Tax assessments can often lead to adjustments in financial statements, but do they always require a restatement of prior-period financials? The answer depends on the nature of the adjustment.If the tax assessment arises due to an error in prior financials—such as misapplication of tax laws or omission of taxable income—a restatement is required. Prior-period financials […]
As businesses in the UAE prepare for corporate tax compliance, closing the books of accounts effectively and in alignment with regulatory requirements is essential. Here are 12 key focus areas to ensure accurate financial reporting and compliance under Federal Decree-Law No. 47 of 2022: By focusing on these key areas, businesses can streamline their tax […]
Legal Foundation: Required under Article 55 of the Corporate Tax Law for reporting transactions with Related Parties and Connected Persons. Who Must Submit: All taxable entities engaging in transactions with Related Parties or Connected Persons must submit the form, regardless of unspecified materiality thresholds. Deadline for Filing: The form must be submitted with the tax […]
A recent amendment to the UAE VAT Executive Regulations, effective November 15, 2024, which may impact your business. Key Update: Under Article 53, the amended regulations now allow the recovery of input VAT on health insurance provided to employees and their dependents. This includes coverage for: • One spouse• Up to three children under the […]
In the UAE, all entities must adhere to either IFRS or IFRS for SMEs for their accounting and financial reporting, as mandated by Ministerial Decision No. 114 and the Corporate Tax Guide CTGACS1. IFRS for SMEs offers a more streamlined framework, especially beneficial for smaller enterprises. Here are some key advantages: 1.Simplified Recognition and Measurement […]
Short-term benefitMeasured at an undisounted rate and recognized as the services are rendered.Other costs (such as annual leave) are recognized as the related servicess are rendered if the cost accumulate, otherwise the cost is expensed when the leave is taken or used. Bonus payments are only recognized when an obligation exists and the amount can […]
Introduction: Extending a lease is a common practice for many entities, but it introduces accounting complexities related to the recognition of Right-of-Use (RoU) assets and lease liabilities. The timing of recognizing these additional assets and liabilities depends on the nature of the lease extension—whether it constitutes a modification of the existing lease or involves entering […]
Introduction: In the dynamic realm of the shipping industry, sale and leaseback transactions for vessels are commonplace. These transactions can be structured in various forms, and it’s crucial to ensure compliance with accounting standards, specifically IFRS 16, which focuses on substance over legal form. This article delves into the criteria that must be met before […]
The United Arab Emirates (UAE) is known for its dynamic business environment, attracting entrepreneurs and corporations from around the world. However, with the benefits of operating in the UAE come responsibilities, particularly in the realm of taxation. In this comprehensive guide, we’ll explore the intricacies of corporate tax and Value Added Tax (VAT) compliance in […]
The Ministry of Finance has recently announced significant updates to tax regulations in the United Arab Emirates (UAE), introducing a new penalty of Dh10,000 for late registration of corporate tax. This fine, announced through Cabinet Decision No. 10 of 2024, aims to incentivize timely compliance with tax regulations and aligns with penalties for late registration […]
