UAE AMENDED SOME ADMINISTRATIVE PENALTIES FOR VIOLATION OF TAX LAWS IN THE UAE

UAE Tax penalty
Cabinet Decision No. 49 of 2021 on Amending some Provisions of Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE
In accordance with Cabinet Decision No 49 of 2021 on Amending some Provisions of Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE, which will be effective from 28 June 2021, the FTA would like to inform you that it has released two Public Clarifications, which you can view on the FTA website.
With respect to TAXP002, and if you had any outstanding balances, you would have previously been able to see such outstanding balance on the returns page. From Wednesday 23 June, you will be able to see how much of your balance is related to tax and how much is related to administrative penalties on the My Payments page when you log into E-Services. This link will open a window that will include the following:
  • Tax Payable – this is the outstanding tax balance (based on tax returns you submitted and any adjustments due to voluntary disclosures or tax assessments) and will be updated on a daily basis until 31 December 2021, for you to know how much tax is outstanding and is subject to late payment penalties if not settled by payable date, and needs to be settled in full before 31 December 2021 to benefit from the redetermination of administrative penalties in accordance with Cabinet Decision No 49 of 2021.
  • Late Registration Penalty – this is the outstanding unpaid late registration penalty, if available.
  • Other Penalties Payable – this is the outstanding unpaid administrative penalties balance (other than late registration) and may increase if new administrative penalties are applied or decrease if payments are made or penalty reversed. The balance on 28 June 2021 will be subject to redetermination if conditions stated in Cabinet Decision No 49 of 2021 are met.
  • Net Payable Amount – this is the total amount of Tax Payable and Penalties Payable outstanding at any time.
  • Total Credit – this is the amount of credit that the registrant has with the FTA. FTA will be launching a full dashboard with your Tax Payable and Administrative Penalties

VAT CONSULTANCY SERVICES IN SHARJAH TRACK RECORD OF AUDITING DATA

Vat

Vat Consultancy Services In Sharjah are trusted and licensed professionals who offer all-inclusive Tax Services for VAT Registered Businesses since UAE commenced with Tax.  They can inform businesses on the fiscal impact of the tax on goods and services, and the safety measure taken to alleviate the effects.

Vat & Excise Consulting In UAE, UAE has the ability to deal with their VAT dealings by fulfilling with VAT law and recommend on associated transactions. Let us know how VAT consultants assist to make the whole VAT procedure easy and hassle-free.

Reasons for hiring a VAT Consultant:

Most of the companies are not known with the rules and regulations of estimating VAT and the procedure of payment. The companies should look for the direction of top VAT consultants in UAE, despite of striving with the complex formulas, complex numbers and wrong calculations. Other major reasons for hiring VAT consultants are mentioned below:

Superior Knowledge:

The top VAT consultants come with greater knowledge about the whole thing associated to VAT. This proves to be advantageous particularly for those who don’t have any skills abbot VAT. Vat Consultancy Services In Sharjah The consultants who are knowledgeable with VAT laws & rules will be able to teach taxpayers about different VAT rates and the correct way to compute payment.

Accuracy:

VAT consultants take the added endeavour to make sure that every VAT filed is cross-checked for precision. The information experiences thorough confirmation with the help of the digital structure as well as manual reviews. This is the approach the precision of data is maintained.

Experience:

A well-experienced VAT consultant, who has survived in the industry for a long period, and can avoid the common errors done throughout the VAT return in UAE / filing process.

Time saving:

Reason for choosing a VAT professional is that it reduces the time necessary for analysis, assessments and evaluating the risks related with the company.

Audit ready records:

They also help in making files and maintain record correctly to get ready for vat audits.

THE UAE’S MINISTRY OF ECONOMY HAS ASKED ALL COMPANIES IN THE COUNTRY TO SUBMIT AUTHENTIC DETAILS OF THEIR BENEFICIARIES BEFORE JUNE 30, 2021 TO AVOID PENALTIES

anti Money_Laundering

All UAE companies required to submit UBO details before 30th of June 2021

An initiative of the UAE government to combat against activities related to terrorist financing and money laundering, Cabinet Decision (No 58) of 2020 on Regulation of Procedures for Real Beneficiary requires all companies to maintain a register and submit relevant details of their Ultimate Beneficial Owners (UBO)
Ministry of Economy has set its deadline for submission of UBO details of all companies under its jurisdiction for the 30th of June 2021.

Fine & Penalties up to AED 100,000

All companies in UAE failing to submit UBO details on or before the deadline will be imposed with administrative sanctions face penalties of up to Dh100,000 from July 2021.
Importantly, the company’s licence can also be suspended for a year for not conforming to the instructions of the ministry.
Details to disclose with the authority are as follows:
  • Details of ownership
  • Details of all Ultimate Beneficial Owners
  • Company business model
  • Company financial records
  • General information including the details of the company from lawyers, banks, and auditors
A real beneficiary or UBO is the natural person controlling or owning at least twenty five (25) percent of the company’s issued share capital, either through direct or indirect control or chain of ownership. A UBO is also any natural person that has control on the dismissal and appointment of majority of company directors.

UAE- NEW LAW ALLOWING FULL FOREIGN OWNERSHIP OF ONSHORE COMPANIES TAKES EFFECT ON JUNE 1

Dept. of economic development
The UAE’s Ministry of Economy has confirmed that the amended legislation permitting foreign investors and entrepreneurs to establish and fully own onshore companies, will come into effect from June 1.
Amendment to the Commercial Companies Law will ‘boost country’s competitive edge and facilitate business’, according to UAE Minister of Economy
Minister of Economy Abdullah bin Touq in a tweet confirmed that the latest decision is a new step that reflects the UAE government’s commitment to supporting the economy and enhancing its readiness for the future.
In November 2020, the UAE announced that the of businesses would take effect from December 1, 2020. However, after widening the scope of sectors eligible for full ownership by foreign investors, the law is now ready for roll out from June 1, 2021.
The long-anticipated and widely discussed reform, which will have game-changing implications on the investment landscape of the nation, was approved by President His Highness Sheikh Khalifa bin Zayed Al Nahyan last year.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has said the UAE now enjoys a fertile legislative environment for foreign direct investors in order to enhance the nation’s competitiveness.
Last month, the UAE’s Ministry of Economy also said it was working on a new legislation to include 10 new sectors to the Commercial Companies Law, which allows 100 per cent foreign ownership of onshore companies in the country.

UAE ANTI-MONEY LAUNDERING: REGISTRATION FOR NON-FINANCIAL ENTITIES, INDIVIDUALS EXTENDED UNTIL APRIL 30

Anti money Laundering
Ministry of Economy extends deadline for registration of designated non-financial businesses & professions in anti-money laundering regulations until 30 April
The Ministry of Economy (MoE) announced the extension of the deadline granted to Designated Non-Financial Businesses and Professions (DNFBPs) to register in the systems approved for countering money laundering and combating the financing of terrorism, until the end of April 2021. The extension has been granted due to a large number of companies in the sector coming forward to register in the last days of the previous deadline, which expired on March 31, 2021. Furthermore, the unusual circumstances faced by companies and the business sector in the wake of Covid-19 pandemic has also been taken into consideration.
The Ministry explained that it is mandatory for the targeted companies, which include brokers and real estate agents, auditors, dealers of precious metals and gemstones, and corporate service providers, to register in the goAML system and the Automatic Reporting System for Sanctions Lists before the end of the new deadline. The registration in these systems can be done free of cost. After the registration, they should also take the specified measures to ensure full compliance with the requirements of Federal Law No. 20 of 2018 on anti-money laundering, combating the financing of terrorism and illegal organizations, and their implementing regulations and relevant decisions.
The Ministry called on the concerned companies to take advantage of the new extended period for registration to avoid the penalties and fines stipulated in the law, which will be imposed starting from May 1, 2021. Fines start from AED 50,000 and go up to AED 5 million, while the penalties for companies that fail to register could even lead to the revocation of the license or closure of the facility itself.

TEMPORARY ZERO-RATING OF CERTAIN MEDICAL EQUIPMENT

On 1 September 2020, the Cabinet issued a Cabinet Decision No. 9/12 O of 2020 (“Cabinet Decision”). The Decision concerns the temporary application of VAT at the 0% rate on certain supplies and imports of medical equipment. Furthermore, the Ministerial Decision No. 380 of 2020 (“Ministerial Decision”) issued by the Minister of Health and Prevention on 6 December 2020 (with effect from 1 September 2020) specifies the medical equipment that are zero-rated in accordance with the Cabinet Decision. In accordance with Cabinet Decision No. 15/3 O of 2021, the above decisions shall be effective until 31 December 2021.
In accordance with the Cabinet Decision, a supply or import of certain medical equipment may be zero-rated. It should be noted that that the zero-rating of supplies and imports under the Cabinet Decision is separate, and in addition to, zero-rating of any other medical equipment in accordance with Cabinet Decision No. 56 of 2017 on Medications and Medical Equipment Subject to Tax at Zero Rate.
On 1 September 2020, the Cabinet issued a Cabinet Decision No. 9/12 O of 2020 (“Cabinet Decision”). The Decision concerns the temporary application of VAT at the 0% rate on certain supplies and imports of medical equipment. Furthermore, the Ministerial Decision No. 380 of 2020 (“Ministerial Decision”) issued by the Minister of Health and Prevention on 6 December 2020 (with effect from 1 September 2020) specifies the medical equipment that are zero-rated in accordance with the Cabinet Decision. In accordance with Cabinet Decision No. 15/3 O of 2021, the above decisions shall be effective until 31 December 2021.
In accordance with the Cabinet Decision, a supply or import of certain medical equipment may be zero-rated. It should be noted that that the zero-rating of supplies and imports under the Cabinet Decision is separate, and in addition to, zero-rating of any other medical equipment in accordance with Cabinet Decision No. 56 of 2017 on Medications and Medical Equipment Subject to Tax at Zero Rate.
The “medical equipment” to which the temporary zero-rating rules apply are personal protective equipment used for the protection from Covid-19, and which contain the features and meet the specifications determined and specified by the Ministerial Decision. Such medical equipment are limited to:
  • Medical face masks that are not included in the Cabinet Decision No. 56 of 2017 on Medications and Medical Equipment Subject to Tax at Zero Rate (of approved standards 14683 and UAE.S ASTM F2100);
  • Half filtered face mask (UAE.S EN 149);
  • Chemical disinfectants and antiseptics intended for use on the human body, but excluding detergents, cosmetics and personal care products (UAE.S EN 1276, EN 1650, and EN 14476:2013+A2).
  • Non-Medical “community” face mask made from textile (UAE.S 1956);
  • Chemical disinfectants and antiseptics intended for use on the human body, but excluding detergents, cosmetics and personal care products (UAE.S EN 1276, EN 1650, and EN 14476:2013+A2).

CONDITIONS TO ZERO-RATING

Date of supply/import of above mentioned medical equipment shall be within the period beginning from 1 September 2020 to 31 December 2021.

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GET THE RIGHT PROCESS OF BUSINESS VALUATION SERVICES IN DUBAI

Business-Valuation-Services-In-Dubai
Dubai, one of the best ever growing commercial centres, is a home to tons of worldwide expats that comprise a huge number of entrepreneurs, investors, employees. The destination offers as a home to international business units and is incessantly growing it in all possible methods. The UAE government has been accepting all the likely measures to set-up it as the world’s business centre. In the procedure of doing so, it has set definite mandates for business units. One such authorization is carrying out Business Valuation Services In Dubai that must be followed by an organization despite its structure, size and the nature of the business. Be it a start-up or a well-known organization, it has become a need. This article emphasizes the fact that why the valuation services play such a vital role.

Now, when it comes to the Business Valuation Services In UAE, several methods are implemented through which the worth of a business can be strong-minded and being a business owner, one must know. Go through such processes:

Company Valuation Methods

Business Valuation Services In Dubai – A business valuation process holds a sturdy grip in the valuation procedure. It is a vital task that must be followed in all the companies. There are several ways in which the valuation can occur. Some of the often used measures are as follows:

1 Asset-Based Approach
This process considers the overall investment done in the business. It assists you to understand the total worth of the resources present apart from the liabilities piece.
2 Market Approach
This strategy acts only if related business entities exist as similar to yours. This process compares the value of your business to other business which has been sold recently.
2 Income Based/Discounted Cash Flow Approach
This is the most extensively received strategy. It intends at revealing the value of a business in its future. It evaluates the future cash flows to find the present value.

HIRING THE REPUTABLE VAT & EXCISE CONSULTANTS IN DUBAI CORRECT THE TAX POLICIES

Vat Consultants
Vat & Excise Consultants In Dubai mainly classifies, assists and highly recommends to companies or individuals about the filing of taxes and returns. If you have a business, there are plenty of benefits to hiring one.

The Vat Consultancy Services In Dubaiare all experts who can send the customer looking for the service to save more money while fulfilling all the terms and conditions done mandatory by the government. There are two main classifications of consultants based on their speciality — personal tax consultants and corporate tax consultants. Both types of consultants have lots of duties. Vat & Excise Consultants In Dubai The main aim of any consultant is to ensure that his client’s taxes are set aside to a least. A good consultant provides the correct guidance and essential information to result in highest savings while following all the formalities.

Also Read :- Audit Firms In UAE

Here are some of important benefits of hiring a tax consultant/Chartered Accountants in Dubai:

  • 1) The complicated and precise words of tax policies can be sensibly mystifying for a common person. A tax consultant is an expert in understanding the details of these systems and thus consultants make filing taxes in an easier way by simplifying the rules for a layman.
  • 2) Consultants experience extensive training to augment know-how in reading and interpreting official papers which make them knowledgeable professionals to deal with taxes.
  • 3) Consultants have endless knowledge and clear understanding of government and banking policies that let them to guide you in taking the precise investments.
  • 4) The information that it is not a key reason to be uninformed of the law can draw serious penalties if there is a small error in the filing of tax returns. Revenue Service can explore tax returns for flaws in lots of inventive ways ever before as a result it is only careful to hire a consultant that has a professional understanding of tax laws.

WITH THE JAFZA OFFSHORE COMPANY FORMATION SET-UP A GOOD AND ROBUST COMPANY IN DUBAI

Jafza-Offshore-Company-Formation

Jafza Offshore Company Formation is a kind of an offshore company registered by a Jebel Ali Free Zone in Dubai.

Until lately it was the only offshore company which might grasp real estate property in Dubai. This attribute made JAFZA offshore company setup increasingly demanded by property owners.

The circumstances have changed now and the property can be registered under a cost-effective entity RAK offshore company.

JAFZA OFFSHORE COMPANY FORMATION

Jebel Ali offshore company formation can be set-up only by a registered representative. It means that you cannot carry out it directly with the government authority on your own.

The Offshore Agent In Jafza can be a business formation company in Dubai who will look after the official procedure and the registration procedure.

Jebel Ali offshore company is generally registered within 1-2 weeks depending on compliance sanction.

Your personal visit for signature confirmation is necessary. If a company director is a different person, his visit is also compulsory.

Note: offshore company registration in Dubai needs 2 directors only in case it’s a JAFZA offshore. Any other companies in diverse UAE authorities require only 1 director.

RESIDENT VISAS

JAFZA offshore company, as any other offshore company in UAE, is not entitled for UAE resident visas.

However, if you want a resident visa, you need to consider other options of business setup in Dubai in free zones or mainland. You can check business formation in UAE in any emirate as long as your company is registered in a free zone.

LICENSE RENEWAL

JAFZA offshore company renewal is completed by your registered Agent. Your own presence is not necessary.

You have to transfer the funds to the Agent, who will perform the formalities. Upon renewal, you will get a Certificate of good standing, which provides as an official proof that your company is on the go.

The price of the renewal is usually about 11,000 AED (3,015 USD) depending on your Agent.

WORKING WITH THE BEST ACCOUNTING FIRMS IN DUBAI FOR A PROPER ACCOUNTING PROCESS

accounting

Accounting is a primary significance for any business company. It will provide valuable visions into the financial health of the firm. The Accounting Firms In Dubai will have an in-house team for accounting, audit and financial management. However, a right viewpoint option will be to outsource accounting and audit activities. There are reputed professional agencies specialised in accounting Outsourcing services in Dubai. Allow your company is small, medium or large, a precise idea about the fund obtainable and payables will be essential for planning expansion.

Professionals Guidance

The Accounting Services In Dubaiwill have experts with great experience in the area. Those with confirmed quality can better guide you about the formulation of business policy, financial planning, financial management and supervisory.

The team in your firm might be involved in the organisational tasks. Therefore, they might be screen to lots of of the limitation. The outsourced company, being an external organization, will have an aeroplane view about the company’s developments and weak areas. They have professional skills gained from working with various companies. Thus, they can indicate errors in financial management and strategies.

Help in Risk Management

You are necessary to take considered risks for the development of your business. A wrong decision can find your business in risk. Accounting Firms In Dubai A complete study is obligatory before moving further with new achievement, growth and change in the method of business.

The comprehensive account will hold the pros and cons of a specific financial decision. Furthermore, the way further to reduce/ eliminate risks throughout future operations.

Avoiding Budget Overheads

The revenue of outsourcing the accounting services is much more than the payment made to them. The trustworthy accounting firm will guide you regarding needless budget overheads, in addition to, the steps to pay a debt the problem. Thus, the money spent on an accounting service will save lots of money for you.