Accountancy and bookkeeping are not simple and easy in UAE. Many changes were introduced in new tax laws, including VAT and cooperate tax law, regulated by the Ministry of Finance and Federal Tax Authority. Furthermore, anti-money laundering laws are in place in UAE under the regulations of the UAE central bank. In addition, the Ministry of Economy regulates Ultimate Business Owner (UBO).
With these regulations and cooperative tax laws, you need professional and qualified accounts to follow and maintain their books of account as per International Accounting Standards. Followed by UAE Federal Tax Authority, Ministry of Finance, UAE Central Bank, and Ministry of Economy to avoid and save financial penalties.
Introduction:
UAE Ministry of Finance and Federal Tax Authority impose many financial and tax laws. So that requires International Monitoring Funds and other countries’ tax regulatory authorities to regulate and document the UAE economy.
In 2018 federal tax authority (FTA) imposed a 5% value-added tax for all natural and legal persons. As you know that natural persons consider Sole establish companies, other UAE nationals, and other countries’ investors, those who have commercial properties and get rent on them. So those investors think of natural persons, which means they have commercial income without a commercial trade license.
They are starting in 2020 Central Bank of UAE regulated anti-money laundering policies. Companies dealing in a high volume of cash transactions. Like Gold & Jewellery, precious stones, loose diamonds business, Real estate developers and brokers, Audit & Accounting firms, Banks and money exchange companies, and cooperative service providers have to register their companies with UAESB/AML.
The central concept to avoid and make sure money is clean, and it will not involve or used for any illegal activities, and there are valid reasons are available if money received in their account or transferred from their account, if anyone is unable to provide proof of funds which they received or share they will have punishment for money launder in UAE, for example, a person transfer money without money trail or illegal sources and buy assets in UAE with money laundering money, in that case, there is life imprisonment for ten years and penalties from AED 100,000.0 to AED 500,000.00.
Why Account Services:
From July 2023 onwards UAE Ministry of Finance implemented a 9% cooperate tax on all commercial entities. Except those that engaged in mining, petroleum, natural resources, earning from investment, dividend income, personal income from real estate, charities, federal and emirates governments, social securities and retirements pension funds, etc.
Filing cooperates tax returns is not so simple it purely technical and needs to fill in correct financial information.
The threshold is AED 375,000.00 minimum profit above this amount. Companies must pay a 9% to cooperate tax, but calculating this profit is not simple because many taxable expenses have certain limits. Beyond this limit, it will add back in profit. For example, charities and donations have some limitations and cannot give charities assistance as per their will if they want to donate.
They have to do with UAE government-approved charity organizations only if some person or company will do charities or assistance that is not listed. Then, that amount will add back in profit or will not be considered expenses. Similarly, entertainment and gift expenses also have some limits, cooperate can’t cross boundaries set by the authorities; otherwise, governments put fines and penalties.
To avoid all these financial penalties and fines, you need to have a qualified professional account that is cost-effective for your organization and might sometimes be over your budget because a qualified accountant will demand a high salary. So, the best option is to outsource your accounting department to a qualified accounting firm before outsourcing your accounting department.
Once you outsource your account department, you must check your qualities before signing a contract with an accounting firm.
Accounting Company Profile
The first step is to choose the accounting firm for your accounting department to take care of your accounts per the authority’s tax law and regulations. Then, see the profile of the company and do due diligence. How long has this company been in the market? So how many qualified accountants do they have? How many clients are in its portfolio? Who are their clients, how big this company is, see the clients’ reviews for this company, and then you decide to select the company.
Accountant Profile
The second step is to check the accountant’s profile. Check their qualification and professional experience. How many clients they are taking care of, how big the company accounts. How much accounting software can handle? Do they have a relative field or industry experience? Knowledge of business and industry?
As an example, a gold business accountant must have gold business experience. Otherwise, they cannot control and handles their accounts. In addition, they must demonstrate knowledge of fix or unfix gold transactions, gold market exchange rate, and pure gold conversion into jewelry.
They must recognize 18K/21/22K gold jewelry. Otherwise, they will mix up all calculations. The hotel industry also has very different accounting systems. Therefore you must check the accountant’s profile and face-to-face interview to cross-check and understand what you are doing to hand over your accounts department to the right people.
Field Experience
Before signing a contract with an accounting firm, you must check for that company and its account field experience. If they have the same field experience, then you sign the contract. However, signing a contract with companies without understanding the same field is wise because they will give you wrong information and can’t control and handle the system.
Accounting Software Knowledge
There are many accounting software available in the market, and some companies use their customized software or ERP system for the whole company; this is very important that outsourcing companies should have hand on experience to handle or work on it.
Accounting software generates all financial statements, including MIS reports, for management, so accountants must have the knowledge to operate that software and how to create reports as per company management. In addition, if they don’t know how to get notifications, then they will sever and will not get results as you are required.
Emphasizes Matters
Accounting companies must emphasize matters of material misstatement or entity internal control. For example, suppose you appoint a qualified and experienced accounting firm. In that case, their accountant will emphasize weakness in internal control, and they will advise you on how to improve and make a robust accounting system that will help you to improve your operation.
Control and avoid financial fraud
Mainly in the company, their accountant is involved in financial fraud due to a lack of segregation of duties. The same accountant handles cash, issues cheques to suppliers, makes salaries, draws money from the bank, and deposits money into the bank, and no one can check their work.
Due to weak internal control, accountants easily manipulate records and have no way to find out what happened in the company. Outsourcing will give you peace of your mind. You can avoid all these issues very easily because an accounting firm has no right to control cash or to right or issue cheques, so same time, internal audit work is also going on.
Why Vista Vision Auditing and Chartered Accountants?
Vista Vision Auditing and Chartered Accountants Dubai, United Arab Emirates, was established in 2012. It started its operations in Mozambique as Vista Vision Audit and Accounting Services Mozambique Lda under the same umbrella of leadership, experience, and expertise in the local and international market.
We provide highly professional services through our qualified and experienced professional auditors and accountants, financial consultants, tax consultants, and specialties in other assurance services.
The industries’ exposure relay on Capital and Financial Markets, Construction and Civil Engineering, Manufacturing, Hospitality, and Services. The clients included Private Companies, Non-Governmental Organizations, and Family and Owner Managed businesses. Our commitment to our clients has enabled the firm continued growth and success in developing and maintaining strong professional relationships.
Explanation
We believe our unique combination of technical expertise and our philosophy of total client commitment throughout all phases of the engagement provides our clients the highest quality service and products available.
Our main aim is to offer our clients services of the highest standards through our specialized departments and to add value to their business activities.
Tax consultancy in Dubai and compliance check in taxation, Vista Vision Auditing & Chartered Accountant. Dubai has extensive experience preparing tax planning, implementing, assessing, verifying, and monitoring compliance with tax obligations. The primary purpose of this action is the scope of the taxes onerous solutions.
Rigorous and timely fulfillment of tax obligations associated with the increasing scope and complexity of tax rules require companies to update their strength in tax matters constantly. Such skills are essential to prevent the worsening of the consequences of failure in this area.
Vista Vision Auditing & Chartered Accountant. Dubai can find the necessary solutions to help carefully comply with the tax rules. Our tax experts work in partnership with our customers to help them in tax compliance and the correct calculation of taxes.
The VVAS aims to provide independent, objective assurance and advisory services to optimize operational efficiency and cost controls and improve the underlying control infrastructure. We help companies to accomplish their strategic objectives by bringing a systematic, disciplined approach to evaluating and enhancing the effectiveness of risk management, control, and governance processes.
Moreover
Internal Audit acts as an essential element of the total risk management function and, to that end, also facilitates the Enterprise Risk Management program. Vista Vision Auditing & Chartered Accountant. Dubai monitors the program and reviews the assessment of the risks in each area and the proposed mitigation strategy. In addition, it determines what adjustments, additions, or changes are appropriate for the scope of our work. to determine whether the company’s risk management, control, and governance processes are adequate and functioning to ensure.
Conclusion:
We hand pick the best talent available and nurture and empower them through training and providing them with broad exposure across sectors, service lines, and geographies. Vista Vision Auditing and Chartered Accountant. Dubai is structured to be a “great place to work”; hence, we retain our best employees to serve you now and in the future. Over the years, we have been known for the quality of our people and experienced and dedicated professionals who have found the proper ground for further development—combining specialist skills, sharp industry insight, and relevant local knowledge. In addition, our professionals are valued for the exceptional proximity they have built with our valued clients.
We have grown consistently to have a team of over 15 professionals from diverse cultural and academic backgrounds. This multi-cultural workforce confers to the firm a unique, open corporate culture that allows us to rapidly assimilate clients from diverse social, economic, and geographical backgrounds.
Regular in-house training on emerging industry and regulatory issues further ensure our people keep abreast of significant developments in their specialist field.
