FAQ

A VAT-registered business should Charge VAT on taxable services and goods supplied by them. Claim VAT paid on goods and services. Keep a record of VAT transactions and invoices.

Both legal and natural persons fall in the corporate tax bracket. Legal persons are the companies and other types of persons incorporated in the UAE. It also includes foreign legal persons with a permanent establishment in UAE or earning an income in UAE. These legal persons are Limited liability companies, Private shareholding companies, Public joint stock companies and entities established under the law. Natural persons include sole establishments or proprietorships and individual partners in an unincorporated partnership who conduct a business in UAE

The following entities are exempt. UAE Federal Government, Government of the Emirates, their departments, authorities and public institutions. Government-owned companies in UAE conducting the sovereign activity and are listed in a cabinet decision. Companies involved in the extraction and exploitation of natural resources within the scope of Emirate-level taxes. Charities and public benefit organizations listed in a cabinet decision. Public and regulated private social security and retirement pension funds. Investment funds subject to certain conditions.

Having an independent audit done for your business can provide several key benefits, both for you as the business owner and for your stakeholders. Here are some reasons why you should consider it: 1. Transparency and Credibility 2. Improved Financial Management 3. Risk Identification and Mitigation 4. Regulatory Compliance 5. Boosts Investor Confidence 6. Better Decision-Making 7. Helps with Financing 8. Internal Control Strengthening 10. Long-Term Sustainability Ultimately, an independent audit helps you build trust, maintain legal compliance, and improve the overall management of your business. It’s an important step to ensure growth, stability, and transparency.

FTA schedule a tax audit for a business based on its risk assessment. It examines many factors like frequency or possibilities of error in filing tax returns and the indications of non-compliance by the company to tax obligations. The information filed in the tax returns is assessed and compared with the information of similar businesses in the same industry.