What is Federal Tax Authority in UAE? FTA stands for UAE Federal Tax Authority. It is the government agency responsible for administering, collecting and enforcing federal taxes and related fines, as well as the distribution of tax revenues and application of tax-related procedures in the UAE. The Federal Tax Authority in UAE was established under federal law by Decree No. 13 of 2016. What is the UAE VAT declaration? At the end of each taxable period, VAT Registration UAE businesses are required to file a VAT return with the federal tax authorities. A VAT return summarizes the earned value of supplies and purchases of a VAT registered business during the tax period and shows the VAT liability of the business. VAT liability is the difference between the production tax (VAT on the supply of goods and services) payable in a given tax period and the input tax (VAT on purchases) recoverable in the same tax period. If the output tax exceeds the input tax amount, the difference must be paid to the UAE Federal Tax Authority. If the input tax exceeds the input tax, the VAT registered business is subject to excess input tax. You have the right to set off this against subsequent payments to the federal tax authorities. How do I pay my FTA taxes online? Once your business is registered with the Federal Tax Authority’s online portal, you can pay your outstanding taxes online using multiple options available on the portal. Businesses must pay the full amount of the tax to the UAE federal tax authorities by the due date to avoid penalties. You can pay using the following methods: eDirham or credit card Local bank transfer international bank transfer How do I contact the FTA? The Federal Tax Administration (FTA) welcomes all queries and requests through various communication channels. You can contact the FTA using any of the channels below. Dedicated phone number call center: 600599994. Find agents to answer your questions and requests. Emailing info@tax.gov.ae is the second option. You will usually receive a response within two business days at the latest. You can also use the FTA Portal contact form by clicking https://tax.gov.ae/en/contact.us.aspx. You will receive a reply within a maximum of 2 business days. Support is accessible during business days/hours of Emirates Property Investment Company Building, P.O. Box 2440, Abu Dhabi, United Arab Emirates. What is the VAT rate in the United Arab Emirates? A 5% VAT rate applies to goods and services in the United Arab Emirates. VAT-registered businesses in the United Arab Emirates are responsible for paying 5% VAT. Most supplies in the United Arab Emirates are subject to a 5% VAT rate, with certain specific products or services, and certain types of supplies classified as exempt and zero rate. How can TallyPrime help me? Whether you are a legal entity or a natural person, TallyPrime makes it easy for you to manage your UAE VAT VAT requirements. From generating VAT compliant invoices to filing returns, TallyPrime includes everything you need to be VAT compliant while you focus on growing your business. With built-in error detection and correction, you can always submit accurate VAT returns. Depending on the location of your business, you can record your transactions with the relevant tax for the specified zone. With over 30 years of market experience and trusted by over 2 million businesses worldwide, TallyPrime supports your business with integrated features such as: VAT rate setup makes setting up your tax details easy and fast Issue VAT-compliant invoices Easily manage reverse charge transactions with full visibility of reserved and unreserved liabilities Use the Pre-Receipt Report to account for and manage pre-receipt VAT Generate audit files as required by the Federal Tax Administration (FTA) with the click of a button. Create an accurate VAT return
In January 2022, the UAE Ministry of Finance announced the introduction of a UAE Corporate Tax (CT) on the net profits of companies. Corporate tax is a direct tax levied on the net profit or profit of a company or other entity. The United Arab Emirates corporate tax applies to all businesses in the UAE except extraction of natural resources, which is subject to emirate-level corporate tax. Foreign companies and individuals are subject to corporate income tax only if they have a continuous or regular trade or business in the UAE. The United Arab Emirates corporate tax applies equally to all categories of profit and other (net) income reported in financial statements prepared in accordance with internationally accepted accounting standards. Why UAE Corporate Tax? Applying corporate tax in the United Arab Emirates is considered a competitive advantage for attracting foreign investment to the United Arab Emirates. Paying corporate tax may be more beneficial to a business owner than paying additional personal income tax. Corporate tax is one of the international best practices that “consolidates the UAE’s position as a major global hub for business and investment. will be achieved, reaffirming our commitment to tax transparency and preventing harmful tax practices. Corporate tax rates in GCC countries: Corporate tax rates vary from 10% in Qatar to 15% in Kuwait and Oman and 20% in Saudi Arabia. The United Arab Emirates has announced that it will introduce a 9% corporate tax on business profits from 1 June 2023. Bahrain is also looking to introduce it in 2023. In Kuwait, Saudi Arabia and Qatar, UAE Corporate Tax is levied on profit sharing attributable to non-GCC shareholders of locally incorporated companies. For example, in Saudi Arabia, corporate tax applies only to income earned by non-Saudi owners. Book Importance in UAE Corporate Tax: All GCC countries, including the United Arab Emirates, are living in an era of digital transformation where books are digitized using accounting or business management software. With the introduction of VAT a few years ago and the proposed corporate tax, keeping books of accounts is no longer an option, but a requirement to automate it using business management software. Books and financial statements become even more important to a business given how companies are calculated. This is because the net income in these statements is the basis for arriving at the corporate tax that the company has to pay. The accuracy of your business data determines the accuracy of your financial statements and determines the appropriate amount of corporate taxes. Now is the right time for businesses to invest in reliable business management software and be ready for corporate tax before it is implemented. How can TallyPrime help me? TallyPrime is business management software that lets you manage the growing needs of your business. For a smooth transition into the corporate tax era, having such powerful integrated software should be a top priority for businesses in the UAE. Besides? In addition to making your business corporate tax ready, it includes full UAE VAT support, from generating tax invoices to filing accurate VAT returns, and many other features such as: increase. Generate business reports for accounting, inventory, and financial statements such as income statements and balance sheets. VAT rate setup makes setting up your tax details easy and fast Easily manage accurate and consistent books. Create VAT compliant invoices while managing different types of VAT supplies such as exports, imports and more. Complete your VAT declaration in a few easy steps Easy to manage daily financial transactions
United Arab Emirates Releases Corporate Tax Law – Effective from 1 June 2023 On Friday, the UAE government unveiled its corporate tax law. The same content is available on the official website. It is considered one of the key milestones in the process of implementing corporate tax in the United Arab Emirates. Under the new rules, businesses and legal entities with taxable profits over AED 375,000 ($102,000) will have to pay the standard 9% after 1 June 2023, as previously announced earlier this year. I have. Taxable income below the above thresholds is subject to a 0% corporate tax rate. According to the UAE Ministry of Finance, corporate tax rules are expected to position the country as a major global hub for business and investment. It adds to the country’s development and transformation goals while ensuring tax transparency and preventing fraud. The corporate tax UAE is made available through the Federal Decree No. 2. 47 in 2022 on the official website. To download the United Arab Emirates Corporate Tax Law, please visit the Ministry of Finance website. When does corporate tax start? The UAE Ministry of Finance has stated that the new tax will apply to fiscal years beginning on or after June 1, 2023. The new tax will expire on 1 July 2023 for all companies or entities whose fiscal year begins on 1 July 2023 and ends on 30 June 2024. Businesses with a fiscal year that begins on January 1, 2023 and ends on December 31, 2023 will be permitted to start from January 1, 2024 (starting date of the first fiscal year that begins on or after June 1). Subject to UAE corporate tax. , 2023) Key points and next steps for businesses: With corporate tax laws already enacted, there is a lot for businesses to understand. Financial statements are becoming more and more important to businesses as the net income in these financial statements now becomes a key factor in arriving at the corporate tax that businesses are obliged to pay. Here’s what businesses can do to prepare for UAE corporate tax: It is imperative that businesses plan ahead and prepare for the upcoming corporate tax rules, as they will have a significant impact on the flow of business. Check your previous financial records to confirm your corporate tax eligibility Given the increasing importance of financial reporting today, businesses need robust accounting software that ensures accuracy and compliance Train and keep your team up-to-date on corporate tax rules Evaluate how UAE corporate tax impacts your business’ obligations and responsibilities under contracts with customers and suppliers Understand the impact of corporate tax on your books and financial statements to stay compliant
What is VAT? Consultancy Services are required for your business in the UAE? The United Arab Emirates introduced a new indirect tax known as value Added Tax (VAT) at the beginning of January and has the rate of 5 percent on services and goods. The VAT policy adopted in the GCC countries may expand the economic scope of countries, by integrating another source of revenue following the crisis in oil. The new revenue source is intended to be utilized for top-quality public services through the shift towards a more sustainable consumption model. It is also designed to decrease the dependence of the government on hydrocarbons, including oil, as sources of revenue. Learn more about the necessity of VAT Consultancy Services for businesses in the UAE. What is VAT? Value Added Tax, also known as VAT is a tax that is imposed on the purchase or use of services and goods at every place of sale. The people who pay the cost will eventually become the final consumer. With the assistance of the Government, companies are required to collect and pay the tax. A taxable supply is the distribution of services or goods by an organization located in the UAE which is taxed at 5 percent or zero percent. Imports are also considered when they are taxable as a sale of the items or services would be tax-deductible in the UAE. Services offered via VAT Consultants The VAT Consultancy Services offered by VAT consultants are contingent upon the type of business. The archetypal duties of a VAT consultant consist of: Control and compliance with VAT Reduce VAT liability by identifying risk and the right solutions. Find potential tax planning possibilities File VAT and pay. Record and Organize Data Accounting & Bookkeeping. Purveyor organization. Client-facing organization. VAT Registration Process The basic idea is that a company could choose to use one of the two kinds of VAT registration UAE procedures that is mandatory registration and voluntary registration. A qualified VAT Consultancy Services can help businesses to be VAT registered based on the value of all their taxable imports and supplies. The threshold for compulsory registration of a company is AED 375,000 The threshold for registration by the voluntary business will be AED 187,500. However, the threshold for mandatory registration cannot be applied to foreign-owned companies. How do I register for VAT? After registering an account companies can then register for VAT using the e-Services portal available on the FTA website. The FTA has created a 24-hour user-friendly system for filing Tax returns as well as paying tax through tax-paying via the e-Services portal. Engaging a trustworthy VAT expert in the UAE will help you to efficiently complete the numerous VAT-related activities including VAT accounting and VAT registration and deregistration of VAT, keeping correct documentation for VAT return filing and tax consulting tax accounting and VAT impact studies, and more. With a greater understanding of the processes of VAT. They are aware of the correct method to use for UAE tax registration. This is why we are an excellent option for businesses to ensure compliance with the VAT laws of the UAE. Responsibilities of VAT Consultants The main duties of a VAT consultant can differ from one case to the next. Some of the primary duties of a tax consultant comprise: Maintain a proper book of accounting and records of a company Complete VAT submission requirements to ensure VAT compliance UAE Federal Rules Why should you employ an expert in VAT? A lot of businesses aren’t aware of what rules and guidelines apply to the process that governs VAT calculation as well as the method of paying. Consulting VAT consultants can help solve complicated formulas, complex figures, and calculations. Other benefits of hiring VAT Consultancy Services are: Greater Know-how: The most competent VAT experts have deep knowledge of VAT-related regulations, procedures, and regulations. VAT specialists who are knowledgeable about VAT laws and rules are able to help taxpayers understand the various rates of VAT and the proper tax calculation. accuracy: Unlike our in-house accountant, VAT consultants put in the extra effort to ensure that each VAT tax file is precise. Experiential Experience in Industry The qualified VAT expert with many years of experience can assist you in making sure that you avoid the most common mistakes made in the VAT process, filing returns, and other similar actions. Efficiency: Employing a reputable VAT expert can help you reduce the amount of time that you have to spend on VAT analysis, assessments, and risk analysis for your company. Risk reduction: A well-trained VAT advisor is equipped to manage all types of business risks. They will be able to suggest the most effective options to minimize the risks that are associated with VAT. Improved method of financing: Financial assessment, calculations, and evaluations require careful consideration. Therefore, it is always recommended to get advice from experts in VAT to get advice on finances. The VAT Consultancy Services in UAE As one of the top VAT Consultancy Services in the UAE, We provide many VAT-related services, including: VAT considered Accounting & Bookkeeping Review of Purchase Invoices Examining Sales Invoices to ensure compliance with FTA Rules and Regulations Internal VAT Audit Assistance with filing your VAT Return Assistance in the process of paying to FTA Tax consultancy services VAT registration VAT Training Revenue Report Preparation and Preparation for FTA submission
This guide is prepared to help you navigate through the Federal Tax Authority Website and successfully complete your Value Added Tax (VAT) vat registration form. It is designed to help you:create an e-Services account with the FTA (you will need to do this before you can register for VAT);provide accurate answers to the questions on your VAT registration form by explaining what information you are required to provide; andunderstand the icons and symbols you might see as you complete the registration form. You should find that setting up an e-Services account is similar to setting up other online accounts. The VAT registration form is also designed to be straight-forward and wherever possible it will auto-complete information for you. If you need help setting up your e-Services account or have questions on specific fields in the VAT registration form, please contact us.