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Tax Penalty Deadline Extension

Good news tax registrants! The Federal Tax Authority (FTA) has stated on Monday 24th January 2022, to extend the grace period for the re-determination of administrative penalties on violating tax laws until 31st December 2022.

That is to benefit from Cabinet Decision No.49 of 2021. Those tax registrants who were not able to fulfill the conditions to benefit from re-determination before 31st December 2021, can now fulfill the conditions before 31st December 2022.

The UAE Cabinet’s decision stated that the amount of total unpaid penalties that were imposed before June 28, 2021, equal to 30 percent of the total unpaid penalties, provided the conditions set by the Cabinet are met. The FTA will determine the procedures for implementing the provisions related to the re-determination of administrative penalties for tax law violations. A maximum of 30 business days from the date specified in the Cabinet Decision will be allowed for redetermination of administrative penalties on tax registrants imposed by the FTA.

Such a decision has been made to provide an opportunity for the business sector to benefit from the reduction of penalties and reducing burdens on them due to the pandemic and to amplify their abilities in contributing to more growth of the national economy. This decision is also a part of the FTA’s goal to provide a legislative environment that encourages a high level of tax compliance.

Highlighting the eligibility of the tax registrants, it added that:

Firstly, the administrative penalty should have been imposed before June 28, 2021, and the amount due was not settled in full before that date.

Secondly, the tax registrant has settled all payable taxes by 31 December 2022.

Thirdly, the tax registrant has also settled 30 percent of total unpaid administrative penalties no later than 31 December 2022.

The FTA explained that the actual penalties imposed as a result of the re-determination of administrative penalties are already reflected in the accounts of many eligible tax registrants who have met the conditions stipulated in Cabinet Decision No. 49 of 2021 on amending some provisions of the Cabinet Decision on Administrative Penalties for Violation of Tax Laws in the UAE, which came into effect on 28th June 2021. For such registrants, the new values after re-determination appeared on the accounts of registrants on the FTA’s e-Services portal; registrants were also informed by emails that the re-determination process had been completed.

The Arab world’s second-biggest economy, the UAE is carrying out economic, legal, and social structural reforms aiming at strengthening its business environment and attracting foreign investment. UAE’s vat and tax amendment penalty rules change from time to time to aid businesses and motivate companies to expand their operations in the country. MS accounting & tax consultants in Abu Dhabi can keep your business up to date with VAT and tax rules alterations and handle your VAT registration and VAT filing processes in the UAE.

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CFO: A Guide to Start-up Profitability

It is no longer possible for the world’s most successful companies to live long. The average tenure of an S&P 500 company was 33 years in 1965. Then it was 20 years in 1990. The average company lifespan in the S&P is 50. This is estimated to drop to 14 years by 2026. That’s simply because there are more companies today, and for start-ups to thrive, company leaders must create real value for customers.

If you have a start-up, you must be asking yourself, “How can I grow in a competitive business market”? You must be thinking you’re too small to focus on anything else than selling your product and services and creating value for your clients. As a CEO, you should focus mainly on your sales and satisfying the market, apart from the other million things to get done while running a start-up. Hence you need a clear head and save time from handling other HR, admin, legal, and accounting obligations. Although you may have little experience in these sectors, your first thought might be wanting to hire someone to fill these roles. And if you are thinking of someone to handle the profitability and scaling of your start-up, then you must consider the role of CFO services for startups and SMEs.

What is a CFO

What is the meaning of a CFO service / fractional CFO? CFO stands for Chief Financial Officer.  A Chief Financial Officer is an experienced financial professional, that can offer high-level financial expertise for your goals in a fixed time period. Such expertise can come in advisory or taking actions to achieve broader business objectives. You can hire a CFO or consult with an outsourced CFO service. Which is better? Both deliver the same objective; however, an outsourced CFO service is way more cost-effective for start-ups and mid-sized businesses, as the cost for hiring a CFO is quite high. Also, outsourced CFO firms offer a broad scope of their services to meet specific business needs.

How can a CFO be of benefit for you?

You may think CFO offers just traditional finance services like:

  • Accounting
  • Budgeting
  • Planning

But that counts about 45% of what they work on. There is another 14% focus on specialty finance:

  • Treasury
  • Audit
  • Taxes
  • Investor relations

 And another 41% is spent on non-finance services, which includes:

  • Strategic leadership
  • Organizational transformation
  • Performance management
  • Capital allocation
  • Experience in Data analytics
  • Finance capabilities
  • Fintech knowledge
  • Risk management & procurement
  • Negotiation
  • Conflict management
  • Market knowledge

Will it challenge your expenses?

Probably, but expenses should be challenged, your money needs to be spent on those who will ensure you reach your goals. CFO services can foresee opportunities and anticipate pitfalls through data-driven analysis for growth and this will save you time to focus on other sectors of your start-up. But how much does a CFO service cost exactly? That depends on the outsourced CFO firm, also if it’s a virtual CFO service, or part-time CFO service.

Virtual CFO / Outsourced CFO

But the good news is, outsourced services are mostly way cheaper to accommodate start-ups, it ranges in prices that differ from firm to firm. Virtual CFO services also exist, from country to country, so you can easily find different outsourced CFO services costs that would suit you.

VCFOs serve as a link between the client’s bookkeeper and their management team, offering them financial support when they need it. Sometimes the bookkeeper and the management team are the same people in micro-businesses. Larger businesses can often benefit from having the VCFO sit between the finance director (FD) and the bookkeeper, providing extra support the FD doesn’t have time for or the bookkeeper doesn’t have the training to provide.

Small businesses and medium-sized businesses benefit greatly from hiring a startup CFO service or a cost-effective VCFO. VCFO invests in developing their cloud technology and digital solutions and can offer their services to more clients at the same time, making their services more affordable to SMEs.

When is it time to hire a CFO?

There is no one size fits all, hiring too soon may be costly – hiring too late and you may miss out on opportunities to move the business forward. But here are a few guiding questions you should ask yourself when hiring a CFO:

  • Can you get a Series A without a CFO?
  • Is it possible to sustain revenues over $10 million per year without a CFO on staff?
  • Would an accountant increase your bandwidth and streamline your workflow?
  • Are you capable of modeling future planning based on historical data?
  • Have you mastered cash flow, profit and loss, the bottom line, etc.?

You may have access to the same financial data, but you might not know how to utilize it for growth. It is completely reasonable for there to be a separation between a CEO and CFO because it is both healthy and normal. 

Consequently, contracted CFO services will remain a cost-effective solution for most companies for years to come. The difference between making the playoffs and missing them can often be determined by partnering with an outsourced CFO. 

Why should you consult with outsourced CFO services?

A CFO can analyze every facet of your company and maximize the Return on Investment (ROI) of your marketing expenses so you can reach more potential leads. They deal with many hidden costs in the business. Many people don’t know how to run the numbers, so it’s difficult to see the picture without running them. A CFO growth advisor can identify when the team is underperforming, why the margins are failing, and what pitfalls could hinder the business’ success. After the analysis, CFO advises about the steps to be taken in the company. So, it could be wise to consult with a CFO early enough within your startup so you could have reliable company growth.

In modern days, CFO services have evolved to suit SMEs and are no longer an expensive proposition like in the past, where only big enterprises were able to afford a full-time CFO. Today with MSATC, you can outsource a CFO on a part-time basis in the UAE. We can identify if it’s the right time to bring on a CFO to your team and strategize a plan for your needs. Our team is experienced with multiple business industries and can understand your mission, grow your business, and secure your numbers. We are here to support start-ups and SMEs to grow and including our CFO service in your team will be an investment rather than a cost. So reach out to us today or book a free consultation call for your first session.

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Must-Have Entrepreneurial Traits to Attract Investors

What’s more important in a business? Is it the Idea or the team working on the idea? All start-ups are just mere ideas played out by a group of people for them to succeed – and never the other way around. Therefore, the saying that circulates investors, “Bet on the jockey, not the horse.” As much as it’s important to invest in a great start-up idea, it’s even more important to invest in an entrepreneur that is an excellent role model for the company and the team.

No matter how big and successful an idea is, it cannot succeed on its own. On the other hand, a part of that success relies on the hard work placed outside that business idea. While a few start-ups may need a small financial push or venture capital, as self-funding can only go so far. An investor’s perspective looks to the entrepreneur as the jockey role model in a new business. There are high expectations in start-up owners from investors, which energizes entrepreneurship and leadership roles to play. Here are some commonly mentioned characters and actions to consider when trying to attract those investors:

  • Leadership & confidence: It is important for role models to always be positive, calm, and confident in themselves. The last thing you want is someone who is down or tries to bring you down. Investors appreciate entrepreneurs who are satisfied with their accomplishments but strive for greater goals.
  • Communication: Listening is an important part of good communication. Leading by explaining why and where they are going energizes investors. The best role models know that their message must be consistent, and repeated until everyone gets it.
  • Knowledgeable & versatile: The best role models don’t just teach. They are constant learners. They challenge themselves and surround themselves with intelligent people. Team members will learn to stretch themselves for success to be like their role models.
  • Respect & consideration for others: Whether you show respect to others speaks volumes about how they see you, regardless of your drive, success, and intelligence. People notice If you disregard their needs, don’t show gratitude, and step on others to advance.
  • Charitable and Beneficial activity: It is a plus to work hard, but also find the time to help others in need, raise money for charities, or save lives. A strong commitment to a business goes hand-in-hand with a commitment to a cause.

As the UAE business culture is now inspired by start-ups and welcoming new strong ideas and quality of regulations, it’s already attracting many investors in the region. Therefore, developing a strong character in your entrepreneurial journey and influencing enthusiastic investors can be a huge plus for your start-up funding process.

Role models are people with the traits we aspire to have, and those who have influenced us in a positive way. Through them, we can speak out for ourselves and take a leadership role in the causes we believe in.

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UAE Weekend changes: New Tax Deadline?

Impact on Tax return filing & Payments deadlines in the UAE

2022 NEW UAE WEEKEND for the public sector have officially been applied, as the country syncs its working weeks with the global market. Leaving off private sectors to decide on what best suits them. This is not the first time that such change has been made, and the good news is, this time its in favor of the employees. Having a four and a half day working week, with Saturday and Sunday full weekend days, flexible / half-day Friday working hours, and the Friday prayer held after 1:15pm.

There is no doubt that this weekend is going to boost business in the UAE, the stock market, and foreign trade as it will reduce the interruption between the world markets and the UAE weekend. As well as, this change is a huge benefit for employees, balancing out their work-life balance, so they feel happier, healthier and therefore more productive during working hours.

So what impact does this change have on Tax return filing, payments and other procedures?

  • Usually, tax payment and submitting tax returns due date is on the 28th day following the end of the tax period. So if the due date collides with a weekend / national holiday, the deadline is extended to the next working day.
  • If tax period due date falls on a weekend day, this could impact the deadlines for filing and tax payment.

Therefore, taxpayers should consider the new weekend impact on tax filing, payments, and other procedures due dates. Failing to meet the deadlines may result in penalties.

Important note: This months VAT filing in the UAE falls on – Friday 28th of January 2022

How can MSATC help?

  • Assist with the procedure and requirements of the law.
  • Filing the required information.
  • Assess whether the information needs to be updated/amended in anyway.

For any clarifications, you may contact our tax team.

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4 Strengths of a start-up that will change the world

Start-up fear and feelings of uncertainty, is one of the main drives that draw you back from starting that business idea, who can’t relate? It is a scary endeavor as starting your business comes with many risks, or simply not having enough expertise to know where to start. It could be also the mere idea of handling a startup alone, sometimes it’s overwhelming. As you fear your enterprise won’t be able to compete with large businesses, little do you know that having a small business comes with its economic importance and advantages. So, if you have a business idea, don’t give that up yet and continue reading to know where your strengths lie as a start-up/SME.

The future of business is moving towards start-ups and SME’s. Moreover, breaking ideas are often found in these small companies, as they tend to be more innovative than large corporations. A lot of jobs are created because of them, with new products and services that contribute to the growth of our economy. Here comes the importance of your business idea, as the world and people evolve into new needs, new problems are created, and modern solutions are needed.

As a small business entrepreneur, you have a few structural strengths that you can exploit to grow:

  • Agility

Typically, your start-up is smaller and less structured. But you will keep innovating and improving its models, processes, and portfolio. In this way, you can adapt to disruptive technologies and market changes. As a result, you are resistant to change. 

  • Community  

Prestige and high salaries attract employees to large corporations. Therefore, their focus is often lost on the company’s vision, mission, and values, as well as its customers’ success. But as an entrepreneur, you form a tight-knit community by sharing passions, beliefs, and values bringing diversity into the space. Together, everyone works for the benefit of the company, its customers, and the world at large.  

  • Efficiency

Established companies have high administrative costs. Whilst start-ups provide greater efficiency, cost-effectiveness, and competitiveness. Having an awareness of your limitations helps you focus on your company’s core strengths and partnering with other small businesses. As a result, you will offer a superior value proposition to customers.

  • Adaptability & Flexibility

Your employees can simultaneously be a salesperson and relationship managers. In this way, you can maintain customer relationships and respond to emergencies. You must encourage learning and have a high tolerance for mistakes. Having flexible working hours and places to suit your customers, hence the result is a more versatile workforce.

Success starts with the courage to just start, especially if you’re deciding to base your startup in the UAE, there is no better place, as it has easy tax regulations and tremendous support to boost startups. By 2020, small and medium enterprises represented over 94% of all operating companies in the country and contributes around 40% of total GDP in Dubai alone. And now in the year 2022, it’s raining with opportunities for new SME’s. So, what’s on your mind? We are a team of SME experts ready to consult and help you with your ideas, market gaps, finances, and legalities in the UAE. Book a consultation with us now or contact us.

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4 Reasons why you will need a financial advisor in 2022

Do you have 100% confidence that you covered all the bases and that your money is working as hard and as smart as it possibly can? In the minds of many people, using a financial planner is like hiring a personal shopper or paying someone to cook their meals. It would be nice, but it’s an unnecessary luxury that falls within the realm of the wealthy. Though you may not be a professional, you are capable of selecting clothes and preparing meals on your own, as well as managing finances.


To manage your money, you need knowledge, information about markets, and most importantly a disciplined approach. Financial Advisors are professionals who can examine your financial situation and goals holistically. The expert can devise a plan tailored to your financial goals based on their deep understanding of financial products and markets. Through market ups and downs, they keep you anchored to the financial plan.

Here is why you will need a financial advisor whether for your personal needs or your thriving business.

  • Time is one of the main reasons that business owners or people don’t have. A financial advisor in this case is an asset, which will save you a lot of time & effort. The financial specialist will be a trusted part of your team.
  • Cash flow management Suppose you received a windfall, our advisor will be able to give you advice on where to put and what you should do with your money so it can work as hard as possible.
  • Plan your Finances to avoid dealing with the company’s overwhelming financial problems. Getting started with a Financial Advisor can be helpful, keeping you on track, and reminding you of the importance of having a solid financial future. This can help you prioritize your business and how to make it successful.  
  • Employees A financial advisor will take care of your employees, meaning your employees will focus more on their tasks. Money is one of the most important aspects that would have your employees focus which is good for you and your business.

 

However, financial planning isn’t as exclusive or inaccessible as it may seem. Despite its reputation, financial planning isn’t just for those with money. During the past few years, the industry has changed a bit to cater to people of different ages and backgrounds. A qualified professional advisor can be a huge help when someone is stepping into unfamiliar territory, like marriage, parenthood, buying a home, or starting a business. It doesn’t matter if you have big milestones on your horizon or not. The earlier you develop the skills for building wealth – budgeting, saving, maximizing income and assets – the better off you will be.

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Remember these 5 tips to Grow your Startup in year 2022

We know the feeling. After all, life is one big journey, and in a world where you can be anything.. why not make your resolutions each year a little more exciting?
If you’re an aspiring entrepreneur or a current business major, you might feel anxious about the challenges that lay ahead in 2022. Set yourself up for an exciting ride and aim for growth with confidence in 2022. Here are our selected 5 bullet reminders from our experienced team for your smarter self spirit to kickstart the new year with an awesome feeling.

  • Stay Curious and Keep Learning.
  • Be Passionate about what you Love to do.
  • Opportunities don’t come when you’re Prepared, you Seize the Opportunity and Prepare for it.
  • Fill you head with Confidence and a Mind Strong with Positivity.
  • Have a sense of Entrepreneurship and make a difference wherever you go.

MSATC wishes you a Happy New Year and a great Entrepreneurial run in 2022

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MSATC CEO CA Mohammed Shafeek joins the Abu Dhabi SME Hub ‘Access to Experts’ Mentorship Panel

In a new program “Access to Experts” Initiated by ADSME Hub where MSATC CEO & Managing Partner- CA Mohammed Shafeek will provide direct mentorship & advice for growing businesses.

Entrepreneurs in Abu Dhabi looking for professional support to grow their businesses have a new resource at their disposal.

Introducing Access to Experts, a platform that connects entrepreneurs with leading business experts. Small and medium-sized businesses and startups can send their questions completely free of charge or request a one-on-one advisory session.

You can access an ever-expanding directory of experts from organizations such as the Khalifa Fund, ADGM, Emirates Angels, MSATC etc.

https://www.adsmehub.ae/en/experts

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ADSME Hub & MS Group Look Forward To Growing Together!

MS Group is officially announced as the Industry Partner at Abu Dhabi SME HUB – A Khalifa Fund Initiative (Govt. of Abu Dhabi). The collaboration aims to empower entrepreneurs in the UAE to help SMEs and startups scale their business through upskilling in financial literacy and Tax knowledge. The time has come for us to continually prove to our clients and followers what we are capable of, not merely with our work but in making meaningful positive impacts on the lives of budding entrepreneurs and the changing ecosystem around us.

UAE has been paving the way for emerging business world that the whole ecosystem is eager to explore, by embracing budding entrepreneurs and startups.

We understand that there is a gap of guidelines and specific plans for dreaming entrepreneurs to hold on to this competitive ecosystem. Hence, we are teaming up with ADSME Hub to sail along a dynamic and exciting period of growth and change, where innovation and entrepreneurship combine. Together, we’re working to answer your accounting and tax-related queries and make your business journey easier!

The partnership between MSATC & ADSME HUB aims to:

  • Identify the opportunities for further business developments, initiatives and innovations that could make a big difference in their business structure.
  • Provide successful entrepreneurs with a supportive environment to expand their financial and business knowledge, gain advice from seasoned entrepreneurs, and contribute to the industry in which they operate.
  • Share business opportunities and work on improving the academic and industry interface in supporting innovation and entrepreneurship through a vast number of activities and solutions offered by ADSME HUB and MSATC.

MSATC always looks forward to unleashing the business potential among each entrepreneur to bring in their best. We prioritize going beyond profits and creating a sustainable ecosystem for SMEs to thrive in.

Team MSATC is moving ahead, leaving gestures behind!

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Why Should You Maintain Records Under UAE VAT Law?

Under UAE VAT Law, it is specified that all tax registered individuals and businesses in the UAE should maintain their records in a way that enables the FTA to validate the data submitted for tax returns. It is required to maintain the records for a minimum of 5 years after the tax period, and records relating to real estate should be retained for at least 15 years from the end of the tax period to which they relate. 

What records must be kept?

  • Records of all supplies and Imports of Goods and Services.
  • All Tax Invoices and alternative documents related to receiving Goods or Services. 
  • All Tax Credit Notes and alternative documents received.
  • All Tax Invoices and alternative documents issued.
  • All Tax Credit Notes and alternative documents issued. 
  • Records of Goods and Services that have been disposed of or used for matters not related to Business, showing Taxes paid for the same. 
  • Records of Goods and Services purchased and for which the Input Tax was not deducted. 
  • Records of exported Goods and Services.
  • Records of adjustments or corrections made to accounts or Tax Invoices. 

Even though businesses in UAE have done record-keeping and maintained accounts and records for their internal reference in the past, VAT Law requires accounts and records to be mandatorily maintained. 

The failure of the person conducting Business to keep the required records and other information specified in the law would attract penalty for the taxable person.