Understand Your Qualifying, liability, and filing responsibilities under the U.A.E Federal Tax Authority

 As the schedule of new tax or revenue streams in the UAE expands in both terms of category and scale, it is crucial those impacted understand their qualifying, liability, and filing responsibilities. As the FTA (Federal Tax Authority) continues to expand its monitoring and enforcement, the opportunities for negotiating penalty waivers will decrease/cease and non-compliance could result in your business being wound up. 

The UAE accountancy profession has gleefully accepted this income 'gift'. The prices many charge for intermediating on behalf of tax-liable clients are embarrassing. And wrong. The client after all is the one with the heavy lifting. Providing the information needed for a) assessing the liability b) populating the data required in the standard tax return templates and c) paying the bill/liability. The accountancy practice or advisor simply inputs all this information. Once you have the 'understanding' of what's involved and depending on the number of tax categories, with practice, a few minutes of work. Every quarter. So it would be worth investing in in-house expertise. 

Yes I know the initial registration can be difficult, but again not warrant the fees being charged.

There are also many areas where clients may not realize there is a liability or potential liability - eg commercial property sales. It is here that some 'knowledge' may be needed. 

Whether you are subject to FTA taxes depends on your business activities and structure. Here's a general overview of qualifying factors:

 Corporate Income Tax (CIT): CIT applies to all resident companies in the UAE, regardless of their nationality. Resident companies are those that have their headquarters, management, or control in the UAE or derive at least 50% of their income from UAE sources.

 Excise Tax: Excise tax is levied on specific goods, such as tobacco products, sugary drinks, and carbonated beverages. It is typically borne by the final consumer, but businesses involved in the production, importation, or distribution of these goods are responsible for collecting and remitting the excise tax.

 Value-Added Tax (VAT): VAT is a general consumption tax applied to most goods and services supplied in the UAE. Businesses that exceed a specific taxable turnover threshold, currently AED 375,000, are required to register for VAT.

 Liability for FTA Taxes

 Once you determine whether you qualify for FTA taxes, you need to assess your liability for each specific tax. This involves understanding the rates, exemptions, and deductions applicable to your business activities.

 Corporate Income Tax (CIT): The standard CIT rate in the UAE is 9%. However, certain industries, such as oil and gas, may have different rates.

 Excise Tax: Excise tax rates vary depending on the specific goods being taxed. For example, the excise tax on tobacco products is 50%, while the tax on sugary drinks is 50%.

 Value-Added Tax (VAT): The standard VAT rate in the UAE is 5%. Certain goods and services are exempt from VAT, such as basic food items, medicines, and educational services.

 Filing Responsibilities under the FTA 

Businesses that are liable for FTA taxes must comply with specific filing requirements. These include: 

Tax Registration: Businesses exceeding the taxable turnover threshold for VAT or engaging in activities subject to excise tax must register for the respective tax with the FTA. 

Tax Returns: Businesses are required to file periodic tax returns with the FTA, typically quarterly for VAT and annually for CIT and excise tax. 

Tax Payments: Businesses must make timely payments of their tax liabilities to the FTA.

 FTA Penalties for Non-Compliance 

Rulers' Courts in the U.A.E play an important role in Justice for all aggrieved citizens.

 The United Arab Emirates (UAE) judicial system is one of the best in the Arab world, and three levels of court.

The courts' degrees in the UAE are: Court of First Instance (federal and local) Court of Appeal (federal and local) Federal Supreme Court (at the federal level) and the Court of Cassation at the local level of the emirates which have independent judicial departments.

 

Dubai Rulers Court

Apart from this, the Rulers' Courts in the UAE play a significant role in providing relief to aggrieved citizens. The Rulers' Courts are the highest judicial bodies in the UAE, and they have the authority to review and overturn decisions made by lower courts. They are also responsible for hearing cases that involve disputes between the government and individuals.

 The Rulers' Courts are known for their fairness and impartiality, and they have a strong track record of protecting the rights of citizens. They are also accessible to all citizens, regardless of their social status or wealth.

 If you are a citizen of the UAE and you feel that you have been aggrieved, you can file a complaint with the Rulers' Court. The Court will then investigate your complaint and determine whether or not there is a basis for a case. If the Court finds that there is a basis for a case, it will then schedule a hearing.

 At the hearing, you will have the opportunity to present your case to the Court. The Court will then consider your evidence and arguments, and it will make a decision based on the merits of the case.

 If the Court finds in your favor, it will issue an order that will require the government or the other party to take action to remedy the situation. The Court's orders are binding, and they can be enforced by the police.

 The Rulers' Courts are an important part of the UAE's legal system, is a court of law that has jurisdiction over a variety of matters, including civil, commercial, and personal status cases. The Ruler's Court is also responsible for overseeing the administration of justice in the emirate in which it is located.

 There are seven emirates in the UAE, and each emirate has its own Ruler's Court. The Ruler's Courts are independent of the Federal Judiciary, but they are subject to the UAE Constitution and the laws of the emirate in which they are located.

 The Ruler's Courts are typically presided over by a judge who is appointed by the ruler of the emirate. The judges are responsible for hearing cases, making rulings, and enforcing the law.

 The Ruler's Courts are an important part of the UAE's legal system. They provide a forum for resolving disputes and ensuring that the law is upheld.

 Here is a table of the Ruler's Courts in the UAE: 

EMIRATE	RULERS COURT
Abu Dhabi	Rulers court of Abu Dhabi
Ajman	Rulers court of Ajman
Dubai	Rulers Court of Dubai
Fujairah	Rulers Court of Fujairah
Ras Al Khaimah	Rulers Court of Ras Al Khaimah
Sharjah	Rulers Court of Sharjah
Umm Al Quwain	Rulers Court Of Umm Al Quwain

 Civil Courts: Civil courts in the UAE are responsible for resolving disputes between individuals or organizations. These disputes can range from contract disputes to property disputes to family law matters. Civil courts are guided by the UAE Civil Code, which is based on civil law principles.

Criminal Courts: Criminal courts in the UAE are responsible for determining the guilt or innocence of criminal defendants. These courts handle a wide range of offenses, including theft, assault, murder, and drug trafficking. Criminal courts are guided by the UAE Penal Code, which is based on Islamic law.

Ruler's Courts: Ruler's courts are the highest courts in each of the seven emirates in the UAE. These courts have jurisdiction over civil, commercial, and personal status matters in the emirate where the court is located. Ruler's courts are also responsible for enforcing the law and providing administrative support to the ruler of the emirate. 

How to file a case in UAE Rulers Court 

Filing a case in the UAE Rulers Court involves a specific set of procedures and requirements. Here's a step-by-step guide: 

Step 1: Gather Evidence and Prepare Documents 

Collect Supporting Documents: Gather all relevant documents, such as contracts, agreements, witness statements, and any other evidence that supports your claim. 

Draft a Statement of Claim: Prepare a detailed statement outlining your case, including the parties involved, the nature of the dispute, the relief you seek, and the grounds for your claim. 

Step 2: Submit the Statement of Claim 

Choose the Appropriate Rulers Court: Determine the jurisdiction of your case and identify the relevant Rulers Court. 

Pay Court Fees: Pay the applicable court fees, which vary depending on the value of your claim. 

Submit Documents Electronically: Access the Rulers Court's electronic filing system and submit your Statement of Claim, along with supporting documents.

Step 3: Receive Case Number and Await Notification

 Receive Case Number: Upon successful submission, you will receive a case number and a copy of your filed documents. 

Await Notification: The court will review your submission and notify you of the next steps, which may include a hearing date.

 Step 4: Attend Hearings and Provide Representation 

Attend Hearings: Attend scheduled hearings and present your case in person or through a legal representative. 

Provide Representation: Consider seeking legal representation from a licensed lawyer in the UAE to navigate the legal process effectively. 

Step 5: Receive the Court's Decision and Seek Enforcement 

Receive Court's Decision: The court will issue a judgment based on the merits of the case.

 Seek Enforcement: If the judgment is in your favor, you may need to initiate enforcement proceedings to ensure compliance. 

Additional Considerations:

 Time Limits: Adhere to the specified time limits for filing claims and responding to court notices.

 Language: Prepare documents and communicate in Arabic, the official language of the UAE courts.

 Legal Assistance: Seek guidance from a qualified lawyer with expertise in UAE court procedures.

I expect this information very helpful to you and if you required more information you can contact me my email and I will send you more details.

Retirement Visa In the U.A.E and Advantages

 The United Arab Emirates (UAE) offers a retirement visa for individuals who are at least 55 years old and meet specific financial requirements. This visa allows retirees to live and work in the UAE for an extended period. 

Eligibility Criteria 

To be eligible for a retirement visa in the UAE, you must meet the following criteria: 

• Be at least 55 years old
• Meet one of the following financial requirements:
• Own property in the UAE worth at least AED 1 million
• Have financial savings of at least AED 1 million
• Have an active income of at least AED 20,000 per month from investments or pensions

The UAE retirement visa offers several benefits to retirees, including: 

Multiple-entry visa, allowing you to freely travel and enter the UAE at your convenience

Access to all standard services that residents benefit from, including telecommunications and utilities

Opportunity to work in the UAE, subject to obtaining the necessary work permit

Access to quality healthcare and education

Safe and secure environment

Application Process

The application process for a retirement visa in the UAE is relatively straightforward. You will need to submit the following documents:

• Completed application form
• Passport copy
• Copy of your marriage certificate (if sponsoring your spouse)
• Proof of financial requirements (property ownership, bank statements, investment documentation)
• Health certificate
• Recent passport-sized photographs

You can apply for a retirement visa online through the Federal Authority for Identity and Citizenship (ICA) website or in person at an ICA service center.

Processing Time

The processing time for a retirement visa application typically takes around two to four weeks. Once your application is approved, you will be issued a visa valid for five years. You can renew your visa for another five years if you continue to meet the eligibility criteria. 

Additional Considerations

 If you are sponsoring your spouse, they will need to meet certain requirements, such as being at least 21 years old and providing proof of marriage.

You may also be required to undergo a medical test as part of the application process.

It is advisable to consult with an immigration lawyer or a UAE-based relocation specialist to ensure that you have all the necessary documentation and understand the application process.

Advantages of Retirement visa

The UAE retirement visa offers several attractive advantages for those seeking to live and enjoy their retirement in this vibrant and progressive country. Here are some of the key benefits: 

Long-Term Residency: The visa is valid for five years and can be renewed indefinitely, providing a stable and secure living environment for retirement. 

Financial Incentives: The visa program encourages property investment or substantial savings in the UAE, offering tax-free income from pensions and investments. 

High-Quality Life: Retirees have access to high-quality healthcare, state-of-the-art infrastructure, and a safe and secure environment, making Dubai an ideal place to enjoy a fulfilling retirement. 

Tax Benefits: Income from pensions and investments is tax-free, providing significant financial advantages for retirees. 

Multicultural Atmosphere: Dubai is a melting pot of cultures, offering retirees a vibrant and cosmopolitan environment to immerse themselves in. 

Family-Friendly: Retirees can sponsor up to three dependents, allowing them to bring family members to enjoy the same benefits and lifestyle. 

Flexibility: The visa does not require retirees to work, allowing them to pursue their interests and hobbies in their retirement without the pressure of employment. 

Multiple-Entry Visa: Retirees can travel freely in and out of the UAE, maintaining their flexibility and connectivity to the rest of the world. 

Access to Public Services: Retirees have access to all public services, including healthcare, education, and transportation, on par with Emirati citizens. 

Investment Opportunities: The UAE offers attractive investment opportunities in various sectors, including real estate, business ventures, and financial markets. 

Overall, the UAE retirement visa presents a compelling option for retirees seeking a high-quality lifestyle, tax benefits, and investment opportunities in a safe and secure environment. The visa's long-term residency and multiple-entry privileges further enhance its attractiveness.

In the coming months, there will be new job opportunities available in the U.A.E

 The United Arab Emirates (UAE) is a country with a dynamic and growing economy, and there are many new job opportunities available in the coming months. Some of the sectors that are expected to see the most employment growth include:

Technology: The technology sector in the UAE is booming, and there are many new job opportunities expected to arise in the coming months. Here are some of the most in-demand tech jobs in the UAE, along with their average salaries:

Software Developer: Software developers are in high demand across all industries in the UAE. The average salary for a software developer in the UAE is AED 20,000 per month.

Data Scientist: Data scientists are also in high demand, as businesses are increasingly looking to use data to improve their operations. The average salary for a data scientist in the UAE is AED 25,000 per month.

Artificial Intelligence (AI) and Machine Learning (ML) Specialist: AI and ML are two of the most in-demand technologies in the world, and the UAE is no exception. AI and ML specialists are responsible for developing and implementing AI and ML solutions for businesses. The average salary for an AI/ML specialist in the UAE is AED 30,000 per month.

Cybersecurity Specialist: Cybersecurity specialists are also in high demand, as businesses are increasingly concerned about cyberattacks. Cybersecurity specialists are responsible for protecting businesses from cyberattacks and data breaches. The average salary for a cybersecurity specialist in the UAE is AED 25,000 per month.

Information Technology (IT) Manager: IT managers are responsible for overseeing the IT operations of a business. IT managers need to have a strong understanding of computer systems and networks. The average salary for an IT manager in the UAE is AED 30,000 per month.

Healthcare: The healthcare sector in the UAE is expanding rapidly, and there are many new job opportunities for qualified professionals. Here are some of the top healthcare job openings in the UAE in the coming months, along with their average salaries:

 1. Doctors: Doctors are in high demand in the UAE, and there are many different specializations that are in need, including general practitioners, surgeons, pediatricians, and psychiatrists. The average salary for a doctor in the UAE is AED 120,000 per month.

 2. Nurses: Nurses are another critical healthcare profession that is in high demand in the UAE. There are many different nursing specialties, including general nurses, surgical nurses, and pediatric nurses. The average salary for a nurse in the UAE is AED 10,500 per month.

 3. Pharmacists: Pharmacists are responsible for dispensing medications and providing advice to patients on how to take them safely and effectively. They are also involved in the preparation of medications and the monitoring of patient drug therapy. The average salary for a pharmacist in the UAE is AED 30,000 per month. 

4. Medical laboratory technicians: Medical laboratory technicians are responsible for collecting, preparing, and analyzing samples of blood, tissue, and other bodily fluids. They also operate and maintain laboratory equipment. The average salary for a medical laboratory technician in the UAE is AED 11,500 per month. 

5. Physiotherapists: Physiotherapists help patients with disabilities or injuries to regain their movement and strength. They also provide education and support to help patients manage their conditions. The average salary for a physiotherapist in the UAE is AED 25,000 per month. 

In addition to these top 5 healthcare job openings, there are many other opportunities available in the UAE, including:

• Dentists
• Radiologists
• Occupational therapists
• Speech therapists
• Dietitians

The salary for a healthcare professional in the UAE will vary depending on their experience, qualifications, and specialization. However, healthcare professionals in the UAE can generally expect to earn a competitive salary with good benefits. 

Tourism and hospitality: The UAE is a popular tourist destination, and there are many job opportunities in the tourism and hospitality sector, such as hotel managers, tour guides, and restaurant staff.

Here are some examples of average salaries for tourism and hospitality jobs in the UAE:

•  Hotel managers: AED 80,000 - AED 120,000 per year
• Restaurant managers: AED 60,000 - AED 80,000 per year
• Chefs: AED 40,000 - AED 60,000 per year
• Waiters and waitresses: AED 15,000 - AED 25,000 per year
• Housekeepers: AED 12,000 - AED 18,000 per year
• Tour guides: AED 20,000 - AED 30,000 per year
• Travel agents: AED 30,000 - AED 40,000 per year

Other sectors: There are also many job opportunities in other sectors, such as education, finance, and construction.

In addition to these general trends, there are also several specific job opportunities that are expected to be in high demand in the UAE in the coming months. These include: 

Data scientists: Data scientists are in high demand in the UAE as businesses increasingly rely on data to make decisions.

Artificial intelligence (AI) experts: AI is another area where there is a strong demand for skilled professionals in the UAE.

Cybersecurity experts: Cybersecurity is a growing concern for businesses in the UAE, and there is a need for more professionals to protect their systems from cyberattacks.

Project managers: Project managers are in demand in a variety of industries in the UAE.

If you are looking for a new job in the UAE, there are a number of things you can do to increase your chances of success. These include: 

Networking: Networking is a great way to meet people who can help you find a job. Attend industry events, join professional organizations, and connect with people on LinkedIn.

Tailoring your resume and cover letter: Make sure your resume and cover letter are tailored to the specific job you are applying for. Highlight your skills and experience that are relevant to the position.

Practicing your interviewing skills: The more you practice interviewing, the more confident you will be. There are many resources available to help you practice, such as online interview guides and mock interviews.

Learning Arabic: Arabic is the official language of the UAE, and learning it will make you a more attractive candidate to employers. Even if you are not fluent, learning some basic Arabic will show that you are serious about working in the UAE.

The UAE is a great place to live and work, and there are many job opportunities available for skilled professionals. With hard work and dedication, you can find a great job in the UAE and have a successful career.

The deadline for Emiratisation is Less than 2 months, The U.A.E ministry reminds fines

 As the UAE Emiratisation deadline approaches, it is crucial for businesses to take proactive measures to ensure compliance and avoid potential fines. Here's a comprehensive guide to help you navigate the Emiratisation process and avoid penalties:

Here are the key deadlines to keep in mind:

December 31, 2023: Private sector companies with 50 or more employees must have 4% Emirati nationals in their skilled workforce by this date. Achieve a 4% Emiratisation rate for skilled jobs by December 31, 2023. Incrementally increase the Emiratisation rate by 2% annually until 2026.

January 1, 2024: Private companies with 20 to 49 employees must have one Emirati national in a skilled position by this date.

January 1, 2025: Private companies with 20 to 49 employees must have two Emirati nationals in skilled positions by this date.

Steps to Avoid Emiratisation Fines: 

Regularly monitor Emiratisation progress: Track your company's Emiratisation rate using the MoHRE's Emiratisation Monitoring System (EMS). 

Identify suitable Emirati candidates: Utilize MoHRE's recruitment platforms, such as Tamkeen and Nascrat, to connect with qualified Emirati professionals. 

Provide training and development opportunities: Invest in training and upskilling Emirati employees to enhance their skills and career progression. 

Create a supportive work environment: Foster a workplace culture that values diversity and inclusion, ensuring Emirati employees feel valued and supported. 

Consult with Emiratisation experts: Seek guidance from Emiratisation consultants to gain insights into best practices and compliance strategies. 

Stay updated on Emiratisation regulations: Keep abreast of any changes or updates to Emiratisation requirements and deadlines. 

Proactively address Emiratisation gaps: If you are falling behind on your Emiratisation targets, take immediate action to recruit and retain Emirati talent. 

Comply with Emiratisation penalties: If you fail to meet Emiratisation targets, you will face fines as per the MoHRE's guidelines. 

What is Emiratisation?

Emiratisation, also known as Emiratization, is an initiative by the government of the United Arab Emirates (UAE) to increase the participation of Emirati citizens in the country's workforce, particularly in the private sector. The goal of Emiratisation is to reduce reliance on expatriate labor and to create more opportunities for Emiratis to contribute to the UAE's economy and society. 

The UAE's economy has historically relied heavily on expatriate workers, who make up approximately 85% of the total workforce. This is due in part to the country's rapid economic growth and development, which has created a demand for skilled labor that outpaces the supply of Emirati workers. However, the government has become increasingly concerned about the social and economic implications of this high level of reliance on expatriates. 

Emiratisation is one of the key strategies that the UAE government is using to address this issue. The government has implemented a number of policies and initiatives to encourage Emirati citizens to participate in the workforce, including: 

• Providing financial incentives to employers who hire Emiratis
• Offering training and development programs to Emiratis
• Reserving certain jobs for Emiratis
• Imposing quotas on the number of expatriate workers that companies can employ

Emiratisation has made some progress in recent years. The number of Emiratis employed in the private sector has increased from 3% in 2006 to 7% in 2022. However, there is still a long way to go to achieve the government's goal of increasing Emirati participation in the private sector to 20% by 2026.

Financial incentives to employers who hire Emiratis

The UAE government has implemented a number of financial incentives to encourage employers to hire Emiratis. These incentives include:

• Salary support scheme: The government provides a monthly salary subsidy to employers who hire Emiratis in certain sectors. The subsidy is based on the employee's salary and experience, and can be up to AED 8,000 per month.
• Training and development grants: The government provides grants to employers who train and develop Emirati employees. The grants can cover the cost of training courses, internships, and other forms of professional development.
• Pension contributions: The government pays the full cost of pension contributions for Emirati employees for the first five years of employment.
• Reduced fees: Employers who hire Emiratis are eligible for reduced fees for certain government services, such as visa processing and labor market testing.

In addition to these financial incentives, the government also offers a number of non-financial incentives to employers who hire Emiratis, such as:

•  Priority access to government contracts and projects
• Recognition and awards for companies that excel in Emiratisation
• Support from government agencies in finding and hiring qualified Emiratis

 These incentives have been effective in encouraging some employers to hire Emiratis. However, more needs to be done to ensure that Emiratis have equal opportunities for employment in the private sector. The government is committed to continuing to implement policies and initiatives to support Emiratisation, and to working with the private sector to create a more inclusive and equitable workforce. 

By following these steps, you can effectively manage your Emiratisation obligations, enhance your workforce diversity, and contribute to the UAE's national development goals.