Are you overwhelmed by the maze of business regulations?
Our team of experts is here to simplify the process for you, ensuring your business stays on the right side of the law in Compliance Services in Dubai.
So, count on our specialised team of experts to lead you through the intricacies of the UAE’s business compliance services in Dubai, covering essential topics like Economic Substance Regulations (ESR), Ultimate Beneficial Owner (UBO) compliance, Value Added Tax (VAT), Anti-money laundering (AML) and Combating the Financing of Terrorism (CFL), Wages Protection System (WPS), Financial Auditing and Accounting, Corporate Tax.
Essential Compliance Services in Dubai
Certifying Your Business with Compliance Services in Dubai
1. Understanding ESR Compliance in Dubai
However, In 2019, the UAE introduced Cabinet of Ministers Resolution No. 31 (later revoked and issued new cabinet decision 57 of 2020), enforcing economic substance compliance for UAE entities, including onshore, free zone companies, and those involved in “Relevant Activities.” These entities must establish a significant “economic presence” in the UAE, aligned with the country’s economic growth goals.
Our Expertise:
Shuraa Tax is your partner in navigating ESR regulations, guaranteeing robust risk and compliance programs that facilitate business opportunities while adhering to all regulatory requirements.
2. Compliance with UBO Submission in the UAE
In 2020, UAE enacted Cabinet Decision No. 34 of 2020 which was replaced with Cabinet Resolution No. 58 of 2020, requiring companies to register and submit their Ultimate Beneficial Owner (UBO) details to the Registrar by set deadlines.
3. Understanding UAE Value Added Tax (VAT) Regulations
Value Added Tax (VAT) is an indirect tax based on the value-added during production or distribution, often following a destination-based model. So, Some countries refer to it as GST (Goods and Services Tax). However, In the United Arab Emirates, the Federal Tax Authority opened the official VAT registration portal in October 2017, with VAT becoming effective on January 1, 2018, at a 5% standard rate.
Key Points:
- Mandatory Registration: UAE-based businesses exceeding an annual taxable supply/ import/ expenses of AED 375,000 must register for VAT.
- Voluntary Registration: Businesses with taxable supplies/ imports/ expenses above AED 187,500 annually can opt for voluntary registration.
- Penalties: Failure to submit a registration application within timeframe may result in an Administrative Penalties Assessment by the Authority.
4. Ensuring Compliance Services in Dubai with AML/CFL Regulations in the UAE
Anti-money laundering (AML) encompasses a range of procedures, laws, and regulations designed to prevent the illegal acquisition of funds disguised as legitimate income. In December 2020, the UAE Cabinet established the Executive Office of Anti-Money Laundering and Countering the Financing of Terrorism, aligning with global standards in this field.
5. Simplifying Payroll with the Wages Protection System (WPS)
The Wages Protection System (WPS) is an innovative electronic salary transfer system developed by the Central Bank of the UAE. It enables institutions to disburse employee salaries through approved banks, exchanges, and financial entities. This system is instrumental in facilitating the Ministry of Labour’s creation of a comprehensive wage payment database for the private sector, ensuring timely and total employee compensation.
Key Points:
- Comprehensive Reach: WPS covers all registered institutions, irrespective of location or sector, benefiting all employee categories.
- Non-compliance Consequences: Missing wage transfer deadlines leads to a ban on work permits until full payment, with prolonged delays resulting in wider repercussions and potential legal action, per Ministerial Resolution No. 788 of 2009.
6. Crucial Role of Financial Auditing and Accounting
Moreover, financial auditing and accounting form the backbone of any organisation, serving as vital tools for tracking income and expenses. So, the presence of a certified accountant and a robust, foolproof auditing process is essential for the smooth operation of your business, ensuring the generation of accurate financial reports.
Key Points:
- Mandatory Clarity: UAE regulations mandate clear financial transparency for all businesses, regardless of whether they operate on the mainland, in free zones, or offshore.
- Legal Obligations: However, Certain free zone law and regulatory authority mandates meticulous and precise record-keeping, with mandatory audit submissions conducted by registered auditors. This not only meets regulatory requirements but also aligns with international business standards.
7. Upcoming Transformation: Corporate Tax in the UAE
Moreover, ensuring a smooth license renewal process is essential for businesses in the UAE.
Key Points:
- Historic Shift: So, the UAE is gearing up to implement its inaugural Direct Tax, the Corporate Income Tax, in line with international tax standards and for income diversification.
- Preparation is Key: So, Businesses must prepare for this significant change.
- Tax Planning Opportunities: Moreover, The new tax law offers opportunities for rebates, deductions, and exemptions. So, It allows for the assumption of foreign taxes incurred on income and the offsetting of annual losses against future taxable profits.
- Strategic Options: However, consider tax grouping re-organisation and explore intra-group transactions. Although, Check out tax relief and tax benefits with our expert tax team.
- Expert Guidance: So, Stay informed and plan your finances effectively within the bounds of the law. Moreover, contact Shuraa Tax for up-to-date information and legal tax-saving strategies.
Ensuring Business Compliance: Your Key to Success
So, if you seek top-notch business compliance services in Dubai, Shuraa Tax is your trusted partner. So, our team of experts possesses in-depth knowledge of UAE laws and regulations, ensuring your business remains in full compliance.
Contact us today to discover the advantages of our business compliance services.
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Frequently Asked Questions
So, Mandatory compliance services in UAE comprise the legal obligations that companies must adhere to in order to conform to local laws and regulations.
Although, Examples include compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, data protection laws, auditing standards, and tax regulations.
Compliance with AML and CTF regulations is crucial to prevent illicit financial activities, ensuring the UAE’s financial system’s integrity and security.
Moreover, Businesses can stay compliant by staying informed about the latest regulatory changes, implementing robust internal controls, and seeking professional guidance when needed.
Yes, some compliance requirements may vary by industry. Different sectors may have specific regulations that apply to them.