Navigating UAE Tax Laws: An Accountant’s Perspective
UAE has emerged as one of the top most destinations to support global business. The UAE landscape and the business environment has convinced entrepreneurs from different parts of the world to shift their operations to Dubai or Abu Dhabi during the recent years. This shift is the result of the favorable tax environment that UAE offers to corporates and small scale players alike.
The UAE has a unique tax system. Presently the UAE government levies 3 different types of taxes on businesses operating in the UAE, which is the Corporate tax, value added tax and the excise duty. Even though the UAE offers tax-free zones for businesses to operate, this does not mean that most of the organizations are completely exempt from tax payments. The UAE recently introduced a federal corporate tax at a standard rate of 9% on taxable profits exceeding AED 375,000. The VAT is being levied at a standard rate of 5% on most goods and services. The excise tax is levied in order to control the use of harmful products like energy drinks or tobacco etc., with certain products being liable to be taxed 100%. The Taxes in UAE can be relatively straightforward tax, but its compliance can be complex, particularly for businesses dealing with cross-border transactions. The fact to be highlighted here that the UAE is stringent with regarding to the taxes levied and strict compliance is necessary for all of the business registered under different taxing regimes.
For businesses, it is important to take the guidance of Accounting and auditing firms in Dubai from the list of auditing companies in Dubai to adhere to UAE accounting standards and to follow the laws and regulations set forth.
Benefits of Navigating the Tax Laws in UAE Through Accounting and Auditing Firms in UAE
1. Compliance with the Authorities
The accountants or tax consultants in Dubai not only prepare and file your audit reports but will also correspond to the queries or requirements put forward by the relevant authorities. They aim to provide the authorities with the required data, audit reports ensuring the communication with them is properly established, leaving no space for ambiguity. This will in turn free up a company’s burden by allowing them more room to focus on the day-to-day management of the company.
2. Expert Advice
Apart from filing solutions, FTA approved tax consultants in Dubai can provide financial consultation. Tax consultants in Dubai can offer help with monetary management, investment as well as corporate decisions. By consulting the top tax consultants in Dubai, the entrepreneurs can be in a position to make right economic decisions that are favorable in the long-run economic stability.
3. Streamlining Documentation
Accounting service companies in Dubai based on the type of tax levy will guide you through the difficulty of the requisite documents for tax filing. A business will be notified at the start of each tax period to serve the complete listing of all the necessary documents needed. This is a proactive approach and it assists the user to save time and it is less likely to cause stress. It is never a good thing to go about thing disorderly therefore having the knowledge that all your documents are well arranged in their right place and at the right time can be very relieving.
4. Accuracy and compliance
In UAE it is a mandate that the taxes filed should be accurate and complete and shortcoming in the tax returns could lead to penalty and penalties. It is important to note that hiring charted accountants in Dubai who are certified to prepare tax returns, can stand for the fact that all the relevant law and regulation has been complied with. Accounting and bookkeeping companies in UAE prepares accurately and within the right time hence minimizing on the chances of making costly mistakes.
5. Maximizing Deductions & Minimizing Liabilities
Experienced and approved tax consultant in Dubai enable to maximize the possibility of tax credit and deductions. They carefully analyze the data in hand to avail refunds and reduce the burden of tax. Another benefit of hiring tax advisers in UAE is their ability of minimize the tax liabilities incurred. By carefully reviewing the company transactions and other related documents the accountants ensure that the organization is only paying for what is required for, thereby aiding to improve the cash flow management of the company.
6. Time and Effort
Preparation and filing of taxes takes a lot of time especially for those companies that have complicated tax affairs. When they hire the services of bank approved auditors in UAE, the clients shall be relieved of the time and energy they would use while trying to understand the tax laws and filling the tax forms.
At Jaxa Chartered Accountants, UAE, we can provide expert guidance on audit requirements in Dubai, ensure compliance with UAE auditing standards and optimize your financial affairs. Jaxa Chartered Accountants, UAE, ensures that you are choosing a reliable partner for your tax consultation needs. Jaxa Chartered Accountants, UAE will aid you to develop, improve efficiency and comply with regulations.
