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Updated ADGM Employment Regulations! Remote work, part-time definitions and visa guidelines to be effective from April 1, 2025 

Updated ADGM Employment Regulations

The Abu Dhabi Global Market (ADGM) has updated ADGM Employment Regulations 2024 (the “New Employment Regulations”), which bring forward significant improvements that align with global best practices, offering benefits to both employers and employees. With a focus on clarity, flexibility, and fairness, these regulations create a more balanced and progressive work environment. For businesses, the changes offer the opportunity to refine employment policies, enhance employee relations, and ensure compliance with modern workplace standards. As the regulations come into effect on 1st April 2025, employers have a valuable window of time to implement the necessary adjustments, positioning themselves for a smoother, more compliant future while fostering a supportive workplace culture. 

Let’s dive into the key insights of updated ADGM Employment Regulations that will shape the future of employment in ADGM. 

1. Introduction of Flexible Employment Models 

One of the significant updates in the ADGM employment regulations is the introduction of more flexible working arrangements. Employers will now be able to hire remote employees, and the definition of an “employee” has been expanded to accommodate this shift. This change provides more room for businesses to operate in a global landscape, allowing them to hire talent from outside the UAE without needing a local residence visa or work permit, as long as the employee doesn’t reside in the UAE. 

2. Enhanced Employee Rights and Clarifications 

The updated ADGM employment regulations provide greater clarity on employee entitlements, particularly for part-time employees. These changes aim to ensure that part-time workers are given their fair share of benefits, including leave entitlements. Employers will need to adjust their records and contracts to account for these nuances, ensuring that all employees, regardless of hours worked, are treated fairly and consistently. 

3. Probationary Period Updates 

The probationary period remains capped at six months, but the regulations now specify that employees during this period are entitled to sick leave, though not sick pay. During probation, certain provisions of the regulations do not apply, and the employee must have written approval from the employer to take annual leave. These updates provide greater transparency for both employers and employees regarding their rights during this trial period. 

4. Parental Leave and Family Rights 

The regulations extend important parental rights, including maternity leave of 65 working days, and now include provisions for employees who adopt children under the age of five. Maternity leave also extends to cases where a stillbirth or miscarriage occurs after the 24th week of pregnancy. Paternity leave remains at five working days. These updates ensure that employees receive the necessary support during significant life events. 

5. Anti-Discrimination and Anti-Victimisation Provisions 

The updated ADGM employment regulations place a greater emphasis on protecting employees from discrimination and victimisation in the workplace. Victimisation, as defined in the regulations, includes actions like dismissal or other detrimental treatment following an employee’s participation in protected acts, such as whistleblowing or filing a complaint regarding discrimination or harassment. Employers must take proactive steps to prevent such behaviour and must provide employees with a safe space to report wrongdoing. 

6. Whistleblower Protection 

The new regulations strengthen whistleblower protections by ensuring that employees who make protected disclosures are not subject to retaliation. Employers are prohibited from retaliating against employees who report violations of law, including harassment, discrimination, or health and safety concerns. If retaliation occurs, the employee can seek compensation and a court remedy. 

7. Working Hours and Overtime 

The maximum weekly working hours remain set at 48, but employees must provide written consent to work overtime. The law also stipulates a 25% reduction in working hours during Ramadan for Muslim employees, with no reduction in pay. While there are currently no specific provisions for overtime pay, the ADGM may issue further guidelines in the future. 

8. Termination and End of Service Gratuity 

The updated ADGM Employment Regulations introduce detailed provisions around the termination of employment. Employers will need to provide employees with written reasons for termination, and the notice period remains the same as under the old law. Notably, end-of-service gratuity is now payable in all cases where the employee has more than one year of service, even if the termination is for cause. Employers will also need to offer repatriation flights to eligible employees who are terminated, unless the employee is dismissed for cause. 

9. Settlement Agreements 

Settlement agreements, which are used when terminating an employment relationship, continue to be recognized under the new regulations. However, for a settlement agreement to be valid, it must include a clause that the employee has had the opportunity to receive independent legal advice. Additionally, the employer cannot make the cancellation of the employee’s visa conditional on waiving any rights according to the updated ADGM Employment Regulations. 

10. Vicarious Liability for Employers 

Employers will be held vicariously liable for the actions of their employees if these actions breach the new employment regulations, provided the act occurred during the course of employment. This means employers must be diligent in creating clear policies and training programs that prevent misconduct, including discrimination, harassment, and victimisation, to mitigate the risk of legal liabilities. 

11. Remote and Part-Time Employees 

The concept of “remote employees” and “part-time employees” is now formalized in the updated ADGM Employment Regulations. Remote employees, who work outside the UAE, will be subject to different rights and obligations, and their work arrangements will not require a UAE residence visa or ADGM work permit. Meanwhile, part-time employees will benefit from clearer guidelines around leave entitlements and other employment benefits, making it easier for employers to manage such employees. 

Updated ADGM Employment Regulations 2024: A New Era of Workplace Flexibility and Fairness 

The updated ADGM Employment Regulations 2024 usher in a new era of workplace fairness, flexibility, and compliance that benefit both employers and employees. Employers have the opportunity to refine their policies, adapt to modern workplace trends, and ensure they meet legal requirements before the regulations take effect in April 2025. These changes not only enhance employee satisfaction and support but also offer businesses a chance to stay ahead of the curve in a competitive and evolving market. It’s an exciting time for companies in ADGM to prepare for a future where fairness and flexibility are at the forefront of work experience. 

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 Executive Search in 2025: What’s Driving the Demand for C-Suite Talent? Read Here!

The competition for C-suite talent in 2025 is nothing short of a high-stakes game. Organizations are no longer just looking for experienced leaders—they’re hunting for transformative visionaries who can navigate complexity and accelerate growth. At the same time, top executives are becoming more selective, seeking roles that offer impact, innovation, and alignment with their personal and professional aspirations. This dual pressure has reshaped how businesses and leaders approach executive recruitment and retention.

Let’s uncover the strategies, trends, and insights driving for exceptional C-suite talent and explore what it takes for executive search in 2025.

Executive Search in 2025: Emerging Trends for Top-Level Recruitment

AI in Recruitment: Partner, Not a Replacement

AI in talent acquisition has been met with a mix of excitement and skepticism. Technology holds tremendous promise, especially in automating repetitive tasks and enhancing recruitment efficiency. However, AI is still far from being the all-encompassing solution many once thought it would be. For instance, AI struggles with high-level recruitment strategies like identifying nuanced talent gaps or assessing non-verbal cues in interviews. AI can enhance recruitment when used appropriately, but it’s not yet a complete replacement for human decision-making.

Skills Over Resumes: The Hiring Revolution

One of the most significant shifts of executive search in 2025 is the emphasis on skills-based hiring. While this trend began to pick up steam in 2024, many companies are still figuring out how to implement it effectively. By 2025, businesses will be prioritizing candidates who possess the critical skills necessary to drive business innovation and transformation. In 2025, identifying and prioritizing critical skills will be essential for business success. Companies must focus on hiring talent that directly contributes to their strategic objectives.

L&D Gets a Glow-Up: Upskilling for Tomorrow

Learning and development (L&D) is no longer a nice-to-have—it’s a must-have. For executive search in 2025, C-suite talents are looking for more than just training programs—they’re seeking opportunities for career growth, upskilling, and advancement. Traditional, one-size-fits-all training is no longer enough. Instead, forward-thinking companies will turn to innovative L&D methods such as virtual reality (VR), gamification, and microlearning to engage and upskill employees. L&D must become a core part of your talent strategy if you want to retain top talent and help them grow with your company.

Walk the Talk: Delivering on Your EVP

In today’s competitive job market, it’s not enough to offer a flashy EVP that sounds good on paper. Job candidates are more informed than ever, using social media, online reviews, and word of mouth to assess whether a company’s EVP aligns with the reality of working there. In fact, companies that fail to deliver on their EVP promises risk damaging their reputation and losing out on top talent. For executive search in 2025, companies will need to integrate cultural values into their EVP to attract and retain the best candidates. A strong, authentic culture will be a critical factor in talent attraction and retention. Companies that publicly tout their culture but fail to implement it in practice will see higher turnover rates.  Authenticity in your EVP is crucial. To attract and keep the best talent, your company must deliver on its promises.

Flexibility Reimagined: Beyond Hybrid Work

The COVID-19 pandemic has permanently reshaped the way we work, and hybrid work models are now the norm. But it’s not just about where talents work—it’s about offering full flexibility. However, it’s flexibility in all aspects of the employee experience, including schedules and benefits, that will set companies apart in 2025. As employees increasingly expect flexibility, organizations that cling to rigid, traditional work models risk falling behind. The key to building a loyal and engaged workforce in 2025 is offering a flexible, inclusive work environment. Hybrid work is not a trend—it’s the new standard. Offering comprehensive flexibility will be crucial to your recruitment and retention strategies of executive search in 2025.

Adapt, Learn, Thrive: Upskilling for the Future of Work

As the battle for top talent intensifies, professionals are recognizing the need to upskill in order to remain relevant and competitive. Whether it’s acquiring cutting-edge technical expertise or honing leadership capabilities, employees are actively investing in their development to stay ahead of the curve. For companies, this presents a unique opportunity: by fostering a culture of continuous learning and encouraging employees to acquire the skills that will drive future growth, businesses can position themselves as employers of choice. Encouraging upskilling not only empowers employees but also strengthens the company’s ability to adapt to an ever-evolving market.  For executive search in 2025, upskilling will be essential.

Unlocking Future Leadership: How MS Transforms Executive Search in 2025

MS is your trusted partner in understanding the evolving landscape of executive search in 2025. With our deep understanding of the UAE market and global reach, we specialize in identifying top-tier C-suite talent who aligns with your strategic vision and organizational culture. By combining industry expertise, cutting-edge technology, and tailored search strategies, we ensure that your leadership team is equipped to drive innovation and success in an increasingly competitive market. Let MS help you secure visionary leaders who will shape the future of your business.

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Correcting VAT Errors and Omissions: What Businesses Need to Know in 2025 About FTA’s Latest Update 

In November 2024, the UAE Federal Tax Authority (FTA) issued Decision No. 8 of 2024, effective from January 1, 2025, introducing clear and comprehensive guidelines for businesses to address errors and omissions in their VAT returns. This decision outlines a structured process for correcting mistakes that do not alter the total tax liability, ensuring greater transparency and compliance. Under the new regulation, taxpayers who identify VAT errors or omissions can submit a Voluntary Disclosure to rectify these inaccuracies, provided the VAT error corrections does not impact the amount of tax payable and aligns with the specific scenarios detailed in Article 2 of the decision. 

This streamlined process promotes transparency and encourages taxpayers to maintain accurate filings. With the decision now in effect, it is essential for businesses to understand these new procedures thoroughly to ensure compliance with the FTA’s requirements and minimize the risk of penalties through VAT errors or omissions. 

What Types of VAT Errors and Omissions Can Be Corrected Under the New Decision? 

  • Misreporting Supplies Between Emirates: 

Taxable supplies intended for one emirate but mistakenly reported under another can be corrected. 
Example: Recording supplies from Dubai under Abu Dhabi in the VAT return. 

  • Errors in Reporting Zero-Rated Supplies: 

Mistakes in reporting zero-rated supplies, such as overstating or understating their value, can be adjusted. 
Examples of zero-rated supplies: Exports of goods and services, international transport, and qualifying healthcare or education services. 

  •  Misreporting Exempt Supplies: 

Errors in reporting exempt supplies, such as incorrect valuations of residential property rentals or financial services, can now be rectified. While exempt supplies are not subject to VAT, precise reporting is essential for compliance. 

VAT Errors and Omissions: Steps for Minor and Significant Mistakes 

  • Minor Errors (Below AED 10,000): Correct these errors directly in the following VAT return. 
  • Significant Errors (Above AED 10,000): 
  • Voluntary Disclosure: File Form 211 within 20 working days of identifying the error. 
  • Supporting Documentation: Include invoices, calculations, and other relevant records when submitting the voluntary disclosure. 

When is a Voluntary Disclosure Necessary for VAT Errors and Omissions? 

Voluntary disclosure is necessary in the following situations of VAT errors and omissions: 

  • Errors exceeding AED 10,000 in VAT returns: If the error in the VAT return exceeds AED 10,000, it must be disclosed voluntarily. 
  • Discrepancies in tax refund applications: Any inconsistencies found in submitted tax refund applications must be disclosed. 
  • Mistakes in tax assessments issued by the FTA: If the FTA issues a tax assessment that contains errors, businesses must disclose these mistakes. 
  • Significant errors that cannot be corrected in the current VAT return: If an error cannot be corrected within the current VAT return period, voluntary disclosure can be filed.

FTA Decision No. 8 of 2024 underscores the importance of accurate VAT reporting. By understanding the new regulations and adhering to the outlined mechanism for correcting VAT errors and omissions, businesses can maintain compliance, avoid penalties, and ensure smooth operations in the UAE. 

Simplify VAT Compliance with Expert Solutions from MS 

Managing VAT compliance can be seamless when you partner with MS. Our dedicated team of tax experts specializes in VAT registration, precise filings, voluntary disclosures, and meticulous recordkeeping, ensuring your business remains fully compliant with FTA regulations while avoiding costly penalties. Whether it’s identifying VAT errors and omissions, preparing accurate Voluntary Disclosures, or ensuring compliance with the specified scenarios under Article 2, we handle it for you. Let us take the complexity out of VAT compliance so you can focus on growing your business with confidence. 

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Deals in the Data Age: How Data Analytics in Business Valuation Transforms M&A Transactions 

Business valuation has evolved far beyond traditional reliance on static numbers. Today, data analytics has revolutionized the process, offering a multi-dimensional perspective on a company’s worth. Advanced analytics tools empower businesses to move beyond standard financial metrics, integrating real-time market trends, competitive intelligence, and external variables into predictive models. By leveraging data analytics in business valuation to forecast future performance, businesses can unlock deeper insights into a business’s potential, resulting in valuations that are not only more accurate but also strategically forward-looking. 

To accurately assess a company’s valuation, especially in preparation for an M&A transaction, various types of data are essential. These datasets provide valuable insights into the company’s historical performance, market position, and future potential: 

  • Financial Statements: Balance sheets, income statements, and cash flow statements form the backbone of understanding a company’s historical performance and are key to any valuation process. 
  • Operational Metrics: Key performance indicators (KPIs) such as production efficiency, sales performance, and profitability are critical for projecting future performance. 
  • Market Data: Industry trends, market reports, and benchmarks help in comparing the company’s performance against industry standards, offering a broader context for its valuation. 
  • Customer and Sales Data: Analyzing customer retention, sales cycles, and revenue streams helps in assessing a company’s growth potential and long-term sustainability. 
  • Competitor Analysis: Information on competitors’ performance and strategies provides a clear picture of where the company stands in relation to its market peers. 
  • ESG (Environmental, Social, and Governance) Data: With increasing attention on sustainability, ESG data is becoming a key component in evaluating long-term value and regulatory risks, influencing a company’s overall valuation. 

Key Benefits of Data Analytics in Business Valuation 

High-Quality Information for Accurate Valuations 

Data analytics provides structured, reliable data sets that are crucial for accurate business valuation. With the help of advanced tools, valuation professionals can access clean, high-quality information on financial performance, market trends, and operational efficiency. Without these robust analytics, businesses risk relying on incomplete or outdated data, which can lead to misjudged valuations and, ultimately, poor strategic decisions that could undermine the entire deal. 

Understanding Large Volumes of Data at Speed 

In M&A, the ability to act fast is crucial. Business valuation often requires reviewing vast amounts of financial and operational data but doing so manually can be time-consuming and prone to error. Data analytics in business valuation helps teams process large volumes of data swiftly, distilling it into actionable insights that are relevant to the valuation process. This means professionals can quickly identify key trends, discrepancies, or opportunities that could significantly impact the company’s value, ultimately saving time and avoiding delays in the deal timeline. 

Identifying the Ideal Target for Valuation Accuracy 

Identifying the right target to acquire or merge with is one of the most critical components of business valuation. Data analytics in business valuation supports this process by using predictive models that forecast how the new entity will perform post-merger. These models provide valuable insights into how the market is likely to respond to the new company structure and whether the target company will align with long-term business objectives. This helps valuation teams accurately assess whether a target company will increase or diminish the overall value of the deal. 

Smooth Post-Deal Integration for Consistent Value Realization 

Once the deal is done, the true value of the merger or acquisition is often realized during the integration phase. However, this phase can introduce challenges like cultural clashes or operational inefficiencies that might erode value. Data analytics in business valuation can aid in evaluating the business’s post-merger performance, helping decision-makers identify early areas of friction, such as skill gaps in leadership or inefficiencies in processes. By proactively addressing these issues, data analytics helps ensure that the anticipated value from the acquisition is maintained, enabling a smoother integration process and reducing the risk of diminishing the business’s valuation over time. 

Shaping the Future of M&A with Data Analytics in Business Valuation 

In today’s data-driven era, the integration of analytics into business valuation is transforming how companies assess and maximize value, particularly in M&A transactions. By going beyond traditional methods, data analytics equips decision-makers with precise, actionable insights that drive better outcomes. Whether it’s understanding historical performance, forecasting future potential, or understanding the complexities of post-deal integration, analytics plays a pivotal role in ensuring that valuations are accurate, strategic, and comprehensive. Furthermore, the increasing focus on intangible assets like intellectual property, brand equity, and ESG factors will further emphasize the need for advanced analytics. As these trends unfold, companies that adopt forward-thinking, data-driven valuation strategies will be better equipped to make informed decisions, seize opportunities, and thrive in an increasingly competitive and data-centric marketplace. 

Uncover Your Business’s True Value with Expert Business Valuation Services with MS 

At MS, we specialize in delivering precise and insightful business valuations that drive confident decision-making. By combining traditional valuation techniques with cutting-edge data analytics, we provide a multi-dimensional perspective on your business’s worth. Our expertise spans financial performance analysis, market benchmarking, and future potential forecasting, ensuring a valuation tailored to your strategic goals. Whether you’re preparing for an M&A transaction, exploring investment opportunities, or planning for growth, we provide the clarity and depth you need to maximize value. Trust our team to bring expertise, innovation, and reliability to every valuation engagement. 

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Does Strategy Alone Win Deals? How Leadership in M&A Makes All the Difference! 

Every merger and acquisition deal is a high-stakes game with unique challenges and a singular promise: the opportunity to create something greater than the sum of its parts. But what sets apart the winners from the rest? It’s not just financial expertise or operational excellence—it’s also about leadership in M&A. 

In the scenario of negotiations, integrations, and transformations, visionary leaders step up to craft a compelling story for the future, inspiring teams, investors, and customers to believe in the potential of the new organization. They’re the captains of strategy and the architects of alignment, knowing when to push forward and when to pull back. 

Let’s uncover what it truly takes to lead with purpose and make a lasting impact in the world of M&A. 

Essentials of Mastering Leadership in M&A: Strategy, Culture, and Seamless Integration 

1. Making Leadership Selection Decisions with Clarity and Objectivity 

One of the most challenging aspects of M&A is selecting the right leaders for the new organization. Often, M&As present a situation where there are “two of everything” in leadership positions, and decisions can become clouded by personal negotiations or biases. To overcome this challenge, it’s essential to: 

  • Define clear expectations: Ensure decision-makers align on what makes a great leader for the combined organization. 
  • Use data-driven assessments: Leverage objective tools and standardized surveys to evaluate leadership performance and potential. 
  • Make quick, decisive decisions: Delaying leadership selection can create uncertainty, risking disengagement or attrition of key talent. 

By making leadership decisions swiftly and based on objective criteria, executives can set the stage for the organization to move forward with confidence and alignment. 

2. Executive Leadership Sets the Strategic Direction 

The newly merged or acquired company needs strong leadership to guide it forward. The leadership team’s primary responsibility is to set the cultural vision and strategic direction for the combined entity, defining how it will operate and grow. This involves: 

  • Aligning executives with a shared vision for the future. 
  • Establishing a clear strategy for integration and long-term growth. 
  • Making timely and effective decisions that support both immediate integration and long-term objectives. 

Effective leadership in M&A ensures that the combined organization has a clear, compelling vision that inspires employees, stakeholders, and customers. Leaders play a central role in creating momentum after the deal is completed, reinforcing the organization’s values and aligning all levels of staff toward a common goal. 

3. The Importance of People Diligence in M&A 

A successful M&A deal is also about people. Effective executive leadership recognizes the importance of “people diligence,” which involves understanding the strengths and weaknesses of leadership teams and the broader talent pool. This ensures that leadership in M&A is based on objective, data-driven insights, rather than assumptions or negotiations. A robust people diligence process includes: 

  • Identifying mission-critical talent: Knowing who the key players are, both now and in the future, and understanding how their expertise and leadership will impact the success of the combined organization. 
  • Assessing leadership gaps: Determining whether current leaders are equipped to drive the new organization or whether new leadership needs to be brought in. 
  • Understanding organizational dynamics: Recognizing the informal influencers within the company who can shape morale and performance after the deal is completed. 

When executed correctly, people diligence provides the insights needed to make informed decisions about which leaders to retain, which to develop, and where additional leadership resources may be required. 

4. The Role of Executive Leadership in Post-Deal Integration 

Once the deal is closed, the real work begins—ensuring successful integration. Strong leadership in M&A is essential for guiding the organization through this challenging phase, and key activities include: 

  • Ongoing communication: Ensuring transparency and open lines of communication with all stakeholders. Leaders should clearly articulate a vision for the future and define roles within the new structure. 
  • Engaging talent at all levels: Empowering leaders below the executive level to serve as ambassadors for integration, helping to bridge cultural gaps and reduce potential friction during the transition. 
  • Assessing change readiness: Understanding the organization’s capacity to handle change and adapting integration strategies accordingly. Leaders should anticipate challenges such as resistance to change and employee burnout, developing targeted strategies to address them. 

Effective integration requires not only strong project management but also leadership that is empathetic to the human side of change. Leaders who can balance operational imperatives with cultural sensitivity will be best positioned to accelerate the combined organization’s success. 

The Power of Balance: How Leadership in M&A Drive Deal Success 

The true success of a merger or acquisition lies in the seamless integration of both technical execution and strong leadership. While the financial details, operational strategies, and systems are crucial for a smooth transition, it’s the leadership that truly makes the difference. Leaders guide teams through uncertainty, shape the organizational culture, and ensure alignment with the long-term vision of the combined entity. When the technical aspects and leadership efforts are in sync, the real potential of the deal is realized. Success is not just about the deal itself, but about the people driving the process forward, turning challenges into growth opportunities and creating long-term value for the organization through proper leadership in M&A. 

Empowering Success with MS Through Strategic Leadership in M&A 

At MS, we know that the true success of a merger or acquisition goes beyond numbers—it’s about having the right leadership in M&A to drive change. With our unique blend of M&A advisory and executive search services, we offer a holistic approach that addresses both the strategic and human elements of the deal. Our M&A experts guide you through every phase, from deal strategy to seamless integration, while our executive search team ensures you have the leadership talent needed to shape the future. With MS, you gain more than just a deal partner—you gain the leadership and expertise to turn your M&A vision into lasting success. 

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Deadline Approaching for UAE Tax Group Formation: Everything You Need to Know Before 31 December 2024

As the year draws to a close, businesses in the UAE with a tax period from 1 January 2024 to 31 December 2024 are racing against the clock. The 31 December 2024 deadline to submit the application for forming a UAE Tax Group is fast approaching, and it’s one that could significantly impact your company’s tax strategy.

Forming a Tax Group under the UAE Corporate Tax Law can offer a range of benefits, from simplified filings to potential cost savings. However, if you miss the deadline, your business may face the consequences of being taxed individually, which could lead to higher liabilities and greater administrative work.

What is the UAE Tax Group under the Corporate Tax Law?

A Tax Group allows multiple entities, such as a parent company and its subsidiaries, to consolidate their tax filings and be treated as a single taxable entity for the purposes of UAE Corporate Tax. By forming the UAE Tax Group, businesses can optimize their tax obligations, streamline compliance, and reduce administrative burdens. However, there are specific requirements and deadlines that must be met for businesses to qualify for this option.

Key Conditions for Forming the UAE Tax Group Under Corporate Tax Law

To qualify for forming a Tax Group under the UAE Corporate Tax Law, businesses must meet several specific conditions. These criteria ensure that only eligible entities can benefit from the consolidation of tax filings and other advantages of being part of a UAE Tax Group.

Residency Requirement:
Only resident entities in the UAE are allowed to form or join a Tax Group.

Eligible Entities:
The entities wishing to form a UAE Tax Group must be juridical resident persons (i.e., registered companies). Natural persons and unincorporated partnerships (even if applied to be treated as a separate taxable person) are not eligible.

Parent-Subsidiary Relationship:
A Tax Group can only consist of a parent company and its subsidiaries, and certain criteria must be met:

  • The parent company must hold at least 95% of the subsidiary’s shares and voting rights.
  • The parent must be entitled to at least 95% of the subsidiary’s profits and net assets.

Exemption Status:
Neither the parent company nor any subsidiary in the proposed Tax Group can be exempt from Corporate Tax, nor can they be a Qualifying Free Zone Person (a company benefiting from specific tax exemptions in certain zones).

Financial Year Consistency:
To form a Tax Group, all entities—parent and subsidiaries—must share the same financial year and adhere to consistent accounting standards across the group.

Getting Ready to Form the UAE Tax Group? Start with Corporate Tax Registration

Before you can submit the application to form a Tax Group, it is essential that each member entity—both the parent company and all subsidiaries—obtain individual Corporate Tax Registration. This registration is a mandatory prerequisite for all entities seeking to be part of the UAE Tax Group under the Corporate Tax Law.

The process involves registering each entity with the Federal Tax Authority (FTA), which ensures that they are recognized for tax purposes. Only after each entity has successfully completed this registration can the application to form the Tax Group be submitted to the FTA for approval. This step is crucial as without it, the application will not be processed, and the opportunity to form a Tax Group for the tax period may be lost.

Advantages of Forming a Tax Group

Simplified Compliance: By consolidating tax filings into a single return, businesses can simplify the compliance process, saving time and resources.

Cost Savings: Streamlined filing could lead to cost savings, as for companies there are no fees for filing CT returns on the portal or for external consultants to manage CT matters.

Improved Cash Flow: A Tax Group allows entities to offset tax losses from one member against taxable profits from another, which can optimize cash flow and potentially reduce the overall tax burden.

No Transfer Pricing for General Transactions Within the Group: Transactions between group members are eliminated when calculating taxable income, which reduces the need for complex transfer pricing documentation and administrative oversight.

At MS, we specialize in providing tailored tax advisory services to businesses in the UAE. Our experienced team can guide you through every step of the process, from Corporate Tax registration to UAE Tax Group formation, ensuring full compliance and optimizing your tax strategy. With our deep knowledge of UAE tax laws and our commitment to delivering exceptional service, we’re here to help you with this important transition with ease.

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How Do Family Offices in Dubai Build Foundation for Sustainable Wealth? Read Here!

In recent years, Dubai has firmly positioned itself as a global magnet for wealth and prestige, evolving into a powerhouse for family offices. With its world-class financial ecosystem, the emirate is now home to family offices overseeing assets exceeding a staggering $1 trillion. This meteoric rise of family offices in Dubai has been fueled by an influx of high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) who recognize Dubai’s unique blend of opportunity, stability, and luxury.

But what makes Dubai the ultimate destination for family offices? Let’s explore.

Why setting up family offices in Dubai is the Go-To option for UHNWIs?

Strategic Location and Global Connectivity

Situated at the crossroads of Europe, Asia, and Africa, Dubai is a natural gateway between the East and the West. This geographic advantage is further enhanced by world-class transportation infrastructure, including Dubai International Airport (DXB), one of the busiest in the world, and Emirates Airlines, renowned for its global reach and premium services. For UHNWIs who often need seamless travel, Dubai offers unmatched connectivity to major cities worldwide.

Tax-Friendly Environment

The tax regime is one of its most significant draws for UHNWIs and family offices in Dubai. The absence of personal income tax and capital gains tax makes it an attractive destination for wealth preservation. Corporate tax benefits are also available, particularly for businesses operating in Free Zones like Dubai International Financial Centre (DIFC), which offer 0% tax on profits for specific periods. Coupled with transparent regulations and a pro-business government, Dubai is a hub for wealth optimization.

World-Class Infrastructure

Dubai is synonymous with modernity and innovation. Its skyline, adorned with architectural wonders like the Burj Khalifa and the Burj Al Arab, speaks volumes about its ambition. Exclusive neighborhoods such as Palm Jumeirah, Emirates Hills, and Downtown Dubai offer luxury living at its finest. Family offices in Dubai can enjoy access to these amenities, including five-star hotels, gourmet dining, and high-end shopping experiences, all within a safe and well-maintained urban landscape.

Business and Investment Opportunities

As a global business hub, Dubai presents opportunities for investment and entrepreneurship. Sectors like real estate, technology, finance, and renewable energy are thriving, providing fertile ground for UHNWIs to grow their wealth. Financial free zones like the DIFC robust regulatory frameworks for family offices in Dubai, ensuring a secure environment for business and wealth management.

Safety and Quality of Life

One of Dubai’s most appealing traits is its safety. Consistently ranked among the safest cities globally, Dubai provides UHNWIs with peace of mind. The city also boasts a high quality of life, with world-class healthcare, prestigious educational institutions, and a variety of cultural and recreational activities. Political and economic stability further enhances the appeal for family offices in Dubai as a secure place to live and invest.

Growing Ecosystem for Wealth Management

Dubai has become a hub for wealth management services, catering specifically to UHNWIs. Leading global banks, financial advisors, and family offices have established a presence in the city, offering services such as succession planning, estate management, and philanthropic consulting. This growing ecosystem ensures that UHNWIs have access to specialized services tailored to their unique needs.

Vibrant Cultural and Social Scene

Despite its reputation as a business hub, Dubai offers a rich cultural and social environment. The city hosts numerous art exhibitions, international film festivals, and exclusive networking events. Its cosmopolitan nature, with over 200 nationalities residing here, makes it an inclusive space where family offices in Dubai can feel at home while enjoying a vibrant social life.

Ease of Residency and Citizenship Options

Dubai’s residency and citizenship policies are another significant advantage. The introduction of the Golden Visa program has made it easier for investors, entrepreneurs, and high-net-worth individuals to secure long-term residency. Property-linked residency options also provide a straightforward pathway for family businesses looking to establish a foothold in the city.

How to Set Up a Family Offices in Dubai for Wealth Management and Legacy Planning?

Setting up a family office in Dubai offers UHNWIs a formal, regulated framework for efficient wealth management, governance, and legacy planning. The DIFC is often the ideal choice, providing numerous advantages and a robust infrastructure tailored to the needs of family offices. The first step is deciding whether to establish a Single or Multi Family Office and ensuring compliance with DIFC’s regulatory requirements, including the $50 million USD minimum net asset threshold. A DIFC Corporate Services Provider can be your partner in understanding the application process and handling due diligence. While a family office is ideal for those with complex asset structures, larger families, or those needing centralized governance, simpler structures like DIFC Foundations or Prescribed Companies may better suit families with less complex needs. Ultimately, the choice depends on the family’s objectives and financial situation.

MS: Your Guide to Establishing Family Offices in Dubai International Financial Centre

At MS, we specialize in helping UHNWIs establish and manage family offices within the DIFC. With a deep understanding of local regulations and a strong network of trusted partners, we guide clients through the setup process, ensuring compliance with DIFC’s requirements. Whether you’re opting for a Single or Multi Family Office or considering simpler structures like DIFC Foundations or Prescribed companies, MS provides tailored solutions to optimize wealth management, governance, and legacy planning for your family’s long-term success.

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Final Run for Corporate Tax Filing Deadline:  Essential Tips to Meet Your Return Filing of December 31, 2024

If your business was established on or after June 1, 2023, and your tax period ends on or before February 29, 2024, the final deadline for Corporate Tax filing deadline is December 31, 2024. This is your critical moment to ensure compliance with the UAE’s Corporate Tax requirements.

To support your filing process, the Federal Tax Authority (FTA) has published a comprehensive Corporate Tax Return Filing Guide, which is designed to help businesses understand the filing process, regulatory changes, and avoid common mistakes.

How to Prepare for Your Corporate Tax Filing Deadline:

Organize Your Financial Documents

The first step to ensure meeting the corporate tax filing deadline is gathering all the required documents. This includes your financial statements, income statements, invoices, receipts, and any records supporting your deductions or credits. Organizing these early on will save you time and effort as you approach the filing deadline. By having all your financial data organized in one place, you minimize the chances of overlooking important details, leading to a more accurate tax return.

Stay Updated on Tax Regulations

Corporate tax laws can change, and it’s important to stay informed about the latest rules and regulations to avoid potential penalties. The FTA regularly issues updates on tax laws that may affect your corporate tax filing deadline. The Corporate Tax Return Filing Guide is an excellent resource to keep track of any modifications to tax laws. Understanding these regulations will help you avoid mistakes and also provide opportunities to optimize your tax position.

Double-Check for Accuracy

 Accuracy is crucial when it comes to Corporate Tax filing. Ensure that your financial data is correctly recorded, and your tax calculations are accurate. Take extra time to verify all the details before submitting your tax return. Errors or omissions can lead to delays, penalties, or even audits. If you’re unsure about specific calculations or deductions, it’s a good idea to consult with a tax professional to meet the corporate tax filing deadline. They can help review your return and ensure that everything is in compliance with current regulations, helping you avoid costly mistakes.

What Happens If You Miss the Corporate Tax Filing Deadline?

The deadline to file your Corporate Tax Return for applicable entities and make any outstanding payments is December 31, 2024. If you miss this date, your business could face significant penalties:

Non-Filing Penalty: If you fail to file your return on time, you will be penalized AED 500 per month for the first 12 months. After that, the penalty increases to AED 1,000 per month. Over time, these penalties can add up and become a substantial financial burden for your business.

Late Payment Penalty: If you do not pay your tax by the corporate tax filing deadline, a 14% annual penalty will be charged on the outstanding amount, compounded monthly. This can result in a significant increase in your tax liability as the penalty compounds over time.

How MS Can Help You Meet Your Corporate Tax Filing Requirements

At MS, we offer expert assistance throughout the Corporate Tax filing process. Our experienced team will help you gather, organize, and review your financial documents, ensuring everything is in order for a smooth filing. We will also calculate your tax liabilities, ensuring full compliance with the latest UAE tax laws. If there are any changes in tax regulations, we’ll ensure you’re informed and equipped to optimize your tax return.

Additionally, we provide proactive reminders as the corporate tax filing deadline approaches, so you never miss a critical step. With MS by your side, you can confidently meet the December 31, 2024, deadline and avoid costly penalties.

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Financial Modeling in M&A: The Ultimate Guide to Making Informed Deals 

When it comes to Mergers and Acquisitions (M&A), the key to making smart decisions lies in the numbers. But here’s the twist: it’s not just about numbers—it’s about translating those numbers into a story that reveals the true potential of a deal. Financial modeling is that story you need in your deal. 

Whether you’re exploring synergies, assessing risks, or simply trying to figure out whether the deal is worth it, a financial model is your best ally. It helps you answer the big questions: Is this deal a win for both sides? What are the financial benefits? And, most importantly, is this deal worth pursuing? 

First things first, let’s start by understanding the core idea of financial modeling in M&A.  

What is Financial Modeling in M&A? 

Financial modeling for M&A involves building a structured representation of a transaction’s financial implications. It’s typically created in a spreadsheet, incorporating key assumptions, historical data, and future projections. It’s a way to translate business ideas and strategies into financial forecasts and projections. The financial modeling in M&A helps stakeholders understand the potential financial impact of the merger or acquisition and make informed decisions. 

Here’s what a typical financial modeling in M&A includes: 

  • Assumptions: Foundational inputs like growth rates, synergy estimates, and financing terms. 
  • Income Statement: A forecast of revenues, costs, and profits for the combined entity. 
  • Balance Sheet: A view of assets, liabilities, and equity, reflecting the financial position post-deal. 
  • Cash Flow Statement: A breakdown of cash inflows and outflows, highlighting liquidity post-merger. 
  • Valuation Analysis: A calculation to determine the deal’s worth and its impact on shareholder value. 

But why is financial modeling in M&A so vital? 

The Key Benefits of a Solid Financial Model in M&A Transactions 

Robust financial modeling in M&A serves as the backbone of any deal. It provides a detailed picture of the transaction’s impact and ensures the decision aligns with strategic objectives. 

  • Assessing Strategic Fit: Evaluates whether the merger aligns with long-term goals. 
  • Estimating Synergies: Quantifies potential cost savings and revenue gains. 
  • Identifying Risks: Highlights potential challenges and areas of concern. 
  • Supporting Negotiations: Provides data-driven insights to strengthen your position in deal discussions. 

Now that you’ve got the basics down, let’s walk through the steps to craft a financial model for your next M&A deal! 

The Essential 5 Steps to Building a Strong Financial Modeling in M&A 

1. Gather Information: 
Collect detailed financial statements, industry data, and specific deal terms. Ensure you have historical data and forecasts for both companies involved. 

2. Define Key Assumptions: 
During the crafting of financial modeling in M&A, determine the critical inputs, such as: 

  • Projected revenue growth. 
  • Cost synergies and integration expenses. 
  • Financing structure (e.g., equity vs. debt). 

3. Link Financial Statements: 
Integrate the income statement, balance sheet, and cash flow statement for both companies into a unified framework. Adjust for post-deal changes like: 

  • Goodwill: The premium paid over the target’s net assets. 
  • Debt: Any new or assumed debt in the transaction. 
  • Taxes: Changes in tax liabilities based on the combined entity. 

4. Consolidate Financials: 
Combine the financials of both companies, reflecting: 

  • Adjustments for synergies (e.g., cost reductions or revenue increases). 
  • Integration costs, such as restructuring or legal fees. 

5. Perform Valuation Analysis: 
Use techniques like Discounted Cash Flow (DCF), precedent transactions, or comparable companies to assess the deal’s value. This step determines if the purchase price is justified. 

It’s not just about building your financial model—testing it is equally crucial. Here’s how to ensure your financial modeling in M&A stands up to scrutiny and delivers accurate results. 

How to Validate and Test Your Financial Model in M&A? 

Before presenting the model, perform rigorous checks to ensure accuracy and reliability: 

  • Validate Formulas: Verify that all calculations and links between cells are correct. 
  • Cross-Check Projections: Compare forecasts against industry benchmarks and historical data. 
  • Run Sensitivity Analyses: Adjust assumptions (e.g., growth rates or synergies) to test different scenarios, like best-case and worst-case outcomes. 
  • Scenario Planning: Build models for various potential deal outcomes to evaluate risks and opportunities. 

Choosing the Right Financial Model for Your M&A Deal 

Financial modeling in M&A serves as a critical tool for assessing potential opportunities and risks, guiding decision-making, and ensuring alignment with strategic goals. The process involves integrating key assumptions, financial statements, and projections to create a clear picture of how the deal will unfold financially. 

However, it’s essential to recognize that there is no one-size-fits-all approach to financial modeling. Different types of models—such as the merger model, discounted cash flow (DCF) model, or LBO model—serve distinct purposes and can be more suitable depending on the nature of the transaction and the goals of the stakeholders involved. Selecting the right financial model ensures that you’re equipped with the right insights, ultimately empowering you to understand the M&A deals. 

At MS, we specialize in providing expert deal advisory services that drive the success of your mergers, acquisitions, and strategic transactions. With our deep market insights and tailored financial strategies, we ensure that every deal is structured for maximum value and aligned with your business objectives. 

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What’s Next for Financial Leaders? Key Challenges of CFOs You Should be Aware Before 2025 

What does the future hold for CFOs in 2025?  

As business landscapes evolve at lightning speed, today’s CFOs are no longer just financial overseers. They’re the masterminds guiding their companies through transformation, innovation, and uncertainty. With the pressure to drive growth, understand complex regulations, and champion sustainability, CFOs will be at the forefront of organizations, balancing diverse roles and priorities. In this new era, the question isn’t just “How will CFOs manage finances?” but “How will they shape the future of business?” 

Before we uncover what lies ahead in 2025, let’s take a moment to address the key challenges of CFOs. 

1. Beyond the Numbers: Expanding Strategic Influence Across the Business  

Today’s CFOs are not just focused on the balance sheet. They act as the key players in shaping business direction. Expanding their influence beyond financials into broader strategic areas is one of the challenges of CFOs, but also an essential opportunity for driving growth. 

2. Leading the Charge: Adapting Technology to Drive Transformation 

Digital transformation is no longer optional for CFOs. They’re spearheading the adoption of cutting-edge technologies like AI and machine learning to enhance financial processes, optimize decision-making, and stay competitive in a fast-evolving landscape. 

3. Staying Ahead of the Curve: Tackling the Challenges of Regulatory Compliance 

With a constantly shifting global regulatory landscape, CFOs are tasked with ensuring their organizations comply with both local and international financial regulations. The goal here is to mitigate risks while keeping the business on track, which still remains one of the major challenges of CFOs. 

4. The Talent Race: Building and Retaining Top Finance Teams 

The hunt for top talent is fiercer than ever. CFOs must not only recruit the best and brightest but also foster an environment that nurtures ongoing development, ensuring their finance teams can meet the demands of a rapidly evolving market. 

5. Mastering Multitasking: Balancing ESG, M&A, and Strategy 

CFOs are no longer just managing financials, instead they’re deeply involved in environmental, social, and governance (ESG) initiatives, Mergers and Acquisitions (M&A), and long-term strategic planning. This is one of the key challenges of CFOs -Juggling the diverse responsibilities without neglecting the core financial functions that drive business success. 

6. Risk-Proofing the Business: Protecting Against Uncertainty 

CFOs are the architects of business resilience, tasked with identifying potential risks and ensuring their organizations are prepared for the unexpected. Whether it’s economic uncertainty or financial volatility, their foresight and strategic planning are crucial to maintaining stability. 

7. Communication is Key: Bridging Gaps with Stakeholders 

Effective communication is a core competency for today’s CFO and also stands as one of the challenges of CFOs. Whether it’s explaining complex financial data to the board, investors, or employees, the ability to articulate key messages clearly and persuasively is a game-changer. 

8. Climbing the Corporate Ladder: From CFO to CEO 

Many CFOs aspire to lead at the very top—yet the path to the CEO role often feels elusive. Breaking through visibility barriers, expanding their leadership presence, and cultivating executive relationships are critical to climbing the corporate ladder. 

9. Achieving Balance: Managing Workload and Well-Being 

Despite their expansive roles, many CFOs are finding ways to maintain work-life balance. While this part is usually neglected, it’s one of the key challenges of CFOs in sustaining their long-term success—both professionally and personally. 

10. Staying Agile: Leading Through Strategic Shifts 

Businesses can be sometimes subjected to sudden shifts. CFOs must ensure that financial strategies align with new company directions. The ability to quickly adapt to these shifts is vital for organizational success. 

Turning the Challenges of CFOs Into Opportunities: What’s Ahead in 2025? 

As CFOs evolve into dynamic leaders in 2025, their role will require a blend of innovation, strategy, and adaptability to drive organizational success and sustainability. With the growing need for expertise in AI, data analytics, ESG compliance, and agile financial forecasting, finding the right CFO is crucial to ensure your company thrives in the competitive business environment. A strategic executive search will help you identify and secure CFOs who possess the visionary leadership and technical knowledge necessary to tackle these challenges. These leaders will not only manage your financial operations but will also drive innovation, enhance profitability, and lead your company toward long-term growth and sustainability. The right CFO can be an asset for your organization, and an executive search ensures you find a candidate who will be invaluable in shaping your company’s future. 

Finding the Right CFOs for 2025: How MS Executive Search Solutions Can Help? 

At MS, we specialize in delivering tailored executive search solutions to help you find the right CFOs who can drive your company’s success in 2025 and beyond. With our deep understanding of the changing business landscape and the unique demands of the finance sector, we connect you with visionary leaders who excel in strategic thinking, digital transformation, and sustainability. Our extensive network and hands-on approach ensure we identify CFOs with the expertise, innovation, and agility needed to lead your organization through the complexities of the future. 

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