Audit requirements in Free Zone in Dubai

25/3/2017

All companies (FZE & FZCO) registered in free zones have to conduct their annual audit of financial statements from the auditors which are approved by the respective free zone authority.
Audit report in general are needed by most of the free zone within 3 months from the end of the financial years as followed by the companies as per their memorandum of association.

For more information on how Gupta Accountants could assist you in getting your accounts audited in compliance with requirement in free zones in Dubai, contact us today.

Audit compliance by Dubai Free Zone Establishments

24/3/2017

Auditing is mandatory for most of the Free Zone Companies in accordance with most of the free zones authorities in Dubai

Audit reports are subject to submission in general within 3 months from the end of the financial year ending followed by the company as per its memorandum of association.

For more information on how Gupta Accountants could assist you in getting your accounts audited for compliance, contact us today.

Audit requirements for Free Zone Companies in Dubai Free Zones.

23/3/2017

While applying for a licence renewal the licensee company must submit annual audited accounts.
Audited financial statements must be submitted annually.
Audited financial must be submitted within 3 months from the end of the respective financial year followed by the company as per the memorandum of association of the company.
Failure to submit the audited financial statements/audit confirmation within 3 month of the close of the company’s financial year would be a violation and could lead to imposition of penalty in some free zones in Dubai.

For more information on how Gupta Accountants could assist you for compliance audit for the free zone companies in Dubai, contact us today.

Value Added Tax (VAT) in UAE

12/3/2017

What is basis of VAT ?
Value-added taxation is based on a taxpayer's consumption of goods rather than his income. More than 160 countries around the world use value-added taxation. Its directly linked to the consumption of products on which VAT is applicable in the respective country.

About Value Added Tax (VAT) in UAE - In Simple Terms - Picture

What is Value Added Tax (VAT) ?
A value-added tax (VAT) is a type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. The amount of VAT that the user pays is the cost of the product, less any of the costs of materials used in the product that have already been taxed.

Example :
When a computer is built by a company, the manufacturer is charged VAT on all of the supplies it purchases to produce the computer. Once the computer reaches the shelf, the consumer who purchases it must pay the applicable VAT.

What is implementation date of VAT in UAE ?
VAT is likely to be introduced across the UAE on January 1 2018.

What does a business need to do to prepare for VAT?
Concerned businesses will have time to prepare before VAT will come into effect. Businesses will need to meet requirements to fulfill their tax obligations. Businesses could start preparing themselves now so that they will be ready later. To fully comply with VAT, businesses might need to make changes to their core operations, their financial management and book-keeping, their technology, and also if needed even their human resource mix (e.g., accountants and tax advisers). It is essential that businesses try to understand the implications of VAT now and once the legislation is issued make every effort to align their business model to government reporting and compliance requirements.

Please note that UAE VAT law is currently being finalized and would be be published once approved. by the authorities in UAE. Currently the primary source of information regarding the UAE VAT Law is the Ministry of Finance website.

For more information on how Gupta Accountants could assist your business in making changes to the bookkeeping and accounting in compliance with expected VAT tax in UAE contact us today.

Business in Free Trade zones of UAE

11/3/2017

Free-trade zones in the United Arab Emirates are areas that have a special tax, customs and imports regime and are governed by their own framework of regulations (with the exception of UAE criminal law). The UAE has several free zones across Dubai, Abu Dhabi, Sharjah, Fujairah, Ajman, Ras al Khaimah and Um Al Qwain. Free zones may be broadly categorized as sea port free zones, airport free zones, and mainland free zones. Free-trade zone exemptions are:

100% foreign ownership of the enterprise
100% import and export tax exemptions
100% repatriation of capital and profits
Corporate tax exemptions for up to 50 years
No personal income taxes
Assistance with labor recruitment, and additional support services, such as sponsorship and housing.

Each Free Zone is designed around one or more business industry categories and only offers licenses to companies within those categories. An independent Free Zone Authority (FZA) governs each free zone, and is the agency responsible for issuing FTZ operating licenses and assisting companies with establishing their business in the FTZ.
Investors can either register a new company in the form of a Free Zone Establishment (FZE) or simply establish a branch or representative office of their existing or parent company based within the UAE or abroad. An FZE is a limited liability company governed by the rules and regulations of the Free Zone in which it is established. Except for acquiring nationality in the UAE, the provisions of the Commercial Companies Law (CCL) do not apply to FZEs, provided that the Free Zones have special provisions regulating such companies.

Author

Ramesh Kumar Gupta is a young and dynamic Chartered Accountant and has 21 years of experience in assurance, accounting, audit and business management. He is a member of the Institute of Chartered Accountants of India (ICAI). He is the Managing Partner of Gupta Accountants an accounting and advisory firm in Dubai UAE