Category: HAMT Talks

07:38 25 Apr 21

HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.

06:20 31 Jan 21

I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE FOR PRICE.I RECOMMEND THIS COMPANY.

16:16 28 Jun 20

Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits. And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.

16:20 23 Jun 20

Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.

07:14 23 Jun 20

In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.

Wishing HLB Hamt team all the very best.

08:28 21 Jun 20

Thank you Team HLB hamt...

Your internal auditing team put the good amount of time and inputs in helping the organisation making considerable improvements throughout the organisational working structure and helps in building the better business.

Thanks.

18:17 06 Jun 20

High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.

08:07 05 Jun 20

We have been working closely with them on payroll services for quite sometime.They provide very professional services,experts in domain and excellent support. Would recommend them.
Cheers.

06:32 04 Jun 20

Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We are very Extremely satisfied working with him and his team. Wishing them success.

05:55 03 Jun 20

I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.

19:28 02 Jun 20

Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand their client and their business. They are highly recommended and trust worthy.

16:03 02 Jun 20

We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.

HLB HAMT - Audit, Tax, Accounting and Business Advisory

ESG Sustainable Business

Are You Ready for a VAT Audit in the UAE? Key Considerations

HLB HAMT Team

HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

Since its introduction in January 2018, VAT in the UAE has mandated strict compliance from businesses. As a leading Tax Advisory firm, HLB HAMT has encountered numerous challenges during VAT audits and health checks. Here are critical points every stakeholder should keep in mind:

1. Non-Availability of Accounting Records: Maintaining comprehensive accounting records is crucial under FTA regulations. Common issues include:

License-specific accounting discrepancies
Inadequate reconciliation
Trial balance mismatches
Lack of tax coding in systems

2. Tax Classification Challenges: Correctly classifying taxes remains a major hurdle for many taxpayers:

Ignoring Inco terms for designated zones (DZ) transactions
Incorrect reporting of supply ownership
Misclassification of 0%, out-of-scope transactions
Failure to charge tax on expense reimbursements
Untaxed commissions

3. FTA Audit File Format Requirements: Meeting FTA’s audit file format within deadlines poses significant challenges:

Delayed availability of FAF files
Incomplete invoice details
Missing receipt dates
Inadequate entity-wise information

4. Documentation Compliance: All transactions must be supported by proper documentation to avoid penalties:

Essential documents like exit certificates and export documents
Required declarations as per legal requirements
Payment certificates and agreements
Properly formatted tax invoices

5. Ineligible Input VAT Claims: Stringent criteria apply to input VAT claims, leading to disallowed claims:

Incorrect VAT claims on dependent insurance
Inaccurate claim dates for input VAT
Attempting to claim VAT on outdated invoices
Lack of proper tax invoices
Non-eligible vehicle and entertainment expenses

Additional Sector-Specific Challenges:

Healthcare: Non-compliance with Cabinet Decision conditions for 0% classification.
Transportation and Logistics: Issues with VAT on exempted supplies and incorrect annual wash-ups.
Real Estate: Incorrect treatment of advances and wrong tax classifications.
Sole Establishments: Issues with accounting records, legal status selection, and tax reporting.

Conclusion

Complying with VAT regulations is crucial to avoid penalties and operational disruptions. Conducting a trial audit can help businesses identify and rectify compliance issues proactively. For more detailed insights and assistance, contact us at HLB HAMT.

HLB HAMT is here to help! Follow us on YouTube, LinkedIn, and Instagram for more insights on these topics. Stay tuned, learn, and stay ahead with HLB HAMT.

Would you like to rate us on Google?

4.8

Based on 176 reviews

powered by Google

07:38 25 Apr 21

HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.

06:20 31 Jan 21

I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE FOR PRICE.I RECOMMEND THIS COMPANY.

16:16 28 Jun 20

Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits. And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.

16:20 23 Jun 20

Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.

07:14 23 Jun 20

In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.

Wishing HLB Hamt team all the very best.

08:28 21 Jun 20

Thank you Team HLB hamt...

Your internal auditing team put the good amount of time and inputs in helping the organisation making considerable improvements throughout the organisational working structure and helps in building the better business.

Thanks.

18:17 06 Jun 20

High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.

08:07 05 Jun 20

We have been working closely with them on payroll services for quite sometime.They provide very professional services,experts in domain and excellent support. Would recommend them.
Cheers.

06:32 04 Jun 20

Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We are very Extremely satisfied working with him and his team. Wishing them success.

05:55 03 Jun 20

I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.

19:28 02 Jun 20

Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand their client and their business. They are highly recommended and trust worthy.

16:03 02 Jun 20

We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.

HLB HAMT - Audit, Tax, Accounting and Business Advisory

HLB HAMT Talks VAT Audit in the UAE

Crucial VAT & Corporate Tax Considerations for Sole Establishments in the UAE

HLB HAMT Team

HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

VAT Registration for Sole Establishments

Unlike some business structures, sole establishments with the same owner can be grouped under one VAT registration. This eliminates the need for separate registrations for each establishment.

Corporate Tax Registration for Sole Establishments

As of January 1st, 2024, a resident natural person operating a sole establishment must register for Corporate Tax with the Federal Tax Authority (FTA) if their annual turnover exceeds AED 1 million.

Practical Considerations for Sole Establishments:

Maintain Proper Books of Accounts: This is crucial for both VAT and Corporate Tax compliance. Failing to do so can result in significant penalties.
Update Legal Type Changes: If your legal structure changes from LLC to sole establishment (or vice versa), ensure you update this information in the EmaraTax portal. In some cases, deregistration and re-registration may be necessary.
Group Companies & Sole Establishments: If a group company has sole establishments owned by unrelated individuals, ensure you have proper information on all the owner’s establishments to avoid tax and compliance risks.
Real Estate Business & Sole Establishments: Income from personal real estate investments isn’t considered business income for Corporate Tax purposes. However, VAT reporting must reflect the legal ownership of the properties. Avoid including personal property income in the VAT return of management companies.

Mitigating Risks:

By conducting a tax impact assessment or trial audit, you can identify potential risks and take necessary steps to ensure compliance with VAT and Corporate Tax regulations.

Stay Compliant, Stay Successful

HLB HAMT is here to help! Follow us on YouTube, LinkedIn, and Instagram for more insights on these topics. Stay tuned, learn, and stay ahead with HLB HAMT.

Would you like to rate us on Google?

4.8

Based on 176 reviews

powered by Google

07:38 25 Apr 21

HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.

06:20 31 Jan 21

I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE FOR PRICE.I RECOMMEND THIS COMPANY.

16:16 28 Jun 20

Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits. And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.

16:20 23 Jun 20

Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.

07:14 23 Jun 20

In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.

Wishing HLB Hamt team all the very best.

08:28 21 Jun 20

Thank you Team HLB hamt...

Your internal auditing team put the good amount of time and inputs in helping the organisation making considerable improvements throughout the organisational working structure and helps in building the better business.

Thanks.

18:17 06 Jun 20

High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.

08:07 05 Jun 20

We have been working closely with them on payroll services for quite sometime.They provide very professional services,experts in domain and excellent support. Would recommend them.
Cheers.

06:32 04 Jun 20

Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We are very Extremely satisfied working with him and his team. Wishing them success.

05:55 03 Jun 20

I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.

19:28 02 Jun 20

Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand their client and their business. They are highly recommended and trust worthy.

16:03 02 Jun 20

We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.

HLB HAMT - Audit, Tax, Accounting and Business Advisory

Taxation

VAT Compliance-Guide to Avoid Penalties

HLB HAMT Team

HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

As we gear up for the upcoming tax audit, it’s crucial to ensure full compliance with UAE VAT regulations. With the guidance of our tax professional, Hala Fouad, we’re confident in our ability to navigate this process smoothly.

To schedule a consultation and discuss your specific needs please contact us on tax@hlbhamt.com.

Would you like to rate us on Google?

4.8

Based on 176 reviews

powered by Google

07:38 25 Apr 21

HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.

06:20 31 Jan 21

I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE FOR PRICE.I RECOMMEND THIS COMPANY.

16:16 28 Jun 20

Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits. And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.

16:20 23 Jun 20

Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.

07:14 23 Jun 20

In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.

Wishing HLB Hamt team all the very best.

08:28 21 Jun 20

Thank you Team HLB hamt...

Your internal auditing team put the good amount of time and inputs in helping the organisation making considerable improvements throughout the organisational working structure and helps in building the better business.

Thanks.

18:17 06 Jun 20

High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.

08:07 05 Jun 20

We have been working closely with them on payroll services for quite sometime.They provide very professional services,experts in domain and excellent support. Would recommend them.
Cheers.

06:32 04 Jun 20

Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We are very Extremely satisfied working with him and his team. Wishing them success.

05:55 03 Jun 20

I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.

19:28 02 Jun 20

Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand their client and their business. They are highly recommended and trust worthy.

16:03 02 Jun 20

We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.

HLB HAMT - Audit, Tax, Accounting and Business Advisory

HLB HAMT Talks

Why Regular VAT Health Checks Are Essential for UAE Businesses

HLB HAMT Team

HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

Step into the world of VAT compliance with HLB HAMT’s latest blog instalment! Today, we’re diving deep into the crucial realm of regular VAT health checks tailored for businesses navigating the intricate landscape of the United Arab Emirates (UAE). As we mark the 6th year since VAT’s introduction in the UAE, there’s no better time to explore why staying on top of VAT health is paramount for your business’s success.

Navigating the twists and turns of VAT regulations over the years has been no small feat. The UAE Ministry of Finance and diligent tax authorities have tirelessly issued updates, guides, and clarifications. Yet, amidst this evolving landscape, many businesses find themselves vulnerable to the lurking risks of non-compliance.

Identifying and Mitigating Non-Compliance Risks

Even companies that diligently file VAT returns and identify taxable transactions can face challenges. Here are some key areas where issues might arise:

Correct VAT Rate Application: Are you applying the appropriate VAT rates to your transactions?
Record-Keeping: Are you maintaining proper documentation to support your VAT calculations?
Calculation Accuracy: Are you confident in the methods used to calculate your VAT liabilities?

The Value of VAT Health Checks

Regular VAT health checks, conducted by qualified tax consultants, can provide valuable assurance for your business. Here is how:

Identifying Non-Compliance Areas: A health check will pinpoint areas where your VAT processes might be non-compliant.
Corrective Action Plans: Our team will create a personalised plan to address any identified issues.
Timely Action: By taking prompt action, you can avoid hefty administrative penalties and ensure ongoing VAT compliance.
Invest in Peace of Mind: Regular VAT Health Checks

In today’s complex business environment, VAT health checks are not just an option – they are an essential investment. By proactively addressing non-compliance risks, you can ensure peace of mind and protect your company’s financial well-being.

Ready to take control of your VAT compliance?

Contact HLB HAMT today and let our tax experts guide you through the process.

Phone: +971327 7775

Email: tax@hlbhamt.com

Would you like to rate us on Google?

4.8

Based on 176 reviews

powered by Google

07:38 25 Apr 21

HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.

06:20 31 Jan 21

I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE FOR PRICE.I RECOMMEND THIS COMPANY.

16:16 28 Jun 20

Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits. And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.

16:20 23 Jun 20

Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.

07:14 23 Jun 20

In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.

Wishing HLB Hamt team all the very best.

08:28 21 Jun 20

Thank you Team HLB hamt...

Your internal auditing team put the good amount of time and inputs in helping the organisation making considerable improvements throughout the organisational working structure and helps in building the better business.

Thanks.

18:17 06 Jun 20

High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.

08:07 05 Jun 20

We have been working closely with them on payroll services for quite sometime.They provide very professional services,experts in domain and excellent support. Would recommend them.
Cheers.

06:32 04 Jun 20

Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We are very Extremely satisfied working with him and his team. Wishing them success.

05:55 03 Jun 20

I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.

19:28 02 Jun 20

Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand their client and their business. They are highly recommended and trust worthy.

16:03 02 Jun 20

We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.

HLB HAMT - Audit, Tax, Accounting and Business Advisory

HLB HAMT Talks UAE Businesses VAT Health Checks

Understanding Legal vs. Beneficial Ownership for UAE Businesses

HLB HAMT Team

HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

Are you a business owner or shareholder in the UAE seeking clarity on corporate tax obligations? Understanding the nuances of legal and beneficial ownership is important for ensuring compliance and optimizing tax strategies.

In this article, we dive into the critical concepts of legal ownership and beneficial ownership within the context of UAE corporate tax law. By differentiating between these two and their implications, you can ensure proper tax assessment and avoid potential issues.

Legal Ownership vs. Beneficial Ownership: What’s the Difference?

At the heart of navigating corporate tax obligations lies the distinction between legal ownership and beneficial ownership.

Legal ownership: Refers to the individual or entity whose name appears on the official documents of an asset, such as a property deed. This person holds the legal rights and responsibilities associated with the asset.

Beneficial ownership: Identifies the person or entity who ultimately enjoys the benefits of owning an asset, even if it’s not registered in their name. This includes receiving income generated by the asset and having control over its use.

Example: Untangling Ownership in the UAE

To grasp the practical implications of legal and beneficial ownership, consider a scenario common in the UAE corporate landscape. A company shareholder may hold legal ownership of a property, as evidenced by their name on the title deed. However, the company’s financial records reflect the asset as belonging to the entity, indicating that it is the beneficial owner, entitled to the income derived from the property.

Why Does This Matter for UAE Corporate Tax?

Distinguishing between legal and beneficial ownership is crucial for determining tax obligations in the UAE. Key considerations include:

Who records the asset: Depending on ownership, the asset is recorded either on the company’s books or the individual shareholder’s books.
Who is entitled to the income: The legal owner or the beneficial owner receives the income generated by the asset (rentals, sale proceeds, etc.).

Tax Implications and Considerations

Understanding the tax implications of legal and beneficial ownership is essential for devising effective tax strategies:

Individual vs. Corporate Taxation: If the shareholder, as a legal owner of a residential property, receives rental income, they might not be subject to corporate tax.
Company Taxation: When the same property is registered under the company’s books, any income from it becomes taxable for the company.

Careful Assessment is Key

A thorough evaluation is necessary to determine whether an asset should be recorded based on legal ownership or beneficial ownership for tax purposes. This can significantly impact your tax liability.

Continued Learning and Expert Guidance

Stay abreast of legal and beneficial ownership insights tailored to UAE corporate tax law by following our updates. For personalized guidance and comprehensive support in optimizing your tax strategies, don’t hesitate to reach out to us. Subscribe to our YouTube channel and connect with us on LinkedIn for regular updates and expert insights on navigating the intricacies of UAE corporate tax.

In conclusion, exploring the intricacies of legal and beneficial ownership is indispensable for ensuring tax compliance and maximizing tax efficiency in the UAE corporate landscape. With a nuanced understanding of these concepts, businesses and shareholders can navigate tax obligations with confidence and clarity.

Would you like to rate us on Google?

4.8

Based on 176 reviews

powered by Google

07:38 25 Apr 21

HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.

06:20 31 Jan 21

I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE FOR PRICE.I RECOMMEND THIS COMPANY.

16:16 28 Jun 20

Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits. And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.

16:20 23 Jun 20

Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.

07:14 23 Jun 20

In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.

Wishing HLB Hamt team all the very best.

08:28 21 Jun 20

Thank you Team HLB hamt...

Your internal auditing team put the good amount of time and inputs in helping the organisation making considerable improvements throughout the organisational working structure and helps in building the better business.

Thanks.

18:17 06 Jun 20

High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.

08:07 05 Jun 20

We have been working closely with them on payroll services for quite sometime.They provide very professional services,experts in domain and excellent support. Would recommend them.
Cheers.

06:32 04 Jun 20

Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We are very Extremely satisfied working with him and his team. Wishing them success.

05:55 03 Jun 20

I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.

19:28 02 Jun 20

Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand their client and their business. They are highly recommended and trust worthy.

16:03 02 Jun 20

We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.

HLB HAMT - Audit, Tax, Accounting and Business Advisory

Corporate TAX HLB HAMT Talks

Explore the VAT Treatment of Bunkering Business in the UAE with our tax expert Mr. Jay Krishnan!

HLB HAMT Team

HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

Explore the VAT Treatment of Bunkering Business in the UAE with our tax expert Mr. Jay Krishnan!

Dive into the intricate world of bunkering and VAT in the UAE with us! Learn how VAT impacts bunkering operations and stay informed on the latest regulations.

Stay tuned for insights on the taxability and updates!

Connect with our experts at tax@hlbhamt.com for personalized guidance

Jay Krishnan is an audit & tax professional with more than 25 years of audit & tax and finance experience in United Arab Emirates and India. He is a Fellow member of Institute of Chartered Accountants of India (ICAI) and Cost and Management Accountants (CMA). A graduate from Calicut University, Kerala, India, Jay Krishnan has been in UAE since the year 2001 and had worked with reputed international firms in India and UAE. Being a fellow member of various professional bodies in UAE, Jay Krishnan has attended more than 700 hours of various international seminars and conferences in UAE and at international platforms. Jay Krishnan has served almost 1,500 clients in UAE in his career with HLB HAMT for various finance related services. Jay Krishnan heads the department of Taxation, which primarily covers CORPORATE TAX & VAT in UAE. He has provided expert guidance to approximately 600+ clients on various TAX related issues.

Would you like to rate us on Google?

4.8

Based on 176 reviews

powered by Google

07:38 25 Apr 21

HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.

06:20 31 Jan 21

I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE FOR PRICE.I RECOMMEND THIS COMPANY.

16:16 28 Jun 20

Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits. And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.

16:20 23 Jun 20

Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.

07:14 23 Jun 20

In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.

Wishing HLB Hamt team all the very best.

08:28 21 Jun 20

Thank you Team HLB hamt...

Your internal auditing team put the good amount of time and inputs in helping the organisation making considerable improvements throughout the organisational working structure and helps in building the better business.

Thanks.

18:17 06 Jun 20

High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.

08:07 05 Jun 20

We have been working closely with them on payroll services for quite sometime.They provide very professional services,experts in domain and excellent support. Would recommend them.
Cheers.

06:32 04 Jun 20

Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We are very Extremely satisfied working with him and his team. Wishing them success.

05:55 03 Jun 20

I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.

19:28 02 Jun 20

Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand their client and their business. They are highly recommended and trust worthy.

16:03 02 Jun 20

We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.

HLB HAMT - Audit, Tax, Accounting and Business Advisory

Taxation VAT VAT Treatment of Bunkering Business in the UAE

Financial Statements and Audit Requirements for UAE Corporate Tax

HLB HAMT Team

HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

According to corporate tax regulations, financial statements and audit requirements stand as the pillars defining fiscal transparency and accountability. As businesses navigate the complex terrain of the
UAE’s corporate tax landscape, understanding the nuances between accounting standards and audit mandates becomes paramount.

Today, in partnership with HLB HAMT, we embark on a journey to unravel the intricacies of financial reporting and auditing obligations, shedding light on the divergent paths paved by various standards and regulations.

Understanding Accounting Standards for Corporate Tax

The taxable income of a business in the UAE is determined based on financial statements prepared according to specific accounting standards accepted in the UAE for corporate tax purposes. These can be:

International Financial Reporting Standards (IFRS): The most comprehensive set of accounting standards globally.
International Financial Reporting Standards for Small and Medium Entities (IFRS for SMEs): A simplified version of IFRS designed for smaller businesses.

Key Differences Between IFRS and IFRS for SMEs

Capitalization of Interest:

Under full IFRS, borrowing costs can be capitalized if they relate to the acquisition, construction, or production of a qualifying asset. However, IFRS for SMEs mandates the immediate expensing of all interest, leaving no room for capitalization.
Investment in Associates:

While full IFRS adheres strictly to the equity method for accounting investment in associates, IFRS for SMEs offers flexibility, allowing entities to choose between the cost model, equity method, or fair value through profit and loss.
Research and Development Costs:

IFRS delineates between research and development costs, permitting the capitalization of the latter under specific criteria. Conversely, IFRS for SMEs mandates the immediate expensing of all research and development costs, fostering a more conservative approach.
Lease Accounting and Financial Instruments:

The adoption of
IFRS 16 and IFRS 9 brings substantial changes to lease accounting and financial instruments under full IFRS. However, these alterations are not mirrored in IFRS for SMEs, creating disparities in treatment.

Choosing Your Path: When is an Audit Mandatory?

While IFRS for SMEs offers more flexibility, it shouldn’t be the default choice for corporate tax purposes. Businesses with a tax period revenue exceeding AED 50 million must use full IFRS for their financial statements.

Audit Requirements for Corporate Tax

Audits are mandatory for:

Qualifying Free Zone Persons under corporate tax regulations.
Taxable persons with a turnover exceeding AED 15 million during the tax period.

However, an audit is still highly recommended for all businesses, regardless of turnover, to ensure accuracy and compliance.

Tax Groups and Audit Requirements

For tax groups (multiple entities under one taxable person), if the combined group turnover exceeds AED 50 million, an audit becomes mandatory even if individual entity turnovers are below the threshold.

Cash Basis Accounting for Small Businesses

Businesses with an annual turnover below AED 3 million have the option to use the cash basis of accounting for tax purposes. This simplifies bookkeeping by recording income and expenses only when cash is received or paid.

Conclusion

Understanding financial statement requirements and audit obligations under UAE Corporate Tax is crucial for businesses of all sizes. As businesses traverse the complexity of corporate tax regulations, HLB HAMT stands as a beacon of expertise, offering tailored solutions and strategic guidance.

For any related assistance or queries, call our experts at +971 4 327 7775 or email tax@hlbhamt.com to schedule a consultation.

Would you like to rate us on Google?

4.8

Based on 176 reviews

powered by Google

07:38 25 Apr 21

HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.

06:20 31 Jan 21

I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE FOR PRICE.I RECOMMEND THIS COMPANY.

16:16 28 Jun 20

Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits. And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.

16:20 23 Jun 20

Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.

07:14 23 Jun 20

In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.

Wishing HLB Hamt team all the very best.

08:28 21 Jun 20

Thank you Team HLB hamt...

Your internal auditing team put the good amount of time and inputs in helping the organisation making considerable improvements throughout the organisational working structure and helps in building the better business.

Thanks.

18:17 06 Jun 20

High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.

08:07 05 Jun 20

We have been working closely with them on payroll services for quite sometime.They provide very professional services,experts in domain and excellent support. Would recommend them.
Cheers.

06:32 04 Jun 20

Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We are very Extremely satisfied working with him and his team. Wishing them success.

05:55 03 Jun 20

I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.

19:28 02 Jun 20

Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand their client and their business. They are highly recommended and trust worthy.

16:03 02 Jun 20

We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.

HLB HAMT - Audit, Tax, Accounting and Business Advisory

Financial Statements and Audit Requirements UAE Corporate Tax

Understanding Foreign Tax Credit in the UAE’s Corporate Tax Framework

HLB HAMT Team

HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

More Information

FAQ on UAE Corporate Tax
Recent Posts

Businesses operating in the UAE with foreign income may face double taxation concerns with the recent implementation of corporate tax. This article explores the concept of foreign tax credit (FTC) within this framework, explaining how it can be a valuable tool to mitigate such situations. We’ll delve into how FTC works, its benefits, and key considerations for businesses to maximize this tax advantage.

Addressing Double Taxation:

The UAE corporate tax law offers specific exemptions for companies earning income outside the country. These exemptions are categorized as participation exemption and foreign permanent establishment exemption. However, certain foreign income might fall outside the purview of these exemptions.

Foreign Tax Credit as a Relief Mechanism:

The FTC mechanism provides a solution for situations where foreign income is not covered by the aforementioned exemptions. Let’s illustrate this with an example:

A UAE company generates income from Saudi Arabia (KSA).
KSA levies a withholding tax on specific types of income earned by non-residents.
This translates to a UAE company incurring KSA tax on its income derived from KSA.

The Implication of Corporate Tax:

With the introduction of corporate tax in the UAE, the UAE company would also be subject to tax on the income earned in KSA. This scenario creates a situation of double taxation on the same income source.

Mitigating Double Taxation through FTC:

The foreign tax credit mechanism comes into play here. The tax deducted by the KSA government can be claimed as a credit against the UAE corporate tax liability. This effectively reduces the UAE tax burden, preventing double taxation on the same income.

Key Considerations for Businesses:

Assessing Foreign Tax Credit Potential: Companies in the UAE should possess the capability to determine the amount of foreign tax credit they can claim.
Documentation Requirements: Maintaining proper documentation pertaining to foreign taxes paid is crucial for claiming the credit.

Seeking Professional Guidance with HLB HAMT!

For companies seeking assistance in navigating the intricacies of foreign tax credit and ensuring optimal utilisation of this tax benefit, consulting with qualified tax professionals is recommended.

Contact HLB HAMT experts at +971 4 327 7775 or email tax@hlbhamt.com to schedule a consultation.

Would you like to rate us on Google?

4.8

Based on 176 reviews

powered by Google

07:38 25 Apr 21

HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.

06:20 31 Jan 21

I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE FOR PRICE.I RECOMMEND THIS COMPANY.

16:16 28 Jun 20

Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits. And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.

16:20 23 Jun 20

Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.

07:14 23 Jun 20

In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.

Wishing HLB Hamt team all the very best.

08:28 21 Jun 20

Thank you Team HLB hamt...

Your internal auditing team put the good amount of time and inputs in helping the organisation making considerable improvements throughout the organisational working structure and helps in building the better business.

Thanks.

18:17 06 Jun 20

High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.

08:07 05 Jun 20

We have been working closely with them on payroll services for quite sometime.They provide very professional services,experts in domain and excellent support. Would recommend them.
Cheers.

06:32 04 Jun 20

Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We are very Extremely satisfied working with him and his team. Wishing them success.

05:55 03 Jun 20

I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.

19:28 02 Jun 20

Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand their client and their business. They are highly recommended and trust worthy.

16:03 02 Jun 20

We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.

HLB HAMT - Audit, Tax, Accounting and Business Advisory

Corporate Tax Framework Foreign Tax Credit

Deferred Tax Decoded: Unveiling Its Impact on Your Financial Statements

HLB HAMT Team

HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

More Information

FAQ on UAE Corporate Tax
Recent Posts

Have you ever noticed a curious mismatch between your company’s accounting profits and taxable profits? This stems from differences between accounting rules and tax laws in how they treat certain items. This is where deferred tax steps in, bridging the gap and reflecting the future tax implications of these temporary differences. It’s like wearing x-ray glasses, revealing the true financial picture underneath.

HLB HAMT demystifies this intricate concept, equipping you with actionable insights and expert guidance.

Real-World Illustrations:

Fair Value of Investment Property: Imagine your company valuing an investment property based on current market value for tax purposes (a “realization base”). If the value increases, you record a gain in your books, but the taxman holds off until you sell. This creates a deferred tax liability – a future tax bill waiting to happen. But what if the value drops? It’s the opposite effect, resulting in a deferred tax asset, a potential future tax deduction.
Interest Expense Deductions: Tax laws often limit the amount of interest expense you can deduct. You record the full amount in your accounts, but only a portion is deductible. This disparity creates another deferred tax asset, representing a future tax benefit.

Empowering Your Company:

Identify Deferred Tax Items: Scrutinize your financial statements to pinpoint areas with temporary differences that might give rise to deferred tax assets or liabilities.
Assess Opening Balances: If your company has been operating, review existing “deferred tax accounts” and understand their origins.
Document Calculations: Maintain detailed records of your calculations to track how these amounts change over time, ensuring transparency and clarity.
Make Disclosures: As per International Accounting Standard (IAS) 12, disclose relevant information about your deferred tax liabilities and assets in your financial statements.

Why Does Deferred Tax Matter?

Accurate Financial Picture: Deferred tax ensures your financial statements reflect the true tax implications of your business decisions, enhancing their credibility for stakeholders.
Informed Decision-Making: Understanding future tax liabilities and assets empowers you to make informed financial decisions with a comprehensive view of your tax obligations.

HLB HAMT: Your Trusted Partner

Feeling lost in the world of deferred tax complexities? Worry not! HLB HAMT’s team of tax experts is here to illuminate the path. Contact us today for a consultation and navigate the world of deferred tax with confidence.

Stay Informed: Follow us on YouTube and LinkedIn for regular updates on tax developments. Let’s journey towards tax efficiency and expertise together!

Would you like to rate us on Google?

4.8

Based on 176 reviews

powered by Google

07:38 25 Apr 21

HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.

06:20 31 Jan 21

I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE FOR PRICE.I RECOMMEND THIS COMPANY.

16:16 28 Jun 20

Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits. And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.

16:20 23 Jun 20

Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.

07:14 23 Jun 20

In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.

Wishing HLB Hamt team all the very best.

08:28 21 Jun 20

Thank you Team HLB hamt...

Your internal auditing team put the good amount of time and inputs in helping the organisation making considerable improvements throughout the organisational working structure and helps in building the better business.

Thanks.

18:17 06 Jun 20

High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.

08:07 05 Jun 20

We have been working closely with them on payroll services for quite sometime.They provide very professional services,experts in domain and excellent support. Would recommend them.
Cheers.

06:32 04 Jun 20

Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We are very Extremely satisfied working with him and his team. Wishing them success.

05:55 03 Jun 20

I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.

19:28 02 Jun 20

Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand their client and their business. They are highly recommended and trust worthy.

16:03 02 Jun 20

We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.