All about the EmaraTax Platform

5/12/2022

EmaraTax is a new tax platform designed by FTA, to provide a better experience for taxpayers managing their tax obligations in UAE.

Due to being interactive the taxpayers will benefit from the improved and online platform designed to change how they manage their taxes. On EmaraTax taxpayers can access the digital services of the Federal Tax Authority in UAE, for registration, filing returns, paying taxes and seeking refunds.

How to access EmaraTax Platform ? (Existing User)

Simple guide to first time access of the EmaraTax Platform : (Existing User)

Go to https://eservices.tax.gov.ae/ to access the FTA’s EmaraTax Platform.

Step 01 : Look for the Password Rest Instruction on the E-Service Portal of the FTA

It provides to two option :
1st being an email from FTA (for the re-set of the password) already received on the registered email address of the existing user.
2nd being the option to request the reset link email from FTA to be sent on the registered email ( in case the email was not received from FTA)

Step 02 : Open the email where the one time password in provided together with with the link to activate the temporary password .

Step 03 : Click on the link to activate the one time password and access the password re-set window.

Step 04 : Enter the one time password as provided in the password re-set email.

Step 05 : Enter the new password consisting of the 10 digits and complying with the password setting instructions.

Step 06 : Once the new password is accepted by the portal the next screen is dash board of the EmaraTax Platform.

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Introduction of Corporate Tax in UAE : Public Consultation Document Issued for UAE Corporate Tax

4/5/2022

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As announced on 31 January 2022, the United Arab Emirates (UAE) will introduce a federal Corporate Tax on business profits that will be effective for financial years starting on or after 1 June 2023. On 28 April 2022, the United Arab Emirates Ministry of Finance released a public consultation document on the planned introduction of corporate tax in the UAE.

The public consultation document contains the main features of the planned Corporate Tax regime as well as the principles that were applied in the design of the Corporate Tax regime. Interested parties are invited to comment on the elements covered in the document, as well as on areas that are not covered by the document.

The MOF invites comments on the public consultation document to be submitted as per the prescribed online submission by 19 May 2022. Where possible, interested parties are encouraged to explain comments with examples, data or other information to support views on the design and implementation of the UAE Corporate Tax regime.

Note: It should be noted that, the public consultation document contains information on the proposed UAE Corporate Tax regime, and is released for the purposes of obtaining input from stakeholders. The document does not reflect the final view of the UAE Government, and is not intended to comprehensively address all possible aspects of the proposed UAE Corporate Tax regime.

Image - Public Consultation Document Issued for UAE Corporate Tax - Gupta Accountants

Important Contents of the public consultation document in relation of the UAE Corporate Tax

Definitions and descriptions on the Taxable persons like Natural persons, Legal person, Exempt persons and Government and Government owned entities
Descriptions and scope of the Natural resources, Charities and Public Benefit Organizations and Investment funds
It discusses in details the applicability and extent of the application of the corporates tax to the Free Zones entities based in UAE.
It explains the Basis of taxation of the Residents and Non-residents.
It provides the basis of the Calculation of taxable income, Basis of calculating taxable income, Treatment of unrealized gains and losses, Exempt income, Expense deduction limitations and treatment of the Losses.
It also provides the details extent and scope of the applicability of the corporate tax provisions on the Group Taxation , Tax groups, Transfer of losses and availability of the Group relief.
At it also provided the applicatibilty of the Transfer pricing in relation to the Related Parties, Connected Persons, Arm’s length principle and the Transfer pricing documentation requirements.
How the Calculation of Corporate Tax liability would be made. What are the Applicable Corporate Tax rates, Withholding tax. and How the Calculation of Corporate Tax payable and Tax Credits should be carried out.
International tax developments, Background, How the UAE would reflect its commitment to Pillar Two in its domestic Corporate Tax regime and Other international reporting obligations
Details on the Administration of the UAE Corporate Tax, Registration and deregistration the UAE Corporate Tax, Filing, payment and refund and Assessment under the the UAE Corporate Tax,
Other procedures in relation to the advance Clarifications , Documentation requirements and Transitional rules under the the UAE Corporate Tax,

Gupta Accountants competent team of chartered accountants provides best supports and assistance in the preparation for the compliance with the all stages of the Corporate Tax in UAE to the entities based & registered under free zones and DED of the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

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Introduction of Corporate Tax in UAE

14/2/2022

The United Arab Emirates (UAE) has announced plans to impose federal corporation tax from 1 June 2023

The UAE Corporate Tax rates are:

0% for taxable income up to AED 375,000;
9% for taxable income above AED 375,000; and
a different tax rate for large multinationals

UAE Corporate Tax will apply to all UAE businesses, except for the extraction of natural resources, which will remain subject to Emirate level corporate taxation. Foreign entities and individuals will be subject to Corporate Tax only if they conduct a trade or business in the UAE in an ongoing or regular manner.

UAE Corporate Tax will apply equally to all categories of profits and other (net) income reported in the financial statements prepared in accordance with internationally acceptable accounting standards.

The Federal Tax Authority will be responsible for the administration, collection, and enforcement of UAE Corporate Tax

The UAE CT is a Federal tax and will therefore apply across all Emirates

Foreign entities and individuals will be subject to UAE Corporate Tax only if they conduct a trade or business in the UAE in an ongoing or regular manner

UAE Corporate Tax will not apply on an individual’s salary and other employment income (whether received from the public or private sector)

Further updates: introduction-of-corporate-tax-in-uae-public-consultation-document-issued-for-uae-corporate-tax.html

Gupta Accountants competent team of chartered accountants in Dubai, provides best supports and assistance in the preparation for the compliance with the all stages of the Corporate Tax in UAE to the entities based & registered under free zones and DED of the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

31 March 2021, is the due date to register the DNFBP (designated non-financial businesses & professions) under the goAML in UAE

21/3/2021

The Ministry of Economy (MoE) in UAE requires Designated Non-Financial Businesses and Professions (DNFBPs) registered in the UAE to register in the system of Financial Intelligence Unit (goAML)

The Ministry of Economy (MoE) in UAE also requires Designated Non-Financial Businesses and Professions (DNFBPs) registered in the UAE to system of Committee for Commodities Subject to Import and Export Control (Automatic Reporting System for Sanctions Lists), and to adopt measures related to both, stipulated by the Federal Law No. 20 of 2018 on combating money laundering crimes and financing of terrorism and illegal organizations, and the regulations and relevant decisions regarding their implementation.

Designated Non-Financial Businesses and Professions (DNFBPs) registered in the UAE are obliged to to adopt measures related to both the aforesaid systems (goAML and ARSSL) as stipulated by the Federal Law No. 20 of 2018 on combating money laundering crimes and financing of terrorism and illegal organizations, and the regulations and relevant decisions regarding their implementation.

The Ministry of Economy (MoE) has clarified in its circular that the registration in both these systems is free and can be done through simple steps by visiting the Ministry of Economy's official website. The grace period to the DNFBPs to register in these two systems has been extended till March 31, 2021. Accordingly the registration for the DNFBs is obligatory to to avoid penalties stipulated by the law.

Documents required to for the registration

Authorization letter from the institution you represent ( form available for the download on the MOE website).
A copy of the passport, resident VISA, Emirates ID.
A copy of the commercial trade license (for companies).
Download the "Google Authenticator" application on the phone. (This application contains the password for the SACM protection system, which is a password that changes every minute)

Gupta Accountants competent team of chartered accountants in Dubai, provides best supports at all the stages of the compliance with goAML (Anti-Money-Laundering System) to the Designated Non-Financial Business and Professions"(DNFBP) based & registered under free zones and on main land, established in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

What is DNFBP?

19/3/2021

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DNFBP stands for "Designated Non-Financial Business and Professions"(DNFBP). Certain types of "non-financial" businesses have been identified as being susceptible to money laundering and terrorist financing due to the nature of their business and the transactions with activity that they may conduct.

Certain class of business and professions, which currently are classified as Designated Non-Financial Business and Professions"(DNFBP) in UAE is as as follows;

1. Real Estate Firm that carries out transactions with customers involving the buying or selling of real property For example, real estate developers, brokers and agents.

2. Auditing, accounting or tax consultancy Firm that provide professional services and assurance to third parties on the financial and tax soundness of them and/or their business. For example, chartered accountants, accountants, tax specialists etc.

3. Dealer of precious metals or stones who are are involved in the production of precious metals or precious stones, an intermediate buyer or broker, precious stone cutter and polisher, precious metal refiners, and/or jewelry manufacturer who use precious metals and precious stones to retail sellers to the public or buyers and sellers in the secondary and scrap markets. These include gold, silver, platinum, diamonds etc. For example, jewelry stores.

4. Trust or Company Service Provider who is involved in providing business services and consulting to third parties.

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What is goAML (Anti-Money-Laundering System) ?

19/3/2021

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The goAML application is a fully integrated software solution developed specifically for use by Financial Intelligence Units (FIU's) and is one of UNODC's strategic responses to financial crime, including money-laundering and terrorist financing. Financial Intelligence Units play a leading role in any anti-money laundering regime as they are generally responsible for receiving, processing and analyzing reports made by financial institutions or other entities according to the requirements of domestic anti-money laundering laws and regulations. Such reports and other information gathered by FIU's often provide the basis for investigations into money laundering, terrorist financing and other serious offences. goAML is specifically designed to meet the data collection, management, analytical, document management, workflow and statistical needs of any Finance Intelligence Unit. The goAML application was developed by the Information Technology Service (ITS) of UNODC in partnership with the UNODC Global Programme Against Money Laundering, Proceeds of Crime and the Financing of Terrorism (GPML).

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UAE ESR Update - Who is the “National Assessing Authority”?

30/10/2020

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The assessment and determination on whether a Licensee has economic substance in the UAE is made by the Federal Tax Authority, in its capacity as the “National Assessing Authority” under the Regulations.

Ministerial Decision No. 100 issued in the Year 2020 on the issuance of directives for the Implementation of the Provision of the Cabinet Decision No. 57 of 2020 concerning Economic Substance Requirement in United Arab Emirates has introduced, among other update the designation of the National Assessing Authority.

The ESR Regulations have been introduces in UAE pursuant to the global standard set by the Organisation for Economic Cooperation and Development (“OECD”) Forum on Harmful Tax Practices, which requires entities undertaking geographically mobile business activities to have substantial activities in the respective jurisdiction.

The National Assessing Authority is undertakes, inter alia, the following functions:

undertake assessments to determine whether a Licensee has met the Economic Substance Test
Impose administrative penalties, applicable
Hear and decide on appeals
Exchange information to the Competent Authority pursuant to Article 10 of the ESR Regulations and
Carry out any other functions for the purposes of implementing the provisions of the ESR Regulations

For more information on how Gupta Accountants could assist you in compliance with UAE Economic Substance Regulation Rules, contact us today.
Gupta Accountants competent team of chartered accountants in Dubai, provides best supports at all the stages of the compliance to Economic Substance Regulations in UAE to companies registered under free zones and on main land, established in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.
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Compliance of UAE Beneficial Ownership Regulations

20/10/2020

Introduction of Ultimate Beneficial Ownership Regulations in UAE:

Cabinet Resolution No. (58) of 2020 regulating Beneficial Owner Procedures (the “Resolution”) came into effect on 28 August 2020 and replaced Cabinet Resolution No. 34 of 2020 issued earlier this year.
The Resolution introduces new requirements for entities to disclose its beneficial owners. The main purpose is to enhance transparency of entities registered in the UAE, as well as to develop effective and sustainable executive and regulatory mechanisms and procedures in respect of beneficial owner data.
The Resolution requires entities licenced in the UAE (unless exemptions apply) to prepare and file a Ultimate Beneficial Owner (“UBO”) register, Nominee Director register (if applicable) and a Partners or Shareholders register, with the relevant authority within sixty (60) days from the date the Resolution came into effect, being 27 October 2020, or by the date the entity is established.

The UBO Regulations apply to mainland companies and companies incorporated in non-financial free zones such as Dubai Multi Commodities Centre, Jebel Ali Free Zone, Ajman Free Zone, RAKEZ, DAFZ, SAIF Zone, SHAMS, DDA etc. The regulations exempt the companies based in the financial free zones in UAE like Abu Dhabi Global Markets (ADGM) and Dubai International Financial Centre (DIFC) as such companies are required to comply with the separate UBO requirements that are in place for such financial free zones.

The Regulations require maintenance and update on a timely basis of the Statutory Registers of the Ultimate Beneficial Owners, Shareholder, Nominee Directors & Managers and the declaration in the prescribed form and mode to the respective licensing authorities under which the company is incorporated and are regulated.

1. Register for the Ultimate Beneficial Owner - A Specific Register of the Beneficial Owners in the Legal Person, which includes all of their data.

2. Register for the Nominee Directors/ Manager - A Specific Register of any natural person who acts in accordance with the directives, instructions or wills of another person.

3. Register for the Partners or Shareholders - A Specific Register of the Partners or Shareholders in the Legal Person, which includes all of their data.

4. Registrar - The entity in charge of supervision of the commercial names register for different types of corporate entities registered in the State, which includes the Licensing Authority.

5. Beneficial Owner: The natural person who ultimately owns or controls the Legal Person, whether directly or through a chain of ownership or control or any-other indirect means, and also the natural person on whose behalf the transactions are being conducted or who exercises ultimate control over a legal person.

6. Nominee Board Member - Any natural person who acts in accordance with the directives, instructions or wills of another person.

7. Trustor - A natural or legal person who transfers the management of his funds to a trustee by virtue of a deed.

8. Trustee - A natural or legal person who enjoys the rights and authorities granted by the Trustor or the Trust Fund, to manage, use and dispense of the Trustor’s funds in accordance with the conditions imposed on him by either of them.

Update On 01 June 2021

It is to be noted that starting from July 1, 2021, the penalties stipulated in the Cabinet Resolution No. 53 of 2021 on the Administrative Penalties Against Violating ultimate beneficial owner procedures will come into effect.

These include the issuance of written warnings up to imposing Dh100,000 in fines in the event of recurrence and continued noncompliance, along with additional administrative penalties, including, among others, license suspension for one year, and restrictions on board of directors’ authority.

Hence it is imperative to comply with the requirements of the UBO Regulation before the end of the 30 June 2021 to avoid being subjected to the administrative penalties.

For more information on how Gupta Accountants could assist you in compliance with Ultimate Beneficial Ownership Regulations in UAE, contact us today.
Gupta Accountants competent team of chartered accountants in Dubai, provides best supports at all the stages of the compliance Ultimate Beneficial Ownership Regulations in UAE to companies registered under free zones and on main land, established in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

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Concerned Regulatory Authorities under ESR - Economic Substance Regulation in UAE

19/6/2020

For each relevant activity under the economic substance regulation the concerned regulatory authorities have specified under article 2 of the UAE Cabinet Resolution No. 58 of 2019.

Banking Business
Insurance Business
Investment Fund Management Business
Lease-Finance Business
Headquarter Business
Shipping Business
Holding Company Business
Intellectual Property Business
Distribution and Service Centre Business

UAE Central Bank for banking business regulated by the Central Bank.
The competent authority in the Financial Free Zone for banking business carried out therein.

Central Bank :
Example : Where the entity has been issued license for the banking business from the Central Bank of the UAE in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Financial Free Zone Authorities :
Example : Where the entity has been issued license for the banking business from the free zone authorities like Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM)

Insurance Authority for insurance business regulated by the said authority.
The competent authority in the Free Zone for insurance business carried out therein.
The competent authority in the Financial Free Zone for insurance business carried out therein.

Insurance Authority :
Example : Where the entity has been issued license for the insurance business from the Insurance Authority UAE in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Free Zone Authorities :
Example : Where the entity has been issued license for the insurance business from the free zone authorities like Jebel Ali Free Zone Authority ( JAFZA), Dubai Multi Commodities Centre (DMCC), Dubai Airport Free Zone (DAFZ) , Khalifa Port Free Trade Zone (KIZAD), Sharjah Airport Free Zone Authority (SAIF Zone), Hamriya Free Zone Authority (HAFZ), Ajman Free Zone Authority (AFZA), Umm Al Quwain Free Zone Authority (UAQ Free Trade Zone), Ras Al Khaimah Economic Zone (RAKEZ), Fujairah Free Zone Authority in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Financial Free Zone Authorities :
Example : Where the entity has been issued license for the insurance business from the free zone authorities like Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM)

Securities and Commodities Authority for investment fund management business regulated by the said authority.
The competent authority in the Free Zone for investment fund management business carried out therein.
The competent authority in the Financial Free Zone for investment fund management business carried out therein.

Securities and Commodities Authority :
Example : Where the entity has been issued license for the investment fund management business from the Securities & Commodities Authority UAE in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Free Zone Authorities :
Example : Where the entity has been issued license for the investment fund management business from the free zone authorities like Jebel Ali Free Zone Authority ( JAFZA), Dubai Multi Commodities Centre (DMCC), Dubai Airport Free Zone (DAFZ) , Khalifa Port Free Trade Zone (KIZAD), Sharjah Airport Free Zone Authority (SAIF Zone), Hamriya Free Zone Authority (HAFZ), Ajman Free Zone Authority (AFZA), Umm Al Quwain Free Zone Authority (UAQ Free Trade Zone), Ras Al Khaimah Economic Zone (RAKEZ), Fujairah Free Zone Authority in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Financial Free Zone Authorities :
Example : Where the entity has been issued license for the investment fund management business from the free zone authorities like Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM)

UAE Central Bank for lease finance business regulated by the Central Bank.
The competent authority in the Free Zone for lease finance business carried out therein.
The competent authority in the Financial Free Zone for lease finance business carried out therein.

Central Bank :
Example : Where the entity has been issued license for the lease finance business from the Central Bank of the UAE in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Free Zone Authorities :
Example : Where the entity has been issued license for the lease finance business from the free zone authorities like Jebel Ali Free Zone Authority ( JAFZA), Dubai Multi Commodities Centre (DMCC), Dubai Airport Free Zone (DAFZ) , Khalifa Port Free Trade Zone (KIZAD), Sharjah Airport Free Zone Authority (SAIF Zone), Hamriya Free Zone Authority (HAFZ), Ajman Free Zone Authority (AFZA), Umm Al Quwain Free Zone Authority (UAQ Free Trade Zone), Ras Al Khaimah Economic Zone (RAKEZ), Fujairah Free Zone Authority in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Financial Free Zone Authorities :
Example : Where the entity has been issued license for the lease finance business from the free zone authorities like Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM)

Ministry of Economy for headquarter business regulated by the said Ministry.
The competent authority in the Free Zone for headquarter business carried out therein.
The competent authority in the Financial Free Zone for headquarter business carried out therein.

Example : Where the entity has been issued license for the headquarter business from the Dubai Department of Economic Development , Abu Dhabi Department of Economic Development , Sharjah Economic Development Department , Ras Al Khaimah Economic Development Department , Ajman Economic Development Department , Umm Al Quwain Economic Development Department ,Fujairah Municipality and other non free zone or financial free zone authorities in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Example : Where the entity has been issued license for the headquarter business from the free zone authorities like Jebel Ali Free Zone Authority ( JAFZA), Dubai Multi Commodities Centre (DMCC), Dubai Airport Free Zone (DAFZ) , Khalifa Port Free Trade Zone (KIZAD), Sharjah Airport Free Zone Authority (SAIF Zone), Hamriya Free Zone Authority (HAFZ), Ajman Free Zone Authority (AFZA), Umm Al Quwain Free Zone Authority (UAQ Free Trade Zone), Ras Al Khaimah Economic Zone (RAKEZ), Fujairah Free Zone Authority in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Financial Free Zone Authorities :
Example : Where the entity has been issued license for the headquarter business from the free zone authorities like Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM)

Ministry of Economy for shipping business regulated by the said Ministry.
The competent authority in the Free Zone for shipping business carried out therein.
The competent authority in the Financial Free Zone for shipping business carried out therein.

Ministry of Economy :
Example : Where the entity has been issued license for the shipping business from the Dubai Department of Economic Development , Abu Dhabi Department of Economic Development , Sharjah Economic Development Department , Ras Al Khaimah Economic Development Department , Ajman Economic Development Department , Umm Al Quwain Economic Development Department ,Fujairah Municipality and other non free zone or financial free zone authorities in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Free Zone Authorities :
Example : Where the entity has been issued license for the shipping business from the free zone authorities like Jebel Ali Free Zone Authority ( JAFZA), Dubai Multi Commodities Centre (DMCC), Dubai Airport Free Zone (DAFZ) , Khalifa Port Free Trade Zone (KIZAD), Sharjah Airport Free Zone Authority (SAIF Zone), Hamriya Free Zone Authority (HAFZ), Ajman Free Zone Authority (AFZA), Umm Al Quwain Free Zone Authority (UAQ Free Trade Zone), Ras Al Khaimah Economic Zone (RAKEZ), Fujairah Free Zone Authority in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Financial Free Zone Authorities :
Example : Where the entity has been issued license for the shipping business from the free zone authorities like Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM)

Ministry of Economy for holding company business regulated by the said Ministry.
The competent authority in the Free Zone for holding company business carried out therein.
The competent authority in the Financial Free Zone for holding company business carried out therein.

Ministry of Economy :
Example : Where the entity has been issued license for the holding company business from the Dubai Department of Economic Development , Abu Dhabi Department of Economic Development , Sharjah Economic Development Department , Ras Al Khaimah Economic Development Department , Ajman Economic Development Department , Umm Al Quwain Economic Development Department ,Fujairah Municipality and other non free zone or financial free zone authorities in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Free Zone Authorities :
Example : Where the entity has been issued license for the holding company business from the free zone authorities like Jebel Ali Free Zone Authority ( JAFZA), Dubai Multi Commodities Centre (DMCC), Dubai Airport Free Zone (DAFZ) , Khalifa Port Free Trade Zone (KIZAD), Sharjah Airport Free Zone Authority (SAIF Zone), Hamriya Free Zone Authority (HAFZ), Ajman Free Zone Authority (AFZA), Umm Al Quwain Free Zone Authority (UAQ Free Trade Zone), Ras Al Khaimah Economic Zone (RAKEZ), Fujairah Free Zone Authority in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Financial Free Zone Authorities :
Example : Where the entity has been issued license for the holding company business from the free zone authorities like Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM)

Ministry of Economy for intellectual property business regulated by the said Ministry.
The competent authority in the Free Zone for intellectual property business carried out therein.
The competent authority in the Financial Free Zone for intellectual property business carried out therein.

Ministry of Economy :
Example : Where the entity has been issued license for the intellectual property business from the Dubai Department of Economic Development , Abu Dhabi Department of Economic Development , Sharjah Economic Development Department , Ras Al Khaimah Economic Development Department , Ajman Economic Development Department , Umm Al Quwain Economic Development Department ,Fujairah Municipality and other non free zone or financial free zone authorities in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Free Zone Authorities :
Example : Where the entity has been issued license for the intellectual property business from the free zone authorities like Jebel Ali Free Zone Authority ( JAFZA), Dubai Multi Commodities Centre (DMCC), Dubai Airport Free Zone (DAFZ) , Khalifa Port Free Trade Zone (KIZAD), Sharjah Airport Free Zone Authority (SAIF Zone), Hamriya Free Zone Authority (HAFZ), Ajman Free Zone Authority (AFZA), Umm Al Quwain Free Zone Authority (UAQ Free Trade Zone), Ras Al Khaimah Economic Zone (RAKEZ), Fujairah Free Zone Authority in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Financial Free Zone Authorities :
Example : Where the entity has been issued license for the intellectual property business from the free zone authorities like Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM)

Ministry of Economy for distributions and service centre business regulated by the said Ministry.
The competent authority in the Free Zone for distributions and service centre business carried out therein.
The competent authority in the Financial Free Zone for distributions and service centre business carried out therein.

Ministry of Economy :
Example : Where the entity has been issued license for the distribution and service centre from the Dubai Department of Economic Development , Abu Dhabi Department of Economic Development , Sharjah Economic Development Department , Ras Al Khaimah Economic Development Department , Ajman Economic Development Department , Umm Al Quwain Economic Development Department ,Fujairah Municipality and other non free zone or financial free zone authorities in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Free Zone Authorities :
Example : Where the entity has been issued license for the distribution and service centre from the free zone authorities like Jebel Ali Free Zone Authority ( JAFZA), Dubai Multi Commodities Centre (DMCC), Dubai Airport Free Zone (DAFZ) , Khalifa Port Free Trade Zone (KIZAD), Sharjah Airport Free Zone Authority (SAIF Zone), Hamriya Free Zone Authority (HAFZ), Ajman Free Zone Authority (AFZA), Umm Al Quwain Free Zone Authority (UAQ Free Trade Zone), Ras Al Khaimah Economic Zone (RAKEZ), Fujairah Free Zone Authority in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.

Financial Free Zone Authorities :
Example : Where the entity has been issued license for the distribution and service centre from the free zone authorities like Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM)

What is Economic Substance Regulations?

What Compliance is required under the UAE Economic Substance Regulations?

Business Activities, subject to notification - substance test and annual substance return compliance under the UAE Economic Substance Regulation

Economic Substance Regulations in United Arab Emirates

Concerned Regulatory Authorities under ESR - Economic Substance Regulation in UAE

Who is subject to the ESR?

For more information on how Gupta Accountants could assist you in compliance with UAE Economic Substance Regulation Rules, contact us today.

Gupta Accountants competent team of chartered accountants in Dubai, provides best supports at all the stages of the compliance to Economic Substance Regulations in UAE to companies registered under free zones and on main land, established in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.
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Who is subject to the ESR?

12/6/2020

4 Comments

Companies subject to the Economic Substance Regulations in United Arab Emirates :

All UAE onshore, offshore and free zone companies, except those entities in which a minimum 51 per cent direct or indirect investment is from government authorities or government bodies, that carry on and generate income from one of the relevant activities as follows:

Banking Businesses:

Raising funds, managing risk including credit, currency and interest risk.
Taking hedging positions.
Providing loans, credit or other financial services to customers.
Managing capital and preparing reports to investors or any government authority with functions relating to the supervision or regulation of such business.

Insurance Businesses:

Predicting and calculating risk.
Insuring or re-insuring against risk and providing Insurance Business services to clients.
Underwriting insurance and reinsurance.

Investment Fund Management Businesses:

Taking decisions on the holding and selling of investments.
Calculating risk and reserves.
Taking decisions on currency or interest fluctuations and hedging positions.
Preparing reports to investors or any government authority with functions relating to the supervision or regulation of such business.

Lease-Finance Businesses:

Agreeing funding terms.
Identifying and acquiring assets to be leased (in the case of leasing).
Setting the terms and duration of any financing or leasing.
Monitoring and revising any agreements.
Managing any risks.

Headquarters Businesses:

Taking relevant management decisions.
Incurring operating expenditures on behalf of group entities.
Coordinating group activities.

Shipping Businesses:

Managing crew (including hiring, paying and overseeing crew members).
Overhauling and maintaining ships.
Overseeing and tracking shipping.
Determining what goods to order and when to deliver them, organising and overseeing voyages.

Holding Company Businesses :

Activities related to a Holding Company Business.

Intellectual Property Businesses:

Taking the strategic decisions and managing (as well as bearing) the principal risks relating to acquisition by third parties and subsequent exploitation and protection of the intangible asset.
Carrying on the ancillary trading activities through which the intangible assets are exploited leading to the generation of income from third parties.
Taking strategic decisions and managing (as well as bearing) the principal risks related to development and subsequent exploitation of the intangible asset generating income.

Distribution and Service Centre Businesses:

Transporting and storing component parts, materials or goods ready for sale.
Managing inventories.
Taking orders.
Providing consulting or other administrative services

For more information on how Gupta Accountants could assist you in compliance with UAE Economic Substance Regulation Rules, contact us today.

Gupta Accountants competent team of chartered accountants in Dubai, provides best supports at all the stages of the compliance to Economic Substance Regulations in UAE to companies registered under free zones and on main land, established in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.
VAT | REGISTRATION | COMPLIANCE | AUDIT | REFUND | CONSULTING

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What Compliance is required under the UAE - Economic Substance Regulations?

12/6/2020

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Established companies holding License, which carries out one or more of the Relevant Activities as stipulated under UAE Economic Substance Regulations, must submit a notification to the appropriate regulatory authority as set out in the Economic Substance Regulations.

In addition, for every financial period, any Licensee that carries out one or more of the Relevant Activities and derives income from the Relevant Activity in the UAE will also be required to satisfy an "economic substance test" and submit an annual economic substance report with the appropriate regulatory authority within 12 months from the end of the relevant financial year.Companies that are at least 51% directly or indirectly owned by the Federal or an Emirate government or a UAE-based government body or authority are exempted from the compliance under UAE Economic Substance Regulations.

The appropriate regulatory authority varies depending on the type of Relevant Activity and the location in which it is undertaken. Each regulatory authority will set out the form of the reports to be filed and the mechanisms for submitting such forms.

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What is the Economic Substance Regulations?

12/6/2020

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In 2019, the UAE issued the herein below listed legislation introducing economic substance regulations that apply across all onshore and free zone jurisdictions in United Arab Emirates:

UAE Cabinet Resolution No. 31/2019 concerning economic substance regulations in the UAE
Cabinet Resolution No. 58/2019, which designates the appropriate UAE authorities to regulate compliance under these regulations.
guidance released by the Ministry of Finance pursuant to Ministerial Decision No. 215/2019; and
Cabinet Resolution No. 7/2020, amendments to Resolution No. 31-2019

These recently introduced economic substance regulations in UAE, required all the businesses that may be subject to these regulations to take action and ensure timely compliance.

For more information on how Gupta Accountants could assist you in compliance with UAE Economic Substance Regulation Rules, contact us today.

Gupta Accountants competent team of chartered accountants in Dubai, provides best supports at all the stages of the compliance to Economic Substance Regulations in UAE to companies registered under free zones and on main land, established in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.
VAT | REGISTRATION | COMPLIANCE | AUDIT | REFUND | CONSULTING c

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Business Activities, subject to Compliance and Annual Reporting under the UAE Economic Substance Regulation Rules :

2/6/2020

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Economic Substance Report is called upon by the respective authority controlling the respective business activity in UAE and in case of free zone the respective licensing authority , where an entity (company) is based and got the trade license issued from. This is applicable to the 9 business activities only.

Detailed analysis of the business activities under the rules and the respective specified authority under the UAE Economic Substance Regulation Rules :

Sr. No.	Relevant Activity	Current Core Income Generating Activities	Regulatory Authority
1	Banking Business	Raising funds, managing risk including credit, currency and interest risk. Taking hedging positions. Providing loans, credit or other financial services to customers. Managing capital and preparing reports to investors or any government authority with functions relating to the supervision or regulation of such business.	UAE Central Bank The competent authority in the Financial Free Zone for the Banking Businesses
2	Insurance Business	Predicting and calculating risk. Insuring or re-insuring against risk and providing Insurance Business services to clients. Underwriting insurance and reinsurance.	Insurance Authority The competent authority in the Free Zone and Financial Free zone for the Insurance Business
3	Investment Fund Management Business	Taking decisions on the holding and selling of investments. Calculating risk and reserves. Taking decisions on currency or interest fluctuations and hedging positions. Preparing reports to investors or any government authority with functions relating to the supervision or regulation of such business.	Securities and Commodities Authority The competent authority in the Free Zone and Financial Free zone for the Investment Fund Management Business
4	Lease-Finance Business	Agreeing funding terms. Identifying and acquiring assets to be leased (in the case of leasing). Setting the terms and duration of any financing or leasing. Monitoring and revising any agreements. Managing any risks.	UAE Central Bank The competent authority in the Free Zone and Financial Free zone for the Lease-Finance Business
5.	Headquarter Business	Taking relevant management decisions. Incurring operating expenditures on behalf of group entities. Coordinating group activities.	Ministry of Economy The competent authority in the Free Zone and Financial Free zone for the Headquarter Business
6.	Shipping Business	Managing crew (including hiring, paying and overseeing crew members). Overhauling and maintaining ships. Overseeing and tracking shipping. Determining what goods to order and when to deliver them, organising and overseeing voyages.	Ministry of Economy The competent authority in the Free Zone and Financial Free zone for the Shipping Business
7.	Holding Company Business	Activities related to a Holding Company Business.	Ministry of Economy 2. The competent authority in the Free Zone and Financial Free zone for the Holding Company Business
8.	Intellectual Property Business	Taking strategic decisions and managing (as well as bearing) the principal risks related to development and subsequent exploitation of the intangible asset generating income. Taking the strategic decisions and managing (as well as bearing) the principal risks relating to acquisition by third parties and subsequent exploitation and protection of the intangible asset. Carrying on the ancillary trading activities through which the intangible assets are exploited leading to the generation of income from third parties.	Ministry of Economy The competent authority in the Free Zone and Financial Free zone for the Intellectual Property Business
9.	Distribution and Service Centre Business	Transporting and storing component parts, materials or goods ready for sale. Managing inventories. Taking orders. Providing consulting or other administrative services.	Ministry of Economy The competent authority in the Free Zone and Financial Free zone for the Distribution and Service Centre Business

Compliance required under Economic Substance Regulations

What are economic Economic Substance Regulations

Activities subject to compliance under Economic Substance Regulations

Economic Substance Regulations in United Arab Emirates

For more information on how Gupta Accountants could assist you in compliance with UAE Economic Substance Regulation Rules, contact us today.

Gupta Accountants competent team of chartered accountants in Dubai, provides best supports at all the stages of the compliance audit for the companies registered under free zones established in the emirates of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.
VAT | REGISTRATION | COMPLIANCE | AUDIT | REFUND | CONSULTING

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Compliance Audit in RAKEZ

6/3/2020

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Requirement of submitting audited financial statements by Ras Al Khaimah Economic Zone :

As per notification by RAKEZ in June 2019, now all companies registered under RAKEZ are required to submit audited financial statements on annual basis upon the end of the respective financial years. The first submission of audited financial statements will be required in 2020.

Financial year ending 31st December 2019 onward , companies registered under RAKEZ would be required to submit audited financial statements within six (6) months from the end of your company’s financial year. (i.e. 30th June 2020)

It should be noted that, as per the RAKEZ Companies Regulations, it is the responsibility of each company to ensure that their appointed auditor is registered as an Approved Auditor with RAKEZ and is listed in the Approved Auditors List. This requirement does not apply to auditors appointed to audit RAKEZ registered companies as a branch company, provided such a company has a group auditor.

For more information on how Gupta Accountants could assist you in compliance audit for the companies based in RAKEZ - Ras Al Khaimah Economic Zone, contact us today.

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Top Ten most common mistakes made by SMEs in compliance with UAE VAT

7/12/2019

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It has been almost 2 years since the Value added tax was implemented in United Arab Emirates. We have observed in certain cases the following mistakes in relation to the compliance with rules and regulations of the UAE Value Added Tax

Failure to issue valid tax invoice
Non maintenance of the records
Mistakes in calculation and payment due tax on due date
Delay in submission of vat returns
Submission of incorrect vat returns
Non having the right accounting setup, accounting software and dedicated person
Reliance in the freelancers with limited understating of the vat rules and regulations and non availability when its needed most by the companies
Limited understanding of the exempt, zero rated and outside scope supply of the goods and services
Incorrect input tax deduction & claim of input on blocked items or liked to exempt supplies - such as entertainment expenses, expenses incurred in a personal capacity, medical insurance, etc
Delay in amendment of VAT registration details from time to time

It should be noted that the administrative penalties are in place for the errors / omissions committed in relation to the timely and correct compliance with UAE VAT rules and regulations.

We at Gupta Accountants could assist you in compliance with UAE VAT rules and regulations and safeguard your business interest at best.

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What is difference in Input Tax and Recoverable input Tax

7/7/2018

Definition: "Input VAT is amount of Tax paid by a Person or due from him when Goods or Services are supplied to him, or when conducting an Import."

Definition "Recoverable input VAT is amount of tax that were paid and can be repaid by the Authority to the Taxpayer pursuant to the provisions of the Decree-Law.

All recoverable input tax is input tax but not all input tax is recoverable input tax under UAE VAT Law.

Gupta Accountants competent team as Vat Consultants in Dubai, provides supports at all the stages of the Value Added Tax on good and services in UAE to local companies, free zone based companies and designated zone based companies of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.
VAT | REGISTRATION | COMPLIANCE | AUDIT | REFUND | CONSULTING

What is Recoverable Input VAT ?

7/7/2018

Definition: "Input VAT is amount of Tax paid by a Person or due from him when Goods or Services are supplied to him, or when conducting an Import."

"Recoverable input VAT is amount of tax that were paid and can be repaid by the Authority to the Taxpayer pursuant to the provisions of the Decree-Law.

Example: 5% of tax paid over and above the value of the purchase made by a registered business/ person under UAE VAT.

Input tax is the tax paid by a person on purchases or inward supplies. A major element of VAT in UAE is the provision to recover the tax paid on inputs. This means that a person can reduce the value of input tax eligible for recovery from the tax payable and only pay the balance amount as tax. This ensures that tax is paid only on the value added at each stage in the supply chain. Hence, the amount of input tax eligible for recovery plays an important role in the cash flow and operating expenses under VAT.

How much of the input tax paid by a registered business/ person would be recoverable depends upon many factors.

A. Input tax paid on expenses related to taxable supply (All input VAT is Recoverable input VAT in the vat return of the registered business/ person.

B. Input tax paid on expenses related to non-taxable/exempt supply ( All input VAT may not be Recoverable input VAT in the vat return of registered business/ person.)

C. Input tax paid on expenses related to both taxable and non-taxable/exempt supply ( % of total input VAT may be Recoverable input VAT in the vat return of registered business/ person.)
Recoverable on a proportionate basis by the registered VAT person.

Who must file VAT Return 201 under UAE VAT?

7/7/2018

VAT Return 201 must be filed by all businesses/ persons having Tax Registration Number allocated by Federal Tax Authority under UAE Value Added Tax Law.

It should be noted that even if there was no business transactions undertaken during a particular tax period by a registered business/ taxable person, still it is mandatory to file vat returns. In such cases the return would be a nil return.

Non filing of vat returns by a registered business/ taxable person would attract administrative penalties as stipulated under UAE VAT laws.

Which currency to be used while filing uae VAT Return 201?

7/7/2018

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UAE VAT Return should be prepared and submitted in AED (Arab Emirates Dirham).

Transaction of purchases, sales, income and expenses in foreign currencies should be converted in AED based on the prevailing exchange rates before they are considered in the VAT Return preparation and calculations.

The rate should be considered as on the date of the invoice.

In order to convert foreign currency to AED values, it is required to use the currency rates prevailing on the date of supply. The currency rates are published each week by the UAE Central Bank specially for VAT purposes.

Link to Central Bank of UAE www.centralbank.ae/en/index.php?option=com_jumi&fileid=61&Itemid=59

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What happens if UAE VAT201 return filing is delayed or late?

7/7/2018

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The VAT Return 201 must be submitted on FTA Portal no later than the 28th day following the end of the tax period which is also the deadline for the settlement of the net vat liability if any.

It should be noted if the due date for the submission of the VAT Return and the corresponding payment falls on a weekend or an official public holiday in the UAE, the deadline for filing the VAT Return or making payment of net vat dues is extended to the first business day thereafter.

Example, if your tax period ends on the 30th June 2018, the VAT Return 201 and payment of net vat dues if any must be settled no later than the 28th of July 2018. However, as the 28th of July 2018 is a Saturday, the VAT return shall be due on July 29th, 2018.

Delay in submission of VAT Return 201 attracts penalty of AED 1,000/- for the first time and penalty of AED 2,000/- for the second time .

Delay in settlement of the net due vat attracts penalty of 2% for first six day from due date, 4% till 30th day from due date and 1% for each day after lapse of 30days from the due date up to 300th day or date of settlement whichever is earlier/less.

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What is VAT Return under UAE VAT? (Form VAT201)

3/2/2018

VAT Return is an official Document to be completed by the Taxable Person and submitted to the Federal Tax Authority (FTA) at regular intervals detailing if any output tax due and input tax recoverable and including any other information that is required to be provided as per FTA guidelines.

Under UAE Value Added Tax the VAT Returns are filed in Form No. VAT 201.

All VAT returns should be submitted online using the FTA Portal of the respective Taxable Person.

The VAT Return could be submitted by the Taxable Person or another person who has the right to do so on behalf of the Taxable Person.

VAT Returns must be submitted for all the tax periods.

VAT Returns must be submitted within 28 days from the end of the relevant tax period. If the 28th day falls on public holiday or weekend then the next first business day would be considered the 28th Day.

Any Tax payable as per the VAT Return also must be paid within 28 days from the end of the relevant Tax Period

If there is no business transaction in the relevant tax period then also it is must for the Taxable Person to submit VAT Returns. This is also called as Nil VAT Return.

Designated Zones under UAE Value Added Tax.

17/1/2018

Designated Zone is an area specified by a decision of the UAE Cabinet upon the recommendation of the Minister of Finance, as a Designated Zone for the purpose of the UAE VAT Law and rules made there under. Currently there are 20 designated zones in UAE.

It should be noted that the vat effect of the designated zone is only on supply of goods. As supply of goods by a company based in designated zones to another company based in designated zones would be out of the scope of the UAE VAT.
Companies providing services would not have any vat effect of designated zone on their service business and would be treated like any other company in UAE.

Designated Zones in Dubai

Jebel Ali Free Zone (North-South)
Dubai Cars and Automotive Zone (DUCAMZ)
Dubai Textile City
Free Zone Area in Al Quoz
Free Zone Area in Al Qusais
Dubai Aviation City
Dubai Airport Free Zone

Designated Zones in Sharjah

Hamriyah Free Zone (HAFZA)
Sharjah Airport International Free Zone ( SAIF Zone)

Designated Zones in Ajman

Ajman Free Zone

Designated Zones in Ras Al Khaimah

RAK Free Trade Zone
RAK Maritime City Free Zone
RAK Airport Free Zone

Designated Zones in Fujairah

Fujairah Free Zone
Fujairah Oil Industry Zone (FOIZ)

Designated Zones in Abu Dhabi

Free Trade Zone of Khalifa Port
Abu Dhabi Airport Free Zone
Khalifa Industrial Zone

Designated Zones Umm Al Quwain

Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port
Umm Al Quwain Free Trade Zone on Sheikh Monhammed Bin Zayed Road

What would be UAE VAT effect on supply of goods by a company based in Designated Zones in UAE?

17/1/2018

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Supply of goods and services to outside implementing states (currently UAE and KSA) would attract 0% Vat.
Supply of goods to other designated zones would be out of the scope. But may require deposit of equivalent of vat tax on the value of the goods subject to such transfer while the goods are in transit from one designated zone to another.
Supply of goods to other companies based in UAE would be subject to 5% standard rate of vat.
Supply of goods to other implementing states (now only KSA)
1. Registered customers (under KSA VAT) would pay vat on reverse charge basis there is no need from our side to charge vat. But company must keep the record of such transfer like shipping documents, delivery notes and the Tax Registration Number of such customers.
2. Un-Registered customers (under KSA VAT) would be treated as any other customers and company would have to charge vat tax at standard rate.

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First tax period under UAE Value Added Tax (VAT) Law

16/1/2018

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Tax Period is the specified time frame, for which Payable Tax shall be calculated and paid under UAE Value Added Tax Law and regulations made there under.

First Tax Period is the specified time frame, for which Payable Tax shall be calculated and paid under UAE Value Added Tax Law and regulations made there under for the first time only by for the new registrants under Vat tax law.

What is the difference between tax period and first tax period?

First tax period could range in between a month on minimum side to combination of one tax period and part of another tax period as specified by Federal Tax Authority for the respective tax registrants under UAE Vat. Provision of extended period under first tax period provides extra time and space to the newly registered tax registrant to comply with the vat return and tax payment deadline.
Succeeding tax periods would be either of one month or a quarter and as specified by Federal Tax Authority for the respective tax registrants under UAE Vat. .

The concept of the first tax period is to an extent is similar to the concept of first financial statement of a newly incorporated company. It should be noted that in normal course when a new company’s first financial statement are made and audited the period for the first financial statement could be from minimum of 6 months to the maximum of 18 months (i.e. On minimum side 6 months to maximum side being period of an year and part of another year) and is at the discretion of the management of the company. There after succeeding financial statement are made for the period on 12 months and this is followed year after year.

Submission UAE Value Added Tax (VAT) Return and payment of tax due as per the return must be made within 28 days from the end of the tax period whether it is first tax period or succeeding tax period.

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How to verify VAT TRN (Tax Registration Number) on Tax Invoice in UAE ?

5/1/2018

Please note that earlier to verify the TRN Number it was necessary be a registered user on FTA website. But now its is not required to be registered hence any person registered with FTA website or not could check the TRN number of the suppliers who is charging them VAT.

Steps to verify TRN number in UAE 

Step by step process to verify the Tax Registration Number (TRN) issued in UAE

1. Visit web site of Federal Tax Authority in United Arab Emirates www.tax.gov.ae

2. Look for the TRN VERIFICATION tab on the right side

3. Enter the TRN number to be verified.

4. Enter CAPTCHA code

5. At this stage the name of the company associated with the entered TRN would be displayed

Validating the TRN on the Tax invoices received would simplify and ensure correct filing of VAT returns and settlement of payable tax within the time stipulated by FTA UAE. the provided is correct.

It should be noted that Input VAT could not be claimed back if the VAT is paid to on an invoice issued by a business not holding TRN number, providing wrong TRN number, invoice having in it mentioned TRN on some other company by the act of omission, error or commission for what ever reasons.

Hence in order to comply with the provision of UAE VAT laws and rules made there under, related to claim of the input vat credit it is important to verify the TRN in all the first dealings with the suppliers of the business.

Verification of the Tax Registration Number (TRN) is a simple and easy process and could save a business from losses due to bad input credit invoices.

Notes: Contents of the Blog Updated on 24 September 2019)

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Requirement of submitting audited financial statements by Ras Al Khaimah Economic Zone :

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Important Contents of the public consultation document in relation of the UAE Corporate Tax