes entrepreneurs may carefully plan and formulate some strategies to cover the costs of setting up and running a business, but many times they end up crossing out the wrong expenses or costs that are essential for setting up a business. In such circumstances, it is always a good idea to turn to an accounting firm for professional advice on managing business expenses.

What Are The Main Expenses That Entrepreneurs Ignore?

The most common expenses avoided by amateur entrepreneurs are explained below:

Costs Related To Tax Returns

Before starting a business, entrepreneurs need to be familiar with the tax laws of the country where they intend to set up. They should list in advance all the costs involved in paying tax returns, as these become more complex as time goes on. Entrepreneurs should always pay all the necessary taxes to the authorities without delay, otherwise, this will lead to penalties and fines. And to manage their taxes properly, they can turn to a tax advisor or an accounting firm to avoid large tax payments. If they do not have a proper analysis, they may end up paying a huge amount of tax than expected.

Expenses Related To Insurance Policies And Premiums

Most amateur entrepreneurs ignore taking out insurance policies and often think that these are minor expenses, but they are expenses that should not be avoided. Entrepreneurship can involve many unforeseen risks and sometimes these risks can cause large losses to the company. In such circumstances, insurance policies play an important role in ensuring adequate compensation for the companies that are lost. There are various insurance policies available for a company, so an entrepreneur should analyze which type of insurance will suit the company he has set up and apply for insurance immediately.

Emergency Repair Costs

In the course of organizing a business, numerous things can go off the rails. Sometimes your accounting software can wreak havoc by breaking down, or the equipment you use to produce goods and services may need repair and maintenance. But in most cases, entrepreneurs do not allocate the necessary expenditure or budget for these types of repairs and services that can arise in the course of doing business. To avoid emergency situations, entrepreneurs should allocate a share of the costs for such repairs and services.

Personnel Expenses

Human resources are one of the most valuable assets of a business organization. A competitive HR team will enable the established business to compete and survive in a competitive market. To have professionally qualified employees, entrepreneurs must provide all basic needs and other rewards to enable them to reach their full potential. Entrepreneurs should therefore not include personnel expenses.

Expenditure Related To Software Subscriptions

Today, all businesses are on the verge of digital transformation and all subscribe to various software packages to make their work as efficiently as possible. In the initial phase, a company may need certain software to perform certain tasks, such as accounting, etc., which can be an unavoidable cost. The cost of accounting software continues to rise, which may not be within the companies’ budget, and in such circumstances, companies may outsource accounting services to other accounting firms who can do the work in a cost-effective manner.

Utilities

For the most part, amateur entrepreneurs can include rental costs in their budget, but they may not include other necessary utility costs such as electricity, water, gas, telephone services, etc., the rates of which may vary from place to place. Entrepreneurs should therefore bear in mind that such expenses should be included in the budget at the planning stage and should seek professional advice on expense management from an accounting firm.

What Can Bestaxca Do?

Amateur entrepreneurs are always ready to prepare a sound budget for setting up their business, but sometimes they may miss some critical expenses that are very important for the business as explained above, so to avoid such circumstances, entrepreneurs can take the advice of an accounting firm like BestaxCA, which is a professional team with vast experience in the field of accounting and auditing. BestaxCA not only provides accounting services but also provides its clients with several financial services under one roof. For more information, contact BestaxCA.

Tax Services That Could Benefit You: Excise Tax Consultancy

In the United Arab Emirates, businesses that deal with specific goods and services that harm human health and the environment must pay excise tax. This indirect tax is levied by the government in order to control consumption and raise funds for public welfare. To ensure compliance with excise tax regulations, Bestax Chartered Accountants offers the best Excise Tax Consultancy Services in Dubai to help businesses register and stay in compliance. We have a team of experts who can advise you on the best way to manage your excise tax obligations so that you can avoid heavy fines and keep your business running smoothly.

Excise tax is a type of inland tax that the UAE government imposes on the sale, purchase, and production of specific goods and services. These products harm human health and the environment. Businesses must pay special attention to excise tax regulation to stay legitimate in the market and avoid heavy fines. Bestax Chartered Accountants can help you with our excise tax registration and compliance services. We will make sure that your business is operating within the confines of the law and advise you on the best way to manage your excise tax obligations.

The UAE’s Excise Laws

Excise laws in the UAE are enforced by federal tax authorities (FTA) who are responsible for compliance obligations on excisable items in the United Arab Emirates. The excise tax legislation went into effect in the UAE on October 1, 2017, when it was approved by FTA. On December 31, 2019, they amended the code to incorporate additional taxable things. The financial authority of Dubai, known as FTA, performs audits of taxed businesses and fines those that do not comply with the excise law.

All taxable persons (who are involved in the business of Excise Products) in Dubai now have to register for the Excise Tax. BestaxCA is a group of chartered accountants and auditors that provides efficient excise tax services according to UAE legislation. We help businesses with the entire registration process and make sure that they are compliant with all the rules and regulations.

In order to register for excise tax, businesses must first obtain an excise registration certificate from FTA. The certificate is valid for one year and can be renewed annually. Businesses must also ensure that they have a valid trade license and meet all the other requirements set by FTA.

After registering for excise tax, businesses will need to file monthly returns by the 15th  of every month. The return must include details of all the excisable products sold, imported, or manufactured in the previous month. Businesses must also pay the excise tax due on these products every month.

Filing late returns or failing to pay the excise tax due on time can result in penalties. Therefore, it is important for businesses to keep track of their excise tax obligations and ensure that they are compliant with the rules. Our Excise Tax Consultancy Services in Dubai can help you with this by providing you with timely and accurate advice.

Excise Duties May Apply to These Products

The main aim of the excise tax is to raise revenue for the government by taxing certain products.

Some of the products that are commonly taxed through excise taxes include alcohol, gasoline, cigarettes, and even sugary drinks. These items are taxed because they are considered “sinful” or “unhealthy” by many people. By taxing these items, the government is able to discourage people from consuming them.

If you are a business owner who manufactures or sells any of these products, it is important for you to be aware of the excise tax rates. Failure to comply with the taxation rules can result in hefty penalties. Our Excise Tax Consultancy Services in Dubai can help you navigate the complex world of excise taxes and ensure that you comply with all the relevant rules and regulations.

We can also help you minimize your tax liability by claiming all the eligible exemptions and deductions. Our team of experts has extensive experience in handling excise tax matters and can provide you with the best possible solution.

Businesses That Should Register With FTA:

These are the following businesses that should comply with UAE excise tax legislation and register with FTA:

  1. Excise goods manufacturers
  2. Excise tax importers
  3. Excise Storehouse Keeper
  4. UAE Stockpilers

Denouement: The UAE’s excise tax laws are complex and ever-changing. Therefore, it is important for businesses to seek expert advice in order to ensure compliance. Our Excise Tax Consultancy Services in Dubai can help you with this by providing you with timely and accurate advice. We can also help you minimize your tax liability by claiming all the eligible exemptions and deductions. Contact us today to learn more about how we can help you with your excise tax obligations.

Business Setup Consultants In Dubai

Do you have a business idea in mind? You’re not alone. But before you start your own company, there are some important things to know about the process of New Business Setup in Dubai.

Owning a business in Dubai can be a daunting task, especially if you’re not familiar with the city’s business landscape, that’s why you need business setup consultants in Dubai.

The UAE has one of the most attractive environments for entrepreneurs looking to grow their businesses and it also offers a variety of incentives including exemptions from corporate income tax, value-added tax, and property ownership taxes for qualifying companies.

Read on to learn more about how owning a business in Dubai can be an excellent opportunity for any entrepreneur!

Process of Setting Up A Company In Dubai?

The first step is to register your business with the Department of Economic Development (DED). This can be done online or in person at one of the DED’s branches. You’ll need to provide some basic information about your company including its name, type of business, and contact details.

Once your company is registered, you need to find a suitable location for your office and get a trade license from the DED. There are a variety of office spaces available in Dubai, so you’re sure to find one that meets your needs and budget.

You also need to register for value-added tax (VAT), if your business is generating annual revenues of more than AED 375,000.

How Business Setup Consultants In Dubai Can Help You?

If you need help getting started, there are a number of options for starting a new business setup in Dubai. These companies can assist with everything from registering your company to finding office space and getting your trade license.

If you’re considering low cost business setup in Dubai, the best place to start is by contacting one of these business setup services Dubai for more information. They’ll be able to provide you with all the necessary information and assistance to make the process as easy as possible.

Bestax Chartered Accountants is one of the best business setup companies in Dubai. They have a team of best business setup consultants in Dubai, UAE. They can provide you with all the necessary assistance and advice to make the process as easy as possible for you. Contact them today to learn more!

We Offer a Number of Business Setup Services in Dubai, UAE

Starting a new business setup in Dubai is the ultimate dream for many entrepreneurs. It’s not hard to see why Dubai has been ranked as the world’s most attractive country for starting a new business, and it also ranks first in terms of attracting foreign investments. If you’re thinking about getting Business Setup Services in Dubai, here are some things you ought to know: what you need to register your company, where to find office space, and more!

UAE offers a number of best business setup services in Dubai. The most popular option is to set up a free zone company. Free zones are areas within Dubai that are designated for specific types of businesses. There are over 20 free zones in Dubai, each with its own unique set of rules and regulations. To set up a free zone company, you’ll need to submit an application to the Dubai Free Zones Authority.

Contemplate Over These Things!

Bestax CA can help you with all the procedures and documents required for company formation in Dubai. If you’re not interested in setting up a company in a free zone, there are plenty of other options available. The easiest way to set up a business in Dubai is to register as an individual business owner.  You can also register as a partnership or a Limited Liability Company. There are a few things you’ll need to take into account when registering your business:

  • The type of business you want to operate
  • Your company’s name and address
  • The types of licenses and permits required for your industry
  • The number of shareholders and directors on your board
  • The amount of capital you’ll need to start your business

Once you’ve registered your company, you’ll need to find office space. Dubai is a huge city, and finding the right office space can be difficult. It’s important to find an office that suits your business needs and is in a convenient location. You can find and set up an office in Dubai through a number of different channels: online directories, real estate agents, or by contacting the relevant government authority.

Sum Up: If you’re thinking about starting a business in Dubai, the best place to start is by contacting one of the many business setup services available in the city. They can provide you with all the necessary information and assistance to make the process as easy as possible.

Bestax Chartered Accountants is one of the best companies out there that provides the best business setup services in Dubai. It is always a great idea to find a reputable and trustworthy company to help you with your business setup. Give them a call today!

11 Important Highlights of UAE Labor Law 2023

A Complete Guidance on UAE Labor Law

The UAE government introduced a new framework for private-sector employees under the Federal Decree-Law No.33 of 2021 which came into effect on 2 February 2022. New UAE labor law replaced the previous law Federal Law No. 8 of 1980 by bringing a new shift in employees’ working models, leaves, gratuity schemes, right protection, and many others.  Dr. Elhais said that:

“All private-sector employees and employers in the UAE, onshore and in the free zones, are subject to the new law, except for those in the DIFC and ADGM, which have their own employment legislation,”

Objective

As the United Arab Emirate is a giant hub of leading businesses, authorities are always concerned about creating a flexible work environment for everyone. The labor law UAE is intended to strengthen the employees’ basic rights and guarantee a safe & secure business environment in all the Emirates. The implementation of labor law will resolve many existing areas of uncertainty in the private sector. This amendment will impact positively on individuals and corporations in the long run.  

11 Important Highlights of UAE Labor Law 

The UAE labor law is introduced with a lot of unexpected changes in the current working model. To maximize the benefits of the new labor law, private-sector employees need to understand it clearly. Let’s discuss some important aspects of the New Law:

1. Discourage Gender Biasness 

The new labor law set out provisions for non-discrimination in the workplace. The cabinet decision stated that no difference on the basis of individuals’ race, color, sex, religion, nationality, social origin, or disability. Especially in the UAE labor law, women who perform on the same level as men are paid equally. However, employers must take this reform into consideration while hiring and during the working period. 

2. New Gratuity Schemes

As a result of the new labor regulations, the UAE labor law gratuity schemes are calculated based on the number of years worked. This provides monetary benefits to private-sector employees at the end of their service period. As per new Law 21 days salary to be paid for every year of work upto 5 years and 30 days of salary for every year after years of work..

3. Condensed Weekly Hour Facility

The new labor law affirms that employees can condense their weekly working hours. In accordance with the current law, private-sector employees had to work for 8 hours per day or 48 hours per week. UAE labor law enables employees to complete their tasks in 40 hours per week over 3-4 days under the condensed model. While this latest provision will ease employees’ workloads by reducing their weekly hours, the quality of their work will not be compromised.

4. Changes in Working Patterns 

For the first time in the UAE, an employee can do two parallel jobs at the same time. Under the new labor law, employees work part-time, temporary, and flexible work along with their full-time job without the employer’s permission. Their only requirement is that they have a temporary work permit and do not work for more than 144 hours every three weeks. 

5. Allowed Limited Contracts

As per UAE labor law Article no (8), limited contracts will be allowed for at least three years with the consent of both parties. The unlimited contract should be replaced with fixed-term employment contracts before February 2, 2023. 

6. A Minimum Wage

In the previous labor law, private sector employees didn’t stipulate minimum wage from the UAE government. The new UAE labor law 2022 set out a minimum amount of wage to fulfill the basic needs of private-sector employees. Under the Cabinet decision by the Minister of Human Resources and Emiratisation, this reform is practically implemented after 2nd February 2022. Employers will be bound to the minimum wage threshold, which protects the rights of low-skilled workers.

7. Probationary Period

In the previous law, the employment contract could be dismissed only on the one-day notice during the probationary period. However,the new UAE labor law termination plan is made to facilitate employers as well as employees. Both parties must notify one another 14 days before terminating an employment contract during the probationary period. In this reform, employees will not be allowed any paid sick leave during his/her probationary period.

If the employee wants to switch jobs during probation, which is at least a 6 month period, he must submit a month’s notice. Employee’s new employer must also reimburse the company for recruiting costs.

8. Amendments for Leaves

Maternity leaves: Under the UAE labor law, the mothers working in the private sector will be entitled to receive longer maternity leaves for the first time. She is eligible to get 45 days of paid leaves and the next 15 days with half salary.  Employees who suffer pregnancy-related illnesses will be eligible for an additional unpaid leave of 45 days.

Parental Leaves: The parental leaves for 5 days can be taken within six months of the baby’s birth. 

Disability Leaves: An employee who has a baby with a disability may be entitled to an additional 60 days of full pay while on leave.

Study Leaves: Part-time postgraduate students are allowed 10-day study leaves per year, to take their exams, provided that they complete two years of work with the employer. 

Compassionate Leaves: For employees who lose a spouse, they will be eligible for five days’ paid leave and three days’ paid leave for their parents, children, siblings, grandchildren or grandparents. 

9. Employment Dispute Resolution

In the new labor law, the employees who will file a dispute case to higher authorities with a value not higher than AED 100,000 are now exempt from court fees. This applies from the initial filing to the final hearing and is helpful for private-sector employees to claim their case. An interesting insight is that a group of employees can collectively file a dispute through the Ministry of Human Resources and Emiratisation.

10. Regulatory Sanctions

The New Labor Law sets a layout for employers on how to legally deal with the worker’s performance-related issues. If he does not meet the standards of work quality, the employee receives a formal letter of disapproval. Employers have the right to take deductions from employees’ paychecks (but not more than 5 days’ pay per month) and to suspend them for up to 14 days. Detailed information is shared in the Implementing the new law section. 

11. Harassment Protection

Any form of harassment, bullying or any physical or mental violence directed at employees is totally prohibited in the new reform. Such regulation will prevent many unpredictable incidents at work. 

Steps to Take Next?

UAE Labor law offers many advantages to private-sector employees, but it requires expert advisory and knowledge. The management should amend their HR policies to implement this new labor law at the workplace. Contact the best consultants in Dubai!

Email: info@bestaxca.com
Mobile: +971 56 7981808

MOF Levy Federal Corporate Tax in UAE from June 2023

MOF Levy Federal Corporate Tax in UAE from June 2023

On 31st January 2022, the Ministry of Finance announced a federal corporate tax on business net profits that will take effect in June 2023. The taxes on corporate profits will be applicable to the financial year beginning on or after June 1, 2023. The regulatory authorities are going to implement the corporate tax in UAE on all registered companies. It is levied on the business profit after deducting all expenses as reported in their financial statement. Let’s understand the essential parameter of this new tax regime:

UAE’s Government Intention

The UAE corporate tax is introduced to attract investors from all over the world and increase the reliability of business owners. The main objective of the UAE government is to: 

  • Minimize the tax burden for small businesses.
  • Help taxpayers, locally & globally.
  • Empower UAE to become a world-leading business hub.
  • The tax-free regime for individuals’ income.
  • Compliance with international tax standards.
  • Escalating UAE progress & development programs. 

H.E. Younis Haji Al Khoori, Undersecretary at the MOF stated that:

“The introduction of a corporate tax regime will help the UAE achieve its strategic ambitions and incentivize businesses to establish and expand their activities in the UAE” 

Businesses Subject to UAE Corporate Tax Regime

The Emirate’s government set out a threshold for corporate tax for businesses operating in the United Arab Emirates. All businesses and commercial activities in the UAE will be subject to the corporate tax, except for natural resource extraction, which will continue to be taxed at the Emirate level. The UAE corporate tax regime is going to apply to free zone companies that comply with all the federal tax requirements and also do not conduct business in the UAE mainland. The authorities clearly defined that 

  • Businesses are subject to a 9% tax rate whose corporate earnings exceed AED 375,000 / dirhams ($102,000). 
  • The statutory tax rate is 0%, which means no corporate tax on registered entities whose taxable income is up to AED 375,000. 

Are Individuals Exempt from Corporate Tax in UAE?

The Ministry of Finance (MOF) confirmed that UAE corporate tax will not levy on the individual’s personal income from employment, real estate, and other investments. Any other income source that is not earned from business or commercial activities licensed in the UAE is exempted from this new tax regime. With this latest UAE corporate tax rate, startups will be relieved of complex tax treatment and will benefit from a competitive tax system.

Important Aspects of Federal Corporate Tax

The upcoming federal corporate tax in UAE brings about some other provisions for entities, such as:  

  • Foreign Investors who don’t operate a business in the UAE, are exempt from corporate tax.
  • The UAE corporate tax is levied on the annual business profit with adjusted accounting profits
  • No corporate tax is imposed on the capital gain & the company’s dividends received by the shareholders.
  • The withholding tax is not applied to cross-border and domestic payments. 
  • Foreign taxes will allow being credited against UAE corporate tax payable.
  • The corporate tax regime will allow generous loss transfer and utilization rules for the companies. 
  • Businesses will be required to submit corporate tax filing in UAE once in each financial year & will not need to prepare provisional tax returns.

The regulatory authorities provide ample amount of time for businesses to be compliant with this corporate tax in UAE. Our team of certified accountants and tax consultants in Dubai keeps up to date with the latest updates from the Ministry of Finance (MOF). We offer professional advisory services to individuals and corporations to implement UAE’s latest taxation system. Make sure you are prepared before the new regime comes into effect! 

Email: info@bestaxca.com
Mobile: +971 56 7981808
Landline: (04) 585 3215

FTA Launches A New Excise Tax Reporting Requirement

On 22nd November 2020, the Federal Tax Authority (FTA) launched a new excise tax reporting requirement for business entities in the UAE. In this announcement, authorities stated that businesses need to submit an opening stock declaration from 1st January 2021 to 31st January 202, submissions will be accepted. The latest provision is especially for the warehouse keepers of one or multiple designated zones in the UAE which holds the stocks of an excise taxpayer. 

What is the Opening Stock Declaration?

The stock of taxpayers registered with FTA for Excise Tax needs to be declared to disclose the opening stock held in the designated zone. It is an online form (EX204) that is available on the official website of the Federal Tax Authority. This opening stock declaration form is introduced to control the movement of inventory in the designated zones of the UAE. The warehouse keeper must comply with this new excise tax reporting requirement by FTA. 

Aim of New Reporting Requirement

The FTA implements this new reporting requirement mainly to control and handle the movement of excise products in the designated zones & to promote excise tax compliance for the taxable businesses operating in the UAE. The opening stock declaration will also support efforts to reduce illegitimate transnational trafficking of excisable goods under the FTA. 

Is the Declaration Available to an Excise Non-Registant?

Yes, the stock of non-registered owners can be declared to the FTA by submitting the EX204A Non-Registered Excise Stock Movement Declaration. Once you are registered for the UAE designated zone the tax person will continue the process for all the next periods.  

Process of Excise Goods Opening Stock Declaration

To effectively implement the new excise tax reporting requirement, the warehouse keeper must comply with FTA standards. You can implement these following steps that will make your life & the process a lot easier:

  1. Hire External Auditors

The warehouse keeper who holds the excisable goods must hire external certified auditors in the UAE. The third party auditors need to check the opening stock as of 1st January 2021 for each designated zone per excise tax registrant. For FTA penalties to not occur in the future, the records must be audited by independent auditors. 

2. Completing the Declaration Form

Upon completing the audit, the operator of the warehouse needs to fill out the opening stock declaration form provided by the FTA. It contains pre populated fields requiring valid information and documents that comply with the UAE excise tax laws. The most noticeable thing is that each declaration is submitted by only one excise tax registrant per designated zone. In order to ensure compliance with FTA guidelines, the applicant should review all details before submitting the form. 

3. Approval for Opening Stock Declaration

The last and most significant step is the approval of the opening stock declaration by the excise tax registrant. The warehouse keeper must approve the declaration form by tax registrants who hold goods in multiple designated zones. If an operator has stocks in more than one designated zone, each zone must be approved. 

Failure to Submit FTA Declaration

When an entity fails to submit their Opening Stock Declaration on time, FTA will impose administrative penalties. The tax authority will hold the stock in the Designated Zones to zero and restrict entities to move inventories out of the Designated Zone. 

The United Arab Emirates tax system is not complicated, but it can be quite challenging for ordinary tax agents. In order to relieve yourself from FTA sanctions or prosecutions you should take professional tax consultancy in Dubai, Sharjah, Abu Dhabi and any other Emirate. The experts will assist business owners in the implementation of the new excise tax reporting requirement on excisable goods as per FTA guideline. Get in touch with the best tax advisors!

Email: info@bestaxca.com
Mobile: +971 56 7981808

FTA Re-determines the Administrative Tax Penalties in UAE

FTA Re-determines the Administrative Tax Penalties in UAE

The Federal Tax Authority amends some Provisions of Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE. Currently, FTA stated that entities whose total unpaid penalties are due until June 28, 2021, could be settled until December 31, 2021. The new facility encourages tax registrants by redetermining their tax penalties and fines. The taxable person who could not meet the requirements of the tax provision and were unable to settle the liabilities until December 31, 2021 can now take advantage of this redetermination by December 31, 2022.  

The goal of the Amendment

The main objective of the FTA redetermination of administrative tax penalties is to relieve taxpayers and make the UAE a more viable and profitable business location. Through this Amendment, the business sector can reduce its FTA tax penalties. The redetermination provides a chance for registrants to make business accounts highly tax compliant. As a result, foreign investors will flock to the country, boosting the economy. Khalid Ali Al Bustani, Director-General of the FTA, said,

 “Cabinet Decision No. 49 of 2021 aims to support tax registrants to fulfill their tax obligations, boosting the UAE’s competitiveness in doing business.”

How Tax Registrants Benefit from New Decision?

The tax registrant can waive off administrative tax penalties levied in the case of non-compliance before June 28 2021 (the effective date of Cabinet Decision No. 49 of 2021). To benefit from the redetermination of administrative tax penalties under the cabinet decision no. 49 of 2021, the following conditions, must be fulfilled: 

  1. Tax Liability must be settled in full until 31 Dec 2021
  2. 30% of the unpaid penalties must be paid until 31 Dec 2021

In case, the registrant fails to meet the requirement of Points 1 and 2 before 31 Dec 2021, the registrants now have time till 31 Dec 2022 to fulfill the requirements and avail the discount offered by FTA. 

The taxpayer who meets those requirements under Cabinet Decision no 40 of 2017 must settle them no later than December 31, 2022. When completing the process for redetermination of administrative penalties, FTA clarified that registrants could use the “Payment Adjustment Type” feature. With this feature, users can choose to allocate the amounts based on their payment preferences. The options available are to pay tax first, pay the administrative penalties first, or pay the earliest liability first.

Redetermination of administrative penalties is an incentive for businesses to reduce their tax non-compliance fines. If you find any difficulty in availing of this big opportunity, our tax consultants in UAE can assist you in application for waiving your tax penalties as per the new FTA amended provisions.

Email: info@bestaxca.com
Mobile: +971 56 7981808

How to Check TRN Verification in Dubai?

When the VAT registration application is submitted and approved, the authorities assign a TRN to each taxable business in the United Arab Emirates. The FTA issues this VAT number for tax group registration purposes, which should be attached to each supply. In this article, we will thoroughly discuss each point related to TRN verification in Dubai.

What is TRN Number in UAE?

The TRN means the tax registration number, the specific code that is assigned to each registered business in UAE. The Federal Tax Authority issues this unique number to value-added tax registered individuals and businesses. A TRN may be found on the value-added tax registration certificates that are issued by the FTA. TRN’s purpose is to identify, verify, and comply with UAE VAT laws. The TRN is also known as VAT number, VAT registration number, or VAT identification number.

Significance of TRN Check as per UAE Law

The tax verification or TRN verification in Dubai is essential to ensure business partners that we are VAT registered. According to UAE regulations, each company that deals in taxable goods must be VAT compliant. That is why FTA TRN check is an authorized and trustworthy way of validating one’s tax registration number. A person who pays VAT to someone without TRN verification will not be eligible to receive input tax credits for the value-added tax. Also, the fake TRNs increase the fraud by illegally charging VAT that ultimately affects the revenue. This is why TRN Verification through FTA is so mandatory in the UAE.

Federal Tax Authority TRN Verification

The Federal Tax Authority issued a 15-digit tax registration number to create a difference between registered companies in UAE. The FTA provides TRN verification utility to validate their VAT returns, tax invoices, tax credit notes, and other documents. This enables each taxable person to charge value-added tax on all invoices. The identity of a valid TRN is that the legal person’s name is populated in both English and Arabic language.

Getting a TRN in UAE: Required Documents

To apply for a tax registration number in the UAE, certain documents are required to be submitted. Under UAE VAT laws all of the information is authentic otherwise it may attract heavy fines and penalties. Here you can get A Complete Guide to Tax Residency Certificate UAE.

  • Trade license copy
  • Passport Copies, Emirates IDs
  • Contact details of the company
  • Business owner contact information.
  • Memorandum of Association (MOA)
  • Information about bank accounts.
  • Turnover declaration letter.
  • Custom registration.
  • VAT details, if in any other GCC country

How can I Validate Tax Registration Numbers in UAE?

The Federal tax authority (FTA) portal can perform TRN verification for all registered businesses as well as for a layman in UAE. The user just needs to follow these simple steps for TRN verification in Dubai:

  1. First of all, visit https://eservices.tax.gov.ae/en-us/trn-verify
  2. After that, enter the TRN in the field provided
  3. Next, add the displayed security code.
  4. Hit the button below ‘Validate’
  5. If the TRN is valid, you get the legal person’s name.
  6. Lastly, compare your supplier name with the appeared ones on the invoice.

How Can a Fake TRN be Reported?

When submitting a VAT return, businesses must ensure the validity of suppliers by checking the TRN. A taxable person should report any fraudulent TRN to the relevant authorities via a VAT helpline. This is the responsibility of each citizen living and operating his business in the United Arab Emirates.

Benefits to Verify TRN on Invoices

There are numerous benefits of TRN verification in Dubai, United Arab Emirates that ensure secure supply transactions. Let’s discuss:

  • Minimize the unethical VAT charges.
  • Ensure suppliers for valid transactions.
  • Commence secure tax invoices.
  • Kills the usage of fake tax registration numbers.
  • Safeguard government revenues.
  • verify your VAT status.
  • Ask credit on the input tax.
  • The utility is free for registered & un-registered individuals.

Get Assistance for TRN Verification in Dubai

Valid TRN is required for paying an invoice in the United Arab Emirates to ensure your VAT registration. This VAT Verification in UAE will save your input tax credit on purchases made. But many times individuals and businesses fail in FTA TRN checks due to their negligence and lack of expertise. In that situation, it’s advisable to hire a team of professional tax advisors who assess you in VAT registration and as well as in obtaining TRN. Get in touch with certified accountants and tax advisors for TRN verification in Dubai.

Next Article: Outsource Accounting and Bookkeeping Services in Dubai

How to Find Best Auditing Services in Dubai?

Every business registered in the UAE must conduct an audit by following UAE laws to generate revenues. It verifies the books of records, due taxes and claimed refunds and many more other financial or non-financial matters. There are multiple types of audit such as Internal audit, external audit, Statutory audit, excise tax audit, Financial audit, VAT audit, Operational audit, Compliance audit, Information system audit, and Payroll audit. Due to multiple auditing services in UAE, sometimes business owners get confused in choosing the best Audit Firms in Dubai. Here we are going to reveal all of the key factors that help you in the selection of a quality auditing service that suits your business needs.

Is Audit is Obligatory in the Middle East?

The Commercial Company law in the United Arab Emirates defines that it is mandatory for all registered businesses to maintain their financial records for at least 5 years and do an annual audit. The companies operating in Free Zones and on the Mainland must audit their accounts. Federal law no.2 of 2015, Article 27 stated that each company outsources authorized auditing services in Dubai. Under the Ministry of Finance, if an entity fails to submit keep its records as per UAE auditing standards then it has to pay hefty amounts of fines. That is why it is obvious for business owners to prepare and submit audit reports to the relevant authorities. It will take just 3 to 6 months to prepare the audit after the end of the financial year.

Main Purpose of Audit Services

Providing audit services in Dubai means verifying that all company financial matters are in compliance with UAE laws. The following are the purposes of audit services.

  • Report the actual financial situation of a business.
  • Identify vulnerable risks in management and finances.
  • Reduce the cost of capital for the entity.
  • Examine the profit and loss statements.
  • Recommendations for accounting solutions.
  • Attesting records under GAAP and IFRS.

Selection Criteria for Right Audit Firms in UAE

Those looking for quality auditing services in Dubai, Abu Dhabi, Sharjah, and other Emirates must consider these essential factors. Below we will discuss the criteria for selecting the right audit firm in UAE.

1- Qualifications & Certifications of Auditors

When you are acquiring an audit service in UAE, you must verify the qualification and certification of auditors. The auditors should be verified Certified Public Accountants (CPA) and Certified Financial Analysts (CFA). They should also possess in-depth knowledge of the required auditing type. You may visit the official website of the audit firm to go through their certifications, awards, and achievements. This proactive approach to selection gives you many monetary and non-monetary benefits in the future.

2- Licensed Audit Firm

This is the most significant selection criteria for accounting and auditing services in Dubai. You must ensure that the audit firm is a commercial entity located in the UAE, licensed to perform auditing services. Additionally, select the audit firm whose accounts are legally authorized by the Ministry of Economy.

3- Committed to Quality Assurance

Auditor selection should be based on their commitment to quality assurance. Their audit services in Dubai must comply with all regulatory requirements, approved auditing standards, and reporting requirements. They must attest all company documents and verify its financial position. Insights into the audit procedure before the contract is beneficial for both parties.

4- Utilize Advanced Softwares

Always choose an audit firm in UAE that is technically proficient and utilizes advanced data analytics to perform auditing. They must access the latest accounting software to efficiently manage their books of record. This future optimistic action improves the efficacy of auditing procedures. You should not overlook this phenomenal feature when opting for an audit service in Dubai.

5- Examine Top and Best Auditing Firms in Dubai, UAE

While selecting auditing services in UAE, you must consider the top of licensed auditors and accountants. Nowadays, search engines provide comprehensive information about the top-notch service providers in this field. Also, you can go through the top 5 audit firms in UAE and select the finest one.

6- Reasonable Auditing Charges

The fee is often a deciding factor when it comes to choosing an auditor. It is advisable that you select the one who offers an adequate fee for financial audit services in Dubai, UAE. But didn’t compromise on the quality of auditing. They certify that all operations and procedures are comply with the UAE Commercial Law. Auditors have to adhere to regulatory requirements within budget constraints.

7- Relevant Industry Experience

An auditor with experience within your industry will be able to provide valuable services. You may ask the consultants about the experience of the team, did they work in the relevant industry, and what are the auditing results in the past? This is the proactive approach to an efficient and successful audit.

Benefit of Outsourcing Auditing Services in Dubai

As we know, outsourcing auditing services in UAE, is compulsory for all registered businesses. Below we will discuss how an audit firm can benefit you:

1- Providing Support for Decision-making & Growth

A financial audit can add value to your business decision-making. You can depend on a good auditor to be your business’s advisor throughout the year. It not only fulfills the regulatory requirements but also opens up new growth opportunities for your company. As a business partner, your auditor should provide you with deep analysis, assurance, and future-oriented business advice.

2- Enhance the Credibility of SMEs

Those who benefit most from the right auditing services in Dubai, are small-medium enterprises. Startups and small businesses are looking forward to bank loans to optimize profits. But the credits are just allowed who prove their accounts as compliance with UAE laws. The accurate financial records help them to enhance their credibility in front of regulatory authorities.

3- Financial Risk Analysis

Expert auditors can detect financial risks in the existing system of the company. They will do a complete feasibility analysis by performing a comprehensive audit service in UAE. An audit report considerably reduces financial risks.

4- Restructuring Workflows through Anticipation

Quality auditing services not only verify the company records but also assist in financial restructuring and other accounting procedures. Picking the right auditing services in UAE can benefit you in multiple ways.

BestaxCA: A Leading Auditing Firm in Dubai

BextaxCA is an expert, renowned as Best Auditors in Dubai and financial consultancy having an association with auditing firms in Dubai. It is committed to providing exclusive accounting and audit services to all of its domestic and international clients. IFRS-compliant audits are performed by auditors who have the expertise, experience, and deep knowledge. They will solve all your problems regarding finding the right audit services in UAE.

Next Article: A Complete Guide to Tax Residency Certificate UAE

A Complete Guide to Tax Residency Certificate UAE

The United Arab Emirates is the fastest-developing business hub all around the globe. It converted itself from a desert city to a leading city in the world-class trade sector. The UAE has a diverse economy that attracts investors through its favorable tax policies. The government and the authorities are sincerely concerned about the fair implementation of taxes on individuals and companies. That’s the reason the UAE  has 123 double taxation agreements which are in effect or being negotiated.  In this agreement, the most beneficial relief for business owners is the Tax residency certificate UAE, which is formal proof of a tax resident.

The purpose behind the double taxation avoidance agreements (DTAA) is to ensure trade partners that a taxpayer will not have to pay taxes twice in two different countries. As a result, it promotes an open market for international trading and investment, while also protecting members from double taxation on the exchange of assets, capital, and services. In order to take advantage of the DTAA, business owners and companies placed in UAE must possess a Tax Residency Certificate (TRC) also known as, Tax Domicile Certificate (TDC).

What is a Tax Residency Certificate UAE Dubai?

A tax residency certificate is an official document issued by the Ministry of Finance (MoF) that allows legal entities operating in the UAE to establish tax residency and to take advantage of the double tax avoidance agreements. You can get detailed guidelines from this page and this will help you to understand Excise Tax Consultancy Services in UAE.

Eligibility Criteria of TRC:

The tax residency certificate is open to any business operating in the free zones and on the mainland for at least a year. For offshore companies, the Tax Residency Certificate is ineligible because they are not listed in the Double Taxation Avoidance Agreements. Instead, they receive a tax exemption certificate. The Tax Residency Certificate eligibility is far different for an individual taxpayer and a company:

A natural person can apply for a tax domicile certificate after living in the UAE for at least 180 days and wish to obtain tax residency there. Also, they gain additional benefits if their native countries do not have a double taxation agreement with the UAE. Furthermore, an annual lease agreement officially attested by the competent authorities, such as municipalities in other Emirates, EJARI in Dubai, and free zone authorities that should be attached to the application.

Legal Person is eligible to apply for tax residency certificate UAE if he has been established company for at least one year. An authorized audit firm must audit or prepare financial statements and attach them to the application with other relevant documents. Applicants must attach a stamped audited financial report covering the year for which a certificate is being requested. In order to obtain a certificate for the current year, the audit report must cover the previous year.

Official Documents Requirements for Tax Domicile Certificate Dubai

An individual must meet different requirements to obtain a Tax Residency Certificate UAE than a corporation. The details in both scenarios are mentioned below:

  1. For Legal Taxpayers
  2. Valid UAE Trade License Copy.
  3. Memorandum of Association or any relevant document.
  4. Official Bank Statement.
  5. Copy Certified commercial Tenancy contract.
  6. Authorized Signatory passport, valid UAE resident visa copy.
  7. Emirates ID of Authorized Signatory.
  8. Certified and stamped audited financial statements.

For Natural Taxpayers

  1. Passport copy and valid visa copy.
  2. Copy of Emirates ID.
  3. Stamped UAE bank statements.
  4. Evidence of the sources of income.
  5. Residency copy of taxpayer.
  6. Immigration report of residency.

How to Get a Tax Residency Certificate in Dubai?

The tax residency certificate application process is completely online, on the official website of the Ministry of Finance. Below we discuss each step of TRC submission:

  1. Create an account on the MOF portal.
  2. Fill out the application form with supporting documents.
  3. You receive a confirmation email if the TRC application is verified.
  4. Pay the TRC fees and get payment verification.
  5. Finally, get the tax residency certificate with one-year validity.

Time Period for Acquiring TRC

The time frame of the pre-approval process for the Tax Residency Certificate / Tax Domicile Certificate is almost 4-5 working days. The Ministry of Finance (MoF) usually takes 5-7 working days for the issuance of TRC once it’s approved. The complete process of verification and issuance of tax residency certificate by MOF is about 2-4 weeks.

Tax Residency Certificate UAE Cost

The Tax Residency Certificate application fees are paid through an e-Dirham Card to the Ministry of Finance (MoF).
For legal entity payable cost is AED 10,000.
For individual taxpayers, the fee is AED 2000.

The Biggest Advantage of Getting a Tax Residency Certificate UAE

The corporates and individuals with these tax residency certificates gain maximum benefit from the UAE. Below we discuss a few advantages:

  • Ensuring fairness in their tax handling for companies and protecting the UAE national economy.
  • Implement suitable tax structures for your business offshore, free zone, or mainland.
  • With a double taxation avoidance agreement the taxpayer safe their income and capital gains from restraint taxes.
  • Individuals and corporates receive tax incentives by being a resident in the UAE.
  • Companies and individuals may obtain separate UAE Tax Residency Certificates that cover both levels of income.

Want Help in Obtaining a Tax Residency Certificate in Dubai

Effective tax planning and strategy are essential for each business to comply with the UAE regulatory authorities. The best way is to consult a professional tax advisor, as well as a financial consultant to handle your complex tax-related projects. The Bestax Chartered Accountants and Tax Advisors have expert knowledge in the acquisition of the TDC as well as any other regulatory approvals and licenses.

They provide assistance on how to get Tax Residency Certificate Dubai as an individual taxpayer or a company in the UAE. So, feel free to consult our tax advisors for TRC submission.

BestaxCA Provides Exclusive VAT Services in UAE

The United Arab Emirates government released value-added tax (VAT) on taxable supplies and imports with a 5% VAT rate. The VAT law has been enacted from 1st January 2018 on the mainland and free zones of UAE. Each taxable firm operating in Dubai, Sharjah, Abu Dhabi and other Emirates must take VAT services in UAE. Individuals and corporations who do not comply are subject to heavy fines and penalties. Moreover, this VAT eligibility assessment is a prerequisite for both exempted and non-exempt organizations as proof to FTA. 

VAT compliance is a set of multiple VAT services which includes registration or de-registration, return filing, refund submission, voluntary disclosure and auditing services. BestaxCA, the leading accounting firm in Dubai, is one of the best organizations that can provide all these VAT related activities under one roof. A team of expert tax advisors has extensive knowledge and experience of VAT services in UAE. Below, you will find an in-depth description of each of our services, so you can discover what makes us the best VAT consultancy in Dubai.

1- VAT Registration

VAT registration is an online procedure on the official portal of the Federal Tax Authority (FTA). They ask you for valid information about the applicant, stamped and verified documents, and many other requirements. Almost all VAT registrations take 1-2 weeks for approval, however, if the information is incorrect, the application could be delayed, rejected, and penalized. To get rid of all nuisance, you must outsource our your VAT registration services in Dubai, which assist you in the following ways:

  • Examine your business and its activities.
  • Assist you in Creating an E-Service Account.
  • Detail Information About the Applicant and Company.
  • Getting you Ready for all VAT-required Documents.
  • Secure you from Late-registration VAT penalties.
  • Follow up until the VAT Application is Approved.

2- VAT Return Filing

The VAT return filing is totally dependent upon your annual turnover on the supplies of goods and imports. Within 28 working days, all VAT registered businesses operating in the United Arab Emirates, must comply with their VAT return filing. Let’s explore our VAT services in UAE for return filing.

  • Review of all your VAT documents e.g invoices and contracts.
  • Assure well-maintained financial records and transactions.
  • Comply with all FTA laws and legislations.
  • Analyze all processes and recommend necessary changes.
  • Validation of eligibility for input VAT claims.
  • Claim the maximum amount of input VAT.
  • The filing of VAT returns before the deadline.

3- VAT Refund Submission

The VAT refund application can be submitted to the Federal Tax Authority when the input tax is greater than the output tax. This procedure helps individuals and businesses to refund their net VAT by fulfilling specific requirements. Bestax Chartered Accountants facilitates you with these below-mentioned VAT services in UAE to refund your tax:

  • Examine the eligibility criteria for the VAT refund.
  • Full Assistance in preparing VAT refund application.
  • Review all documents and information as per FTA requirements.
  • Provides solutions to all the queries from FTA for repayment.
  • Follow-up until your VAT Refund application is submitted.

Get more information about VAT read this Article: Everything you need to know about VAT

4- VAT Voluntary Disclosure

If there was a calculation error that resulted in the payable tax being less than the required AED 10,000. In that case, an individual or business may submit the VAT voluntary submission within 28 working days. Failure to comply with FTA deadlines for VAT voluntary disclosure may result in heavy fines and penalties. Although Our qualified accountants help taxpayers with the best VAT services in UAE for voluntary disclosure.

  • Deeply analyze your business records and financial accounts.
  • Identification of errors in payable tax.
  • Review and submit all required documents for voluntary disclosure.
  • Aware of penalties if they do not comply with voluntary VAT disclosure.
  • Providing follow-up assistance until the VAT voluntary disclosure has been approved.

5- VAT De-registration

The VAT de-registration means the cancellation or deactivation of tax registration number. The taxable person may apply for this, if he/she falls under the specified criteria for VAT de-registration.  In this case of non-compliance with VAT de-registration, an individual or corporation may attract the penalty of AED 1000 each month delay. That’s the reason we will guide you in de-registration VAT services in UAE, to ensure a smooth submission of application:

  • Assessment of the eligibility criteria for VAT de-registration.
  • Safeguard your earnings from FTA penalties.
  • Review all documents to save you from unnecessary delays.
  • Submit your VAT de-registration application as per FTA standards.
  • Follow up assistance from FTA

6- VAT Penalties Reconsideration

The UAE government gave much relief to businesses to generate and secure their profits. For that, the Federal Tax Authority (FTA) introduced these VAT reconsideration penalties. This law waives fines, if a business fails to comply with VAT registration, VAT return payment, VAT voluntary disclosure and other VAT non-compliance activities. Any taxpayer submits their application for VAT reconsideration within 20 working days of being penalized. The Bestax Chartered Accountants fully assist you in VAT services in UAE, like here:

  • A comprehensive investigation of each case.
  • Guide clients about required information and documents.
  • Prepare your VAT reconsideration application as per FTA standards.
  • Our VAT consultants gave give their best to prove your case.
  • Verify that all supporting points are completed before submission.
  • Follow-up with the authority on the status of the application.

7. VAT Audit Services

VAT audit is mandatory in the United Arab Emirates, to ensure FTA that business is complying with all VAT laws. As per the VAT Decree law, each tax registered business must be notified before 5 days of auditing by FTA. It’s like an accuracy test of your accounting records and transactions. Our following VAT services in UAE assist you in the comprehensive audit:

  • Prepare your financial statements, payments, invoices, and record-keeping.
  • In-depth VAT health check-up.
  • Implement advanced software for VAT compliance.
  • Analyze errors in existing records and provide solutions.
  • Provide all company details under the deadline.
  • Ensure and implement FTA defined standards for Auditing.
  • Presenting case on your behalf before FTA Auditors.

Bestax Chartered Accountants Committed You:

BestaxCA is providing the best VAT consultancy services in Dubai, with over 15 years of successful experience. Our team of qualified chartered accountants and tax advisors is committed to providing accounting solutions. We believe in the following values for our national and international clients, such as:

24/7 Services
After-Sale Support
Reliability and Integrity
Cost-effective Charges
Excellence in Services
Valuable VAT Solutions

Now that you have found the best VAT services in UAE, don’t waste more time and contact our tax advisors today.

Call:         +971 56 7981808

Email:       info@bestaxca.com

How to Apply for VAT Registration in UAE 2022

UAE belongs to the GCC group and promises to implement all necessary tax policies to ensure investors that setting up a business in UAE is a worthwhile endeavor. The important announcement is that all companies operating in the United Arab Emirates must record their financial records and transactions to obtain VAT compliance as per FTA standards. Value-added tax (VAT) is a type of consumption tax, which is implied in almost 150 countries around the globe. The VAT is subjected at each stage of the supply chain that is bought and sold. The relevant authorities and the Ministry of Finance imposed several VAT laws and regulations on taxable businesses. There is a specified threshold or turnover limit required to apply for VAT registration in UAE.

Purpose of VAT

The VAT was implemented on 1st Jan 2018 in the United Arab Emirates. This indirect tax is collected for increasing the government budget. That ultimately benefits the residents in the form of public services and facilities. VAT aims to stabilize the economy of the country and provide advantages to the citizens of UAE. Thus, the Emirates governments implement fair VAT legislations on each eligible individual and business. Before this, UAE Federal was dependent upon the income generated by oil and carbohydrates, but this 5% VAT rate proves a new source of income for the government.

Does VAT Subject to All Types of Businesses?

The value-added tax is implied on businesses operating on the mainland and in the free zones of UAE. Taxable businesses that meet the minimal turnover threshold requirement can apply for VAT registration. Here are the list of List of Documents Required for VAT Registration in UAE.

  • The UAE cabinet stated that if the taxable supplies and imports of the business crossed the threshold of AED 187,500 in the last twelve months, then they can claim for voluntary VAT registration in UAE.
  • If a business’s turnover exceeded the threshold AED 375,000 in both taxable supplies and imports, then mandatory VAT registration is required.

A Complete VAT Registration Procedure in UAE

The VAT registration procedure in UAE is not so simple, as you need expert guidance and information regarding your financial transactions to be successful. It is essential for tax registered businesses to calculate the VAT that they charge to consumers and the VAT paid to the government regularly. Although this step-by-step process helps you with VAT registration services in Dubai, just follow them:

 

Set up an e-Services account on FTA Portal

The foremost step is to create an e-service account or login into an existing account on the official Federal Tax Authority website. The creation of an account is not difficult as it is similar to other social media platforms. It just asks you some basic and valid information such as:

  • Enter your email address, a strong and unique password, fulfill security code and question, complete alphanumeric test and lastly agree to terms and conditions.
  • After clicking the “Sign up” button, a message is sent to your registered email address asking you to verify your email address within 24 hours.
  • Finally, your e-service account is created and you can login with your username and password.

Provide accurate Information and Documents

In your official FTA account, you noticed a button in the dashboard seen as ‘Register for VAT’. Once you click on that, you will get a complete ‘Getting Started Guide’ on value-added tax. This comprehensive guide will assist you with the documents required for VAT registration procedure in UAE. There is specified information and documents required for VAT registration UAE. Below we mention them briefly:

  • Information and details about the applicant
  • Contact details of the company.
  • Bank account details.
  • Business relationships.
  • About VAT registration
  • Declaration
  • Review and submission.

All of these should be valid and authentic otherwise the application may be rejected, delayed, and penalized. In the case of any further details required by FTA, the applicant will receive an email notification.

Amending the Approved VAT Registration Form

If a company’s tax records change during the registration process for VAT, this additional benefit is available to them. The applicant may update the records within 20 working days of occurrence. You must inform FTA about your amended tax records.
Simply click on the ‘Edit’ or ‘Amendment’ button, to update the below-mentioned information.

  • Business activities of the applicant section
  • GCC Activities section
  • Customs Registration Information section

In this process, FTA may ask you for more details to approve the amendments in your VAT application.

What are the VAT Registration Fees in UAE?

The VAT registration procedure in UAE is free because it is all done online on the official portal of FTA. To request an attested registration certificate, the applicant must pay Dhs500.

Late Registration Penalty Payment

In the United Arab Emirates, the Late Registration Penalty Payment is AED 10,000 according to Cabinet Decision No. (49) of 2021. So, it is always advisable to register within the deadline of 20 days for crossing the mandatory threshold VAT registration in Dubai.

Professional VAT Registration Services in Dubai

VAT registration services are mandatory for all taxable businesses operating in Dubai. The above-mentioned points and details help business owners, CFOs, and CEOs in VAT registration in UAE. Although, a little bit of inaccuracy in your VAT application can lead to delays and heavy fines. The best possible solution is to outsource VAT registration services in Dubai and get your business VAT compliant under FTA standards.

Next Article: How do you Get the Best VAT Consultants in Dubai?

List of Documents Required for VAT Registration in UAE

Documents Required for VAT Registration in UAE

Value Added Tax (VAT) is levied on all the stages of the supply chain to boost the economy of countries. Developing countries in the Gulf Cooperation Council have recently registered themselves under VAT laws and implemented them on January 1, 2018, with a VAT rate of 5%. All taxable businesses operating in UAE must register themselves under the VAT legislations stated by Federal Tax Authorities (FTA). There are certain types of information and documents required for VAT registration in UAE and to get the Tax Registration Number (TRN) for the business. In this article, we will discuss some essential conditions that should be fulfilled for VAT compliance in Dubai. 

Obligations for VAT Registration in UAE

According to UAE authorities, VAT registration applies to ALL business activities conducted by the registered individual. A person operating a business in UAE can register for VAT, not the business itself. Although the person can be an individual such as a sole trader, a legal person,  or another form of entity such as a charity, club, partnership, and trust. You must provide information regarding the person that is going to be registered, and their intended business activities, when applying for VAT registration.

VAT compliance helps businesses operating in the UAE to improve their stability and goodwill. With a valid VAT invoice, you are eligible to claim VAT refunds on all goods and services.

Mandatory vs Voluntary VAT Registration

The basic difference between voluntary and mandatory VAT registration in UAE is depending upon the revenue generated from the business taxable supplies and imports. 

Voluntary Registration: Businesses and individuals who have crossed or expect to cross the voluntary threshold of AED187,500 in the past 12 months are eligible for voluntary VAT registration.

Mandatory Registration: Any entity exceeding the mandatory threshold limit of AED 375,000 must register for VAT within 20 working days of doing so, anyway a late VAT registration penalty of AED 10,000 will be imposed.

List of Documents Required for VAT Registration in UAE

In order to register for VAT by the Federal Tax Authority, an applicant must submit various documents and information (in English and Arabic). Incomplete or incorrect registration can lead to a significant delay in the registration process. Here we will mention the documents required for VAT Registration in UAE such as:

  1. A copy of the trade license
  2. Passport copy of business partners and owner who owns the trade license.
  3. Copy of Emirates ID of the business owner and partners. 
  4. Memorandum of Association (MOA) of the company
  5. Company valid contact details (P.O box, Physical & mailing address)
  6. Complete details of the company’s bank account. 
  7. Income statement or turnover declaration for the last 12 months
  8. The nature of business and activities performed.
  9. Contact details of the concerned person. (Phone number, Email address)
  10. The expected revenue and expenses for the next 30-days after completing the VAT implementation.
  11. Does the business deal with the customs department? In that case, attach the customs letter.
  12. Are they dealing business in exporting or importing?
  13.  The company is in any GCC country, then mention the country name.
  14. Details about expected exempt supplies.
  15. Provide a complete list of all business owners or partners in UAE by attaching the trade license within the last 5 years.

VAT Registration of a Tax Group

A tax group is made up of two or more legal entities, each of which must be resident in the UAE and meet certain control criteria. Tax groups can also be formed by multiple businesses of different natures. The Federal Tax Authority (FTA) dictates that if a person holds more than 50% shareholdings in more than one company, he may form a tax group for all companies, and the FTA will give the individual a single tax identification number for all the companies in the tax group.

 It will also be necessary to complete a separate Tax Group registration application. After your group application is approved and accepted, you will be given a TRN.

What Happens after your Business is VAT Registered? 

After submission of the VAT registration application in accordance with the FTA standards, you will be allocated a Tax Registration Number (TRN). It takes almost 2-3 weeks and helps businesses to secure their transactions.

How do Startups Take VAT Registration Services?

If you planning a business in Dubai or anywhere in the United Arab Emirates at a small, medium, or large level, it’s essential to get your taxable business registered under VAT laws. Being a startup, you must appear to your potential customers that the business is complying with all tax policies and legislations. This may also ensure other traders that you are trusty and profitable business partners. Each startup business must assure the following guidelines for VAT compliance in UAE.

  • VAT eligibility assessment for individuals and businesses.
  • Get ready for the online process of application on the official portal of FTA.
  • Prepare a list of information and documents required for VAT registration.
  • Answering the follow-up questions until the TRN is issued.

Get Expert VAT Consultancy Services in Dubai

Many individuals or businesses are stuck in various VAT services in Dubai due to the extensive list of VAT services. If you are in the same situation, then Bestax Chartered Accountants provides exclusive VAT consultancy services in Dubai by understanding your business model for VAT compliance. We have a team of expert VAT consultants that assist you in preparing and executing all VAT-related concerns.

It includes preparation and submission of VAT invoicing, VAT registration, VAT return filing, VAT refund submission, voluntary disclosure, VAT de-registration, and VAT audit services. For more information, get in touch with us.

Phone Number      +971 56 7981808
Email Address       info@bestaxca.com

Next Article: Anti Money Laundering Laws and Penalties in the UAE

Anti Money Laundering Laws and Penalties in the UAE

Money laundering and financing of terrorism are serious criminal acts that threaten the stability, safety & security of businesses and society as a whole. The UAE government enacted anti money laundering laws to stabilize the financial system of individuals, enterprises, and other related parties. 

The AML Law made by the Financial Action Task Force (FATF), was implemented to enhance the UAE’s capabilities in detecting and combating financial crimes. In this article, you get to know the latest anti money laundering laws and penalties in UAE. 

Federal Laws on Anti Money Laundering & Terrorist Financing

The Anti Money Laundering law in UAE is applicable according to Federal Decretal-Law No. (20) of 2018 on AML, CFT and illegal organizations. 

  1. The act mentions in Clause (1) of Article (2) that any person, knowing that the funds are the proceeds of a felony or a misdemeanor, and who willfully commits any of the following activities, shall be guilty of Money Laundering:
  • Conducting any transaction with the intention of concealing or disguising their illegal source, or moving proceeds or transferring them. 
  • Disguise the true source, location, or nature of the proceeds as well as their disposition, movement, ownership, or rights about these proceeds. 
  • Acquiring, possessing, or using proceeds upon receipt. 
  • Helping the perpetrator of the predicate offense to escape punishment.
  1. Money Laundering is considered an independent crime. The perpetrator’s punishment for the predicate offence will not prevent his punishment for the crime of Money Laundering. 
  2. Proving the illegal source of the revenue should not constitute a prerequisite to sentencing the perpetrator of the predicate offence. 

According to Article (3), Federal Law No. (3) of 1987, as referred to in this section, and the Federal Law No. (7) of 2014, as cited here:

  1. Intentionally commits any of the following crimes of financing terrorism:
  • Any of the acts specified in Clause (1) of Article (2) of the present Decree-Law, If the person knows that the proceeds are wholly or partly owned by or intended to finance a terrorist organization, a terrorist person, or terrorism crime, even if there is no intent to conceal or disguise its illicit origin. 
  • A person who provides, collects, prepares, procures or facilitates the acquisition of Proceeds with the intent to use them, or who knows that such proceeds will be used to commit terrorist offenses, or if he has committed such acts on behalf of a terrorist organization or a terrorist person while aware of their true background or purpose. 

An organization must Fight Against Money Laundering in UAE by doing this:

The anti money laundering laws and penalties levied by relevant authorities of UAE assist individuals and businesses to detect financial frauds in their transactions. 

  • According to Article (32), Financial Institutions should ensure that their foreign branches and majority-owned subsidiaries apply Crime-combating measures that are consistent with the requirements of the Decretal-Law and the present Decision, where the minimum Crime-combating standards of the other country are less stringent than those of the State, to the extent permitted by the other country’s laws and regulations. 
  • If the other country does not authorize the appropriate implementation of measures for combating the Crime that is compatible with the requirements of the Decretal-Law and the present Decision, then Financial Institutions shall take additional measures to manage AML/CFT risks related to their operations abroad and reduce them appropriately, inform the supervisory authority in the State of the matter and abide by the instructions received from it in this regard.

Penalty Structure Under New AML Law

According to the new Anti money laundering law in UAE (New AML Law, Article 13(1)), the penalty structure has changed for individuals and the punishments are more severe:

  • The imprisonment was up to seven years but now up to ten years. 
  • The Anti Money Laundering Penalties and fines were within a range of AED30,000 to AED300,000 but now the range is AED100,000 to AED500,000.  
  • In the case of the Whistle-blowing incentive, if multiple perpetrators may be involved in the same AML/CTF offense, the court can exempt an informant from penalties, but the information must lead to the detection of other perpetrators. 

Now the anti money laundering penalties in UAE for institutions have been increased considerably under the New AML Law, Article 14. The amount of penalty is within a range of AED300,000 to AED1 million for each offence.

Anti Money Laundering Penalties in UAE

The government is stringent in AML legislation as well as Anti-Money Laundering Penalties in UAE. The Ministry of Economy has released a list of Anti money laundering penalties ranging from AED 50,000 to AED 1 million that can be doubled up to AED 5 million. To make Dubai, Sharjah, Abu Dhabi and other emirates a secure business hub for investors. We discuss here some of those punishments as follows:

  • A person who commits a Money Laundering offence, or attempts to commit one, shall be sentenced to a prison term of up to ten years and or a fine of between 100,000 and 500,000 dirhams.
  • If an establishment commits money laundering, financing terrorism, or funding unlawful organizations, it is punishable by a fine of AED 300,000 to AED 1,000,000.
  • Furthermore, if the representative of a company fails to report a suspicious transaction intentionally or unintentionally shall be punishable by imprisonment and/or a fine ranging in amount between AED 50,000 and AED 300,000. The court will dissolve the company and shut down the offices where the criminal activity took place.
  • A person suspected of money laundering shall be punishable by imprisonment for up to one year and / or a fine of between AED 10,000 and AED 100,000.
  • The Court may exempt a perpetrator from the imprisonment penalty if he sends a report to the competent authorities before they are aware of the crime, and his actions lead to the arrest of the other perpetrators or the seizure of the laundered funds. 

Outsource AML Compliance Services in Dubai: 

As the Ministry of Economy released this comprehensive list of Anti money laundering laws and penalties for individuals and businesses. To comply with all new AML legislations the best way is to outsource professional AML compliance services in Dubai. Bestax Chartered Accountants and consultants have excellent knowledge of anti money laundering and combatting financial terrorism. Get to know how our AML advisors can help you, contact us on:

Call: +971 56 7981808
Email: info@bestaxca.com

Top 5 Audit Firms in UAE

The United Arab Emirates is one of the foremost industrial hubs of the world and is a great place to do business. Due to this, business owners have an increased responsibility to ensure the government that their financial records are accurate and effectively audited. Each small or big company in Dubai needs an appropriate internal and external audit as per national and international standards.

There are many Top audit firms in Dubai, but selecting one that’s right for your company can be challenging. We deeply analyze the list of CA firms in Dubai in this region, based on their experience, features, and services they offer. 

Why is it Important to Pick the Right Audit Services in Dubai?

To make your business successful, you need to choose an auditing and accounting firm in UAE that can make a substantial impact on your finances. Investing in a reliable, qualified, and reputable auditing firm is one of the best ways to protect and promote your business.

Making a good choice of an auditing and accounting firm in UAE is a crucial decision. An audit firm that will add value to your business by discovering frauds, personnel weaknesses, and lapses in the internal control system. The firm should offer suggestions regarding issues identified during the audit. The following list of audit firms in UAE provides an overview of the top 5 audit firms to help you find a partner.

1- KPMG United Arab Emirates

KPMG was established in 1973, one of the best Audit firms in Dubai, and United Arab Emirates. The company has a global network that delivers services to almost 155 countries. They offer high-quality tax, auditing, assurance, advisory and consultancy services with never-ending reliability.

The Pre-Audit Qualification Training (PAQT) program is delivered by KPMG in collaboration with Abu Dhabi Global Market Academy. The firm values clients by meeting their organizational goals and expectations. We analyze KPMG exceptional qualitative services as the top audit firms in UAE

  • Serve private & public listed companies. 
  • High Charges for auditing services.
  • Insight into your financial & non-financial concerns.
  • Ensure transparency in Performance 
  • Build trust by timely corporate reporting.

2- Grant Thornton UAE

Grant Thornton is one of the most renowned chartered accounting and Auditing firms in the United Arab Emirates with a reputation among commercial clients. Its global network of 58,000 members representing over 130 countries, provides access to resources according to the local and international market’s needs.

The G.T. is an expert in the highest quality accounting, taxation, and auditing services. With experience handling clients from different industries, it is capable of providing all audit and assurance services. The following are some of the unique characteristics of G.T audit firms in UAE

  • High-quality audit service and fee. 
  • Excellence, expertise and innovation in services.
  • Assist local and international businesses.
  • Compliance with IFRS for auditing.
  • Personalized solutions tailored to your needs.

3- Bestax Chartered Accountants

The Bestax Chartered Accountant and advisors are one of the finest choices for professional, top accounting firms in Dubai and also audit services in UAE. The team of auditors has served up to 15 years in the major industries and has developed an impressive reputation in Dubai. BestaxCA is an award-winning firm that works ethically and follows all federal laws to save your money.

The company is offering a wide range of services such as professional tax consultancy (VAT & Excise), all types of audit & assurance services and other financial advisory services by Implementing advanced accounting software. BestaxCA maintains close relationships with both domestic and international clients. Having rapidly growing customers, the firm has the skills and techniques to handle every type of complex accounting and auditing issue. The features that make it different from other audit firms in Dubai are as follows:

  • Highly-qualified Chartered Accountants & Auditors
  • Customer Focused Accounting Solutions
  • Cost-effective risk-based audit.
  • Strongly Committed to Integrity and Reliability 
  • Assure 100% Client Satisfaction

4- BDO United Arab Emirates:

BDO counts as the best audit firms and Top Auditors in the United Arab Emirates since 1975. The company is operating in almost 162 countries around the globe. It endeavors to gain clients’ trust by relying on its expertise in the fields of tax consultancy, financial advisory, audit & assurance and other business services. Its mission is to provide companies with the finest accounting and auditing growth in this competitive market of UAE.

  • Facilitate all domestic & international businesses
  • Certified & experienced team of Auditors
  • Belief in Strong and Personal Client Relationships.
  • Provide innovative and valuable ideas.
  • Utilize a proactive & adaptable auditing approach

5- Push Digits Global

Push Digits Chartered Accountants is one of the prominent and top Accounting firms in Dubai. It has 20+ years of experience in the field of accountancy, tax, auditing and financial consultancy. Push Digits Global has emerged as a one-stop solution provider for businesses to monitor internal and external controls.

Throughout the world, Push Digits has earned an excellent reputation among individual businesses and enterprises. The firm values all its clients, regardless of size, and builds healthy relationships in the long run. Below we find some reasons for calling it the best audit company in UAE.

  • ISO-certified Audit firm.
  • Serve SMEs & large Enterprises.
  • Economical Charges for Audit & Assurance.
  • Believes in Integrity, Transparency & Professional Care.
  • Highly Competent and Qualified auditors.

Individuals and corporates have the right to select among the top audit firms in UAE. Although this simple analysis assists you in finding the most suitable audit service that matches your organization’s requirements and will increase your revenue.

How to Register VAT for Freelancers in UAE?

Do you want to Register VAT for Freelancers in UAE? The UAE regulators have levied new rules and facilities for individuals and corporates for VAT compliance. A number of measures have been taken to ease the working platform for freelancers in the Emirates. It was announced in November 2020 that Abu Dhabi would issue freelancer visas. This visa opens the opportunity for freelancers to manage and legitimate their business accounts in the United Arab Emirates.

That’s why it’s mandatory to VAT Register in UAE after meeting the specified criteria of FTA. In the case of not fulfilling the VAT requirement, a self-employed individual may face serious consequences. That’s why freelancers need to register themselves for VAT compliance in Dubai.

Is a Freelancer Subject to VAT Registration?

The UAE legislation defined a threshold for freelancers which specifies whether they are subject to VAT registration or not. The first step is to analyze the eligibility of VAT for freelancers in UAE. The authorities divide this into three categories according to the taxable revenue generated, which includes all imports, exports and charge supplies:

  • The freelancer is exempted from VAT registration if the taxable supplies are less than 187,000.
  • Voluntary VAT registration is applied to individuals if the taxable supplies are between AED 187,000 to AED 375,000.
  • VAT registration is mandatory if the taxable supplies are higher than AED 375,000 in the last 12 months.

Procedure for VAT Registration UAE

Many taxable freelancers do their business independently and generate handsome incomes, but are stuck on how to register for VAT in UAE? There is a lengthy but simple process for resident and non-resident freelancers. These five steps need to be followed for VAT registration UAE.

Applicable to VAT

The foremost step is to analyze whether a self-employed individual is fulfilling the above-mentioned VAT threshold for registration. If the freelancer meets the criteria for VAT registration, then he will move forward to the next tax compliance.  

Get a Trade license

To be eligible for VAT registration, the freelancer must obtain a trade license in the United Arab Emirates. There are multiple free zones in UAE that provide freelancing licenses at an affordable price. A permit isn’t granted until the employer gives his permission. Basically, the company wants to make sure the freelancer doesn’t compete with the company’s policies. Please also note that an individual may still fall under VAT compliance even if he doesn’t have any trade license and is making taxable supplies e.g earning rental income from commercial properties. 

Freelancer online Registration

The VAT registration process is carried out online. Once the freelancer has obtained the required license or meets the registration criteria, he or she will need to register for VAT at the Federal Tax Authority website. Freelancer needs an official FTA account to start the registration process. After login, it requires some legal documents such as:

  • Passport and a copy of the Emirates ID
  • Incorporation Certificate
  • Trade license
  • Memorandum of Association (MOA) / Articles of Association (AOA)
  • Description of Business and financial Activities
  • Bank account information
  • Sponsorship agreement (if applicable).
  • Past Revenue details (for 12 months)
  • Revenue future projections.

Keep all records & Bookkeeping

A freelancer should take this step, even if he or she is not eligible for VAT registration. The freelancer will be able to utilize it when any authority requires VAT documentation or records in the future.

It might help you to prepare the invoice in a particular manner, sequence, and format. This is also necessary to disclose the total cost and the additional VAT separately. Thus, you will have to maintain your books and keep track of all financial records on a regular basis. 

VAT Return File

VAT filing in UAE is required every quarter or monthly (in case of taxable supplies more than 150M per annum) within the stipulated deadline to save your business from heavy fines and penalties. The freelancer should submit an accurate VAT return file otherwise authorities may take serious actions. He or she necessarily needs to calculate the Total Output Tax (tax you collect from customers) and the Total Input Tax (tax you paid to suppliers and net them). 

Hidden Benefits of VAT Registration for Freelancers:

Freelancers are doing their business independently and generating high profits. To secure this earning they must abide by tax obligations to minimize the risk of penalties. By registering for VAT it gives customers a good impression and it may also enable you to recover VAT paid to suppliers which would otherwise have been a cost if not registered for VAT. The freelancers also have some hidden benefits of VAT registration UAE.

Management of Accounts

The UAE’s government authorities equally focus on enterprises and individuals for VAT compliance to stabilize the economy. VAT-registered freelancers get many advantages such as they can appropriately manage accounts and grow their business. This bookkeeping might ensure their clients about the authentication of services offered. In addition, the VAT registration Service in UAE is helpful when FTA inspects a freelancer account. Thus, VAT compliance proves a secure wall against penalties.

Obtain TRN Number

After getting registered for VAT, the freelancer gets a Tax Registration Number (TRN) which they mention on each invoice. Self-employed individuals must show their VAT invoices with an accurate TRN, serial number, and cost of services. It will secure a freelancer business in the United Arab Emirates. 

Stay out of Administrative Penalties

Not having been registered for VAT may cause some problems for the freelancer in the form of administrative penalties and fines. Therefore, if coming under the registration scope as per VAT Law, it is required to register for VAT in UAE to avoid potential risks.

Get the Complete VAT Compliance in Dubai 

UAE is a secure business hub for individuals and corporations if they comply with legal obligations. In the past few years, many freelancers have remarkably grown their business in Dubai, but do not understand the VAT importance. Dubai tax savings for online freelancers and consultants can be significant if they are well-versed with the VAT laws in the UAE. Multinationals easily handle their tax compliance with professional financial officers, but self-employed individuals fail to comply with these laws. That’s why they faced multiple issues. So, it’s a bit of friendly advice that before you start working in the UAE, you must be well-versed with the VAT laws in the UAE.

The best solution is to take assistance from a tax advisor for complete VAT services in UAE. The Bestax Chartered Accountants and VAT consultants guide freelancers in each step of registration as per FTA standards.

Revised VAT Fines and Penalties in UAE

In the United Arab Emirates (UAE), Cabinet Decision No. (41) of 2017 amends with Cabinet Decision No. (49) of 2021 concerning Administrative Penalties for Violations of UAE Tax Law. Amendments will take effect from 28 June 2021. The tax registrants take benefit of these provisions as it provides more relief for business sectors so that they can make an even greater contribution to boosting the national economy’s growth. 

Why FTA Amended Tax Penalties in the United Arab Emirates?

The amendments generally reduce the VAT fines and penalties for non-compliance. Taxpayers will now have time to settle underpaid taxes before they are penalized for VAT late payment penalty UAE. In this way, it enhances the competitiveness of the state in the business sector by supporting tax registrants and assisting them to fulfill their tax obligations.   

Major Amendments to the VAT Penalties

FTA stated the new ways of calculating the penalties without changing its conditions, while some other penalties have been reduced. It’s significant to be aware of these provisions to make the best decision for your company. We will discuss here the updates that brought a major change for taxpayers: 

Update Penalty for Late Registration

The failure of a Taxable Person to register within the deadline specified in the Tax Law.

  • Previous Penalty- AED 20,000
  • Amended Penalty- AED 10,000

Late VAT De-registration Penalty

The Registrant fails to submit a deregistration application within the timeframes specified in the Tax Law.

  • Previous penalty – AED 10,000
  • Amended penalty – AED 1,000 thereafter on the same date, up to a maximum of 10,000 AED.

Submitting Voluntary Disclosure

The failure of the taxable person to voluntarily disclose errors in the tax return, tax assessment or refund application before being notified that he will be subject to a tax audit. In addition, in the case of non-filing of voluntary disclosures before audit, notification will be increases. 

  • Previous penalty – AED  3,000 at earliest and AED 5,000 in case of repetition.
  • Amended penalty – AED  1,000 at earliest and AED 2,000 in case of repetitive violence.

Late Payment of VAT

The Cabinet Decision imposes a penalty on the responsible registrant. In case of fails to pay a penalty applicable to the late payment of payable tax as follows: 

Previous penalty 

  • A 2% of the unpaid tax is due immediately.
  • The 4% is due seven days after the payment deadline.
  • A 1% daily penalty will be applied to any amount that remains unpaid after one calendar month

Amended penalty 

  • A 2% penalty is due immediately for any unpaid tax.
  • A 4% monthly penalty is due upon unpaid tax after a month from the due date, and on the same date every month thereafter.

Registrant submits an incorrect tax return.

Incorrect submission of a tax return by the registrant.

  • Previous penalty – AED  3,000 for the first offence and AED 5,000 in case of repetition.
  • New penalty – AED  1,000 for the first offence and AED 2,000 in case of repetition.

Failure to maintain proper Bookkeeping Records

The failure of a person conducting business to maintain the mandatory records and other information specified by this Law and the Tax Law. 

  • Previous penalty – AED 10,000 for the first violation and AED 50,000 for each repeated violation.
  • New penalty – AED 10,000 for the first violation, AED 20,000 for all subsequent violations.

Failure to leakthe Authority of any circumstance that requires the amendment of the information pertaining to its tax record kept by Authority.

  • Previous penalty – AED 5,000 for the first instance and AED 15,000 in case of repetition.
  • New penalty – AED 5,000 for the first instance and AED 10,000 in case of repetition.

Failure of the Legal Representative of the Taxable Person to inform the Authority of its appointment as Legal Representative within the specified timeframe, in which case the penalties will be due from the Legal Representative’s own funds

  • Previous penalty – AED 20,000
  • Amended penalty – AED 10,000

How to Get Rid of VAT Fines and Penalties? 

As FTA reduces fines and penalties for tax payers in the case of VAT non-compliance. It’s a golden chance for businesses to avoid potential errors and minimize the risk of sanctions in the UAE. Each taxable firm needs to update their records and document submission by fulfilling amended requirements of relevant authorities. 

VAT penalties can be waived off with the help and guidance of tax consultants in the United Arab Emirates. Bestax Chartered Accountants, give you access to one of the top tax experts who will handle all your VAT concerns and advise you on the latest updates from the Federal Tax Authority. You can take advantage of these amended VAT penalties with our assistance and prevent heavy fines from hitting your assets.

Next Article:  Top 5 Audit Firms in UAE

How do you Get the Best VAT Consultants in Dubai?

VAT stands for value-added tax, a general consumption tax that is imposed on all the stages of production and distribution. VAT is adopted by more than 160 countries in the world and the United Arab Emirates is one of them. In 2018, the regulatory authorities officially announced that each taxable business in UAE has to do VAT compliance. As a result, companies face a lot of trouble in managing their value-added tax as per Federal Tax Authority standards. Because they don’t have tax experts who will help them with VAT registration, submission, VAT return filing, and many other activities. If any business fails in VAT compliance, the authorities charge them in the form of fines, penalties, and license suspension.

Thus, it is advisable to choose the right VAT consultants in Dubai and avoid potential errors. You just need to put a little effort into reading this guideline to find an efficient VAT consultancy Services in Dubai for your business.

What are the Reasons that you need a VAT Consultancy Services in UAE?

VAT is a relatively new idea in UAE, and business owners did not know how to handle VAT compliance tasks on their own. Also, they are not aware of the latest updates of FTA for value-added tax in the UAE. Consequently, they require an expert opinion that professionally support the companies in calculating VAT. Here we have the following essential reasons why you need a VAT advisory Services in Dubai

  • Error-free VAT Compliance
  • Time and Cost-effective
  • Implement Latest FTA Regulations
  • Accurately Maintain VAT Records
  • Minimize the Risk of Penalties
  • Technical Support for Businesses
  • Provide Training to Employees
  • Hands-on Expert Knowledge of VAT
  • Guarantees Success in VAT Compliance

Best Ways To Choose Best VAT Consultants in Dubai

At this point, it is crystal clear that VAT consultancy in Dubai is not an option, but a requirement to comply with relevant regulations for your business. The foremost step is to search for an expert VAT advisory that best fits your business objective. However, we discuss key elements for selecting a VAT consultancy firm in Dubai, such as:

Qualified, Certified, and Experienced VAT Advisory

At the first stage, you should consider the qualification of VAT consultants in UAE, which must be ACCA, CA, CPA, ICAEW and other certified Chartered Accountants in UAE. The team must have top-notch expertise, skill and relevant experience in the field of VAT advisory and other tax-related services in Dubai. Also, you may acquire which major industries the advisory worked for VAT compliance. Mostly, this type of information is mentioned on the official website of the company. If not, the business owner can directly ask about it and select the finest service. Due to their expertise in VAT, they can also assist you with implementing VAT solutions based on all the latest updates from the FTA.

Offers A Wide Range of VAT Services

VAT compliance is a combination of extensive services which includes preparation and submission of VAT invoicing, VAT registration, VAT return filing, VAT refund submission, voluntary disclosure, VAT de-registration, and VAT audit services. While selecting a VAT consultancy firm in Dubai, they should offer this wide range of services.

In the future, when companies have to present their documents to the FTA, these precautionary measures will help you avoid troubles during FTA Tax Inspections. Furthermore, these professional VAT service providers will facilitate the FTA on your behalf.

A Reputable and Licensed Firm

Choosing a firm for VAT consultancy in Dubai is very critical because regulators are so strict in imposing penalties in case of violation of the tax laws. That’s why companies always look forward to a reputable and licensed accounting firm in the United Arab Emirates. It assists businesses in handling VAT compliance as per the organization’s financial goals and they promise top-notch services to maintain their goodwill in the market.

Getting VAT services from an unlicensed firm is illegitimate in the UAE, also it negatively impacts your business and its stakeholders. So, it’s essential to assure firm licenses before assigning any complex project.

VAT Compliance Align with FTA Laws

The Federal Tax Authority (FTA) took charge in 2016 for managing all federal taxes and applicable fines or penalties, as well as implementing the tax-related procedures in the UAE. Additionally, FTA describes a complete guideline and conditions for completing VAT compliance that is mandatory for each taxable business in Dubai.

If a business fails to apply VAT needs as per FTA regulations, it has to endure a hefty amount of fines. It is advisable to select a VAT consultancy firm in Dubai, which safeguards your business from VAT avoidance. Aligning your company with FTA laws is the only possible solution to avoid such invasions which are intended to cause fines.

Provides Cost-Efficient VAT Solutions

Many business owners are confused at this stage, and what would be the appropriate amount for VAT consultancy in Dubai? Is it just an expense on our cash flow with no paybacks? Why should we outsource a VAT consultant even if we are paying taxes as well? Take a break, we will help you out to clear all your doubts. Before selecting a service you have the right to discuss your budget and the facilities with consultants.

Always select a cost-efficient VAT solution for your business, which means a top-notch quality service with a fair package. You may do a quick competitor analysis to analyze which one offers the best VAT facilities at a minimum price. In this way, VAT consultants save your money and effort as well.

Conclusion

The last statement, you need a professional Chartered Accountant who assists you in completing VAT compliance in Dubai. The above mentioned tips are essential because minor mistakes in selecting a VAT advisory would cost your business. So, assure all these tips and let experts handle your work.

Next Article: Revised VAT Fines and Penalties in UAE

VAT | Everything you need to know about it

What is VAT?

Value Added Tax (VAT) is an indirect taxation system adopted by more than 160 countries around the globe. Since its adoption by UAE in 2018, many companies are facing challenges to cope with the complexities it brought. VAT is levied during all steps of the supply chain and every concerned participant is responsible to ensure VAT compliance. VAT Registered Businesses only collect and pay the VAT on behalf of the government, and it will be the end consumer who bears the ultimate impact of the VAT. As simple as it may seem, there arise complex scenarios which need expert advice and opinion to stay compliant in UAE.

Due to the hefty fines and penalties that non-compliance brings, every business is looking for the best VAT services in UAE. We at Bestax Chartered Accountants have a team of the best tax experts with years of experience who can give you the top-notch VAT services in UAE while you can focus on growing your business.

VAT Registration Requirements:

Voluntary Registration: Any business or individual crossing the voluntary threshold limit of AED 187,500 in the last 12 months or expects to cross this threshold in next 30 days is eligible for voluntary VAT registration.

Mandatory Registration: Any business or individual that crosses the mandatory threshold limit of AED 375,000 must register for VAT within 20 working days of crossing this threshold or else there will be a late VAT Registration penalty for AED 10,000.

As mentioned above the law sets out the mandatory and voluntary VAT registration criteria for business. However, in some instances, it might be wise for a business to register for VAT in its initial stages even if they don’t meet the mandatory registration criteria. Once registered, such businesses can claim input VAT on all their taxable expenses and purchases, hence, lowering their costs by 5%. Moreover, being a VAT registered business also boosts your customer confidence and portrays a positive image in the market.

VAT registration procedure requires the applicant to submit a certain set of documents and information (in English and Arabic) to the Federal Tax Authority. If such documents are incomplete or provided information is incorrect, it may significantly delay the registration process.

We at Bestax Chartered Accountants assist our clients with VAT Registration services in UAE as follows:

  1. Eligibility assessment
  2. Preparation of checklist for required documents & information
  3. Process the registration application after a thorough review by our tax experts.
  4. Assistance in follow-up queries until TRN is issued by FTA

By taking such precautions, we ensure that your VAT registration is submitted in the best possible manner, so the approval does not get delayed beyond a reasonable timeframe.

VAT Implementation:

VAT implementation exercise serves as a foundation stone for your business before it moves forward with financial transactions. Although it may seem very simple, a minor non-compliance or misunderstanding of VAT Decree-Law may lead to major mistakes in VAT Computation resulting in heavy fines and penalties from the authority.

Our best tax experts in UAE understand the importance of VAT implementation for your business provides the following services in this regard:

  1. Detailed analysis of your business model
  2. Review of in-place contracts and advising any changes thereof.
  3. Assessment of VAT applicability specific to your business transactions.
  4. Assistance in implementation of VAT Compliant accounting software
  5. Advice on record-keeping requirements by FTA
  6. Identification of tax risks specific to the business

VAT Return filing

Depending on the annual turnover of your business, you may be required to submit a periodic VAT returns to the FTA as below:

Monthly VAT Return filing:   Turnover above AED 150 million
Quarterly VAT Return filing: Turnover below AED 150 million

However, the FTA at its discretion may assign a different VAT period to different businesses.

Taxable business must file VAT Returns to FTA on a periodic basis and usually within 28 days after the end of the relevant VAT period. Failure to meet the deadlines may attract incremental VAT penalties against late VAT return submissions and tax payments. These filings involve an accurate computation of VAT figures related to standard-rated, zero-rated, exempt categories, reverse charge, export, and import transactions.

For our clients, our tax experts and qualified chartered accountants provide the following VAT return services in UAE:

  1. Ensuring a well-maintained accounting system is in place
  2. Review of all business transactions and corresponding VAT Laws
  3. Review of all processes and advise on changes required
  4. Documentation review to ensure VAT compliance e.g. Contracts, invoices, etc.
  5. The figures calculated are in accordance with the supporting documents
  6. Verification of eligibility of input VAT claims
  7. Maximum input VAT claim possible
  8. Submission of VAT returns before the deadline
  9. Assistance in follow-up queries from FTA related to VAT returns submitted.

VAT Compliant Bookkeeping

After the introduction of VAT in the UAE, the dynamics for record-keeping have been shifted significantly. Now businesses are required to maintain their VAT-related records for a minimum period of 5 years as outlined by FTA. As VAT is a self-assessment tax, FTA obligates businesses to maintain their accounting records in full compliance and readily available for any audit by the authorities. Our team of qualified chartered accountants having well-versed expertise in VAT and accounting services ensures that clients accounting records are always up-to-date and ensure the records reconciliation with submitted VAT Returns.

Our team of best accountants and tax experts in UAE assist clients as below:

  1. Preparation and review of VAT Compliant accounting records
  2. Reconciliation of internal accounts with submitted VAT returns
  3. Maintaining the accounting records as per FTA requirements
  4. Weekly and monthly reviews to ensure up-to-date records
  5. On-site visits for physical verification of documents
  6. Advice and assistance to organizations supporting documentation as per FTA
  7. Advice on changes required thereof

 

VAT Refunds

If businesses have more input VAT, than output VAT, their net VAT position is refundable from the government. Moreover, the businesses purchasing taxable goods or services from local and making zero-rated exports also have VAT Refunds due from the government. To claim such refunds, FTA has designed a gateway to submit VAT refunds applications along with a certain set of supporting documents and related information.

Bestax Chartered Accountants provides below VAT Refund services in UAE:

 

  1. Preparation and review of VAT Refund application
  2. Ensuring completeness of application package as per FTA requirements
  3. Submission of VAT Refund application.
  4. Assistance in follow-up queries from FTA until approval stage of VAT Refund

We make sure that the application package is complete and fulfills FTA’s specific requirements before processing the VAT refund application to avoid unnecessary delays or rejections from the authority.

VAT Refund Dubai Expo 2020

The UAE government has recently introduced Cabinet Decision No. 1 of 2020 on the “Refund of VAT paid on Goods and Services connected with the Expo 2020 Dubai”. Under this scheme, participant businesses can recover VAT incurred on import or supply of certain goods and services even if such businesses are not registered for VAT in UAE.  The law outlines certain conditions, criteria, and procedures to claim VAT Refunds for Dubai Expo 2020 participants.

Our best tax specialists in UAE provide the below services in this regard:

  1. Assessment of eligibility criteria
  2. Preparation of necessary documentation
  3. Application for Certificate of entitlement
  4. Submission of VAT Refund application
  5. Assistance in follow-up queries until the refund is approved and credit to a bank account

VAT Deregistration

FTA has set out a certain condition where businesses need to cancel their tax registration number. A business must apply for VAT Deregistration in the below scenarios:

  • If a business’ taxable transactions fall below the voluntary threshold of AED 187,500 in the last 12 months, it must apply for deregistration application within 20 days of such occurrence.
  • If business stops making taxable supplies

If a business fails to submit a VAT deregistration application in a timely manner, it may attract an AED1000 penalty for a delay of each month.

Our best tax consultants in Dubai understand the importance of VAT Deregistration and assist the client with the below services to ensure a smooth and swift submission of VAT deregistration application as per FTA requirements.

  1. Assessment against VAT Deregistration criteria
  2. Submission of VAT Deregistration application
  3. Assistance in VAT Deregistration follow-up queries from FTA

VAT Penalties Reconsideration

There may come unfortunate instances, where business may be levied with heavy fines and penalties from the FTA due to different reasons such as late payment of taxes, late VAT return submissions, late VAT registration, or deregistration applications, or non-compliance with any other rules outlined by FTA. Any person or business receiving such penalties may apply for VAT Reconsideration application within 20 working days of such decision. The authority will review the application and may waive off the penalties if the business proves the case.

At Bestax Chartered Accountants we do:

  1. The in-depth analysis of each case.
  2. Assist the client in preparation of reconsideration application
  3. Guidance on any supporting documents to support the reconsideration application.
  4. Make sure that no supporting point is left unaccounted for before submission of the VAT reconsideration application.
  5. Follow-up with the authority on the status of the application
  6. Assistance in any follow-up queries from FTA with regards to application

VAT Audit by FTA

As per VAT Decree-Law, FTA may proceed with a business tax audit by giving a 5 days’ notice.  By VAT Audit, FTA ensures that businesses are following VAT laws and that are not in tax evasion. If any non-compliance or tax evasion instances are found, FTA may levy hefty penalties depending on the type of non-compliance. Failure to provide FTA with required documents and records may also attract penalties.

The FTA has already commenced the Tax Audit process, particularly for Returns submitted or not submitted by businesses starting from Jan 2018 to the present. FTA will test the accuracy of accounting records as well as the filing of tax returns. Businesses will need to be ready to be able to completely justify all their numbers, statements, payments, invoices, record-keeping, and various other aspects of their VAT compliance that will come under increased scrutiny by the authorities.

Considering the risks attached with FTA Tax Audit it is imperative that the business make a thorough Health Check of its accounting record and Vat Returns. This will ensure an appropriate preparation before the formal notice of an audit is received and ample time to make necessary corrections. Please note that, as per VAT Law, penalties are considerably lower if an error is identified and adjusted by the business itself and before FTA Audit. So, we encourage businesses to perform preliminary VAT and accounting system health checks to avoid any major inconvenience during the FTA tax audit.

Given the above concerns, every single organization is now striving to be operationally ready for Tax Audit. To avoid any penalties after a formal notice is received from FTA, make sure your business’s financials are taken care of by the best tax experts in UAE – partner with Bestax Chartered Accountants today.

We encourage businesses to conduct VAT Health Checkups at least twice a year to ensure VAT compliance.

We at Bestax Chartered Accountant aids in the following ways before and after FTA VAT Audit:

  1. Detailed VAT health check-ups
  2. Assess, identify, and adjust any errors.
  3. Review of accounting records
  4. Representation before FTA Auditors on client’s behalf
  5. Provision of required documents and information to FTA in timely manners

VAT Voluntary Disclosure

If an error resulted in the calculation of payable tax being less than required by AED 10,000, the business must submit a voluntary disclosure to FTA within 20 working days from the identification of such error. Voluntary disclosures are a useful tool to rectify major errors in the VAT return submissions. Although there are associated penalties related to the submission of Voluntary disclosure, the penalties amount is considerably lower when compared to the identification of such errors by FTA.

We provide VAT health checkup services to our client, and if during our assessment any such errors are required which trigger submission of Voluntary disclosure, we assist our clients as below:

  1. Analyze and identify errors
  2. Estimation of potential penalties which may arise by submitting and not submitting VD
  3. Preparation of required information for Voluntary disclosure
  4. Submission of Voluntary disclosure
  5. Assist in follow-up queries from FTA until VAT voluntary disclosure approved.

Bestax Chartered Accountants serve as a one-stop solution for all your VAT services including VAT Registration services, VAT Return filing services, VAT Refund services, VAT Deregistration Service, VAT Penalties Reconsideration services, VAT pre-audit health check services, and all other compliance services related to VAT in UAE.

Get in touch today for free consultation.

M: 056 7981808

E: info@bestaxca.com

VAT Refund Scheme for Dubai Expo 2023 Participants

VAT Refund Expo 2020

The UAE government has recently introduced Cabinet Decision No. 1 of 2020 on the “Refund of VAT paid on Goods and Services connected with the Expo 2020 Dubai”. Offices of the Official Participants will be able to claim a refund on the VAT incurred by them on the import or supply of certain goods and services which will be mentioned below.

Offices of the Official Participants are the representative offices of the Official Participants for the whole period of preparation, operation, dismantlement of the pavilion and execution of all necessary operation and various other activities for participation in the Expo 2020 Dubai.

How does it work?

Official Participants of Expo 2020 will incur VAT on Goods and Services connected to the Expo 2020 as per the normal UAE VAT rules, however, in certain situations, these participants are able to recover VAT on certain goods and services which were imported or acquired.

If the official participant of Expo 2020 is not registered for UAE VAT, the refund applications will have to be made through the Bureau Expo 2020 by submitting a special request.

However, if the official participants of Expo 2020 are registered for UAE VAT, they can claim VAT via UAE VAT return.

What type of VAT can be reclaimed?

In normal scenarios, only VAT incurred in UAE for Goods and Services where they are connected or intended for making taxable supplies is refundable, however, if it’s not connected or intended for making taxable supplies, then it’s not refundable.

However, with the introduction Cabinet Decision No. 1 of 2020 for the duration for Expo 2020, Offices of the Official Participants can claim VAT incurred on the following five categories without the need to use them for taxable supplies;

  1. VAT incurred by the Official Participant on Goods and Services in direct connection with the construction, installation, alteration, decoration, and dismantlement of their exhibition space.
  2. VAT incurred by the Official Participant on Goods and Services in direct connection with the works and activities of organizing and operating the Official Participant’s exhibition space and any presentations and events within the Expo 2020 site.
  3. VAT incurred by the Official Participant on Goods and Services relating to the actual operations of the Official Participant, provided that the value of each Good or Service for which the Office of the Official Participant makes a claim is not less than AED 200.
  4. VAT incurred by the Official Participant in connection with all operations, services and activities provided for the purpose of participation in Expo 2020 Dubai, whether located within or outside the boundaries of the Expo 2020 Dubai site.
  5. VAT incurred on import of Goods for personal use of the Official Participant’s Section Commissioner-General, Section Staff and the Beneficiaries.

If expenses occur on Point 1 and Point 2 then a Certificate of Entitlement is required to apply for a VAT refund.

What is the certificate of Entitlement?

An Official Participant, whether if its registered for VAT or no, must apply for a Certificate of Entitlement before attempting to reclaim VAT on Goods and Services mentioned under Point 1 and Point 2 in the paragraph above.  A certificate reference number will be provided to the Official Participant and must be referenced in all special refund applications concerning Goods and Services that fall under Point 1 and Point 2.

Requirements to apply for Certificate of Entitlement?

In order to apply for the Certificate of Entitlement, the following conditions must be met;

  • The applicant must be an Official Participant of the Expo 2020 in Dubai, holding a valid Expo 2020 license number.
  • A maximum of 20% of the exhibition or presentation space is allowed to be used for commercial purposes. Any more percentage than that will result in disqualification from the Certificate of Entitlement.

If the Certificate of Entitlement is not granted, the Office of the Official Participant will not be able to reclaim full amount of VAT in respect to Goods and Services acquired under Point 1 and Point 2 under the special rules. Instead, Office of the Official Participant may need to consider if any VAT related to such Goods and Services may be recovered under the general VAT rules application to a VAT registered person. Furthermore, Official Participants would still be able to use the special refund process to reclaim VAT for expenses that are not covered by Point 1 and Point 2, but covered by the other specified points.

How to apply for Certificate of Entitlement?

In order to apply for the certificate, following information need to be provided by the official participant to the Bureau through “Request Form”

  • Area of the pavilion (in square meters) used by the Official Participant.
  • Location of the pavilion.
  • Details and percentage of commercial use of space (if any).
  • Detailed description of the purpose of the pavilion space.
  • Declaration which will include a confirmation on the following:
  1. That a notification to the Bureau will be made should any changes occur that would affect the eligibility to a Certificate of Entitlement.
  2. The understanding that the Certificate of Entitlement only gives right to claim VAT Goods and Services under Point 1 and Point 2.

If deemed necessary, FTA or the Bureau may perform inspection or request information and declaration to determine the purpose or use of any space or presentation.

What supporting documents are required for application?
  1. Expo 2020 license.
  2. Scan of passport and Emirates ID of the Commissioner-General of the Official Participant.

Once applied, it’ll take the Bureau up to 20 business days to review the application. If accepted, the Certificate of Entitlement will be issued within 10 business days. The certificate will be provided in a letter format and will be signed by the Bureau, and will be scanned and sent my email as well. The Certificate will have a unique reference number for the applicant. This certificate shall be issued by Bureau free of charge and will enable the Official participant to claim Expo 2020 related VAT Refunds.

Note: It is the responsibility of the holder of the certificate to inform the Bureau if it stops being eligible for a certificate of entitlement.

Refund application process

VAT registered participants can claim their Expo 2020 VAT refunds through normal VAT Return procedures.

VAT Non-Registered applicants shall need to proceed with VAT refund application through a special VAT Refund request and must provide following information to the FTA.

  • Reference number of the Certificate of Entitlement, if the application includes
    Goods and Services from categories 1 or 2 mentioned above.
  • Reference number and date of the previous refund claim.
  • Details of the supplies supported by original tax invoices / customs declarations.
  • Description of the Goods and Services to demonstrate that they fall under the
    categories of eligible Goods and Services as mentioned above.
  • Declaration which will include a confirmation of the following:
  1. Notification to the Bureau should any changes occur, that would affect the
    eligibility of requesting a refund.
  2. Confirmation that no other refund claim has been or will be made in respect ofthe Goods and Services disclosed in the application.
  3. Confirmation that any imported Goods included in the application will not besold without prior approval from the Bureau and payment of VAT

In addition to the above following Supporting documents must also be provided:

  • Copy of the Certificate of Entitlement issued to the Official Participant.
  • Copies of the tax invoices, including simplified tax invoices. Only invoices issued
    to the eligible persons are allowed to be used to claim the refund.
  • Copies of customs declarations issued in respect of imported Goods.
  • If the application includes Goods and Services from category 5, the following is
    required:

-Copies of an employment ID that proves the employment of the personnel in
respect of whom the VAT is being reclaimed.

-Copies of documents that prove the relationship of the relevant beneficiaries.

-Bank account validation letter / certificate. This letter / certificate must be issued
and stamped by the bank and include details about the account holder’s name
(must be the same as the applicant’s name), SWIFT / BIC (as applicable), bank
name and the IBAN.

*Additionally, the Bureau may request to examine the Goods or Services in question (or nominate an authorized third party to do so)

It will take 20 business working days to review the refund application by FTA. If approved, the Official participant will receive the refund directly into its bank account from FTA within 30 working days of the approval.

How can Bestax help you in this process?

Over here at Bestax Accountants, our tax agents will take care of all the complexities of the procedures and will provide end-to-end services related to Certificate of Entitlement, VAT Refunds for VAT Registered and non-registered participants of the Expo 2020 while you focus on other important affairs for your business.

Our tax consultants will be available 24/7 for any guidance you may need and will always try to go above and beyond in giving you the best services you’ll ever receive.

Call: +971 56 7981808
Email: info@bestaxca.com

Anti Money Laundering (AML) System in UAE — What is it?

Money Laundering
Money laundering is an increasing problem in the world, despite the legal authorities trying their absolute best to combat against crimes of these sorts. Just like any other country, the UAE maintains a strong Anti Money Laundering (AML) system in an effort to protect against the possibility of money laundering and terrorist financing.

If you’re not sure what Money Laundering is, it’s the process of changing large amounts of illegally obtained money into legitimate money by making the money go through a bunch of several different steps.

Anti Money Laundering (AML)
Since the early 2000s, the UAE Government has taken several steps to help monitor cash flows through the UAE financial system and to abide with international efforts to fight against terrorist financing. The UAE has passed two laws that serve as the foundation for the country’s Anti Money Laundering (AML) and counterterrorist financing (CTF) efforts namely: Law No 4/2002, the Anti Money Laundering law, and Law No. 1/2004, the counterterrorism law.

Even though the AML criminalizes money laundering, it doesn’t provide guidelines on how organizations are to monitor their financial activities. In this case, Regulation No 24/2000 comes in play which provides all the necessary guidelines on how organizations are to monitor the financial activities of their business.

Steps to abide with AML
The following guidelines are provided for organizations to abide with the AML and CTF.

  • Customer Due Diligence – Organizations should properly follow CDD measures in place to verify the identity of their customers and ensure the nature of their business being legitimate. Customers who’re suspected of money laundering are subjected to go through enhanced due diligence measures (EDD).
  • Transaction monitoring – Organizations should monitor closely monitor their customer’s transactions and accounts for activity that could indicate money laundering. For instance, transactions surpassing a certain threshold, suspicious transaction patterns or transactions involving high-risk countries.
  • Compliance Officer – Internal AML programs should be overseen by Compliance Officer/Money Laundering Reporting Officer (MLRO), who has adequate amount of authority and expertise to carry out their duties effectively.

When firms detect suspicious activity, they should submit a Suspicious Activity Report (SAR) to the UAE Central Bank on their official website, and the Dubai Financial Services Authority (DFSA) via a Supervised Firm Contact Form (SFCF).

Who must abide with AML?

In the UAE, all organizations regulated by the Central Bank or other financial authorities are required to register in the goAML platform. This includes financial institutes under the Insurance Authority, the Securities and Commodities Authority, Dubai Financial Services Authority and Abu Dhabi Global Markets are required to register in the goAML system. However, the list of UAE entities that must register in the goAML system doesn’t end with the financial institutions. All the Designated Non-Financial Businesses and Professions (DNFBPs) such as Gold & other Precious Metal traders, Real Estate Agents, Corporate Service Providers and Auditors are also required to register in the goAML system.

Documents required for registration in goAML

All organizations are required to nominate a Compliance Officer/Money Laundering Reporting Officer in their institutes. If an entity doesn’t have such an officer, then the Managing Director/COO/CFO of their institutes can register in the goAML platform. The following documents are required for registration;

  • Valid and active e-mail address for the Nominated Person.
  • An active mobile number (UAE or international number is accepted) for the Nominated Person.
  • All supporting documentation for the organization and the nominated person prepared in a consolidated PDF file.
  • Authorization letter from the institution.
  • Information of nominated person should be provided as Admin and user in the system.
  • Valid Passport Copy.
  • Valid Residency VISA Copy.
  • Valid Emirates ID.
  • Valid commercial trade license.

Penalties of not abiding with AML
If firms are found to not abiding by the Anti Money Laundering Laws, the DFSA has the power to issue punishments such as fines, license suspensions or revocations or administrative restructuring. Money laundering offenses may result in fines from between 10,000 to 1 million dirhams or prison sentences of up to 10 years.

How can Bestax Chartered Accountants help you?
Over here at Bestax, we’ll help you in the followings;

  • Arranging records and documents for registration in the goAML system.
  • Submission of reports.
  • Assistance with AML Compliance Activities in the business.
  • Developing Compliance Policies in the businesses.
  • Reviewing current AML policies in the business.
  • Consultation services in-and-out.

In Bestax, we take pride in providing our clients with the best service they can receive. You can contact us at the following information, or go to THIS LINK and order a free callback.
Contact – 056-798-1808
Email – info@bestaxca.com

Ultimate Beneficiary Owners — What is it?

Ultimate Beneficiary Owners – Deadline 30th June 2021:

The United Arab of Emirates has replaced Cabinet Resolution #34 of 2020 with Cabinet Resolution #58 of 2020 which regulates Beneficial Owner Procedures (herein referred to as the “Resolution”).

The Resolution covers the updated requirements for the registered entities in UAE to disclose their Real Beneficiary Data or Ultimate Beneficial Owners to increase the transparency of the entities. It also intends to improve the International Compliance and global confidence while controlling Money Laundering and Terrorist Financing.

As per the Cabinet Resolution #58, all UAE registered entities must perform the following:

  1. Maintain the following:
    • Partners/Shareholders Register (state the information about the ownership interests and voting rights held by each individual).
    • Real Beneficiaries (provide the reason behind being Real Beneficiaries and the date they termed as one).
    • Directors and Nominee Directors.
    • And other important documents and UBO forms submitted to authorities.
  2. Notify the relevant authority of any changes regarding the initial information given, within fifteen (15) days of such change. Establishments are also required to appoint a person residing in UAE as a point of contact, so the licensing authority can contact that person regarding the UBO data and any other basic information requirement.
  3. Entering Ultimate Beneficial owner data in the systems of licensing authorities and keep updated regarding any communication from authorities to avoid penalties.

Identifying Ultimate Beneficial Owner:

As per Cabinet Resolution #58 of 2020, Beneficial Owner or Real Beneficiaries can be the following:

  • Natural Person who owns/controls the establishment definitively, through direct/indirect ownership shares of 25 % or more.
  • Or: someone who holds the right to vote by 25% or more or the right to appoint/dismiss the majority of the establishment’s managers or any other means by which he exercises ultimate control over the establishment.
  • In cases where UBO cannot be identified through the two conditions above, then a natural person who holds the position of Senior Management Official in the company may be deemed as the UBO.
  • The entities will need to assess who counts as a UBO and consider whether if anyone is a nominee Director / Manager. The Register of Shareholders / Partners isn’t a new concept as this is a requirement outlined in the UAE Commercial Companies Law, as well as in respective Free Zone Companies Regulations. However, the New Resolution requires additional information to be detailed (for example, voting rights).

Exemptions of The Resolution:

As per Cabinet Resolution #58 of 2020, following entities are exempted from the Resolution:

  • Companies in financial free zone like Abu Dhabi Gold Markets and Dubai International Financial Center.
  • Companies which are directly or indirectly owned or affiliated with the Federal or Emirate Government.

Failure To Comply With The Resolution:

If entities fail to comply with the Resolution, the UAE Ministry of Economy has announced to Impose AED 100,000 penalty for non-compliance.

Deadline:

The UAE Ministry of Economy has posted the deadline as 30th June 2021. However, some relevant authorities have also announced earlier deadlines. So, its wise to check with your license issuing authority to avoid missing the deadline.

How can we help?

  • Bestax Chartered Accountants will prepare all the needed documents, and submit them before the given deadline, so your entity can avoid getting a penalty.
  • We will ensure the filing of declaration of UBO is done effectively, so you do not have to worry about it.
  • We will also take care of any changes and notify the relevant authorities, so you will not have to worry about it.All in all, Bestax Chartered Accountants will handle all the tasks efficiently, so you won’t have to deal with the headache of fulfilling it.Head over to Our Services page, and we’ll get you started right away.