Why you Should Hire a Tax Agent in UAE?
Jay krishnan, Partner
VAT has imposed many challenges on businesses in UAE. Even though it’s been almost a year since VAT came into effect in UAE, people still find it difficult to adjust to the scenario. A tax agent will help you smoothen VAT process and will act as a mediator between you and Federal Tax Authority.
Although a tax agent is not mandatory, they can be truly beneficial in various aspects. Dealing with tax affairs and approaching FTA is not within the limit of most of us. Hence, appointing an expert is a feasible option.
So, what are the roles and responsibilities of a tax agent? The answer is many. They aid in achieving tax compliance, carrying out legal activities, managing records and preparing and filing VAT return. They enable and guide taxable persons to perform activities of compliance under VAT. And yeah, not to forget how they help you deal with FTA, post penalization.
For a person who is remotely managing his business, a tax agency can be of immense help.
You need not worry about the confidentiality of any information related to your company, as a tax agent understands the value of privacy in the corporate world. Your company data is always safe in the hands of a tax agent. Tax agents are reliable and ethical. They refuse to get involved in any work or plan which may result in a breach of law by any person or which may question the integrity of the tax system.
FTA issues new amendments to laws and clarifications on tax on a periodical basis, which clients may not be aware of. A tax agent will be updated with the legal changes and there are nil chances of non-compliance of the new provisions. This eliminates the possibility of penalties. On the other hand, if you are facing penalization right now, do not hesitate to approach a tax agent. It’s not late.
You can get penalized for diverse reasons; if you do not maintain the required documents or if you do not submit documents upon FTA’s demand and yeah many more. A tax agent cannot help you from paying fine, but they surely can follow up with FTA and guide you on the next step.
Off late, the UAE government has announced a VAT refund scheme for tourists. For this, a retailer need to issue an invoice on VAT and this involves a set of procedure. A tax agent can help retailers comply with the scheme.
The UAE government makes it a point to continuously develop its services so as to ensure seamless running of businesses. The same applies in the case of tax agents as well; UAE taxpayers can connect directly with accredited tax agents, via a government website. This has been made possible by FTA. Taxable persons can link their accounts with an accredited tax agency and authorise it to conduct registration procedures, submit tax returns and complete transactions. Tax agents are key contributors to the successful implementation of the tax system in the UAE, we do not have any doubt about it. But, appointing the right one is indeed a tough call.
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A Surge in the Number of Licenses Issued by DED in Dubai
Dubai is one of the most preferred investment destinations, that has garnered worldwide attention over the last few decades. This is evident from the number of licenses issued in November; the Department of Economic Development (DED) issued 1,748 new licenses during November 2018. 62.3% of the licenses issued were commercial and 35.2%professional.
In the month of November, the number of Trade Name Reservations stood at 3,037, and the number of Initial Approvals reached 2,265. The number of Commercial Permits were 2,283. The Business Registration and Licensing (BRL) also issued 136 instant licences.
11,156 transactions were carried out in November, with regard to license renewal and 4,979 transactions were related to Auto Renewal via text messages. The top nationalities that secured licenses in November 2018 were: India, followed by Pakistan, Egypt, Bangladesh, China, Saudi Arabia, Britain, Jordan, Sudan and the Philippines.
The outsourced service centres of DED also plays a significant role in delivering value-added services to Dubai residents; they were successful in issuing 17,399 transactions.
Maximum number of licenses were issued in Bur Dubai, which was followed by Deira and Hatta. The top sub-regions that accounted for 52.7% of the total transactions were: Burj Khalifa, Port Saeed, Al Marar, Garhoud, Dubai World Trade Centre 1, Al Barsha 1, Al Khabaisi, Naif , Umm Ramool, Al Karama and Hor Al Anz
Out of the total licenses issued, 36.9 were to trade and repair services, followed by Real estate, leasing & business services (22.4%), Building & Construction (14.7%), Community & personal services (10.4%), Hotels group (4.9%), Transport, storage & communications (3%), Manufacturing (2.6%), Financial brokerage (2.1%), Health & labour (1.7%), Education (0.6%), Agriculture (0.4%), and Mining & Natural Resources (0.3%).
UAE unveils new public-private partnership (PPP) law to establish a stable, functioning economy
In an effort to boost the contribution of the private sector to the advancement of the economy, the UAE has declared the introduction of a new public-private partnership (PPP) law.
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In recent years, professional risks have significantly evolved with the regulatory environment.
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How Accounting Enables the Growth of your Business in UAE?
Manoj Kumar, Partner
Is accounting just about numbers or does it hold a greater significance? Accurate and up-to-date accounting influences the health of your business to a large extent and it lets you make better revenue forecasts for your company. Hence, accounting is much more than mere number crunching; it’s more of a strategy game.
Accounting empowers better project management and helps businesses create and control company budgets. One can better track the usage of money, and also plan for enough cash reserves. An accountant is an expert in money management who can come up with measures to lower expenses and can also optimize returns on investment.
Accurate and timely financial data about the company’s assets, liabilities, profits and cash position helps managers make intelligent decision. It is the accounting team that can produce these information.
Organizations often come up with plans and strategies to meets their goals. An accounting analysis of data can be of great help while making forecasts and plans.
Accounting data forms the foundation for future budgets and cost controls. Managers find these information extremely useful while preparing overhead expense budgets and sales plans, and cash flow projections.
Getting you tax relief allowances
Don’t be under the impression that accountants help minimize tax through illegal methods. What they do is, ensuring that you get all the possible allowances for tax relief. They also see to it that your business becomes eligible for more allowances and reliefs.
Accurate and timely accounting is vital for the successful navigation of business. They enhance the growth of your company and assure financial success.
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