Overcome Corporate Tax Filing Hurdles – Schedule Your Free Consultation!
Bookkeeping for UAE Small Companies
Challenge and Consequences
Financial Penalties and Fines
Non-compliance with VAT, corporate tax, or other regulations can lead to heavy fines and penalties.
Cash Flow Mismanagement
Poor bookkeeping can lead to cash flow issues, making it difficult to pay vendors or manage expenses.
Inaccurate Financial Reporting
Inaccurate books can result in incorrect financial reports, affecting decision-making and investor confidence.
Missed Tax Deductions
Without proper records, you may miss out on tax deductions, increasing your tax liability.
Difficulty in Securing Loans
Banks and lenders require accurate financial records to approve loans. Poor bookkeeping can lead to loan rejections.
VAT Compliance Issues
Incorrect VAT calculations can lead to audits, penalties, and reputational damage.
Inefficient Business Operations
Poor bookkeeping can lead to stock mismanagement, overstocking, or stock outs, affecting operations.
Difficulty in Audits
Unorganized books can make audits time-consuming and stressful, leading to potential compliance issues.
Lack of Business Insights
Without proper bookkeeping, you miss out on key insights into your business performance.
Documents Required
Bank Statements and Transaction Records
Why: To ensure accurate financial records.
How: We reconcile bank statements with your books to ensure compliance and avoid penalties.
Cash Flow Statements
Why: To track income and expenses.
How: We prepare cash flow statements to help you manage liquidity and plan payments.
Profit and Loss Statements
Why: To provide a clear picture of profitability.
How: We ensure accurate P&L statements to help you make informed business decisions.
Expense Receipts and Invoices
Why: To claim valid tax deductions.
How: We organize and verify expense receipts to maximize your tax savings.
Balance Sheets
Why: To demonstrate financial health.
How: We prepare balance sheets to showcase your company’s assets and liabilities, improving loan approval chances.
VAT Input and Output Records
Why: To ensure accurate VAT filings.
How: We reconcile VAT input and output records to ensure compliance with FTA regulations.
Inventory and Sales Records
Why: To track inventory and sales.
How: We maintain accurate records to optimize inventory levels and improve operational efficiency.
General Ledger and Trial Balance
Why: To ensure audit readiness.
How: We maintain a detailed general ledger and trial balance for easy audit preparation.
Management Reports
Why: To provide actionable insights.
How: We generate management reports to help you track KPIs and make data-driven decisions.
Overcome Corporate Tax Filing Hurdles – Schedule Your Free Consultation!
VAT Registration
Challenge and Consequences
Mandatory Registration
Businesses with taxable supplies exceeding AED 375,000 annually.
Voluntary Registration
Businesses with taxable supplies exceeding AED 187,500 but below AED 375,000.
Non-Resident Businesses
Non-resident businesses making taxable supplies in the UAE must register.
Exemptions
Businesses dealing only in exempt supplies (e.g., certain financial services).
Tax Group Registration
Related entities can register as a tax group under specific conditions.
Documents Required
Business Proof
Trade license, certificate of incorporation, and memorandum of association (if applicable).
Identification Documents
Passport copies and Emirates IDs of owners/partners/authorized signatories.
Address Proof
Why: To provide a clear picture of profitability.
How: We ensure accurate P&L statements to help you make informed business decisions.
Financial Records
Audited or unaudited financial statements showing turnover and bank account details.
Additional Documents
Authorization letter (if applicable) and customs documents
Overcome Corporate Tax Filing Hurdles – Schedule Your Free Consultation!
VAT Return Filling
Challenge and Consequences
Complex Tax Calculations
Errors in VAT filing can lead to penalties, audits, and reputational damage.
Frequent Changes in VAT Regulations
Non-compliance due to outdated knowledge can result in fines and legal issues.
Data Collection and Organization
Disorganized data can cause delays, errors, and missed filing deadlines. Incomplete records can result in disallowed input VAT claims and penalties.
Reconciliation of Input and Output VAT
Mismatched data can lead to incorrect VAT claims and potential financial losses.
Documentation Barriers
Miscommunication or incorrect documentation can lead to compliance failures.
Meeting Filing Deadlines
Late submissions can attract heavy fines and interest charges.
Cross-Border Transactions
Incorrect handling of international VAT can lead to double taxation or penalties.
Documents Required
Sales Invoices
Ensure all sales invoices a comply with FTA requirements and are issued within the defined timelines.
Purchase Invoices
Scrutinize purchase invoices to maximize VAT claims and suggest strategies to minimize VAT loss by ensuring proper invoices from vendors.
Depository
Safely store and digitize records for 5 years to meet FTA audit requirements and provide invoices upon request.
Input and Output VAT Ledgers
Ensure completeness by categorizing all expenses and maintaining accurate VAT records.
VAT Audit
Assist in organizing and digitizing the last 5 years of records to ensure compliance and readiness for any FTA audit.
VAT Certificate
Set calendar reminders to meet deadlines and keep both parties notified for timely compliance.
Imports/Exports Documents
We ensure your import and export documents comply with FTA regulations.
Overcome Corporate Tax Filing Hurdles – Schedule Your Free Consultation!
Corporate Tax Registration
Challenge and Consequences
Legal Entity
Any UAE-based business, including Free Zone Companies, Mainland Companies, and Foreign Branches.
Turnover Threshold
No minimum threshold; all businesses must register regardless of turnover.
Exempted Entities
Certain government entities, public benefit organizations, investment funds, and companies engaged in extractive/natural resource businesses (if subject to another tax regime).
Free Zone Companies
Qualify for 0% tax under the ‘Qualifying Free Zone Person’ regime if they meet specific conditions.
Tax Rate
0% on taxable income up to AED 375,000. 9% on taxable income exceeding AED 375,000 Different rates for large multinationals under OECD Pillar Two rules
Documents Required
Business Identity Documents
Trade License – Copy of the valid trade license(s) of the company. Memorandum & Articles of Association (MOA/AOA) – Required to verify business structure and activities.
Identification Documents of Shareholders & Managers
Passport Copies – Copies of all shareholders’ and managers’ passports. Emirates ID Copies – Emirates ID of all shareholders and managers (for UAE residents).Visa Copies – Residency visa copies of shareholders and managers (if applicable).
Banking & Financial Information
Bank Account Details – Bank account statement or IBAN confirmation letter. Financial Statements – Latest audited/
un-audited financials or management accounts.
Office & Legal Setup Documents
Lease Agreement – Office tenancy contract or Ejari certificate. Power of Attorney (if applicable) – If a consultant is registering on behalf of the company. Authorized Signatory Details – Proof of authorized signatory (Board Resolution, POA, etc.).
Tax-Related Documents
Tax Group Structure (if applicable) – Details of corporate structure if applying for group tax registration. VAT Registration Certificate (if applicable) – If the business is VAT registered.
Overcome Corporate Tax Filing Hurdles – Schedule Your Free Consultation!
Corporate Tax Return Filling
Challenge and Consequences
Complex Tax Calculations
Errors in tax filing can lead to penalties, audits, and reputational damage.
Frequent Changes in Tax Regulations
Non-compliance due to outdated knowledge can result in fines and legal issues.
Data Collection and Organization
Disorganized data can cause delays, errors, and missed filing deadlines.
Reconciliation of Income and Expenses
Mismatched data can lead to incorrect tax claims and potential financial losses.
Missing or Incomplete Invoices
Incomplete records can result in disallowed expense claims and penalties.
Language and Documentation Barriers
Miscommunication or incorrect documentation can lead to compliance failures.
Meeting Filing Deadlines
Late submissions can attract heavy fines and interest charges.
Documents Required
Audited Financial Statements and Trial Balance
We ensure accurate calculations and compliance with corporate tax laws, including a thorough review of the balance sheet and ledgers.
Income Ledgers
Income ledgers must match the amount received in the bank, with the remainder in receivables. Ensure alignment with VAT output and corporate tax reporting.
Expense Ledgers
Expense ledgers must match bank outflows, intercompany payments, or payables. Verify taxable VAT aligns with VAT input claims and corporate tax deductions.
VAT Workings
Reconcile VAT input and output with revenue and tax-claimed expenses. Ensure VAT liability matches corporate tax liability calculated on profit and loss.
Bank Statements
Bank statements should reconcile inflows (reducing receivables) and outflows (reducing payables). Scrutinize expenses and allocate remaining amounts to partner accounts, intercompany transactions, or other payables/receivables for tax accuracy.
Employee WPS Details
Employee expenses should align with WPS records. Ensure proper calculation of gratuity and leave salary. For group companies, verify cross-invoicing or expense adjustments for corporate tax compliance.
Allowed and Disallowed Expenses Schedule
Conduct a thorough review of the balance sheet and ledgers to verify claimable expenses. Add back non-claimable expenses as per FTA guidelines and strategically plan corporate tax savings within legal boundaries.
Overcome Corporate Tax Filing Hurdles – Schedule Your Free Consultation!
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