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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.

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VAT Refund Scheme For Official Participants In EXPO 2020

The Federal Tax Authority introduced a Special Refund Scheme to reimburse VAT paid on goods and services for official participants in Expo 2020. All official participants regardless of their VAT registration status must obtain a “Certificate of Entitlement” from the Expo Bureau to be eligible for the VAT refund. The application to recover VAT incurred can be made by one of the following methods:

  • Where the Official Participant is not registered for UAE VAT, the refund applications can be made through the Bureau by submitting a special refund application to the Bureau.
  • Where the Official Participant is registered for VAT, it may reclaim VAT via its UAE VAT return.

What VAT is reclaimable

The Official Participants of Expo 2020 can reclaim VAT incurred on the import and acquisition of the following five categories of Goods or Services without the need to use them for making taxable supplies:

  1. VAT incurred by the Official Participant on Goods and Services in direct connection with the construction, installation, alteration, decoration, and dismantlement of their exhibition space.
  2. VAT incurred by the Official Participant on Goods and Services in direct connection with the works and activities of organizing and operating the Official Participant’s exhibition space and any presentations and events within the Expo 2020 site
  3. VAT incurred by the Official Participant on Goods and Services relating to the actual operations of the Official Participant, provided that the value of each Good or Service for which the Office of the Official Participant makes a claim is not less than AED 200.
  4. VAT incurred by the Official Participant in connection with all operations, services and activities provided for the purpose of participation in Expo 2020 Dubai, whether located within or outside the boundaries of the Expo 2020 Dubai site; and
  5. VAT incurred on import of Goods for personal use of the Official Participant’s Section Commissioner-General, Section Staff and the Beneficiaries.

It should be noted that to be eligible to reclaim VAT on expenses under categories (1) and/or (2) (or expenses which relate to multiple categories including (1) or (2)), the Official Participant must be in possession of a Certificate of Entitlement issued by the Bureau. Where expenses do not relate to categories (1) and (2), and are covered by categories 3, 4 or 5 then a Certificate of Entitlement is not required to apply for a refund.

Eligibility Criteria for the Certificate of Entitlement

· The applicant must be an Official Participant of the Expo 2020 in Dubai, holding a valid Expo 2020 licence number.

 · Not more than 20% of the exhibition space or presentation is, has been, or is intended to be used for non-official or commercial purposes.

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UAE Welcomes International Tax Regimes to Combat Base Erosion and Profit Shifting

OECD announced a new two-pillar plan towards international tax reforms during the recent virtual G20 Tourism Ministers Meeting on 1st July 2021. This comes after 130 countries and jurisdictions agreed to sign up for a global corporate minimum tax rate proposal that the G-7 presented in June. The two-pillar plan – the outcome of negotiations coordinated by the OECD for much of the last decade – aims to ensure that large Multinational Enterprises (MNEs) pay tax where they operate and earn profits while adding much-needed certainty and stability to the international tax system. The world has taken a big step toward sweeping changes to global taxation as 130 countries endorsed setting a minimum rate for corporations along with rules. This deal would probably come into effect in 2023.

UAE has welcomed the statement issued by the Organization for Economic Cooperation and Development and the G20 (G20/OECD) on the Inclusive Framework on Base Erosion and Profit Shifting. This will enhance the Nation’s efforts to strengthen ties with various world countries regarding financial and economic cooperation. The UAE is one of the 130 member countries that have joined the consensus.

UAE is actively participating in various initiatives and discussions to improve the transparency of the international tax environment and the coherence of the global tax system. The successful implementation of economic substance and transparency rules proves the Nation’s ability to adapt its practices to meet international standards. This remarks a new beginning for the Nation to expand global parallel connections and secure global tax stability.

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Game-Changing Amendments To UAE Companies Law: 100% Foreign Direct Ownership and Investment in UAE announced.

Following the enactment of the UAE Federal Law No. 19 of 2018 on Foreign Direct Investment, The Ministry of Economy announced 100 percent foreign ownership of onshore companies in the UAE, which came into effect by 1 June 2021. It means foreigners of any nationality can now own 100 percent of their business in the country. And UAE is becoming a more investment-friendly destination.

BACKGROUND:

  • Currently, foreign investors can hold up to 49% of the share-capital in an onshore company, while the remaining 51% must be held by a UAE national or a company wholly owned by UAE nationals.

MAJOR HIGHLIGHTS:

The major change occurred is that Investors no longer need to be concerned with negotiating or entering into agreements with UAE sponsors, to hold 51 percent of a new company’s issued share capital.

  • The amendment is applicable to new and existing companies.
  • As of June 1, 2021, the 51% – 49% rule is no longer required.
  • It is applicable to onshore limited liability companies (LLCs) as well as onshore branches and representative offices of foreign companies.
  • Existing companies are granted a grace period of one year, from the date the Decree comes into effect, to implement any changes.
  • The amendment also included the offer of 10-year visas for investors and citizenship for talented individuals.
  • The economic activities to be involved in the business are specifically mentioned by the cabinet as a Positive List and those excluded as negative list like defence, oil and gas and certain other activities.

The amendment decree is a welcome development for sure and is a milestone that will have a great impact on the UAE economy. It increases the competitiveness and open up as an investment hub for the international entrepreneurs. Through this amendment UAE is focusing on a long-term growth that will encourage more foreign investment into the country, increased ease of doing business, and lower start-up costs. The country is expecting an immense growth in the investment in modern technologies and an increased contribution to research and development.