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رابط خارجي لـ JRB Chartered Accountants
Dubai، AE
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Tax Return Guide for UAE Corporate Tax : Published today !! Reading glasses on : the 176 pages and its impact ! Summary coming up shortly... Aliasgar Poonawalla Salman Rafique JRB Chartered Accountants Tax Star Rayhan Aleem Tajir Hussain Muneeb Jalgaonkar Saabith Uwaim
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Join to know that tax does not need to be so Taxing :) Tax decoding series with not so serious tax players. Are you a business owner stressed over the preparation of corporation tax? Are you an Accountant not sure how to finalize your books for the first tax year? Do you want to learn the key steps that can help you to streamline your year-end preparation? If so, this webinar is for you! Salman Rafique Aliasgar Poonawalla JRB Chartered Accountants Rayhan Aleem Tax Star Tajir Hussain Muneeb Jalgaonkar Saabith Uwaim
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Let us look at KSA : Transfer Pricing requirements 1. Implementation Timeline: - Approved in March 2023 - Effective from January 1, 2024 - Applies to both Tax and Zakat payers in Saudi Arabia 2. Key Requirements: - Transaction threshold: SAR 100 million minimum (with possible exceptions for complex transactions) - Must be applied for 12 months before effective date - Agreement duration is 3 years - Cannot be applied retrospectively (only future/prospective basis) 3. Process Timeline: - Phase 1 (2-3 months): Formal application and preliminary review - Phase 2 (8-9 months): Detailed review and negotiation - Phase 3: Annual compliance monitoring 4. Key Features: - Currently no application fees - Optional pre-filing meeting available - Annual compliance report required - Transactions can include: * Related party transactions within KSA * Transactions involving economic zones * Cross-border related party transactions 5. Important Deadline: Applications should be submitted before December 31, 2024, to be effective for 2026. 6. Compliance Requirements: - Annual compliance report required - Must continue submitting Controlled Transactions Disclosure Form (CTDF) - Certified TP Affidavit needed - Transactions not covered by APA still require Local File and Master File if above threshold Aliasgar Poonawalla Salman Rafique JRB Chartered Accountants Tajir Hussain Muneeb Jalgaonkar Saabith Uwaim Rayhan Aleem Tax Star ZATCA (Zakat, Tax and Customs Authority) will soon publish detailed APA guidelines.
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E- Invoicing System : UAE Takes Major Stride Towards Digital Tax Administration: Introduction of Electronic Invoicing System The UAE Ministry of Finance has marked another milestone in its digital transformation journey with the issuance of Federal Decree-Laws No. 16 and 17 of 2024, paving the way for a comprehensive electronic invoicing system. Key Legislative Changes: * Amendment of Federal Decree-Law No. 8 of 2017 (VAT Law) - Enhanced definitions incorporating electronic invoices - Modernized tax invoice and credit note requirements - Updated compliance frameworks for digital documentation * Amendment of Federal Decree-Law No. 28 of 2022 (Tax Procedures) - Introduction of eInvoicing system framework - Empowerment of Minister of Finance for implementation - Strengthened digital compliance measures 🔹 The Path Forward The UAE's electronic invoicing system will streamline tax administration through a decentralized model, enabling businesses to exchange invoices electronically while ensuring efficient tax reporting to the Federal Tax Authority (FTA). 🔹 What This Means for Businesses: * Simplified tax compliance processes * Enhanced efficiency in invoice management * Reduced paperwork and administrative burden The Ministry of Finance will announce further details on implementation timelines and requirements through upcoming decisions, allowing businesses adequate time to prepare for this digital transformation. This strategic move reinforces UAE's position as a leader in modernizing tax administration and promoting digital innovation in the region. Aliasgar Poonawalla Salman Rafique Rayhan Aleem Tajir Hussain JRB Chartered Accountants Saabith Uwaim Muneeb Jalgaonkar Elvita Dsouza #UAETax #DigitalTransformation #eInvoicing #UAE #Innovation #TaxCompliance #FinTech #UAEBusiness #MiddleEast #FTA #DigitalEconomy #GCC #UAEGovernment
Natural Persons : UAE CT
Natural Persons Real Estate Investment : UAE CT The UAE Federal Tax Authority recently released guidance clarifying the Corporate Tax treatment of real estate investments by natural persons. Here's what you need to know: Key Takeaway: Real Estate Investment income earned by natural persons is excluded from Corporate Tax, provided specific conditions are met. What Qualifies? Real Estate Investment is defined as investment activities related to: * Sale, leasing, sub-leasing, and renting of land/property in UAE * Not conducted through (or requiring) a License from a Licensing Authority Critical Distinctions: ✅ Activities without License requirement: Income excluded from Corporate Tax ❌ Activities requiring/using License: Potentially subject to Corporate Tax Practical Considerations: * Administrative registrations (like Ejari) are not considered Licenses * Using licensed property managers doesn't affect the exclusion * Must clearly separate investment from business activities * Expenses must be fairly apportioned * Related party transactions must be at arm's length Important Note: The FTA maintains anti-abuse provisions to counter arrangements lacking commercial substance if designed primarily for tax advantage. 💡 Expert Tip: Natural persons should carefully evaluate their real estate activities against these criteria to determine their Corporate Tax obligations. Salman Rafique Aliasgar Poonawalla Muneeb Jalgaonkar Elvita Dsouza Saabith Uwaim JRB Chartered Accountants Rayhan Aleem Tax Star #UAETax #CorporateTax #RealEstate #UAE #TaxAdvisory
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Decoding UAE Tax Residency: The UAE's tax landscape is undergoing a seismic shift with the introduction of Corporate Tax. At the heart of this transformation lies the concept of tax residency - a seemingly simple idea that unfolds into a complex web of rules and implications. The FTA recently released a guide on "Tax Resident and Tax Residency Certificate" serves as our compass in this new terrain. Let's unpack the key elements : 1. The Three Faces of Residency The guide illuminates a crucial distinction between three concepts: - Being a "Resident Person" for Corporate Tax purposes - Being a "Tax Resident" under domestic law - Being tax resident under a Double Taxation Agreement (DTA) 2. Corporate Tax Residency: A Tale of Two Criteria For juridical persons: - Incorporation or establishment in the UAE (including Free Zones), or - Incorporation outside the UAE but with effective management and control in the UAE The concept of "effective management and control" requires a thorough examination. 3. Natural Persons: The Three-Pronged Test a) Physical presence in the UAE for 183+ days in a 12-month period b) 90+ days presence, coupled with UAE/GCC nationality or valid UAE residency, and a permanent home or employment/business in UAE c) The center of life test: Usual residence and center of vital interests in the UAE 4. The DTA Dimension Double Taxation Agreements : The guide expertly navigates: - How DTAs can override domestic residency rules - Tie-breaker rules for dual residency situations - The impact on tax obligations Particularly crucial for international businesses and globally mobile individuals. 5. Tax Residency Certificates: The guide demystifies the process of obtaining TRCs. Key insights include: - The application process via the FTA's EmaraTax portal - Varying documentation requirements based on applicant type and purpose - The 12-month validity period and the impossibility of certificates for future periods - Fee structures dependent on UAE CT registration status 6. International Form Stamping: A Value-Added Service In a nod to international requirements, the FTA offers a service to stamp tax forms from other jurisdictions. This can be crucial for claiming DTA benefits abroad and underscores the global context of UAE's evolving tax system. 7. Implications for Professionals: The Bottom Line - Tax residency status doesn't automatically trigger CT liability - Natural persons conducting business in UAE are only subject to Corporate Tax if their turnover exceeds AED 1 million in a calendar year - The importance of proper documentation and timely applications Aliasgar Poonawalla Salman Rafique JRB Chartered Accountants Rayhan Aleem Tax Star Muneeb Jalgaonkar Saabith Uwaim Elvita Dsouza This article is based on the FTA's "Tax Resident and Tax Residency Certificate" guide (October 2024). For the most up-to-date information, always refer to official FTA publications.
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Decoding UAE Tax Residency: The UAE's tax landscape is undergoing a seismic shift with the introduction of Corporate Tax. At the heart of this transformation lies the concept of tax residency - a seemingly simple idea that unfolds into a complex web of rules and implications. The FTA recently released a guide on "Tax Resident and Tax Residency Certificate" serves as our compass in this new terrain. Let's unpack the key elements : 1. The Three Faces of Residency The guide illuminates a crucial distinction between three concepts: - Being a "Resident Person" for Corporate Tax purposes - Being a "Tax Resident" under domestic law - Being tax resident under a Double Taxation Agreement (DTA) 2. Corporate Tax Residency: A Tale of Two Criteria For juridical persons: - Incorporation or establishment in the UAE (including Free Zones), or - Incorporation outside the UAE but with effective management and control in the UAE The concept of "effective management and control" requires a thorough examination. 3. Natural Persons: The Three-Pronged Test a) Physical presence in the UAE for 183+ days in a 12-month period b) 90+ days presence, coupled with UAE/GCC nationality or valid UAE residency, and a permanent home or employment/business in UAE c) The center of life test: Usual residence and center of vital interests in the UAE 4. The DTA Dimension Double Taxation Agreements : The guide expertly navigates: - How DTAs can override domestic residency rules - Tie-breaker rules for dual residency situations - The impact on tax obligations Particularly crucial for international businesses and globally mobile individuals. 5. Tax Residency Certificates: The guide demystifies the process of obtaining TRCs. Key insights include: - The application process via the FTA's EmaraTax portal - Varying documentation requirements based on applicant type and purpose - The 12-month validity period and the impossibility of certificates for future periods - Fee structures dependent on UAE CT registration status 6. International Form Stamping: A Value-Added Service In a nod to international requirements, the FTA offers a service to stamp tax forms from other jurisdictions. This can be crucial for claiming DTA benefits abroad and underscores the global context of UAE's evolving tax system. 7. Implications for Professionals: The Bottom Line - Tax residency status doesn't automatically trigger CT liability - Natural persons conducting business in UAE are only subject to Corporate Tax if their turnover exceeds AED 1 million in a calendar year - The importance of proper documentation and timely applications Aliasgar Poonawalla Salman Rafique JRB Chartered Accountants Rayhan Aleem Tax Star Muneeb Jalgaonkar Saabith Uwaim Elvita Dsouza This article is based on the FTA's "Tax Resident and Tax Residency Certificate" guide (October 2024). For the most up-to-date information, always refer to official FTA publications.
UAE Updates VAT Treatment of Cryptocurrencies in Latest Regulatory Change
UAE updates VAT Treatment of Cryptocurrencies in Latest Regulatory Change The United Arab Emirates has provided important clarification on the Value Added Tax (VAT) treatment of cryptocurrencies and other virtual assets in its latest regulatory update. Cabinet Decision No. 100 of 2024, amending the Executive Regulation of Federal Decree Law No. 8 of 2017 on Value Added Tax, was issued on September 6, 2024, and will take effect from November 15, 2024 [1]. Key Updates: 1. Definition of Virtual Assets The regulation now includes a formal definition of "Virtual Assets" as: "Digital representation of value that can be digitally traded or converted and can be used for investment purposes, and does not include digital representations of fiat currencies or financial securities." [1] 2. Classification as Financial Services Activities related to virtual assets are now explicitly classified as financial services. These include: - Transfer of ownership of Virtual Assets, including virtual currencies - Conversion of Virtual Assets - Keeping and managing Virtual Assets and enabling control thereof [1] 3. VAT Exemption Importantly, certain virtual asset-related services are now exempt from VAT. Specifically, the regulation states that "Services specified in paragraphs (k) and (l) of Clause 2 of this Article, including services supplied on or after 1 January 2018" are exempt [1]. This covers the transfer of ownership and conversion of Virtual Assets. Implications for the Industry: This regulatory update provides clarity for businesses operating in the cryptocurrency and blockchain space in the UAE. The retroactive application of the VAT exemption to January 1, 2018 for specific services is particularly noteworthy, as it aligns with the initial implementation date of VAT in the UAE [2]. By classifying certain virtual asset services as exempt financial services, the UAE is refining its approach to the taxation of these digital assets. However, it's important to note that while these services are exempt from VAT, this typically means that input VAT incurred in relation to making these supplies is not recoverable, as per general VAT principles. Conclusion: This regulatory update represents a significant development in the UAE's approach to the taxation of virtual assets. It provides greater certainty for businesses and investors in the cryptocurrency space, potentially impacting the UAE's position in the blockchain and cryptocurrency sector. References: [1] Cabinet Decision No. 100 of 2024 – Issued 6 Sept 2024 (Effective from 15 Nov 2024) [2] Federal Decree-Law No. (8) of 2017 on Value Added Tax Aliasgar Poonawalla JRB Chartered Accountants Salman Rafique Muneeb Jalgaonkar Saabith Uwaim Rayhan Aleem Tax Star
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Free Zones vs. Designated Zones in UAE Corporate Tax: Verifying Zone Status: A Critical Step It's crucial for businesses to verify their zone's status directly with the relevant authorities. As the Corporate Tax Guide for Free Zone Persons states: "All taxpayers should check with their respective Free Zone Authority to confirm if they operate in a Free Zone or Designated Zone for Corporate Tax purposes." As the United Arab Emirates (UAE) implements its Corporate Tax regime, understanding the distinction between Free Zones and Designated Zones is crucial for businesses. Defining Free Zones and Designated Zones A Free Zone, as per the UAE Corporate Tax Law, is "a designated and defined geographic area within the UAE that is specified in a decision issued by the Cabinet at the suggestion of the Minister." This broad definition encompasses various special economic zones across the emirates. A Designated Zone has a more specific definition. It is "a designated zone according to what is stated in Federal Decree-Law No. 8 of 2017 on Value Added Tax, and which has been included as a Free Zone in accordance with the Corporate Tax Law." The list of Designated Zones is provided by Cabinet Decision No. 59 of 2017, originally established for VAT purposes. Key Differences and Their Significance While all Designated Zones are considered Free Zones for Corporate Tax purposes, not all Free Zones are necessarily Designated Zones. This distinction is particularly important for businesses engaged in certain activities, especially distribution. Verifying Zone Status: A Critical Step It's crucial for businesses to verify their zone's status directly with the relevant authorities. As the Corporate Tax Guide for Free Zone Persons states: "All taxpayers should check with their respective Free Zone Authority to confirm if they operate in a Free Zone or Designated Zone for Corporate Tax purposes." This step is not just a formality; it's a necessary precaution to ensure compliance and potentially benefit from preferential tax treatment. Why Understanding the Difference Matters 1. Tax Implications 2. Operational Requirements: 3. Compliance: 4. Strategic Planning: Conclusion As the UAE's Corporate Tax landscape evolves, the distinction between Free Zones and Designated Zones takes on new significance. Businesses must proactively seek clarity on their operational location's status and understand its implications for their tax position and QFZP eligibility. Salman Rafique Aliasgar Poonawalla JRB Chartered Accountants Muneeb Jalgaonkar Saabith Uwaim Rayhan Aleem Tax Star Remember, while this article provides general guidance, it's advisable to consult with JRB Chartered Accountants for advice tailored to your specific business circumstances.
Free Zones Vs Designated Zones
Free Zones vs. Designated Zones in UAE Corporate Tax: Verifying Zone Status: A Critical Step It's crucial for businesses to verify their zone's status directly with the relevant authorities. As the Corporate Tax Guide for Free Zone Persons states: "All taxpayers should check with their respective Free Zone Authority to confirm if they operate in a Free Zone or Designated Zone for Corporate Tax purposes." As the United Arab Emirates (UAE) implements its Corporate Tax regime, understanding the distinction between Free Zones and Designated Zones is crucial for businesses. Defining Free Zones and Designated Zones A Free Zone, as per the UAE Corporate Tax Law, is "a designated and defined geographic area within the UAE that is specified in a decision issued by the Cabinet at the suggestion of the Minister." This broad definition encompasses various special economic zones across the emirates. A Designated Zone has a more specific definition. It is "a designated zone according to what is stated in Federal Decree-Law No. 8 of 2017 on Value Added Tax, and which has been included as a Free Zone in accordance with the Corporate Tax Law." The list of Designated Zones is provided by Cabinet Decision No. 59 of 2017, originally established for VAT purposes. Key Differences and Their Significance While all Designated Zones are considered Free Zones for Corporate Tax purposes, not all Free Zones are necessarily Designated Zones. This distinction is particularly important for businesses engaged in certain activities, especially distribution. Verifying Zone Status: A Critical Step It's crucial for businesses to verify their zone's status directly with the relevant authorities. As the Corporate Tax Guide for Free Zone Persons states: "All taxpayers should check with their respective Free Zone Authority to confirm if they operate in a Free Zone or Designated Zone for Corporate Tax purposes." This step is not just a formality; it's a necessary precaution to ensure compliance and potentially benefit from preferential tax treatment. Why Understanding the Difference Matters 1. Tax Implications 2. Operational Requirements: 3. Compliance: 4. Strategic Planning: Conclusion As the UAE's Corporate Tax landscape evolves, the distinction between Free Zones and Designated Zones takes on new significance. Businesses must proactively seek clarity on their operational location's status and understand its implications for their tax position and QFZP eligibility. Salman Rafique Aliasgar Poonawalla JRB Chartered Accountants Muneeb Jalgaonkar Saabith Uwaim Rayhan Aleem Tax Star Remember, while this article provides general guidance, it's advisable to consult with JRB Chartered Accountants for advice tailored to your specific business circumstances.