Accounting and Tax
Why Ortac Audit Company for Dubai Accounting Service?
Dubai accounting services are provided professionally by our experts in order to accurately record, report and analyze the financial transactions of companies. Our services include important functions such as preparation of financial statements, tax declarations, budget preparation processes, cash flow management and provision of financial audits.
Dubai accounting services appeal not only to local businesses but also to international companies. Due to the vibrant nature of global trade, companies need accounting practices that comply with international standards. At this point, our company, which has a comprehensive service scale, contributes to the best management of taxpayers' financial situations.
Dubai accounting services appeal not only to local businesses but also to international companies. Due to the vibrant nature of global trade, companies need accounting practices that comply with international standards. At this point, our company, which has a comprehensive service scale, contributes to the best management of taxpayers' financial situations.
- Local Legislation and Tax Compliance
- Expert Staff and Training Support
- Digital Accounting Infrastructure
Dubai Accounting and Bookkeeping Services
Dubai is a central hub for international businesses due to the opportunities it provides in trade and finance. In this context, it is crucial for companies to regularly track and report their financial transactions. Dubai accounting and bookkeeping services are carried out by our professional financial consultants. Our services help companies fulfill their legal obligations while also enabling them to assess their financial performance and make strategic decisions.Our firm is an authorized and licensed partner of Quickbooks, a globally recognized accounting software. This allows us to provide comprehensive support for your accounting needs. From bookkeeping services to the preparation of VAT documents and the timely submission of your annual accounting reports, our team manages all your requirements in both Turkish and English.Dubai’s Accounting Policies
The United Arab Emirates adopts the International Financial Reporting Standards (IFRS) as the basis for its accounting practices. These standards form the foundation of accounting and bookkeeping applications in the UAE. IFRS establishes guidelines for the transparent reporting of financial information, aiming to ensure consistency and clarity in the financial reporting of businesses.Under IFRS, businesses in Dubai and other regions of the UAE are required to retain their financial statements and other financial records for a minimum of 5 years. According to Value Added Tax laws, the retention period is set at five years. For corporate tax laws, this period is extended to 7 years. Additionally, records can be stored electronically within the framework of federal laws.It is crucial for companies to prepare all annual accounts in accordance with IFRS principles to clearly present their profit and loss positions. Furthermore, all banking activities should be supported by account summaries indicating transaction amounts and types, along with other details. These regulations are implemented to enhance financial transparency and accountability.How to Register for VAT in Dubai?
Within the United Arab Emirates, VAT registration is carried out on the FTA (Federal Tax Authority) platform by authorized accountants after the company’s establishment. The mandatory registration threshold is set at 375,000 AED. VAT registration is required if the local UAE turnover reaches this amount or is expected to approach it in the nearest month.The voluntary registration threshold is set at 187,500 AED. Voluntary registration is preferred by businesses planning to reclaim VAT paid on corporate expenses such as office equipment and furniture. Additionally, voluntary VAT registration allows businesses to manage their costs effectively while benefiting from tax refund advantages.Cost of Accounting Services in Dubai
The cost of accounting services in Dubai varies depending on several factors. Primarily, the size of the business and its area of operation play a significant role. For small-scale businesses, accounting services may have more reasonable costs due to fewer transactions and reporting requirements. For large-scale and multinational companies, costs increase due to the higher volume of transactions and the need for detailed financial reporting. Additionally, specific industry requirements and accounting standards are among the other factors influencing both the scope of services and the costs. The range of services provided and the technology used also impact the overall cost.Why Should You Opt for Accounting Services in Dubai?
Businesses in Dubai are required to comply with local laws and regulations. Our professional accounting services ensure that you meet legal requirements and avoid penalties. Reports prepared by your accountant are crucial in determining whether your business is taxable or tax-exempt. Communication between the accounting service provider and the business owner is essential throughout this process. Additional reasons for choosing accounting services are outlined below:- Our accounting experts analyze your financial data and provide detailed insights into your business’s profit margin, cash flow, and financial position. All this information contributes to making strategic decisions.
- Accounting processes are time-consuming and complex. By utilizing our professional services, you can delegate these tasks to our experts and focus on your core business.
- Dubai accounting services enable you to manage your business costs more effectively. They also help you reduce unnecessary expenses and increase your profit margin.
- Our firm has up-to-date knowledge of international standards and the latest tax regulations. This allows your business to enhance its competitiveness on a global scale.
- Within the scope of our accounting services, all financial reports are prepared accurately and on time.
Dubai Tax Services
Dubai is a globally recognized business and financial hub known for its tax-friendly structure that promotes entrepreneurship and investment. As part of the United Arab Emirates (UAE), Dubai is renowned for its low tax rates and attractive incentives for investors.
General Tax Practices
The tax system in Dubai is simple and efficient, providing advantages for investors and businesses:
- Corporate Tax:
- 2023 Regulation: As of June 1, 2023, the UAE has implemented corporate tax. Businesses with an annual taxable income (Net Profit) of up to 375,000 AED are subject to 0% corporate tax, while income exceeding this amount is taxed at 9%.
- Personal Income Tax:
- There is no personal income tax in Dubai. Individuals are not taxed on their salaries or other personal earnings.
- Value Added Tax (VAT):
- Since January 1, 2018, VAT has been applied at a rate of 5% on certain goods and services. However, exemptions or zero-rating apply in sectors such as basic food items, healthcare, and education.
New Small Business Tax Incentives
The Small Business Tax Relief is a regulation that exempts eligible small businesses from corporate tax. This exemption assumes that businesses have no taxable income during specific tax periods. It allows businesses to achieve financial relief while focusing on growth and innovation.- Small Business Tax Relief:
- Launched in 2023, this program exempts businesses with an annual revenue of 3 million AED or less from corporate tax. This regulation is valid from June 1, 2023, to December 31, 2026.
Tax Management and Compliance in Dubai
The primary institutions responsible for implementing and overseeing tax regulations are:- Federal Tax Authority (FTA):
- Responsible for managing federal-level taxes such as VAT and corporate tax.
- Businesses must comply with the FTA by registering, submitting declarations, and paying necessary taxes. Failure to register or file on time may result in penalties.
Advantages and Opportunities for Businesses
- Low Tax Burden: Businesses in Dubai can benefit from low or zero tax advantages in many sectors.
- Investment Incentives: Incentives offered in free zones create significant opportunities that attract investors.
- Global Business Hub: Dubai’s infrastructure, logistical advantages, and tax incentives make it an attractive business center for international companies.
Conclusion
Dubai’s tax system stands out with its investor-friendly structure, offering a low-cost business environment. The absence of personal income tax and high corporate tax in most sectors places Dubai in a unique position in the global business world. Leveraging tax incentives in free zones provides significant opportunities for both startups and large-scale investments.For more information and guidance on how your business can benefit from Dubai’s tax system, reach out to our professional consultants today.Other Services
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