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Business

Is VAT applicable to your business?Check out the registration procedures!!!

Businesses that supply products or services must register for VAT as a necessary requirement. The final consumer is ultimately responsible for paying VAT, which is a consumption tax that is included in the cost of products and services at every stage of the supply chain. Businesses who register for VAT can collect and submit VAT on behalf of the government and also claim VAT back on their business expenditures. The following are the essential steps in the UAE’s VAT registration process: Examine to see if registration is required: The necessity to register for VAT in the UAE must be determined by businesses. Currently, companies must register for VAT if their annual revenue exceeds AED 375,000. Compile the necessary documentation: Businesses in the UAE must provide several documents, including their trade license, bank account information, and proof of address, to register for VAT. Fill out the VAT Registration Application: Through the Federal Tax Authority (FTA) portal, businesses can complete the VAT registration application online. Businesses must submit information about their operations, revenue, and other pertinent facts as part of the application. Get your Tax Registration Number (TRN): The FTA will assess the VAT registration application after it is submitted, and if it is approved, it will issue a Tax Registration Number (TRN). All VAT-related transactions in the UAE use the TRN, a special identifying number. Know Your VAT Obligations: Businesses in the UAE must adhere to several requirements after registering for VAT, including submitting VAT returns, paying VAT liabilities, and maintaining proper records. In general, establishing and expanding a profitable business in the Middle East requires careful consideration of VAT registration and implementation. The specifics of the procedures and the insights into how to structure the VAT framework must be studied in greater detail by businessmen and women. Numerous changes are happening in workplaces.The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice, except to adopt the changes for businesses to become successful in this era of constant change. GSPU Auditing, a dynamic Audit & Accounting firm with 17+ years of international experience provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services adopting a professional & friendly approach and caring about the success of our clients holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in UAE, our well-known & Certified Accountants & Auditors who have international expertise as well as a comprehensive knowledge of the local market work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner obeying Integrity and professionalism. Expert financial and compliance advice for business innovation, success and survival is a basic need for every business. We at GSPU prioritize time and quality in Financial, Accounting, Audit, Company Formation, Management and VAT services to help businesses to grow by making a clear strategy saving time & money by generating more revenue. Your Success, Our Passion. We the Global Strategic Partners Union always welcome your Business & Financial grievances as we make the work into service, and turn customers into friends & client relationships as business partnerships. .

Tax

Who may file for Small Business Relief under Corporate TAX in the UAE as of 9th May 2023? 

MINISTERIAL DECISION NO. 73 OF 2023 ON SMALL BUSINESS RELIEF  –  Defines the threshold and additional criteria for individuals including resident person , non resident person and members of Multinational Enterprises Groups (MNE Groups).MNE Groups are groups of companies with operations in more than one country that have consolidated group revenues of more than AED 3.15 billion. Who is eligible? Resident Person & Free Zone Persons (excluding Qualifying Free Zone Persons) Previous Tax Period Revenue is less than AED 3 million. The Current Tax Period Revenue is less than AED 3 million. Not Members of Multinational Enterprises Groups (MNE Groups). Who is not eligible? Non-Resident Person & Qualifying Free Zone Persons. If the Previous Tax Period Revenue is more than AED 3 million and the Current Tax Period Revenue is less than AED 3 million. If the Previous Tax Period Revenue is less than AED 3 million and the Current Tax Period Revenue is more than AED 3 million. Members of Multinational Enterprises Groups (MNE Groups). How does it work: Application? Assessing eligibility for relief once a year is mandatory. Starting 1st June 2023, the threshold will apply. Only valid for tax periods that end before or on 31st December 2026. How should entities proceed? Register and file corporate tax returns on time. Due to the claim of Small Business Relief, the person’s taxable income will be nil Business Relief. What kind of entities should file for relief?  Entities that make taxable profits. Entities that failed to remove net interest expenditures from such tax periods. What kind of entities should not file for relief?  Entities that have losses and want to carry those losses forward. Entities that have removed net interest expenditures from such tax periods. COMPANY DIVISION TO UTILIZE THE RELIEF  The General Anti-Abuse rule of the corporate tax law’s corporate tax advantage under Clause (1) of Article 50 is applicable if: An individual who is subject to taxation has artificially divided their business or commercial activity & The total revenue of all such enterprises or commercial operations in any tax period exceeds AED 3 million & He/she has opted to apply for Small Business Relief for a business or a business activity.      Numerous changes are happening in workplaces.The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice, except to adopt the changes for businesses to become successful in this era of constant change. GSPU Auditing, a dynamic Audit & Accounting firm with 17+ years of international experience provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services adopting a professional & friendly approach and caring about the success of our clients holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in UAE, our well-known & Certified Accountants & Auditors who have international expertise as well as a comprehensive knowledge of the local market work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner obeying Integrity and professionalism. Expert financial and compliance advice for business innovation, success and survival is a basic need for every business. We at GSPU prioritize time and quality in Financial, Accounting, Audit, Company Formation, Management and VAT services to help businesses to grow by making a clear strategy saving time & money by generating more revenue. Your Success, Our Passion. We the Global Strategic Partners Union always welcome your Business & Financial grievances as we make the work into service, and turn customers into friends & client relationships as business partnerships.

Others, Uncategorized

Explanation manual released by the Ministry of Finance

Federal Decree-Law No 47 of 2022 – Taxation of Corporations and Businesses Explanatory commentary on the many aspects of the UAE Corporate Tax code that promote economic activity and lessen the burden of compliance on taxpayers are included in the Guide. On the website of the Ministry of Finance, copies of the Corporate Tax Law, its implementing judgements, and further information about Corporate Tax is available. Some of the relevant Illustrations include: The application of a 0% Corporate Tax rate for taxable income up to AED 375,000. The application of a 0% Corporate Tax rate for qualifying Free Zone persons. Providing financial and administrative relief to support start-ups and small businesses. Businesses qualifying for such relief will not pay any tax and avail of simplified filing requirements where their turnover is up to AED 3,000,000. A 0% withholding tax on cross-border and domestic payments. Exemptions from Corporate Tax for foreign branch profits, dividends and capital gains earned from domestic and foreign shareholdings where the relevant conditions are met. Foreign tax credits for foreign sourced income that is not exempt to avoid double taxation. Highlights targeted exemptions for certain entities which are subject to Emirate level corporate taxation or considered important to the social fabric of the UAE. Transfer Pricing documentation requirements and thresholds to ensure a minimal compliance burden on small and medium enterprises. The ability to utilize Tax Losses in future tax periods without a time limitation. The ability to transfer Tax Losses between tax group companies, where the relevant conditions are met. UAE groups can file and pay their Corporate Tax on a consolidated basis as a single taxable entity to ensure administrative efficiencies and simplicity. Relief from Corporate Tax for intra-group transfers and business restructuring transactions, where the relevant conditions are met. The ability for family foundations and trusts to be treated as tax transparent to prevent personal wealth and investment income from being subject to Corporate Tax. The alignment of the calculation of taxable income to accounting profits, with limited adjustments to determine the Corporate Tax payable. Numerous changes are happening in workplaces.The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice, except to adopt the changes for businesses to become successful in this era of constant change. GSPU Auditing, a dynamic Audit & Accounting firm with 17+ years of international experience provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services adopting a professional & friendly approach and caring about the success of our clients holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in UAE, our well-known & Certified Accountants & Auditors who have international expertise as well as a comprehensive knowledge of the local market work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner obeying Integrity and professionalism. Expert financial and compliance advice for business innovation, success and survival is a basic need for every business. We at GSPU prioritize time and quality in Financial, Accounting, Audit, Company Formation, Management and VAT services to help businesses to grow by making a clear strategy saving time & money by generating more revenue. Your Success, Our Passion. We the Global Strategic Partners Union always welcome your Business & Financial grievances as we make the work into service, and turn customers into friends & client relationships as business partnerships.

Others

WHY DOES A COMPANY REQUIRE AN EXTERNAL AUDIT?

Conducting an external audit can provide a company with several advantages. The most important of these advantages is that a third-party analysis of our organization would offer a fresh viewpoint on how things operate. The process of undertaking an external audit has several advantages:   Affords a different viewpoint: Many businesses have an in-house auditing team and do not engage the services of an external auditor. This can seem like a workable alternative, but over time, internal auditors develop a fixed mindset and lose the ability to think creatively. Thus, external auditors are always preferable because they have no ties to the company and will not hesitate to provide accurate and precise information about the company’s operations. They will also have a different perspective on how the firm operates and how to improve it. Evaluating the Company’s Internal Procedures: The management of the organization would set a benchmark as a result of the internal process audit to provide fixed-quality products or services. We may get a good picture of our existing condition by conducting an audit. The management will be able to conduct a quality check of the entire audit process and make sure that only high-quality goods and services are created by comparing the current data with the data from the past. Confirm Compliance: The methods used by the organization will be examined to make sure they all adhere to the rules and guidelines established by the appropriate authority. This refers to adherence to rules regarding taxes, VAT, accounting, etc. The corporation may suffer significant losses in the future if it does not abide by national regulations. Additionally, it guarantees that the company is current with all regulatory updates and modifications. Ensures credibility: An additional benefit of performing an external audit is this. The decisions of the auditor will never be biased because the external auditor does not fall under the jurisdiction of the company being audited. An external audit report would increase the company’s legitimacy and inspire confidence in the shareholders and potential investors.   Cut down on Waste: A corporation can save the time and money invested in its many processes by streamlining them all with the aid of an external audit. The productivity and profitability of the company will grow as the use of resources and time is reduced. Undertaking an external audit service is beneficial to businesses. Investor confidence might be sparked by more than just an external audit. It is preferable to conduct an external audit because it will give the analysis of the company’s operations a new viewpoint. If you are looking for a helping hand in the matters of auditing, availing the services of a highly reputed Audit Firm would be a suitable option for you. Experts also provide various other services such as VAT, Corporate Tax, Accounting and Payroll services for the growth of your company. Numerous changes are happening in workplaces. The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice, except to adopt the changes for businesses to become successful in this era of constant change. GSPU Auditing, a dynamic Audit & Accounting firm with 17+ years of international experience provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services adopting a professional & friendly approach and caring about the success of our clients holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in UAE, our well-known & Certified Accountants & Auditors who have international expertise as well as a comprehensive knowledge of the local market work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner obeying Integrity and professionalism. Expert financial and compliance advice for business innovation, success and survival is a basic need for every business. We at GSPU prioritize time and quality in Financial, Accounting, Audit, Company Formation, Management and VAT services to help businesses to grow by making a clear strategy saving time & money by generating more revenue. Your Success, Our Passion. We the Global Strategic Partners Union always welcome your Business & Financial grievances as we make the work into service, and turn customers into friends & client relationships as business partnerships.

Business

TRANSFER PRICING FOR UAE BUSINESS !!!

Comply with the law and improve your intercompany transactions for your business across international boundaries. Transferring income to nations with low taxes, evading taxes, and committing tax fraud are a few instances of tax and transfer pricing difficulties, which can take many different forms and vary in severity. Working with a reputable, global third-party data source can help minimise these risks and increase your ability to appreciate taxpayer activities and financial position.  Enhance your current database with detailed information on business structures, beneficial owners, intangible property profiles, merger and acquisition transactions, sanctions and enforcement information, and transfer pricing valuations. Business leaders should have a fundamental understanding of UAE transfer pricing concepts before entering into transfer pricing activities.Let’s review the key ideas related to transfer pricing in the United Arab Emirates. Why should your company require Transfer Pricing? To find a value-generating business division Find the profitability of each division to be assessed. Cross-border transactions between entities with common ownership & control  What situations in your business will transfer pricing access? Risk evaluation in the early stages To find the riskiest significant subsidiaries in transfer pricing tax. Assessing risks for remaining subsidiaries after documentation.  Providing a second opinion on the prepared documents’ reasonableness. What are the steps in your transfer pricing procedure? Assessment Documentation Creating Master file & Local file What paperwork is required for the transfer pricing procedure?         TP Disclosure Forms According to recommendations made by the (OECD), upon  request resident  entities and permanent establishments must provide the GTA  Master File Local File Make us your trustful transfer pricing advisors and Maintain compliance throughout your organization without losing sight of your goals. Learn about the implications of doing business at home and abroad. Numerous changes are happening in workplaces.The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice, except to adopt the changes for businesses to become successful in this era of constant change. GSPU Auditing, a dynamic Audit & Accounting firm with 17+ years of international experience provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services adopting a professional & friendly approach and caring about the success of our clients holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in UAE, our well-known & Certified Accountants & Auditors who have international expertise as well as a comprehensive knowledge of the local market work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner obeying Integrity and professionalism. Expert financial and compliance advice for business innovation, success and survival is a basic need for every business. We at GSPU prioritize time and quality in Financial, Accounting, Audit, Company Formation, Management and VAT services to help businesses to grow by making a clear strategy saving time & money by generating more revenue. Your Success, Our Passion. We the Global Strategic Partners Union always welcome your Business & Financial grievances as we make the work into service, and turn customers into friends & client relationships as business partnerships.

Tax

EmaraTax incorporates the UAE PASS digital signature Feature !!!

Federal Tax Authority introduced the UAE PASS function on the EmaraTax platform.  The Federal Tax Authority (FTA) announced the addition of the single sign-on feature of UAE PASS – the UAE’s first national digital identity – to the EmaraTax platform. Tax system registrants can utilise this facility in all procedures and services on the platform, which is accessible via the official FTA website, further advancing the UAE’s sweeping digital transformation.Mr Abdulla Al Bastaki, Executive Director of the Federal Tax Authority’s Information Technology Sector, urged all FTA clients to take advantage of the new feature and activate their UAE PASS accounts.  The new feature was developed in collaboration with relevant authorities and is intended to meet the highest standards of security, confidentiality, and accuracy of information and procedures in order to speed up processes, improve user experience, and meet the aspirations of customers.This feature allows TAX registrants to access the Authority’s services quickly, effortlessly, and from the comfort of their devices and smartphones, eliminating the need to create a new login and password.The UAE PASS digital signature feature, which was introduced to EmaraTax, also intends to bring added value to consumers by allowing them to save time, money, and effort while providing faster service processing time and enhanced data flexibility. According to FTA’s Abdulla Al Bastaki, the launch of the single sign-on feature using UAE PASS is part of the UAE’s ongoing development and upgrading of government services, which makes use of the UAE’s advanced digital infrastructure, which is among the most developed not only in the region but also globally.  The UAE’s knowledgeable forward-thinking vision attempts to anticipate the future with plans and activities geared to increase the efficiency of government systems, the quality of life of individuals, the establishment of a sustainable environment, and the promotion of happiness and wellness in the community. Numerous changes are happening in workplaces.The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice, except to adopt the changes for businesses to become successful in this era of constant change. GSPU Auditing, a dynamic Audit & Accounting firm with 17+ years of international experience provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services adopting a professional & friendly approach and caring about the success of our clients holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in UAE, our well-known & Certified Accountants & Auditors who have international expertise as well as a comprehensive knowledge of the local market work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner obeying Integrity and professionalism. Expert financial and compliance advice for business innovation, success and survival is a basic need for every business. We at GSPU prioritize time and quality in Financial, Accounting, Audit, Company Formation, Management and VAT services to help businesses to grow by making a clear strategy saving time & money by generating more revenue. Your Success, Our Passion. We the Global Strategic Partners Union always welcome your Business & Financial grievances as we make the work into service, and turn customers into friends & client relationships as business partnerships.

Business

Need to upgrade your business audit processes to use the newest technologies?

Is it crucial to choose an auditor who is aware of the latest technology?  The world of business is a changing phenomenon. The dynamic only gets more intense as technology develops. With traditional methods of doing things making way for new business models, the next upheaval occurs sooner. The business environment changes quickly, and stakeholders require the assurance that auditors provide. After recognising the relevance of disruptions in business with the traditional methods, we also recognise that effectively navigating a shift to technological updates is required for a company to exude confidence and tell its customers, partners, and investors that everything is OK and will remain so. Audit processes are major among them. ANALYSIS OF THE FUTURE OF AUDIT Auditing as a service has come under fire in recent years. Several high-profile accounting scandals have brought it under scrutiny. The market is buzzing with stories about companies losing billions of dollars in shareholder value, and authorities having to step in to stem the slide. Audit, like a seasoned boxer suffering a barrage of blows from the opponent before striking back, must learn from recent failures and grow stronger. We anticipate that the audit function will evolve along three major dimensions. WHY UPGRADE YOUR BUSINESS AUDIT PROCESS? Quality stays the top priority: Regulatory challenges, challenging business situations, and an expanding volume of auditable data as well as growing compliance requirements all are affecting the industry. Auditing firms must always meet the quality criteria due to the rising industry scrutiny. Indeed, there is a compelling need to go above and beyond the norm to ensure that the nature, timing, and scope of auditing procedures are such that auditors can deliver a ‘true and right perspective’ in essence. Auditors’ professionalism is a motivating factor, and quality stays the top priority in the audit output. People management grows more vital: Due to the crowded compliance calendar and increased regulatory requirements, associates are frequently required to juggle many engagements and work longer hours during the busy season. The latest technologies can provide solutions to better manage these, reducing time and effort and thus minimizing the work pressure on the human supply chain. Adaptation to upgrades can focus on controlling these difficulties to ensure that their most valuable assets, their personnel, can deliver on expectations and realize their full potential. Audit Analysis with future forecasts: While an audit is fundamentally a study of the past, stakeholders expect to get more forward-looking information so that they can make educated decisions. Data is a critical component in providing many of these insights. Businesses are producing an increasing amount of diverse and complex data nowadays. To meet future updations in current decisions a substantial focus on data and advanced analytics is essential. Numerous changes are happening in workplaces.The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice, except to adopt the changes for businesses to become successful in this era of constant change. GSPU Auditing, a dynamic Audit & Accounting firm with 17+ years of international experience provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services adopting a professional & friendly approach and caring about the success of our clients holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in UAE, our well-known & Certified Accountants & Auditors who have international expertise as well as a comprehensive knowledge of the local market work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner obeying Integrity and professionalism. Expert financial and compliance advice for business innovation, success and survival is a basic need for every business. We at GSPU prioritize time and quality in Financial, Accounting, Audit, Company Formation, Management and VAT services to help businesses to grow by making a clear strategy saving time & money by generating more revenue. Your Success, Our Passion. We the Global Strategic Partners Union always welcome your Business & Financial grievances as we make the work into service, and turn customers into friends & client relationships as business partnerships.

Business

Risk management to safeguard the success of your business

Risk management is one of the relevant processes in Business Consulting. Effective risk management is important for an organization to survive in a highly dynamic business scenario.Business Consulting helps a business to navigate through the risks and in making vital decisions. Here are several ways in which proper risk management safeguards the success of a business firm: Detecting Risks: Assessing and evaluating risks is one of the primary functions of business consulting. Risks could impact a company’s operations, finances, reputation and overall success. Business Consultants helps an organization to recognize potential threats and challenges, which includes market volatility, regulatory changes and operational inefficiencies, by conducting effective risk evaluation. Strategies to diminish risks: To develop proper Risk mitigation strategies, the business Consultants work closely with the stakeholders after identifying and categorizing potential risks. The strategies may involve implementing controls, creating contingency plans, establishing crisis management standards and protocols or developing business continuity plans. Such risks are addressed proactively by formulating strategies which helps the organization to minimize the potential negative impacts and improve overall resilience. Regulatory requirements and Compliance: In their respective industries, every business is subject to several compliance and regulatory requirements. If the firm fails to meet such obligations, it could result in legal consequences, penalties and reputational damage. Business consultants assist and ensure that the firms stay updated to the relevant laws and industrial standards. Critical Decision Making: By conducting proper and thorough risk analysis, effective risk management involves making further detailed decisions. The expertise of the business consultants in risk evaluation helps the organization to assess potential risks, challenges and rewards with specific strategies. Consultants  enable businesses to make informed decisions and maximize opportunities and thereby minimize the risk factor with proper planning and cost-benefit analysis. Improving Operational Efficiency: Enhancing operational efficiency within an organization is one of the criterias in risk management. Business Consultants help in implementing risk mitigation measures to improve efficiency and  reduce wastage by optimizing operations, which includes proper resource allocation, reducing production delays and identifying further risks in supply chain disruptions and other challenges. Crisis Management: Business Consultants play an important role in helping the firm navigate through the times of uncertainty, during a critical crisis. These professional consultants provide guidance and assistance to develop proper crisis response plans and support change management efforts during uncertainties such as a financial crisis, a natural calamity or a major organizational restructuring. The negative impact of a crisis can be avoided and smooth transition can be facilitated with the expertise guidance. RISK MANAGEMENT SERVICES  AT GSPU AUDITING: Numerous changes are happening in workplaces.The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice, except to adopt the changes for businesses to become successful in this era of constant change. GSPU Tax Consultancy, a dynamic Audit & Accounting firm with 17+ years of international experience provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services adopting a professional & friendly approach and caring about the success of our clients holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in UAE, our well-known & Certified Accountants & Auditors who have international expertise as well as a comprehensive knowledge of the local market work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner obeying Integrity and professionalism. Expert financial and compliance advice for business innovation, success and survival is a basic need for every business. We at GSPU prioritize time and quality in Financial, Accounting, Audit, Company Formation, Management and VAT services to help businesses to grow by making a clear strategy saving time & money by generating more revenue. Your Success, Our Passion. We the Global Strategic Partners Union always welcome your Business & Financial grievances as we make the work into service, and turn customers into friends & client relationships as business partnerships.

Others

What are the Benefits of GSPU’s External Audit Services?

An external audit is usually conducted by a third person and thus is much more unbiased. A company can avail of many benefits while conducting an external audit availing GSPU’s services. Some of these benefits are: Provides a Comprehensive Report: An external audit provides an overview of the business process and establishes that the information in the books of accounts is correct and accurate. The auditor presents an audit report which will simplify and present all the workings of the company which would help the management to take remedial actions regarding any slow or faulty process. Furthermore, the report would help in providing a complete understanding of the workings of the various departments of the business. Thus GSPU’s external audit provides business owners with the opportunity to work closely with external auditors to look at their accounting process with a critical eye and work on making improvements. Surety of Compliance: An auditor sees to it that the books of accounts are made according to the rules and regulations of the concerned authority. Since GSPU’s External Audit is conducted at regular intervals, it helps in keeping the accounts department at par with the stated rules and regulations. The external auditor will also make sure that the accountants of the company are updated with any new regulations of the government or the authority concerned. A Different Perspective: As the external auditor is a separate third party and has no relations to the company whatsoever, he would be unbiased towards the company and would present his reports and the corresponding views in such a manner. GSPU’s auditors minimize wastage in business and increase its profitability.  Brings in Investors: As GSPU’s audit report will provide a detailed and accurate description of all the past and present works of the company, an investor can make a better decision regarding investment in the company. The investor would scrutinize the audit report, and if after that he feels that the company is on the path to profitability and investing in the company would be the right decision then he can invest in the business. Thus, it would simplify the decision-making process of a potential investor. Identifies Weakness: After properly scrutinizing GSPU’s audit report, the management of the company can decide if any of the processes needs tweaking. This would help in understanding the weakness in the process and the management will take remedial measures accordingly. Independent Assessment provides Increased Credibility: As the audit is performed by an independent third party, there is no bias of the auditor towards the company. This means that GSPU’s audit report will consist only of the correct facts and figures about the company. This will help in getting hold of and curbing any fraudulent business activity which is being conducted in the company and will also help increase profitability. Evaluation of the Internal Processes of the Company: As the internal auditor is a part of the company, he cannot openly evaluate the internal workings of the business. An external auditor from GSPU has a better chance to adequately evaluate all the internal workings of the business and provide a truthful assessment of them. This will help the management in creating new and better strategies for the future and will also enhance the efficiency of the business. Better Quality of Audit: Many of the internal auditors may not be well versed with the current changes in the business environment and can leave essential information out of the auditing report. The internal auditor is also very close to the business work and can also leave out certain information intentionally, which can affect the profitability of the business. Such instances are not possible if an external auditor from GSPU is hired to conduct the auditing of a business.  Provides Confidence to Current and Prospective Shareholders: By hiring an external auditor from GSPU, the company strives to provide correct and accurate information to the management as well as the shareholders of the company. This will be very helpful to the shareholders, and they will be able to take a calculated and informed decision. It will also ensure that the company will keep the best interest of the shareholders in mind while taking any business decision. Numerous changes are happening in workplaces. The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice, except to adopt the changes for businesses to become successful in this era of constant change. GSPU Auditing, a dynamic Audit & Accounting firm with 17+ years of international experience provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services adopting a professional & friendly approach and caring about the success of our clients holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in UAE, our well-known & Certified Accountants & Auditors who have international expertise as well as a comprehensive knowledge of the local market work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner obeying Integrity and professionalism. Expert financial and compliance advice for business innovation, success and survival is a basic need for every business. We at GSPU prioritize time and quality in Financial, Accounting, Audit, Company Formation, Management and VAT services to help businesses to grow by making a clear strategy saving time & money by generating more revenue. Your Success, Our Passion. We the Global Strategic Partners Union always welcome your Business & Financial grievances as we make the work into service, and turn customers into friends & client relationships as business partnerships.

Tax

CORPORATE TAX: A SUMMARY Section 1

Section 1 – APPLICABILITY Corporate Income Tax is a type of income-based direct tax. The UAE Ministry of Finance said in January 2022 that corporate taxes would be implemented throughout the United Arab Emirates as of June 1, 2023, depending on the financial year of the businesses. There are other nations like the US, India, France, and also other GCC countries such as Oman, Kuwait, and Qatar that levy corporate taxes on a worldwide scale besides the United Arab Emirates. In addition to aiming to improve corporate governance and so support the nation’s economy, the implementation of corporate tax has always assisted in sustaining their economy. The corporate tax is viewed as the strategic economic transformation’s propeller as well. By implementing Corporate tax, the UAE hopes to strengthen its position as the world’s top business and investment hub, speed up national development, and reaffirm its commitment to adhering to international standards for tax transparency and preventing unethical tax practices. While the Ministry of Finance will continue to be the competent authority for the purpose of any bilateral or multilateral agreements as well as the international exchange of information for tax purposes, the Federal Tax authority will be in charge of administering, collecting, and enforcing UAE Corporate Tax.  Businesses or incomes that are not subject to Corporate tax Any enterprises that make more than the 3,75,000 AED profit threshold are required to pay corporation tax but some kinds are not subject to corporate tax. The exempted ones are : Corporate taxes will not be applied to individuals and to any income received from employment, real estate, stock investments, or other sources of personal income not connected to a trade or business in the UAE. Exemptions apply to foreign investors who don’t do business in the UAE. If a business operating in a free zone complies with all regulatory requirements, the current corporate tax benefits would be maintained. Businesses in the UAE are not taxed on capital gains or dividends they earn from eligible shareholdings. The qualified intragroup transactions and restructurings are not covered by this exception. Liable for corporate tax Every business that generates a taxable profit (net) of more than 375,000 AED is liable to corporation tax, which must be paid as a percentage of net profit. This group includes some entities in a free zone as well as UAE businesses that were incorporated in the UAE or that are managed and controlled there. If the net profit is less than 3,75,000 AED, the corporate tax rate will be 0% to aid small businesses and start-ups. Rates for corporate tax  Taxable income up to AED 375,000 =  0%. Taxable greater than AED 375,000 =  9%. For multinational corporations that satisfy the “Pillar Two” requirements of the Base Erosion and Profit Shifting Project of the OECD, an extra tax rate (yet to be determined). Numerous changes are happening in workplaces.The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice, except to adopt the changes for businesses to become successful in this era of constant change. GSPU Auditing, a dynamic Audit & Accounting firm with 17+ years of international experience provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services adopting a professional & friendly approach and caring about the success of our clients holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in UAE, our well-known & Certified Accountants & Auditors who have international expertise as well as a comprehensive knowledge of the local market work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner obeying Integrity and professionalism. Expert financial and compliance advice for business innovation, success and survival is a basic need for every business. We at GSPU prioritize time and quality in Financial, Accounting, Audit, Company Formation, Management and VAT services to help businesses to grow by making a clear strategy saving time & money by generating more revenue. Your Success, Our Passion. We the Global Strategic Partners Union always welcome your Business & Financial grievances as we make the work into service, and turn customers into friends & client relationships as business partnerships.

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