Understanding the nuances of UAE VAT for asset managers and stock brokers is crucial, as VAT rates can differ significantly depending on the nature of the financial service. This article explores the main areas where VAT exemptions apply, including investment management services, interest payments, and FX transactions, offering essential guidance for those navigating VAT regulations within the UAE’s financial landscape.
Navigating financial security in the workplace has never been more straightforward with the DIFC Employee Workplace Savings (DEWS) Plan. Designed to modernise end-of-service benefits, DEWS offers a forward-thinking savings strategy that aligns with global standards. Discover how DEWS empowers both employers and employees to take control of their financial futures with flexible, professionally managed contributions.
Navigating payroll setup and compliance in the UAE can be complex, especially for businesses operating in Free Zones. To streamline the process, it's essential to understand the steps involved in obtaining and registering an Establishment Card and integrating this information with payroll systems like Zoho Payroll. Here are some tips to help you ensure your business is fully compliant with UAE's Wage Protection System (WPS) regulations.
This article outlines the process for implementing a salary reduction for your employees due to cashflow difficulties. Please note that this process requires strict adherence to UAE labour laws and Ministry of Human Resources and Emiratisation (MOHRE) regulations.
Redomiciling a business involves moving its trade license from one jurisdiction to another, a process that requires careful navigation of regulatory requirements. Key to this transition are the Certificate of Continuation (COC) and the No Objection Certificate (NOC) from the Federal Tax Authority (FTA). These documents ensure that the business remains compliant and operational during the move. This article offers a clear guide to managing the redomiciliation process, emphasizing the necessary steps and considerations for a smooth and successful transition.
Applying for a Tax Registration Number (TRN) in the UAE often requires a trade license. However, businesses registered under specific free zones like the RAK International Corporate Centre (RAK ICC) may face challenges as these zones do not issue trade licenses. This article provides a comprehensive guide on how to navigate the TRN application process without a trade license, offering practical solutions and detailed steps to ensure your application is accepted by the Federal Tax Authority (FTA).
Struggling to verify your Tax Registration Number (TRN) and worried about staying compliant with tax regulations? We've got you covered! In just a few quick steps, you can ensure your TRN is correct, giving you the peace of mind to focus on your business. Don't risk fines or compliance issues—learn how to verify your TRN with our easy guide.
Selecting a suitable trade name is crucial when establishing a company in the Ras Al Khaimah Economic Zone (RAKEZ) Free Zone. This article delves into the essential guidelines for trade name registration and compliance in RAKEZ.
This comprehensive guide empowers free zone companies in the UAE to navigate the regulations and leverage strategic options to successfully distribute and sell their products and services across the broader UAE mainland market.
Aspiring to establish your business in the thriving UAE market? This guide equips you with the knowledge to navigate three key business setups - Free Zone, Mainland, and Freelance Permits. Each option offers unique advantages and considerations, empowering you to make an informed decision for your entrepreneurial journey in the UAE.
Choosing the right legal structure, from the options like - Free Zone LLCs, mainland LLCs, and branch offices is vital when starting a business in the UAE. This guide outlines key features of each model to help entrepreneurs pick the right one based on ownership, tax benefits, liability protection, and business goals.
The United Arab Emirates implemented a value-added tax (VAT) system in 2018. Businesses must register for VAT if they exceed or anticipate to exceed the AED 375,000 threshold within a 12-month period. Failing to register for VAT when liable can result in penalties and other legal consequences. This guide explains VAT registration eligibility, steps to register, and what happens after approval.
A step-by-step guide to legally appoint a registered tax agency on the Federal Tax Authority portal in the UAE. Learn how to add an authorized tax professional to your account to assist with tax compliance, returns, payments, audits, and other critical tax matters.
The United Arab Emirates (UAE) implemented corporate tax in June 2023, requiring businesses to register and comply with the new regulations. This registration process can seem daunting, especially for those new to the UAE tax system. To simplify things, This article guides you through the process of registering for corporate tax on the EmaraTax portal, the official platform for tax administration in the UAE.
This guide outlines the steps for resetting your EmaraTax password, applicable if you already possess an existing FTA account. Upon migrating your details to EmaraTax, you'll be prompted to create a new password during your initial login.
"Ready to tackle taxes in the UAE? Let's make it easy! Whether you're running a business or freelancing, becoming a taxable person is simpler than you think. Follow along as we guide you through the steps, from logging into the EmaraTax Portal to creating your profile.
Creating an account on the FTA eServices portal is a straightforward process that enables users to manage their tax obligations conveniently. Here's a complete guide to creating an eServices account on the EmaraTax Portal.
When VAT-registered, managing costs on behalf of clients becomes pivotal, impacting your VAT registration threshold and subsequent payments. The Federal Tax Authority (FTA) categorizes these expenses into three distinct types: Recharges, Reimbursements, and Disbursements, each with its unique VAT treatment.
Wondering about the start and end dates for your first Quarterly VAT filing period? Worry not!
In this article, we shed light on how the Federal Tax Authority (FTA) determines your first VAT period, making it easier for you to stay compliant with VAT regulations.
The calculation of the Cost of Goods Sold (COGS) figure in Zoho Books depends on the inventory management system you have in place. There are two common methods: periodic inventory process and perpetual inventory process.
Economic Substance Regulations aim to ensure that businesses operating in the UAE demonstrate economic substance and do not engage in harmful tax practices or artificial profit shifting. Ensure compliance with the new Economic Substance Regulations (ESR) for activities such as banking, insurance, and investment fund management as explained in this guide below.
Yes, in the United Arab Emirates the export of services is considered to be Zero Rated, which means that they are still subject to taxation but at a rate of 0%. Consequently, when determining your VAT registration threshold, these export services are included in the calculation.
No, exempt supplies within the United Arab Emirates do not contribute to the VAT registration threshold.
While VAT applies to most goods and services, exempt supplies which are specific goods or services that are not subject to VAT are not included when calculating the VAT registration threshold.
It's crucial to understand the factors that determine your VAT taxable turnover for both voluntary and mandatory VAT registration thresholds. These factors include the value of Standard Rated Taxable Supplies, Zero-Rated Supplies, Reverse Charge Items, and Imports subject to Import VAT. Remember, exempt supplies are not included in the calculation.
Theta 7, a team of qualified accountants and approved tax advisers recognized by the UAE Federal Tax Authority. We are also licensed accountants in the United Kingdom, specializing in providing comprehensive support for businesses looking to establish a presence in the UAE, enabling them to sell to customers in the region, employ staff, and even establish manufacturing facilities.
The businesses on the mainland, free zone companies, and overseas entities need to pay Corporation tax in the UAE. Uncover exemptions for government entities, specific industries, charitable organizations, and non-profit entities, while understanding the conditions for a 0% tax rate for Free Zone companies.
It is important to note that Free Zone companies are not exempt from corporation tax in the UAE, but they may qualify for a 0% tax rate. This is an important distinction as all Free Zone companies be required to register for corporation tax with the Federal Tax Authority (FTA) and file returns at least annually.
Simply put - Yes and no:
There is no income tax on a person’s salary, wages, bank interest, dividends, or capital gains in Dubai, however, from June 2023 corporation tax was introduced
If a company has a taxable profit of 400,000 AED, the calculation will be (375,000 AED x 0%) + (25,000 AED x 9%) giving a tax bill for the period of 2,250 AED.
Most jurisdictions now restrict or disallow client entertainment expenses, and the UAE is no exception to this. When you take a client out for dinner or drinks, or even paying for a joint golfing trip, this is client entertainment. You can indeed pay for this type of expense via the business, and it is still legitimate to do so.
Spondoo, a leading online accounting firm, has launched Theta 7, its new branch in the United Arab Emirates. Theta 7 is an online accounting firm that offers a range of accounting services to businesses in the UAE, leveraging technology to offer accurate, timely and cost-effective solutions. With its launch in 2023, Theta 7 is set to revolutionise the accounting industry in the UAE.
Information provided on the site is merely guidance that may change in line with UAE law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. Theta7 is a trading name for THETA 7 Accounting & Bookkeeping L.L.C, an authorised & licensed accounting firm under the Ministry of Economy and the Federal Tax Authority of the United Arab Emirates.
