Accounting and Taxation Services in UAE

Accounting, Bookkeeping, and taxation services in the UAE have become increasingly important with the introduction of corporate tax in 2023. As a global business hub, the UAE presents unique challenges and opportunities, necessitating expert guidance in navigating the complexities of financial reporting and tax obligations. Accounting services in the UAE are essential for businesses of all sizes and types. Accounting is the process of recording, summarizing, and reporting a company’s financial transactions and activities. The UAE has different accounting practices, including economic, management, and tax accounting. 

Financial accounting: is the standardized process of recording, summarizing, and reporting a company’s financial transactions and activities.

Bookkeeping: is the process of capturing and categorizing different transactions and events throughout the period into meaningful financial information supported by accurate evidence.

Management accounting: is concerned with providing information to managers to help them make decisions. 

Tax accounting: is concerned with determining the tax liabilities of a firm and ensuring compliance with tax laws. 

Importance of Tax Accounting in UAE:

Tax accounting in the UAE is essential for businesses to comply with local regulations and optimize their financial strategies. Tax accounting is essential for businesses in the UAE, helping them meet financial responsibilities. Tax accounting is important  in the UAE for several reasons:

• Enhances transparency and accuracy of financial reporting
• Ensures compliance with tax laws and regulations
• Accurately calculates taxable income and fulfills tax obligations
• Provides accurate and up-to-date records of financial transactions for tax compliance
• Enhances financial performance and positions businesses for long-term success in the competitive UAE market
• Navigates the complexities of corporate tax and ensures compliance with IFRS and other accounting standards

Accounting services in UAE 

Accounting & Bookkeeping: Companies in the UAE maintain accounting and bookkeeping for at least 5 years, as prescribed by the UAE Commercial Company Law 2015 and VAT law of UAE. Up-to-date records are essential for businesses operating in the region to remain competitive and compliant with regulations.

Financial Reporting: Financial reporting is an essential aspect of accounting services in the UAE. It involves the process of disclosing the financial results of an organization to shareholders and the public for decision-making. 

Management Reporting: The basic purpose of management reporting is to provide data analysis, corporate reporting, data consolidations, and collection to support effective business management.

Fixed Asset Management Services are a systematic process for maintaining, upgrading, and managing physical assets. These services oversee various aspects, including maintenance, audits, verification, depreciation, and the maintenance of fixed asset registers for small and large organizations. 

Implementation of new Accounting Standards: The purpose of implementing new accounting standards is to ensure that organizations comply with the latest regulatory requirements and provide accurate and transparent financial information.

Finance Function Set-Up and Process Effectiveness: Establish a company’s financial system and procedures to ensure accurate and timely recording, tracking, analysis, and reporting of financial information.

CFO Services: Provide financial management and strategic planning expertise to organizations. CFOs oversee budgeting, forecasting, financial reporting, cash flow management, investment decisions, and risk management.

Audit Readiness: Audit readiness aims to ensure that a company is prepared for an audit and that the audit runs smoothly. 

IFRS Training: Provide professionals with the necessary skills and knowledge to handle financial reports in compliance with international accounting standards.

ERP Implementation: Improve the efficiency and effectiveness of an organization’s business processes by integrating various business functions, such as finance, operations, and human resources, into a single system.

Tax Services in the UAE 

Elevate your financial compliance with our comprehensive Accounting and Taxation Services in UAE. The tax system includes the following types of taxes:

Value Added Tax (VAT): The standard VAT rate in the UAE is 5%, levied on most goods and services. We help businesses stay compliant by providing accurate and up-to-date information on VAT rates, exemptions, and thresholds. 

Corporate Tax: Since June 2023, the UAE has implemented a federal corporate tax with a standard rate of 9%. This tax allows companies to Fulfill tax obligations efficiently, adhere to regulatory requirements, and optimize their tax positions.

Excise Tax: Excise tax in the UAE is an indirect tax introduced on October 1, 2017, levied on goods deemed harmful to human health or the environment. We provide support and guidance to businesses for excise tax registration and systematic excise tax advisory services, ensuring compliance with tax regulations

Benefits of Outsourced Accounting Services in UAE:

Outsourcing accounting services in the UAE offers several benefits, including:

• Provide in-depth knowledge of local accounting and bookkeeping standards, ensuring compliance with regulations.
• Cost-effective than hiring an in-house accountant, as the outsourced accountant may perform the same quality of work at lower fees.
• It allows businesses to focus on their core competencies and leave the financial management to professionals.
• Helps businesses maintain statutory compliances, ensuring prompt payment of government taxes and liabilities.
• Help businesses create and stick to budgets, making making new plans as required easier.

By outsourcing accounting services, businesses in the UAE can benefit from the expertise of qualified accountants and business experts, ensuring accurate financial reporting and compliance with local regulations.

Accounting Methods in UAE:

In the UAE, various accounting practices are followed to ensure accurate financial reporting and compliance with local regulations. Some of the key accounting methods and practices in the UAE include:

• Financial Accounting
• Cash Accounting
• Accrual Accounting
• Cost Accounting

These accounting practices are essential for businesses in the UAE to maintain transparency, comply with tax regulations, and provide stakeholders with detailed and accurate financial information.

How BRISK can Help Businesses in the UAE

Brisk offers a comprehensive range of services, including bookkeeping and tax-related services, from filing to returns, for all companies and businesses in the UAE.

• Accounting & Bookkeeping:
• Financial Analysis & Reporting
• IFRS Training & Consulting
• Record-keeping 
• Tax Preparation
• Cloud accounting
• Reporting and compliance
• CFO Services
• Audit Readiness
• ERP Implementation