Category: Accounting Services

Hiring an audit firm in Dubai can greatly improve your business and streamline financial audits. Many companies today outsource their audit and accounting tasks to professional firms. It helps them address financial challenges, meet legal requirements and make the most of their current business environment.

In addition, investors, regulatory bodies, banks, stakeholders and shareholders depend on audited financial statements to confirm a company’s transparency, reliability and accountability. Since audits are a crucial part of any business and involve handling sensitive financial data, it is important to choose the right audit company in Dubai.

Outsourcing auditing services in Dubai to a trusted audit firm ensures your business is managed professionally. However, before selecting the top audit firm in Dubai, you must consider some key factors. In this blog, we will explore what to keep in mind when choosing an audit firm in UAE. So, let us get started!

What are the advantages of working with the best auditing companies in Dubai?

Check out the list below to see the benefits of hiring the top audit firm in Dubai:

Reducing tax costs

With the new VAT and corporate tax laws in the UAE, effective tax planning is more important than ever. An audit firm can help you lower your tax expenses legally while ensuring compliance with the rules.

Affordable services

By choosing auditors in Dubai, you can save money compared to hiring accounting firms in other countries. Opting for service packages that include more than just audit and assurance, such as tax, payroll, consulting, compliance, business setup and technology consulting, makes it even more cost-effective.

Ensure compliance with accounting standards

Dubai has strict rules to maintain transparency and fairness. A top audit firm in Dubai will always follow the latest regulations to ensure your business transactions, accounting processes and paperwork meet the required standards. It will also help prevent costly fines or legal issues.

Effective financial planning

A top chartered accountant firm offers more than just compliance; they provide valuable advice on cost management, investment opportunities and financial forecasting to help businesses make smart and informed decisions.

What factors should you remember when selecting an audit firm in Dubai?

Search for the best audit firms in Dubai

Begin by identifying accounting firms in UAE that offer services in Dubai. You can search online or ask for recommendations from trusted sources like industry professionals, business advisors and your network.

Some free zones in Dubai require audits to be performed by approved auditors. In such cases, you should select from the list of approved auditors provided by the free zone authority. 

Assess experience and skills

When looking for top accounting firms in Dubai, focus on their experience and expertise. Pick firms that are known for their reliability, high-quality services and honesty. Moreover, make sure the firm is skilled in areas like tax planning, risk management, compliance and internal audits in Dubai. 

Industry-specific expertise

Since accounting services can vary by sector and each industry has its own financial needs, choosing a firm familiar with your field will give you more customized and effective solutions. That is why you should check if the firm has experience in your industry and has handled companies like yours. 

Firm reputation and client feedback

After narrowing down your list of top audit firms in Dubai, it is important to do thorough research. Look for details that show the firm’s reliability. The reputation of auditing firms in Dubai is an important factor when choosing an audit firm. It can give you a good idea of how trustworthy and effective they are.

Look for reviews and feedback from clients to understand how well they perform and if their clients are happy. A good firm will have positive comments and be well-known for its quality service in the industry. In addition to this, you can also request references from the firm and talk to their current clients to understand their level of satisfaction.

Look at the services offered

Apart from auditing, audit firms in Dubai offer a wide range of other services. These include financial advice, business setup, tax consulting, and more. Therefore, you should assess your business needs and identify which additional services could be useful.

Choose an audit firm that provides the right support and help for your business. This way, all your accounting needs can be handled by one firm.

Verify certifications and qualifications

To ensure the audit firm maintains high standards of professionalism, check their certifications and accreditations. Look for auditors who are Chartered Accountants (CAs), Certified Public Accountants (CPAs) or have other relevant qualifications.

Besides this, it is also important that they have local accreditation from UAE regulatory authorities. These certifications show their expertise and commitment to industry standards. 

UAE regulations

Make sure the accounting firm follows all the UAE laws and regulations, including local financial reporting and tax rules. Staying compliant is essential to avoid legal problems and ensure your business operates properly within the UAE’s regulatory system. 

Technology and tools in accounting

Today’s businesses need modern solutions. The top audit firms in UAE use advanced accounting software and tools to offer real-time insights and automate routine tasks. Choose a firm that uses up-to-date accounting software, as this helps ensure fast, accurate and efficient financial reporting.

Conclusion

Dubai is known as a global business hub that offers a great environment for companies and entrepreneurs to grow. However, understanding the complex financial and regulatory rules in the UAE can be challenging.

This is where a good audit firm can be extremely helpful. Whether you are a startup, a small business or a large corporation, selecting the right financial partner is crucial for your success. 

Asad Abbas & Co. (Chartered Accountants) is one the best audit firms in Dubai known for its reliable and professional auditing services. Contact us today to see how we can help you achieve your business goals!

The UAE is a popular destination for businesses looking to set up operations, but it has its own set of rules and regulations. As a business owner, it is important to understand the local laws, including the taxes your company must pay while operating in the UAE.

Two key taxes that businesses in the UAE need to be aware of are corporate tax and VAT. These taxes are crucial for generating revenue, but they work in different ways and impact the economy and society. In this blog, we will explain what these taxes are and highlight the difference between VAT and tax. So, let us get started! 

Understanding VAT and corporate tax in the UAE

To understand the main differences between VAT tax in UAE, let us first explain what each tax means according to the law:

• VAT (Value-Added Tax): This is a tax placed on the sale and import of goods and services at every step of the supply process, including when goods are supplied within the country. Essentially, it applies whenever goods or services are bought or sold. 
• Corporate tax: This tax is charged on the income or profits that a business makes. It applies to the earnings of companies and other legal entities.

Simply put, value added tax UAE is a tax on the sale and purchase of goods and services throughout the supply chain. Corporate taxation in UAE, on the other hand, is a tax on the income a business earns.

Corporate tax

Businesses in the UAE did not have to pay corporate tax in the past, but this is changing. The UAE government has introduced a federal tax on business profits. On December 9, 2022, the Federal Tax Authority issued the Corporate Tax Decree Law. 

The purpose of this new tax is to shift the UAE’s economy away from relying mainly on oil and towards other sources of income. By investing in technology and innovation and introducing a corporate tax, the government is creating a more diversified economy. This tax will help increase the country’s revenues beyond just oil profits. 

Corporation tax UAE is based on the profits of a business. The standard corporate tax rate in Dubai is 9% for businesses that make more than AED 375,000 in profit. The tax does not directly affect customers but applies to the business’s profits.

The corporate tax applies to all business activities across the UAE, except the following:

• Companies involved in natural resource extraction are taxed by the emirates where they operate.
• Individuals earning personal income, such as salaries or investment profits, are not required to pay corporate tax. 
• Businesses in free zones are exempt from the corporate tax.

Here is what you need to know about the new corporation tax UAE rates:

• A 0% tax rate applies to taxable income up to AED 375,000.
• A 9% tax rate applies to taxable income above AED 375,000.
• Multinational enterprises (MNEs) under the OECD’s BEPS 2.0 rules will be subject to additional tax guidelines.

In addition to these exemptions, the corporate taxation in UAE law also includes further exclusions, such as:

• Dividends earned from UAE companies.
• Profits from transactions within a company group.
• Dividends earned from foreign companies.
• Profits from group reorganizations.

This new tax system is part of the UAE’s strategy to diversify its economy and reduce reliance on oil.

Value Added Tax (VAT)

Value added tax UAE is a tax on the consumption of goods and services. It is charged at each step of production and distribution. VAT is widely used around the world, and over 150 countries have adopted it. In the UAE, VAT was introduced on January 1, 2018, at a rate of 5%.

For businesses, like logistics companies, value added tax in UAE affects cash flow because they must collect tax on their sales and offset it with the tax paid on their purchases. VAT is a general tax on consumption, meaning it applies to most goods and services. Businesses must register for VAT if their taxable sales and imports exceed AED 375,000.

If a business operates in a UAE-free zone, its transactions are not subject to VAT and are tax-free. Before VAT, the UAE only had taxes on specific industries, like oil & gas and banking, which did not affect all businesses. However, VAT has now impacted every business in the country and has changed the business environment. 

At the end of each tax period, businesses registered for VAT must submit a VAT return to the Federal Tax Authority (FTA). This tax provides the government with extra revenue to fund its various projects and initiatives. 

While value added tax UAE is applied to most goods and services, some products and services are exempt or charged at a 0% rate. These include:

• Bare land
• Some financial services (as outlined in value added tax in UAE legislation)
• Residential properties
• Local passenger transport

Simply put, value added tax in UAE is a tax businesses charge on goods and services, with some exemptions for specific sectors. It is ultimately paid by customers and directly affects them by raising the prices of goods and services in the UAE. Although the VAT rate is 5%, tourists can claim back 85% of the VAT they paid on products purchased in the UAE.

What are the key differences between VAT and corporate tax?

Points of Distinction	VAT	Corporate Tax
Nature of tax	Consumption-based tax	Profit-based tax
Who pays the tax	Paid by customers for goods and services	Paid by companies on their profits, affecting shareholders, customers and employees
Calculation method	Calculated by adding value at each stage of production	Calculated on the profits a company makes
Tax filing and payment	Businesses charge VAT and remit it to the FTA	Companies file taxes and pay on their profits
Tax collection	Collected at each stage of the supply chain; businesses charge VAT on sales and reclaim VAT on purchases	Paid by businesses annually based on their taxable income
Impact on pricing	VAT is added to the final price of goods and services, affecting the final price directly	Corporate tax does not directly affect pricing but can influence pricing strategies through cost management and profit margins

Conclusion

VAT and corporation tax UAE are important for generating government revenue. Both businesses and consumers need to understand how these taxes affect the economy and society. By understanding the points discussed in this blog, we can better see how each tax shapes the UAE’s economic environment.

At Asad Abbas & Co. (Chartered Accountants), we are proud to be your trusted guide in managing taxes and accounting in the UAE. Our team of experts is well-versed in UAE tax laws and regulations, and we offer customized solutions to meet your needs. Partner with us today and see the difference for yourself!

Innovation is driving the world forward, and many enterprises have already established their businesses in the UAE. As a business owner in the UAE, it is important to follow local tax laws. The UAE tax system has changed a lot in recent years. Since the introduction of Value Added Tax (VAT) in 2018, businesses must have a unique identifier called a Tax Identification Number Dubai.

This number helps the authorities keep track of your business for tax purposes. Without a TRN, your business could face fines, delays or even be unable to operate. That is why it is important to register for one.

If you are an entrepreneur unsure about how taxes work in the UAE, worry not. We have got the answers! In this blog, we will discuss what is TRN number and how to apply for tax identification number. So, let us begin!

What is a UAE Tax Identification Number?

Dealing with taxes can be tough, especially since compliance is mandatory, and even small mistakes can result in penalties. In the UAE, getting a Tax Registration Number (TRN) is more than just a formality.

It is a crucial requirement for businesses to legally operate under the Value Added Tax (VAT) system. Without a TRN, businesses cannot issue VAT invoices, claim tax refunds or meet the regulations set by the Federal Tax Authority (FTA).

A tax identification number Dubai is a special code given to businesses for identification purposes. To get this number, a company must first be legally registered. When you register for VAT, the Federal Tax Authority in the UAE will provide a 15-digit TRN that identifies your business. This number allows the FTA to track and manage taxable transactions more effectively and is also needed for various official documents.

The business receiving this number is called the “registrant”. Once registered for VAT, the TRN will be automatically assigned to you. However, applying for a TRN can feel overwhelming as many businesses face challenges with unclear eligibility rules, errors in the application process and complex documentation.

What documents are needed for TRN registration?

You need to submit several documents to relevant authorities for verification to apply for a TRN. This includes your registered email ID for portal access and key company documents like your trade license, articles of association and memorandum. Below is a list of additional documents typically required: 

• Passport copy and Emirates ID of the owners or shareholders.
• Copy of the power of attorney, passport, and Emirates ID of the manager or authorized person, along with their mobile number.
• Company contact information and address.
• Company bank account details.
• Import or export documents (if applicable).
• Company turnover declaration letter.
• Supporting documents for your company’s revenue.
• Sample invoiced from suppliers and customers.
• Projected future revenue details with supporting documents like confirmed purchase orders.

How to apply for tax identification number in the UAE?

Applying for a UAE tax identification number is a straightforward process. All you need to do is follow these steps to complete your registration:

Prepare the necessary documents

Gather the required documents that we discussed in the blog above before starting your application.

Create an account on the FTA portal

Visit the UAE Federal Tax Authority website and create an account using your registered email ID. It will give you access to the online portal for submitting your application.

Complete the application form

Log into the FTA portal and fill out the TRN application form with your company’s details. Make sure to enter accurate information and upload the necessary documents as requested.

Submit the application

Once the form is complete, submit your application for review. Ensure all documents are correctly uploaded to avoid delays.

Wait for approval

The FTA will review your application and documents. If everything is in order, they will issue your TRN. This process may take a few days, depending on the workload.

Receive your TRN

You will receive your TRN after approval.

Conclusion

By following the steps discussed in this blog, you can successfully register for a TRN and ensure your business complies with UAE tax regulations. Working with a reliable and experienced audit, tax and management consulting in the UAE, like those at Asad Abbas & Co. (Chartered Accountants), can make the process easier and faster by ensuring your TRN is registered on time.

Contact us today to streamline your TRN registration and stay compliant with UAE tax laws!

Frequently Asked Questions (FAQs)

Q1- What is the structure of the Tax Registration Number?

Ans. A TRN is a unique identification number given to businesses, which makes it easy to distinguish one business from another. Each business has its own TRN. The UAE TRN consists of 15 digits, following a specific format: 100-xxxx-xxxx-xxxx. 

Q2- Who needs a Tax Registration Number?

Ans. A TRN is required in the UAE for:

• Companies that import or export goods.
• Sole proprietors, limited companies and partnerships.
• Businesses that sell goods or services that are taxable.
• Both mainland and free zone businesses.
• Resident and non-resident companies.

Simply put, if your company is involved in selling products, services or transactions in the UAE, you must get a TRN. It is necessary no matter where your business is registered or located. Having a TRN allows you to properly file taxes with the government.

Q3- Why is the Tax Registration Number (TRN) important?

Ans. The TRN has brought important changes to how businesses operate in the UAE. It is important for the following reasons:

• Legal requirement: Businesses must include their TRN on all tax-related documents, like VAT returns and invoices to follow the UAE tax laws. 
• Claiming tax refunds: Businesses registered for VAT can use their TRN to get refunds on VAT paid for purchases and help improve their cash flow.
• Business transparency: The TRN helps make business transactions clear and honest. It reduces the chances of tax evasion or fraud. By checking TRNs, businesses can be sure they are working with trusted companies. 
• Tracking financial transactions: The government can track financial transactions using TRNs to ensure transparency and accountability. 
• Reputation: Having a valid TRN boosts a business’s credibility. It shows customers and partners that the business is legally registered for VAT, which helps build trust.

Starting a business today is relatively easy, but many companies struggle with managing their finances. Effectively managing your business finances is crucial for success in Dubai’s competitive market. As your business grows, financial management becomes more complex.

When it comes to handling your accounts, you have two choices: You either do it yourself or hire an accountant within your company. However, managing complex financial tasks internally can be expensive and time-consuming. In this case, you can outsource your accounting services to accounting outsourcing companies in Dubai.

These companies typically employ highly skilled chartered accountants who manage all your accounting and bookkeeping needs effectively. It offers businesses a smart and affordable way to simplify financial processes while focusing on their main goals.

What are outsourced accounting services in Dubai?

Outsourced accounting services in Dubai cover a wide range of tasks that help businesses manage, record and analyze their financial transactions. These services ensure your business stays compliant with UAE laws, including VAT regulations, while also giving you a clear picture of your financial health.

Rather than having an in-house accounting team, businesses in Dubai can rely on skilled professionals to handle their finances. It allows them to focus on their main business goals. Outsource accounting services include payroll, bookkeeping, VAT compliance and audits. These services provide efficient, cost-effective and customizable solutions for your business needs.

What are the advantages of accounting outsourcing Dubai?

Here are some benefits of outsourcing accounting work in Dubai:

Accounting expertise

Outsourcing your accounting services ensures your accounts are managed by skilled accountants with diverse knowledge and experience. An in-house accountant may not have the opportunity to stay updated on industry changes.

However, an accounting firm in Dubai has a team of experts who are constantly learning and staying ahead of market trends. 

Greater accuracy and fewer errors

Accounting outsourcing firms in Dubai have proven systems and advanced software to reduce mistakes. This ensures your financial records and reports are accurate and reliable.

Time saver

As a business owner, especially in a startup, you need more time to focus on growing your business rather than handling finances. Outsourced accounting services in Dubai help you save time and focus on other important tasks that can help increase your revenue. 

Better decision-making

Accounting firms offer valuable insights and analysis to help you make smarter decisions. They can help you track important metrics, spot trends and predict future performance. Timely financial reports are crucial for making strategic decisions and supporting business growth and long-term success. 

Cost-effective

Outsource accounting work is a more affordable option that helps you save money compared to hiring a full-time accountant. In many cases, you can receive the same quality of work at a fraction of the cost. You only pay for the specific services you need and avoid extra costs like employee benefits and overhead expenses. 

Better scalability

As your business expands, your accounting needs may change. Outsourcing lets you adjust your accounting services based on what you need, whether you need more help or fewer hours. In other words, outsourcing accounting services in Dubai allows you to easily increase or decrease the support you need without any delays. If your accounting tasks grow, you can quickly get more help without the hassle of hiring new employees. This gives you flexibility as your business grows. 

Compliance with accounting regulations

Businesses in Dubai must follow both international and local accounting rules. Outsourcing accounting services ensures that your financial statements meet global standards and comply with UAE tax laws. This provides accurate and transparent reports.

Why choose Asad Abbas & Co. (Chartered Accountants) to take care of your accounting?

• Extensive experience working with businesses across different industries in Dubai.
• Customized services based on your business type and size.
• We offer everything from bookkeeping to tax compliance, all in one place.
• Certified accountants and tax advisors.
• Affordable rates with no hidden fees.

With Asad Abbas & Co. (Chartered Accountants), you can trust that your finances are in good hands. Whether you are a startup or an established business, our outsourced accounting services in Dubai are designed to provide efficiency, accuracy and compliance. 

Final thoughts

Accounting outsourcing Dubai is a smart choice for businesses looking to streamline processes, lower costs and improve financial decisions. By working with experienced professionals, you can keep your financial records accurate, stay compliant with UAE laws and focus on growing your business. 

If you are looking to outsource accounting work in Dubai, Asad Abbas & Co. (Chartered Accountants) is the perfect solution. We provide reliable accounting services across Dubai and the UAE so you can focus on business expansion while we take care of your finances. With us, you can trust that your financial reports will be secure, confidential and accurate.

Contact us today to find out how we can make a difference in your financial management with expert outsource accounting services Dubai!

Frequently Asked Questions (FAQs)

Q1- Why do businesses need accounting outsourcing Dubai?

Ans. Businesses need accounting services to manage different financial tasks, such as:

• Management accounting: Providing internal reports to help managers make informed decisions.
• Tax accounting: Ensuring proper tax filing to avoid fines. 
• Financial accounting: Creating financial statements for performance review and decision-making.
• MIS reporting: Using technology to analyze financial data and track performance. 
• Project accounting: Tracking project finances to assess profitability.

That is why outsource accounting services Dubai is a smart choice for businesses looking to streamline their financial operations and ensure accuracy.

Q2- Who needs to outsource accounting services in Dubai?

Ans. Outsource accounting services in Dubai are important for all kinds of businesses, including:

• Startups: To set up finances, handle VAT registration and ensure compliance from the start.
• Small and medium enterprises (SMEs): To manage the increasing financial tasks in a cost-effective way as the business grows.
• Large companies: For detailed analysis, audits and reporting to meet complex needs.
• Freelancers and sole proprietors: To manage taxes and personal finances efficiently. 

Q3- Are outsource accounting services Dubai secure?

Ans. Yes, trusted outsourced accounting firms in Dubai, such as Asad Abbas & Co. (Chartered Accountants), use advanced software and systems to ensure the security and confidentiality of your data. They follow strict privacy guidelines and often sign non-disclosure agreements (NDAs) to protect your business’s sensitive information.