Everything You Should Know About GCC VAT System

 VAT (Value Added Tax) was implemented in the UAE in January 2018, to ensure effective fiscal management at the federal level. It has had an impact across individuals and businesses in the UAE.

So, what is GCC VAT? It is nothing but an indirect tax that will be levied on goods and services in the member states of Gulf Cooperation Council (GCC). The member states include Saudi Arabia, Dubai, Qatar, Bahrain, Kuwait and Oman.

• How will VAT be charged?

All the businesses will charge VAT on the goods and services they supply on behalf of the government. Every stage of the supply chain will see the VAT charge, and the end user will bear the charges.

• What types of goods and services are exempted from GCC VAT?

Medicine, medicine supplies, certain foods, the oil sector, international and intra-GCC transport, supply outside the GCC and on supply of precious metals for investments. Apart from this, each of the states can define their own exemptions.

• What is the GCC VAT rate?

The GCC VAT rate is charged at 5%. However, there are certain sectors marked at 0% VAT in the different member states.

• Who is required to register for VAT?

Any business with an annual turnover of AED 375000 (or its equivalent) is required to register for VAT. Businesses whose turnover is lesser than AED 375000 are not required to register for VAT, although if they still wish to – they can. It is not a compulsion. To know more, you can get in touch with a VAT consultancy in Abu Dhabi.

• How can we help you?

We help you with VAT Periodical Compliances, VAT Health Check, VAT Registration / de-registration, Assistance in getting VAT Refunds and more.

TRC Pamco is one of the leading VAT companies in Dubai, and it has the experience necessary to help you to optimize your tax position. Since, VAT compliance involves a complex process, choose an expert from our team of tax (VAT) professionals who know how to build a sustainable tax (VAT) strategy to make your organization tax (VAT) compliant.

Scope of the New ESR Update - Key Changes & Requirements

 The UAE had announced Economic Substance Regulations in April 2019, and have updated it since then, and it is imperative for businesses in the UAE to be aware of the same.

First, who is eligible to hire a ESR filing company in Dubai?

Any natural or juridical person licensed by a competent licensing authority in the UAE (licensee) that carries out any relevant activity is subject to the ESR. On 11 September 2019, the United Arab Emirates (UAE) issued Ministerial Decision No. 215 of 2019 containing guidance for businesses on compliance with the Economic Substance Regulations (ESR), enacted in April.

What are the key updates?

• Initially, government entities were exempt from ESR, but as per updated rules – they also must comply with the updates ESR regulations.

• Offshore companies who operate in the UAE through branch offices, and the ones that concluded they carried out relevant activity of distribution and service center business – will have to verify the impact of the updated ESR on their previous analysis. Previously, for any entity to fall under the scope of Distribution & service center business, goods had to be stored in the UAE, not anymore though.

• Offshore companies conducting relevant activity through a branch in the UAE do not need to show economic substance, provided the relevant income is subject to tax in the jurisdiction where the company is formed.

• All the entities need to now verify if the analysis they conducted under the previous economic substance regulations still hold accurate with the updated regulations.

• If any UAE entity falls under the updated Economic Substance Regulations, they need to re-submit their economic substance notification through the finance portal of the UAE ministry, once available.

To know more about ESR filing companies in UAE, check out TRC Pamco. They have a team of professionals who can guide you through the process and file your Economic Substance Regulations in compliance with the updated rules.

Best Practices For A Cost-Effective Internal Audit

 

Let’s begin with what is Internal Audit? Internal Audit is defined as an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objective by bringing together a systematic and disciplined approach, that helps evaluate and improve the risk management processes.

In planning risk-based audit, the best audit firms in Dubai work intimately with the association's senior administration and the board, or council of the board, to acquire an away from of inspecting and observing assumptions and how these exercises can be utilized together to help limit and alleviate chances for the association. These conversations ought to likewise incorporate authority from the legitimate, consistence, and danger the board capacities, on the off chance that they are not effectively a piece of the senior management group.

The danger appraisal will uphold advancement of a multi-year review plan. A multi-year approach is suggested, as regions recognized as higher danger ought to be evaluated all the more oftentimes, commonly yearly, and lower hazard regions can be evaluated less oftentimes, maybe on a biennial or even third premise, contingent on the board's hunger for hazard. The review plan ought to distinguish the recurrence a region will be inspected, and ought to be assessed and modified, if essential, each time the danger appraisal is refreshed.

At the point when issues are distinguished, it is significant that administration make the proper restorative move to remediate the issue. This could go from making explicit value-based redresses, to evolving arrangements, methodology, practices, and retraining faculty if essential. Inside review ought to circle back to earlier issues to guarantee that suitable, viable, and feasible remedial move has been made. The assigned review advisory group or chief administration council ought to be given on-going reports on status of earlier inner review discoveries which brought about restorative activities.

To get the most out of your Internal Audit, it is best to have a trusted and reliable auditor on board. Get in touch with TRC Pamco – one of the leading auditing companies in Dubai. TRC PAMCO has committed its experience and skills to provide high quality professional services to the clients with the promise of keeping up highest standards of ethics and integrity.

How Does Your Business Comply With The UAE Economic Substance Regulations?

 

What is Economic Substance Regulation? Well, for starters, the UAE introduced Economic Substance Regulations on 30th April 2019, and these regulations require UAE mainland and free zone companies and other UAE business forms that carry out relevant activities to ensure standards related to Base Erosion and Profit Shifting (“BEPS”) are implemented. The UAE has complied to implement: Countering harmful tax practices, country-by-country reporting, prevention of granting tax treaty benefits in inappropriate circumstances and mutual agreement procedure.

Entities that are directly or indirectly owned by the UAE government (both federal and local) are specifically excluded from the Regulations. On this basis, UAE sovereign investment funds and other UAE government related entities would not need to meet the UAE economic substance requirements.

ESR in UAE applies to companies in banking, insurance, lease-finance, investment fund management, shipping, holding companies, headquarters, intellectual property and distribution & service centers. 

What should be included in the ESR report?

• The value/type of income earned from activities

• The location of the activities and the property used to conduct those activities

• The number of team members responsible for conducting the activity

• A disclosure by the company stating they have met Economic Substance Requirements

Have you defaulted on the esr fillings?

• A penalty of AED 10,000 – AED 50,000 will be levied if you fail to notify or provide accurate information or don’t demonstrate sufficient economic substance in the UAE.

• A penalty of AED 10,000 – AED 50,000 will be levied if you fail to provide information exchange with the foreign competent authority in relation to company or owner.

• A penalty of AED 100,000 - AED 300,000 will be levied and your license can be suspended if you fail to provide any of the above for the second financial year.

Are you unsure if your company is complying with Economic Substance Regulations? Get in touch with TRC Pamco, the best ESR filing company in Dubai. They can help you with your requirement, and stay ESR compliant.

Changing Trends in Internal Auditing

 Internal Audit provides independent assurance that the organization’s risk management, governance and internal controls operate in a seamless manner. It also has to act as the trusted partner of any business.

Any discrepancies in Internal Audit lead to process improvements as well. It basically helps identify any warning signals that could lead to threats for any organization, so you get how important Internal Audit can prove for an organization. Here are a couple of changing trends for Internal audit firms in Abu Dhabi, and how they can implement these changes in their processes:

• The role of an internal audit has evolved from just being a financial audit. It’s more about regulatory compliance and business process optimization. Right from financial reporting to managing risk, from prioritizing goals to eliminating redundancy and streamlining operations – the role of an internal auditor involves this and much more!
• Given the environment today – businesses call for a strong collaboration between auditors and auditees. It’s all about building a structure that facilitates a healthy environment at workplaces, one that also facilitates accountability. With the free flow of information, every organization can be on the same page.
• Internal Audit is now meant to deliver continuous assurance across the organization. Centralized Internal Audit solutions will ensure that everyone has a know-how of the organization. Every business must be able to review any control self-assessment of their choice – regardless of where it’s being performed. This will help identify and improve processes to a very large extend. By doing this across business verticals, auditors will help you identify risks, near-misses and many more emerging risks that could hamper the organization.
• Upgradation of the technology infrastructure for any business is essential, given the various complex assessments and inspections involved. 

A web-based integrated audit management system can help overcome the operational difficulties, while also strengthening the Internal Audit function. To know more, get in touch with TRC Pamco, the leading Internal Audit Firm in Dubai.

Essential Things that will help you to incorporate a business in Dubai Free zone

 When it comes to Dubai and business set up, the first choice is the Free zone given the various benefits like tax free zone, 100% foreign ownership (which is now possible with the new Commercial Law) and the east of company formation in Dubai.

First and foremost – understand the type 2 types of Free zones:

-          Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co)

-          Free Zone Establishment (FZE)

And then the number of free zones. There are 30 free zones as of now.

To ensure a seamless Dubai free zone company setup, be prepared with the following:

-          The name of your business. While it might seem easy, it is quite a complex decision to make. It sets the target and course for your business. The first step is to register the name of your company via the government body or through a company formation expert.

-          Then the next important step is to understand the free zones and make a choice for your business – depending on the type of business. Some free zones only allow certain categories of businesses, so you will have to map business category with free zones and accordingly make a choice.

-          It’s crucial to have all your documentation in one place. You would need the below documents to register your company in a free zone:

1.       Copy of shareholder’s passports and visas

2.       Application form

3.       Business plan

4.       Specimen signature of the company’s shareholder/s and the appointed Manager/Director for the new company

5.       Audited financial reports of 2 years or certificate of reference from a personal bank of the individual shareholder

6.       NOC from current sponsor (for individuals)

7.       Unit title deed

8.       Letter of Intent, and more.

 The free zones have a special tax, customs and imports regime making it a lucrative for businesses. With 100% import and export tax exemptions, it’s a great option for businesses involving the movement of goods. To know more about company formation in Dubai, check out TRC Pamco, one of the best audit firms in Dubai. They have Company Formation experts and can help you ease the process.

ca firms in Dubai

Changing Trends in Internal Auditing

 Internal Audit provides independent assurance that the organization’s risk management, governance and internal controls operate in a seamless manner. It also has to act as the trusted partner of any business.

Internal Audit provides independent assurance that the organization’s risk management, governance and internal controls operate in a seamless manner. It also has to act as the trusted partner of any business.

Any discrepancies in Internal Audit lead to process improvements as well. It basically helps identify any warning signals that could lead to threats for any organization, so you get how important Internal Audit can prove for an organization. Here are a couple of changing trends for Internal Audit firms in Dubai, and how they can implement these changes in their processes:

-          The role of internal audit has evolved than just being a financial audit. It’s more about regulatory compliance and business process optimization. Right from financial reporting to managing risk, from prioritizing goals to eliminating redundancy and streamlining operations – the role of an internal auditor involves this and much more!

-          Given the environment today – businesses call for a strong collaboration between auditors and auditees. It’s all about building a structure that facilitates a healthy environment at workplaces, one that also facilitates accountability. With the free flow of information, every organization can be on the same page.

-          Internal Audit is now meant to deliver continuous assurance across the organization. Centralized Internal Audit solutions will ensure that everyone has a know-how of the organization. Every business must be able to review any control self-assessment of their choice – regardless of where it’s being performed. This will help identify and improve processes to a very large extend. By doing this across business verticals, auditors will help you identify risks, near-misses and many more emerging risks that could hamper the organization.

-          Upgradation of the technology infrastructure for any business is essential, given the various complex assessments and inspections involved.

A web-based integrated audit management system can help overcome the operational difficulties, while also strengthening the Internal Audit function. To know more, get in touch with TRC Pamco, the leading Internal Audit Firm in Dubai.