Accounting and Bookkeeping Dubai
Accounting and bookkeeping services in Dubai are subject to the relevant regulations of the United Arab Emirates. Generally, entrepreneurs, SMEs, and companies are required to keep precise and up-to-date books and records of all financial transactions, including their and a company’s income, expenses and all financial transactions. Accounting and Bookkeeping services may include setting up accounting systems, preparing financial statements, reconciling accounts, and preparing tax returns.
With regards to corporate tax in Dubai, the United Arab Emirates has introduced a Value-Added Tax (VAT) system in January, 2021. VAT is a consumption tax that is imposed on the supply of goods and services in the UAE.
The standard rate of VAT is 5%, however, there may be exceptions depending on the type of goods and services. Starting from 2023, the UAE will implement a Corporate Income Tax (CIT) system which will be imposed on taxable profits of companies operating in the UAE. The CIT will be impose on goods and services provided by the UAE companies. The standard rate of CIT is 9%
Companies operating in the UAE will be required to pay taxes starting in 2023. The tax rate is set at 9%. Companies that are considered tax-exempt include those engaged in international trade, banking, insurance, and investments. Companies that are not exempt from taxation include those engaged in oil and gas, construction, manufacturing, and hospitality. As explained above the UAE government has already introduced Value Added Tax (VAT) in 2021, which is set at 5%.
OUR ADVICE TO ENTREPRENEURS
- Professional Advice: Professional accountants and bookkeepers in Dubai are experienced and knowledgeable in the financial and accounting laws of the UAE, allowing them to provide valuable advice on how to optimize the daily operations of your business.
- Financial Organization: An accounting or bookkeeping firm in Dubai can help you organize your financial records and make them easier to manage. This can help you make better financial decisions and save time. Giving the work to any Accounting and Bookkeeping Firm can help you save on hiring of an employee (accountant), employee’s monthly salary, yearly medical insurance, yearly benefits, 2 yearly visa processing fee and end of services benefits.
- Tax Preparation: Hiring an Accounting or Bookkeeping firm in Dubai can ensure that your business is compliant with local and federal tax laws. This can help you save a lot of time and money when it comes time submit your returns and pay your taxes.
- Cost Savings: Hiring an Accounting or bookkeeping firm in Dubai can help you save money in the long run by helping you manage your finances better and reducing the chances of errors or mistakes.
- Peace of Mind: Knowing that your finances are taken care of can give you peace of mind, allowing you to focus on other aspects of your business.