Tag: UAE

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Corporate Tax in the UAE: How Free Zones can optimize your UAE business

Corporate Tax in the UAE: How Free Zones can optimize your UAE business
Corporate Tax in the UAE: How Free Zones can optimize your UAE business

The United Arab Emirates (UAE) has emerged as a global hub for business and innovation, and a significant contributor to this success story is the strategic role played by Free Zones (FZs). These designated areas offer a multitude of advantages for businesses, making them particularly attractive for startups and established companies looking to expand their reach. One of those advantages is the 0% Corporate Tax structure for businesses with certain criteria operating in the Free Zones including Corporate Tax for Abu Dhabi Global Market (ADGM) including Al Reem Island and Dubai International Financial Centre (DIFC).

Before that, let’s glance at the other benefits of UAE Free Zones.

Why Choose a Free Zone in the UAE?

Compared to the UAE mainland, FZs provide a compelling environment for businesses to thrive. Here are some key benefits:

  • Full Foreign Ownership: Unlike the mainland, FZs allow complete foreign ownership, eliminating the need for a local partner. This simplifies the set-up process and offers greater control for international investors.
  • Streamlined Business Setup: Setting up a business in a Free Zone is a breeze. The process is fast, and efficient, and removes unnecessary bureaucratic hurdles.
  • Premium Infrastructure: Free Zones boast state-of-the-art infrastructure, including advanced communication networks, business centers, and logistics facilities. This ensures a smooth operation and a competitive edge.
  • Wider Legal and Commercial Options: FZs offer a wider range of legal and commercial structures for businesses to choose from, allowing for greater flexibility and customization based on specific needs.

The Corporate Tax in the UAE and Free Zone Advantages

The UAE’s recent implementation of a Corporate Tax regime acknowledges the critical role played by FZs in the nation’s economic growth. Recognizing this, the government offers a highly attractive benefit – a 0% Corporate Tax rate for qualifying Free Zone companies and branches (QFZPs) engaged in designated Qualifying Activities and transactions.

These Qualifying Activities typically involve:

  • Business is conducted solely between QFZPs and Free Zone Persons (where the Free Zone Person is the ultimate beneficiary of the transactions).
  • Specific activities performed within the designated geographical areas of a Free Zone or a specific zone for distribution activities.

Free Zone Perks: Unlocking the 0% Corporate Tax Rate in the UAE

So, you’ve set your sights on the UAE’s Free Zones (FZs) and their tempting offer of a 0% Corporate Tax rate. But hold on, there are a few hurdles to clear before you claim this. Here’s a breakdown of the key conditions you’ll need to meet to qualify as a Qualifying Free Zone Person (QFZP).

Who qualifies as a Free Zone Person?

First things first, you need to be a resident of the Free Zone. This means being a company whether it is holding, operational, or other types incorporated, established, or registered within a Free Zone. It can also be a branch of a non-resident company or even a UAE company that’s registered in a Free Zone. The important part is that only the qualifying income earned by your Free Zone business gets 0% tax treatment.

The substance is key: Proving your presence

The UAE wants to see a real commitment from you, not just a mailbox address in a Free Zone. You’ll need to demonstrate that you have a substantial presence within the zone. This means having enough employees, assets, and operational expenses to carry out your core business activities. Outsourcing is allowed, but only within the Free Zone and with proper supervision to ensure you’re still in control.

Where your income comes from matters

Not all income is created equal in the eyes of the UAE taxman. To qualify for the 0% rate, your income needs to come from approved sources:

Transactions within the Free Zone: But there’s a catch – they can’t be involved in excluded activities, and they must be the true beneficiaries of the transactions.

Qualifying Activities: Make sure your core business falls under the list of approved activities.

Qualifying Intellectual Property: Owning or exploiting intellectual property that meets specific criteria can also bring you a 0% tax advantage.

Other Income: If your non-qualifying income stays below the de minimis threshold (explained later), you’re still good to go.

Beware the Excluded List

Some income sources are strictly off-limits for the 0% tax rate. These include income from locations outside the Free Zone, unrelated property holdings, and intellectual property that doesn’t meet the qualifying criteria.

Choosing your tax path wisely

Don’t opt for the standard corporate tax regime if you want the 0% rate. This is a one-way street, and switching back to QFZP benefits comes with a four-year waiting period.

Playing by the Arm’s Length Principle

The UAE wants to ensure fair play – your Free Zone company’s profits should reflect its actual contribution, not some artificial arrangement with affiliated businesses. This is where the arm’s length principle comes in. If you have significant transactions with related parties according to the transfer pricing regulations, be prepared to maintain documentation that proves they were conducted at arm’s length.

Keeping the books in order

Regardless of your income level, audited financial statements are a must for QFZP status.

Corporate Tax De Minimis Rule: A little Non-Qualifying Income is okay

The UAE understands that starting a business might involve some non-qualifying activities. The de minimis rule allows QFZPs to have a small amount of non-qualifying income (the lower of AED 5 million or 5% of total revenue) without losing the 0% tax benefit.

The Free Zone Person’s non-qualifying income in a tax period is revenue derived from:

  • Excluded Activities: Activities that do not meet the qualifying criteria.
  • Activities with Non-Free Zone Persons: Transactions where the other party is not a Free Zone Person.
  • Non-Beneficial Transactions: Transactions with a Free Zone Person where the Free Zone Person is not the beneficial recipient of the relevant services or goods.

By meeting these requirements, you can unlock the door to the UAE’s Free Zone tax haven and enjoy the benefits of a competitive business environment. Remember, staying informed and compliant is key to keeping your QFZP status and maximizing your tax advantages.

How can MS help you with Corporate Tax in the UAE?

MS can streamline your UAE Corporate Tax filing process, ensuring accuracy and efficiency. We have a team of experts well-versed in UAE tax regulations who can guide you through the entire procedure, from registration to filing. We’ll begin by thoroughly analyzing your company’s financial standing to accurately determine your taxable income, taking into account any applicable exemptions and deductions. By leveraging our expertise, you can save valuable time and resources by knowing your corporate tax filing is handled by professionals.

Disclaimer

Please be advised that the conditions specified in the register are subject to revisions based on any modifications made to the schedule of contraventions by the UAE authorities. These revisions may arise due to updates in regulatory requirements, policy amendments, or other factors deemed necessary by the UAE Government.

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Futuristic Finance: The Emergence of Neobanks and Digital Banking in the UAE

Futuristic Finance: The Emergence of Neo banks and Digital Banking in the UAE
Futuristic Finance: The Emergence of Neo banks and Digital Banking in the UAE

Technology has totally changed our lives- everything’s just a tap away now. From entertainment, and healthcare to banking, the digital age has reshaped the landscape. As society increasingly embraces digital solutions, traditional banking models have undergone a seismic shift, more open to digital tools and technologies. Now it’s all about convenience, as banks are jumping into digital options, our phones are becoming our wallets. Thus, the stage is set for the digitalization of finance, where mobile-first approaches and innovative startups are leading the charge, transforming how we save, spend, and invest.

Role of Neo banking in the UAE Economy

Neo-banking is still in its infancy stage in the Middle East, yet its potential in the region is significant, evident from the increasing investment in the sector. COVID-19 accelerated the digital readiness mindset of UAE residents. Regulators are keen to align the UAE’s digital agenda with the country’s banking industry to progress towards a completely digital world. These newly developed digital banks are focusing on streamlining operations to conduct high-volume digital transactions to cater to the rising demand for digitization. Banks are also molding their business strategies to act as a platform to connect various forms of digital transactions.

Digital banking v/s Neo banking

Digital banking and neo-banking are not quite the same. Even though both these mention digital operations, digital banking typically refers to the online services offered by traditional banks, allowing customers to manage their finances digitally.

Neo-banking, however, goes a step further. Neo-banks operate exclusively online, without any physical branches. They often emerge independently or in collaboration with traditional banks.

 Case study – Wio

In the competitive landscape of digital banking within the world, UAE’s Wio Bank has emerged as a notable success story. Established in September 2022, it swiftly garnered attention with its sophisticated app and innovative services. Wio Bank distinguishes itself through a range of customer-centric features, including fee-free international money transfers, zero accounting maintenance fees, early salary access, and an enticing loyalty program. Its inaugural year of full operation in 2023 yielded impressive financial results, boasting a profit of Dh 2 million and revenues totaling Dh266.4 million and in 2024, it Became One of the Fastest ‘Neo-Banks’ Globally to Hit a Profit.

With a strategic focus on digital-first solutions and a commitment to transparency, Wio Bank has attracted discerning consumers and cultivated significant growth. As it continues to expand, Wio Bank is poised to become a premier digital-only banking institution not only in the UAE but globally.

The Future Role of Digital and Neo Banks

The neo-banking revolution has just begun, the emergence of neo-banks and digital banking in the UAE represents a significant shift in the way people access financial services. These changes offer exciting opportunities for individuals and businesses alike. By collaborating with traditional banks, utilizing advanced technology such as AI, and focusing on personalized services, neo-banks are transforming the banking experience. This shift isn’t just about money; it’s about connecting people to a more accessible and convenient financial future. It’s an exciting time, promising a brighter, more inclusive banking landscape for all.

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Streamline your finances, drive growth: Why Bookkeeping in the UAE matters the most

DEWS in DIFC Advantage: A Modern Approach to End-of-Service Benefits
DEWS in DIFC Advantage: A Modern Approach to End-of-Service Benefits

The UAE business landscape is a dynamic and ever-evolving scene. While the potential for growth is undeniable, navigating the complexities of running a business here can be hectic. One crucial aspect that often gets relegated to the backburner is bookkeeping in the UAE.

Bookkeeping goes beyond simply recording income and expenses. It’s the meticulous process of capturing, categorizing, and analyzing all your financial transactions. This vital practice ensures your company maintains a clear and accurate record of its financial health, providing a strong foundation for informed decision-making, tax compliance, and attracting investors.

However, in the fast-paced world of UAE business, traditional bookkeeping methods can become a significant hurdle. There are certain common challenges businesses face with bookkeeping in the UAE, and how overcoming them through accurate and streamlined practices can unlock a treasure trove of benefits for your company’s financial health and future success.

Challenges of Bookkeeping in the UAE

Time Consumption

Bookkeeping is crucial, but it can consume valuable time that could be better spent on core operations and growth strategies. By outsourcing your bookkeeping needs, you can reclaim this time and direct your efforts toward activities that drive your business forward.

Compliance Challenges

Navigating local accounting regulations, language formats, and filing requirements in foreign markets can be complex and frustrating. Expert bookkeeping services are well-versed in international accounting standards, ensuring your business remains compliant across all markets.

Lack of Expertise

Not every business has the in-house knowledge or resources to handle bookkeeping tasks accurately and efficiently. Experienced professionals provide the expertise you need, reducing the risk of errors and ensuring your financial records are always up-to-date and accurate.

Data Inaccuracy

Manual data entry and record-keeping are prone to errors, leading to unreliable financial information. Leveraging advanced technologies to automate and streamline these processes can significantly reduce the risk of errors and enhance the reliability of your financial data.

Integration Issues

Integrating bookkeeping with existing local or global accounting systems can be a difficult hurdle. Seamless integration solutions ensure that your bookkeeping processes are harmonized with your overall financial systems, providing a unified and efficient approach to managing your finances.

Hidden Costs

Hiring and training bookkeeping staff can be expensive, and there’s always a risk of errors leading to penalties or fines. Outsourcing your bookkeeping eliminates these hidden costs and minimizes the risk of costly mistakes, providing you with peace of mind and financial clarity.

From Chaos to Clarity: The Power of Precise Bookkeeping in the UAE

By overcoming these challenges and embracing accurate bookkeeping practices, you unlock a doorway to a world of financial clarity and informed decision-making. Here’s how:

  • Cash Flow Optimization: Meticulous income and expense tracking paint a clear picture of your cash flow. This empowers you to make strategic financial plans and investment decisions with confidence.
  • Forecasting for future fortunes: Accurate financial data becomes the bedrock for reliable forecasts. Anticipate future needs, plan for growth with a clear vision, and make well-informed business decisions with the power of foresight.
  • Performance measurement: Analyze your financial records to gain valuable insights into your business’s performance. Identify areas for improvement, track progress towards set goals, and ensure your company is on the right trajectory for sustainable success.

Streamlined bookkeeping isn’t just about ticking boxes; it’s about empowering your business with the financial clarity it needs to thrive in the dynamic UAE market. By overcoming the challenges and embracing accurate record-keeping practices, you gain control over your cash flow, forecast for future success, and make data-driven decisions that propel your business towards its full potential.

MS for accurate Bookkeeping in the UAE

In the UAE’s fast-paced financial environment, don’t let bookkeeping slow you down. Our expert bookkeeping services in the UAE ensure clear and compliant financials, empowering you with data-driven decisions and risk management. This goes beyond just accurate reports. It builds trust with stakeholders, boosts investor confidence, and sets the stage for long-term business success. Our in-depth bookkeeping goes beyond meeting reporting requirements. We effectively manage cash flow, identify potential tax liabilities and deductions, ultimately maximizing your profitability. Focus on your core business and let us handle the books.

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Blogs

The UAE advantage: Why your Family Businesses will thrive in the Middle Eastern powerhouse

The UAE advantage: Why your Family Businesses will thrive in the Middle Eastern powerhouse
The UAE advantage: Why your Family Businesses will thrive in the Middle Eastern powerhouse

The United Arab Emirates (UAE) is on the rise, and it’s not just their impressive skyscrapers that are grabbing attention. This Middle Eastern nation is strategically positioning itself as a global hub for family businesses. Many of these businesses have been operating for generations, preserving cultural heritage and values. They contribute significantly to employment, providing jobs for both locals and expatriates. By investing in various sectors, from real estate to retail, family businesses drive economic growth. Their long-term perspective fosters stability and resilience, even during economic fluctuations. Additionally, family businesses often engage in philanthropy, supporting education, healthcare, and social causes. Some UAE family businesses have expanded internationally, enhancing the country’s reputation.

Let’s delve into the compelling reasons why the UAE is the perfect option for your family businesses and entrepreneurial dreams.

Why UAE for family businesses?

Geography: Imagine a place that perfectly blends East and West, offering easy access to European, Asian, and African markets. That’s the UAE’s geographical advantage, making it a prime location for global trade and logistics. But it doesn’t stop there. The UAE boasts a powerful financial sector with low taxes and a focus on privacy, attracting investment and making it a magnet for financial flow.

Family Business Friendly: Now, let’s talk about what truly sets the UAE apart: its understanding and appreciation for family businesses. With a significant chunk of their GDP coming from family-owned ventures, the UAE government actively supports this sector. They offer a business-friendly climate, including recently allowing family businesses to list on the stock exchange, and provide guidance on tax and succession planning – crucial aspects for any family-run company.

Financial Powerhouse: The UAE’s financial sector thrives due to a combination of factors. Minimal taxation and a focus on privacy make the UAE an attractive destination for businesses and individuals seeking to minimize their tax burden and protect their financial information. This, in turn, encourages foreign investment and capital flow, which fuels economic growth. While fostering a welcoming environment, the UAE also maintains a strong regulatory framework overseen by the Central Bank, ensuring the stability and security of the financial system. These factors combined solidify the UAE’s position as a financial hub in the Middle East and a major player on the global investment scene.

Stability and Safety: The UAE’s ambitions go beyond just creating a supportive environment. They’re aiming to become the go-to destination for global family businesses. By establishing legal and institutional frameworks that rival established hubs like Switzerland, they’re offering stability and a safe space for family businesses to flourish.

Some success stories of family businesses in the UAE

Al Ghurair Group: Founded in 1960, this family-run conglomerate is a prime example of the UAE’s success in nurturing family businesses. They boast a diverse portfolio, including the first shopping mall in the MENA region (Dubai’s Al Ghurair Centre) and ventures in packaging, building materials, and investments.

 Easa Saleh Al Gurg Group (ESAG): Another long-standing fa mily business, ESAG has been a major player since the 1960s. Originally focusing on trading partnerships with international brands, they’ve cleverly diversified into retail, building materials, and even industrial sectors. Their success lies in a combination of strategic acquisitions, organic growth, and forming key partnerships with companies like Unilever and Siemens.

Sharjah Entrepreneurship Center (SEC): This isn’t a single-family business, but it’s a great example of the UAE’s support for family-run ventures. Launched in 2016 by the Sharjah government, the SEC specifically focuses on empowering family businesses. This initiative has fostered the growth of numerous family businesses in Sharjah, contributing significantly to the emirate’s economic diversification.

Magnati Group: Founded in 2012 by the Nahdi family, Magnati Group is a prime example of a recent success story. This family-owned business focuses on real estate development and construction, specializing in high-end residential and commercial properties. Their rapid growth can be attributed to their focus on innovation and sustainability in their projects. They’ve also leveraged the UAE’s position as a regional hub to attract international investors and partners, further propelling their success.

The UAE’s transformation is still unfolding, but one thing’s for sure: it’s becoming a top spot for family businesses. With its unique blend of opportunity, stability, and cultural richness, the UAE could be your family business’s next big move. To explore more about the vibrant UAE community and its latest happenings, please check our Insights page.

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Diving into UAE’s hiring trends in 2024: A guide for job seekers and employers

Insights on Business Valuation Consultancy

Recent global changes, such as the UK non-dom tax repeal, have left many experienced professionals contemplating their next move and identifying stable and progressive hubs becomes crucial for them. 

Amidst this flux, the UAE emerges as a center for opportunity, offering a compelling destination for finance, tax, technology and compliance professionals looking to make a meaningful impact. 

The hiring trend in the United Arab Emirates (UAE) is experiencing dynamic changes in 2024, driven by innovation and ambition. From Dubai’s vibrant streets to Abu Dhabi’s rich cultural environment , the UAE remains an attractive and significant destination for global talent, offering growth and opportunity. The UAE’s economy is thriving, propelled by various efforts in the areas beyond just oil. Sectors such as technology, renewable energy, and tourism are leading the way, creating numerous job prospects in the UAE.

Opportunities abound in the UAE

As regulatory frameworks evolve, the demand for skilled compliance professionals in the UAE continues to rise. From financial institutions to multinational corporations, there is a growing need for individuals to steer the complex compliance landscapes. This presents fertile ground for career advancement and growth in the UAE for high-earners from the West, many of which are high-net-worth professionals. Yet, this allure extends beyond professionals to include ambitious entrepreneurs who have the potential to create employment opportunities by tapping these influx of talents..

Beyond its economic excellence, the UAE offers a lifestyle that blends modernity with cultural richness. With infrastructure, vibrant cities, and a diverse expatriate community, it promises an unparalleled living experience. Additionally, its tax-friendly environment adds an extra layer of appeal, making it an attractive destination for those seeking both financial incentives and career progression.

Let’s explore the evolving trends shaping hiring practices in the UAE, providing a comprehensive overview for employers and job seekers alike.

Emerging hiring trends in UAE

Focus on Tech and AI Skills: The UAE’s aspiration to become a smart nation is driving demand for professionals skilled in AI, machine learning, data analytics, and cybersecurity. The use of these technologies also make the jobs easy and more productive in less time.

Remote Work and Flexibility: The COVID-19 pandemic has reshaped work cultures, leading UAE companies to adopt hybrid models with remote work options and flexible schedules. After the pandemic, the firms realized the potential of remote jobs and included it in the work culture.

 Diversity and Inclusion: UAE firms are prioritizing diversity, recognizing its role in fostering innovation and growth through inclusion. The trend aims to create an updated work culture by accommodating global talents.

Sustainable and Green Jobs: The nation is now very much into sustainability and related initiatives. With a vision for environmental sustainability, there’s a rising demand for green jobs in renewable energy and urban development in the UAE.

What is new in the UAE landscape for job seekers and employers?

For Job Seekers:

Upskilling: Acquiring new skills, especially in tech and sustainability, is essential for staying competitive. The UAE is now in search of skills rather than experience for a better tomorrow.

Flexibility: Being open to remote and contract opportunities expands job prospects. The whole dynamics is now changing and the recruiters are looking for the ones who are more flexible to work with.

Cultural Adaptability: Understanding and adapting to the UAE’s diverse culture is crucial for professional success. The roots of UAE lies in a very traditional culture, and the complete acceptance of this versatile culture is very much appreciated by the current recruiting trend in UAE.

For Employers:

Innovative Recruitment Strategies: Utilizing digital platforms and AI tools can streamline hiring and attract top talent and make the recruitment process more seamless and easy.

Employee Well-being: Prioritizing wellness and work-life balance aids in talent retention. The complete potential of an employee is leveraged only when the work environment is satisfying for them. 

Global Talent Pool: Focusing on global talent enhances recruitment quality, especially for specialized roles. The diverse experience and work culture they hold can contribute in molding a better system in the nation

MS as your talent-partner in the UAE

Adaptation to these trends is essential for both employers and job seekers to thrive in this dynamic environment. As the UAE cements its position as a global business hub, opportunities for professional growth and innovation abound. Whether you’re an experienced professional or a recent graduate, the UAE offers fertile ground for realizing career aspirations. MS can be an ally for you in this journey for both C-level job seekers and for the employers. Embrace these trends, seize opportunities, and embark on an exciting journey in the Middle East.

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Blogs

Exploring M&A Gains in the UAE: Who Benefits in the UAE Market?

Understanding the types of M&A transactions: The horizontal, vertical, and more
Understanding the types of M&A transactions: The horizontal, vertical, and more

Despite the backdrop of rising interest rates and fluctuating economic conditions, dealmakers of Mergers and Acquisitions (M&A) in the Middle East region have found a resilient environment fueled by sustained oil prices and ambitious national infrastructure initiatives. Among the key players, the United Arab Emirates (UAE) has solidified its position as the preferred investment destination, having business-friendly regulations and a robust legal framework.

Leading the charge in M&A activities are the formidable Sovereign Wealth Funds (SWFs), including the Abu Dhabi Investment Authority (ADIA), Mubadala, the Public Investment Fund (PIF) of Saudi Arabia, and the Qatar Investment Authority (QIA). As these entities continue to drive deal activity to align with their countries’ economic strategies, it’s imperative to delve into who truly benefits from these transactions and the broader implications for regional and global stakeholders

Let’s explore who stands to benefit from these M&A transactions.

Companies Involved:

M&A transactions often yield benefits for the companies involved. By linking complementary skills and resources, these transactions can drive cost reductions and enhance operational efficiency. Moreover, they may increase market dominance and facilitate diversification across products, services, and revenue streams.

Shareholders:

Shareholders are assured to reap rewards from successful M&A transactions. A surge in stock prices post-merger can translate into capital gains for shareholders. Additionally, improved financial performance and augmented dividend payments are common outcomes, rising shareholder value.

Customers:

M&A activity can enrich the customer experience by offering a broader array of goods and services. With merged businesses providing enhanced choices, customers stand to benefit from increased convenience and access to diverse offerings.

Suppliers and Partners:

Suppliers and partners also stand to gain from M&A activity. With combined companies often experiencing heightened demand for goods and services, suppliers may find expanded opportunities for collaboration and ventures, fostering mutually beneficial relationships.

Economy and Industry:

Beyond individual stakeholders, M&A transactions can catalyze broader economic and industrial growth. By stimulating innovation and investment, these activities contribute to economic expansion, advancing a more competitive landscape and elevating industry standards and innovation.

Be the one who gains from M&A with MS

The potential benefits of successful M&A transactions extend across various stakeholders within the UAE market. Whether it’s companies seeking synergies, shareholders eyeing value appreciation, or customers enjoying enhanced offerings, M&A activity has the potential to catalyze positive outcomes for the entire UAE market. All you need is a trusted partner like MS to help you gain in M&A journey. We offer you seamless and successful M&A transactions in the UAE landscape with customized services.

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Featured

Thriving Through Seven: The journey of MS Beyond Seventh and further!

Thriving Through Seven: The journey of MS Beyond Seventh and further!
Thriving Through Seven: The journey of MS Beyond Seventh and further!

#MSBeyondSeventh

In the quiet corridors of a tiny one-seater office situated in Abu Dhabi Mainland, we started our journey in 2017. MS or being fondly called Team MS – A journey filled with trials, setbacks, and moments of doubt. Yet, from the very confines of that first office, we dared to dream, to strive, and to endure. With seven years under our belt, we have mastered the art of excellence. From managing compliance to crunching numbers and staying ahead in tax and tech, we’ve got it down pat. 

Our story 

Back in 2015, our Founder C A Mohammed Shafeek, took a leap of faith. He left his tax and advisory job at a UAE-based company to chase his dream: building a tax and business advisory firm focused on helping entrepreneurs and businesses thrive. Fast forward to today, and we’ve got a dedicated team ready to support our clients anywhere across the globe, every step of the way. 

Starting from our modest roots in Abu Dhabi, MS embarked on a journey of growth and expansion. With each step forward, we navigated the obstacles with determination, expanding our world to the ADGM and MASDAR in 2022 and to DMCC jurisdiction in 2023. The journey from Abu Dhabi mainland to ADGM jurisdiction was not just a progression of location, it is a story of resilience, obstacles overcome, and the relentless pursuit of excellence to meet market demands.

Not only has MS garnered numerous industry awards and expanded our client base, but we’ve also actively participated in and celebrated our clients’ achievements, fostering mutual success. By providing sound advice and timely insights, we’ve helped them make the right decisions at the right time. It’s been a joyous journey celebrating these achievements together over the past seven years.

2023: A Year of Triumphs and Transformations

“Reflecting on our journey through 2023, we’ve demonstrated resilience, turning challenges into opportunities and reaching milestones together. As we celebrate our 7th Anniversary in March 2024, we’re excited about the developments ahead, all aimed at serving our GCC market with excellence. Let’s unite and channel our energies towards nurturing growth and success together in the coming years”.

Our Founder and Group CEO C A Mohammed Shafeek

MS kicked off 2023 with a resounding triumph: our entrance into the prestigious DMCC jurisdiction in Dubai. This marked the first of many milestones as we continued our journey toward excellence. Swiftly followed by the momentous launch of our R&D Hub in India, further solidifying MS’s commitment to innovation and global reach.

Progressing further, MS made waves at the Hub71 event. Our Founder and Group CEO C A Mohammed Shafeek stood out as a true leader during the interactive session on Corporate Tax in the UAE, showcasing his impressive knowledge and expertise. 

We seized a fantastic opportunity to sponsor and launch the Midfield Community Cup 2023, here in UAE, where we proudly served as the title sponsor.

Adding to our string of successes, MS clinched the prestigious Finnext Award 2023 for Kitaab and MS, recognizing us as an innovative company in finance. This remarkable achievement marked the first accolade of the year.

To our surprise, a tribute video which was a product of our Marcom team, created for ADGM’s 8th anniversary gained notable recognition from the ADGM authorities. Witnessing the video being played in the ADGM atrium by none other than the ADGM CEO marked a groundbreaking moment for MS, showcasing our impact and significance within the industry.

Remarkable final quarter of 2023: “Hayyakum” Abu Dhabi Finance Week to Cop28

As part of our ongoing vision, MS launched its significant initiative, phase one of ‘Hayyakum: To Your Destiny’, a week-long event aimed to offer valuable insights to the Abu Dhabi business community, regarding the expansion of Al Reem Island. Furthermore, MS has solidified its media presence by successfully collaborating with Times Network to capture the essence of ADGM and AD Financial Week 2023. It has been immense for us to explore and showcase the vibrant landscape of opportunities emerging from this thriving hub, propelling us into new realms of growth and prosperity.

A significant milestone in MS’s journey unfolded in 2023 with the partnership forged alongside the Global Alliance for a Sustainable Planet (GASP), marking a monumental step towards global climate action and sustainable development. The announcement of this partnership gained widespread attention at the COP28 UAE event. It’s moments like these that underscore MS’s commitment to driving positive change and shaping a more sustainable future for all.

As we reflect upon the journey that unfolded, we find ourselves standing at the intersection of accomplishment and introspection, poised to embrace the lessons garnered from both triumphs and tribulations. 

Our visionary future

We know each business is like a unique puzzle, that needs to be crafted and tailored based on the client’s requirements. So, we MSians dive in, work together, and tailor strategies that fit just right. At MS, our clients reign supreme, serving as the cornerstone of our growth, evolution, and unparalleled success. We are making our vision clear and broad as we step into this new phase. You might wonder, what’s our focus? It’s all about accelerating our growth in where we work and what we offer. In this seventh year, we aim for progressive global growth, delivering top-notch solutions across different regions and industries. With MS’s remarkable jurisdictional expansion, burgeoning client base, and numerous successes, we stand poised and eager to extend our exceptional service to DIFC, a testament to our unparalleled growth and dedication.

As we set sail into our seventh year, ‘MSBeyondSeventh’ becomes more than just a tagline; it’s a profound tribute to our origins nestled in the heart of the seven Emirates, The UAE. It encapsulates our journey, not merely spanning seven years, but transcending boundaries, propelling us towards boundless success and unprecedented growth. It symbolizes our collective aspiration to venture beyond the familiar, forging a path toward a future rich with promise and achievement.  As we step into this thrilling new chapter, we embark on a journey pulsating with innovation, growth, and a profound reverence for our roots. Here’s to ‘MSBeyondSeventh’ and the limitless possibilities that await us on the horizon!

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News & Press Releases

Non-Dom Tax in the UK Repealed: Global Impact on the UAE and Beyond

UK's non-dom tax repealed: UAE welcomes influx of High-Net-Worth migrants
UK's non-dom tax repealed: UAE welcomes influx of High-Net-Worth migrants

Jeremy Hunt, United Kingdom’s chancellor of the Exchequer, shook up headlines with a game-changing move in the Spring Budget – waving goodbye to the non-domiciled tax regime in the UK and unveiling an exciting, revamped ‘tax holiday’ for those making the move to the kingdom. The significant transformation is likely to impact not just the UK tax system but also other tax-friendly nations, including Western European jurisdictions such as Greece, Malta, and Ireland, as well as countries in the MENA region.

Before that, let us journey through the story of the epic non-dom tax.

Tracing the history of non-dom tax in the UK

The origin of the non-dom tax regime can be traced back to the inception of income tax in 1799 when residents were solely taxed on income earned abroad if it was received within the country. This marked the introduction of the ‘remittance Basis’ of taxation, a concept that underwent modification in 1914, restricting eligibility to residents not domiciled or ordinarily resident in the UK. The ‘remittance Basis’ regime, utilized by non-domiciled individuals, has largely retained its core principles since the 1900s, with significant reforms in 2008 and 2017. Despite these changes, the fundamental principle persists that non-doms are only taxed on overseas income and capital gains to the extent that funds are brought into or used in the UK. Since 2017, non-domiciled individuals have had the option to elect for the remittance basis of taxation for 15 years. Beyond this period, they are treated as ‘deemed domiciled’ for tax purposes, and subjected to worldwide taxation. However, a non-dom can establish a non-UK trust before the 15-year term expires, theoretically exempting the trust from UK tax concerning non-UK sources. The concept that one’s domicile should determine their tax assessment is unusual. Domicile, inherited from one’s father at birth, is often considered an outdated and complex concept. In recent years, Her Majesty’s Revenue and Customs (HMRC) has increased inquiries to ascertain non-UK domicile status, revealing a degree of subjectivity in the assessment process.

But now the non-dom tax has been phased out and the recent changes have introduced new players into the game.

UAE’s attraction for global migrants: A boon amidst UK tax reforms

With its tax-friendly regime, the UAE is emerging as an irresistible destination for high-net-worth individuals (HNWIs), promising both fiscal efficiency and a top-notch quality of life. The UAE’s magnetic appeal is drawing UK millionaires and professionals with its blend of lower living costs, enticing salary benefits, economic stability, and global hi-tech prominence. Offering long-term residence visas, a high quality of life, and public safety, the UAE stands out as the ideal destination. Meanwhile, the UK grapples with a 50 percent surge in living costs, triggering an exodus of HNWIs. The Henley Private Wealth Migration Report 2023 predicts the loss of 3,200 more HNWIs in 2023, adding to the 12,500 already departed between 2017 and 2022.

Also, the UAE’s real estate sector is set to flourish, fuelled by UK nationals contributing 21.2 percent to international property transactions in 2023. As Abu Dhabi emerges as a bridge between East and West, UK entrepreneurs flock to set up businesses, injecting diverse investments into the thriving UAE economy. This shift signifies the UAE’s ascent as the top choice for migration, driven by economic growth, political stability, and abundant job opportunities. The existing English Common Law system of ADGM in Abu Dhabi can also be an add-on to the migrants for seamless shifts. The traditional allure of the UK, especially London, for migrating millionaires has waned in the face of Brexit and the declining importance of the London Stock Exchange. Being a solution for that, the UAE stands as a global financial hub, beckoning with unprecedented opportunities for these migrating individuals.

Crafting strategies in the face of changing tax landscapes

The impending non-dom tax changes hold substantial implications, particularly for clients in the MENA region, with a specific emphasis on the UAE. Individuals in the UAE and elsewhere should assess their UK residence intentions and seek professional advice to proactively plan for these tax adjustments. Keep in mind that these changes might continue to evolve, especially with the upcoming UK general election set before January 28, 2025, which precedes the implementation of most of these rules by April 2025.

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Elevating your business with ethical leadership through advanced Executive Search

Elevating your business with ethical leadership through advanced Executive Search
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Hiring a C-suite talent for your business can have effects on the future of your growth. Companies select executives in different situations based on their unique needs. When considering the need to bring in an executive, there are various positive scenarios to explore. For instance, your company might be in a phase of expansion or establishing a new department, requiring the recruitment of a capable leader. Additionally, forward-thinking businesses often engage in succession planning to ensure a smooth transition in leadership.
Conversely, the situation takes a more challenging turn when the objective is to replace an underperforming leader, either in the process of being terminated or already dismissed. In such instances, the focus shifts to finding an executive with an optimal skill set to not only address the existing issues but also propel the company forward, recapturing momentum and advancing towards its objectives.
But what if the unethical behavior of the leader is the reason for the replacement. Ethics-driven terminations highlight the need for executives with a strong ethical foundation in the recruitment process. Finding leaders with the right skills and unwavering ethical principles sets the stage for outstanding results and long-term success. Trustworthy leaders prioritize moral integrity, putting others first and avoiding unethical behaviour even in challenging situations.

Qualities of an Ethical Top-notch Leader

  1. Honesty as a Foundation: Ethical leaders prioritize honesty in their actions and communications. While not obligated to divulge every detail, they avoid bending the truth or evading direct answers. Striking a balance between transparency and discretion is key, and consistent dishonesty raises a red flag.
  2. Respect Across Hierarchies: Recognizing that organizational charts are social constructs, ethical leaders treat every individual with respect. Whether engaging with interns, IT department members, or fellow C-suite executives, they uphold a culture of respect, understanding the intrinsic value of each team member.
  3. Leading Through Example: Ethical leaders don’t merely delegate tasks; they lead by rolling up their sleeves and actively participating. While delegation is necessary, demonstrating a willingness to be on the frontline inspires others to follow suit. Leading by example fosters a sense of unity and commitment within the team.
  4. Compassion in High-Stakes Decision-Making: Ethical leaders navigate the complexities of leadership with a compassionate approach. In making tough decisions driven by budgets or personnel management, they remain empathetic to the individual experiences of their team members. This blend of analytical prowess and emotional intelligence creates a supportive work environment.

How MS can aid you in placing an ethical leader for your business:

MS can provide unparalleled expertise and support to meet your executive talent needs, ensuring a seamless and strategic hiring process. We collaborate closely with your organization to understand its unique culture, goals, and leadership requirements. Our proven track record in working in various industries can attract top-tier executive talent. MS ensures the selection of individuals who not only possess the requisite skills and experience but also align with your company’s vision and values. From initial candidate sourcing to final onboarding, our end-to-end solutions streamline the hiring journey, saving your valuable time and resources. Trust us to be your strategic partner in securing the executive talent essential for propelling your company towards sustained success and grow

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AI in Mergers & Acquisitions: A paradigm shift in streamlining deals for success

AI in Mergers & Acquisitions: A paradigm shift in streamlining deals for success
Imagine stepping back into the not-so-distant past, a time when Mergers and Acquisitions (M&A) were complex, and solved by people armed with experience and gut feelings.

Imagine stepping back into the not-so-distant past, a time when Mergers and Acquisitions (M&A) were complex, and solved by people armed with experience and gut feelings. Deals with every move carefully planned, and success often hangs in the balance of unpredictable market shifts. It was the era of handshakes and late-night strategy sessions – a world where human touch reigned supreme in the business tango.

Now, fast forward to the present, the global AI market is on a roll, growing at a breathtaking pace – from $100 billion to a projected $2 trillion by 2030. The M&A game is changing, and the change is powered by artificial intelligence. It’s not about replacing the old guard but about joining forces, creating a dynamic duo of human expertise and digital precision. The skeptics are slowly turning into believers, and the confidence in companies using AI to up their game is skyrocketing – 65% and counting.

Our story is about this shift, this evolution in the world of M&A. It’s about moving from handwritten contracts to computer-generated insights, from gut feelings to algorithmic precision.

The evolution in M&A Processes:

Analyzing data from financial statements and market trends to identify a target is a critical and time-consuming task in M&A. However, AI tools have streamlined and simplified this process by efficiently analyzing large volumes of data in a shorter time frame. This approach not only enhances efficiency but also proves to be a cost-effective method. Furthermore, AI contributes to cost reduction in various M&A activities by minimizing the reliance on manual labor.

When it comes to due diligence, a significant stage in M&A has undergone automation with the advent of AI tools. Tasks such as document analysis and review, traditionally reliant on human involvement, are now entirely dependent on AI. This shift not only diminishes the likelihood of errors or oversights but also results in significant time savings. For both buyers and sellers, the precise risk assessment facilitated by AI aids in making well-informed decisions regarding their deals.

In the realm of post-merger integration, the landscape has been transformed by the infusion of AI automation. Tasks such as data migration, employee onboarding, and process standardization now benefit from advanced tools that meticulously analyze datasets, recognizing trends, patterns, and insightful information. The incorporation of AI not only expedites the integration process but also significantly reduces errors. Beyond operational enhancements, this evolution allows for the seamless integration of strategic planning and value creation as complementary elements, enriching the overall integration experience.

Along with all these processes, ensuring legal and regulatory compliance in M&A processes is crucial but often involves significant time and costs. AI automation has simplified the task of mitigating risks by adhering to rules and regulations. AI tools now facilitate the review of contracts, legal documents, and filings, minimizing the likelihood of potential errors in the process.

Navigating the pitfalls of AI usage in M&A

Depending heavily on AI tools may undermine human capabilities, diminishing their effectiveness. Using flawed datasets can lead AI tools to draw inaccurate conclusions, raising concerns about their reliability. Also, the ethical dimension comes into play when integrating AI tools into M&A processes, particularly during due diligence. The potential for biases in language, algorithms, and sampling methods during this stage calls for careful consideration.

Your Strategic Mergers and Acquisition Partner

In the ever-evolving landscape of M&A, MS emerges as your indispensable service partner. We navigate the complexities of AI integration, ensuring your deals are not only effective but also ethical and reliable.