What Are Tax Groups in the UAE? In the United Arab Emirates, companies can form a Tax Group for corporate tax purposes. This arrangement allows multiple related entities to be treated as a single taxable person. It’s crucial to note that a corporate tax group is distinct from a value-added tax (VAT) group, which serves different purposes. Criteria for Forming a Tax Group To be eligible for a Tax Group, companies must meet specific criteria set by the UAE Federal Tax Authority (FTA): 1. Residency and Legal Status Both the Parent Company and all Subsidiaries must be juridical persons. All enti ..read more

Why transitional provisions matter in UAE corporate tax Transitional provisions are essential in any legal framework, serving as a bridge between old and new regulations. They prevent disruptions to businesses and individuals as new laws come into effect. By facilitating a seamless transition, these provisions help mitigate costs and uncertainties associated with implementing new legislation. The aim is to ensure businesses can continue operating smoothly without facing significant operational or financial setbacks due to regulatory changes. In the context of the UAE corporate tax law, transit ..read more

Time-Gaining Efficiency: Delegating your bookkeeping tasks to professionals allows you and your team to focus on what you do best – running and growing your business. The time you will save by attributing the tedious and complex financial record-keeping to other people, will enable you to become more productive and have a strategic use of your valuable time. This enhanced focus can be a game-changer for your business, helping you make better decisions and fueling growth. Expertise and Accuracy: Professional bookkeepers are specialized in the intricacies of financial record-keeping, ensuring a ..read more

Why Keeping on Top of Your Cash Flow is So Important – Decisions and Plans are better: Knowing the exact amount of funds you have available anytime is possible with an accurate cash flow statement. You need to manage your cash flow carefully, so you can avoid bad decisions that put your business at risk.  – Always know where your money goes: You need to manage, effectively, your cash flow, this way you will understand where you’re currently spending your money, something that’s not on a profit and loss statement. It’s vital for you to know where the money you spend is going and why. – P ..read more

Conditions for small Business Relief: The highlights of the Small Business Relief provision are: Resident Taxable persons should have revenue less than AED 3 million in the relevant and previous tax periods. The relief will not be available if the threshold exceeds AED 3 million in any tax period. Accounting standards accepted in the UAE will determine the revenue. The revenue threshold will apply to tax periods starting on or after 01 June 2023. It will only continue to apply to subsequent tax periods that end before or on 31st December 2026. The Relief will not be available to the followin ..read more

Zoho Finance, financial management software Can’t find the right software to manage your finances? CTC has the perfect recommendation for you. Zoho books is an accounting software that is great for all kinds of businesses due to its three prominent factors: It is online, it is affordable, it takes care of end-to-end accounting. Zoho Finance is an “integrated suite of financial applications for your business”, allowing our accounting services to give you the ultimate results. We have done more than 100 accounting set ups per year with Zoho books, Zoho expenses and Inventory. This allow ..read more

Account Receivable Turnover Ratio The account receivable turnover ratio measures how efficient a company is to collect money owed to it. It evaluates how long it takes for a business to collect debts in a certain amount of time (a year or an accounting period for example). In other words, this ratio measures how many times in a given period a company converts account receivable into cash. Knowing this ratio is also a way of predicting the cash flow more precisely. Indeed, if a company needs a long time to collect account receivables, it is more likely that its cash flow will be lower or will ..read more

Regularly verify the tax processes of your company Once again, we can only advise you to lean on professionals. Some services such as the VAT Health Check are specifically designed to evaluate the tax processes in your company. It will allow our experts to look at the way you do your invoicing for example, or how you organize your company in tax matters and tax compliance. You will then be able to address the findings and to strengthen your tax compliance. Don’t be afraid of your company’s numbers! For many, tax filing, accounting, financial reports convey one feeling: fear! Because we are n ..read more

1. Widen your business opportunities One of the main benefits of corporate networking is the opportunity to generate new leads and business opportunities. Attending industry events, trade shows, and conferences will expose your business to potential clients and partners. Networking also provides a platform for businesses to showcase their expertise and establish themselves as industry leaders. 2. Learn from Others in your Industry By connecting with other professionals, businesses can gain insights into the latest trends, best practices, and innovations in their field. This is an opportunity ..read more

General Rule The general rule is applicable to: All entities that do not meet the Public Clarification criteria, for all their supplies of goods and services For entities that do meet the criteria, for their supplies under 100million AED All registrants are still required to report taxable supplies subject to VAT at the standard rate in Box 1 of the VAT Return. The reporting should be done in the Emirate where the taxable person’s establishment, most closely related to the supply, is located. Public Clarification VATP033 The Public Clarification applies to the case of taxable supplies on ..read more