PROFESSIONAL FINANCIAL SERVICES PROVIDER
EMT Accounting & Taxation Services: Expert Tax Consultant in Dubai
We excel in various services such as following
ACCOUNTING & BOOKKEEPING
We offer dependable bookkeeping and accounting services for streamlined financial management. Our team guarantees accurate and timely reporting, from record-keeping to tax preparation. Contact us for more info. Let us show you how we can meet.
Auding & Assurance
We offer tailored auditing and assurance services to meet your business requirements. Our team of knowledgeable professionals delivers objective opinions in line with regulations and industry standards. Email us We will respond you soon
TAXATION
We provide expert tax services for accurate and timely tax returns. Our team offers planning, preparation, and compliance services, keeping up-to-date with current tax laws. Contact us to save time and money with reliable and efficient tax assistance. Call & Talk with our expert
BUSINESS SETUP IN UAE
If you're looking to establish a business in the UAE, we can assist you every step of the way. Our team of experts has extensive knowledge in company formation and registration in the UAE and can provide you with customized solutions tailored to your specific needs.
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To know more about Our Range of Services
Economic Substance Regulations
The United Arab Emirates (hereafter: “UAE”) has enacted the Economic Substance Regulations[1] (hereafter: ”the Erstwhile Regulations”) on 30th April 2019, which requires companies to have substantial activities in the UAE, taking into account the global standards developed by the OECD and the EU for business taxation to prevent harmful tax practices and to be removed from the EU’s list of non-cooperative tax nations. Professional Tax Consultant in Dubai
The Economic Substance Regulations brings the specific requirements for businesses to demonstrate that their actual economic activity is in UAE and it is not driven solely to benefit from a low or non-tax jurisdiction. Thus, preventing the harmful tax practice of profit shifting from high-tax jurisdiction to low tax regimes.
How we can assist you?
Initial Assessment
Comprehensive Assessment and Gap Analysis
If your business is within the scope of the Amended Regulations, analyze and identify whether the business fulfills the Economic Substance Test under the Amended Regulations and identify the non-compliant aspects if the criteria of the Amended Regulations are not met.
Corporate Actions to Meet Economic Substance Test
Suggestions and implementation of corrective or preventive corporate actions to fulfill the requirements of the company under the Economic Substance Test.
Compliance Assistance
Identify whether your business is within the scope of the Amended Regulations by analyzing whether the company is a Licensee conducting Relevant Activity in the Reportable Period. We identify the compliance requirements for the company.
Assistance in filing / re-filing the Notification and Substance Return with the Ministry of Finance. Ongoing review services to ensure ongoing compliance of the company with the Amended Regulations. Assistance in preparing any documentation, or review of information that needs to be submitted to authorities.
UBO - Ultimate Beneficial Owner
What is a UBO?
- In simple words, an ultimate beneficial owner (UBO) is an individual who is the ultimate beneficiary of a company. For example, an individual named A owns significant shares in company B, and company B, in turn, owns significant shares in Company C. The individual named A will be considered UBO of Company C as they own Company C through an indirect arrangement. However, in practice, it is not that simple to determine a UBO considering there may be multiple layers of ownership or complex arrangements in place.
- Some businesses make use of complex corporate arrangements to commit financial fraud, launder money, finance terrorism, dodge taxes, or conceal their ill-gotten income or wealth. Such corporate arrangements involve sophisticated ownership structures to hide the real identity of politically exposed persons (or PEPs), sanctioned entities, terrorist outfits, and other criminals. These practices came to the fore following Panama Papers and Paradise Papers, a combined giant leak of around 25 million confidential financial and legal records that exposed a system that enabled crime, corruption, and wrongdoing, hidden by secretive offshore companies.
- Such illegal and dishonest practices gave rise to the need for UBO legislation across the globe. The UAE followed suit by issuing the UBO Regulations, which will mitigate the threat of financial fraud by having companies identify the individual that will ultimately benefit from the actions of such companies.
Obligations of companies under UBO Regulations
Under the UBO Regulations, a company must maintain the following:
- Register of UBOs: Article five of UBO Regulations provides a waterfall mechanism to determine a UBO: UBOs are individuals who ultimately own or control or have the right to vote with a minimum 25 percent shareholding of the company, whether through direct or indirect means of ownership or who have the right to appoint or dismiss the majority of the directors/managers; if no individual satisfies the condition in (a) above, then any individual who exercises control over the company through other means shall be deemed as the UBO; if no individual satisfies the conditions in (a) and (b) above, then an individual who is responsible for the senior management of the company shall be deemed as the UBO.
- Register of nominee directors/managers: this register must include details of such directors/managers nominated by and acting on the instructions of a third party; and Register of shareholders: this register must include the number of ownership interests held by each shareholder in a company and the voting rights attached to such ownership interests along with the date of acquisition of such interests. This is not a new requirement as companies are obligated under the Commercial Companies Law to prepare and maintain such registers.
Penalties - Article 17 of UBO Regulations states that administrative penalties will be imposed upon such Mainland Companies and Non-Financial Free Zone Companies who are in breach of the UBO Regulations/do not submit their UBO information to corporate regulators. The Ministry of Economy will be imposing fines of up to AED100,000 from July 2021 on those companies who do not submit their UBO information by June 30, 2021.
The UBO Regulations provide a comprehensive framework on reporting and registering beneficial interests (including identities of UBOs) and nominee directors. The UBO Regulations will aim to promote transparency, prevent financial fraud and tax evasion, and improve corporate governance in the UAE. It is advisable for UAE companies to contact their legal and professional advisors to ensure compliance with the UBO Regulations.
Advisory Services
UAE is one of the easiest countries to do business in the world, as proved by the “Ease of Doing Business” Index released every year. This is largely due to factors that attract investors to UAE such as the financial institutions, trade policies, and the safety of doing business in a friendly economy that is focused on growth. If you are dynamic entrepreneurs or organizations, do not wait to see what tomorrow will bring, instead of shape your futures today.
As an expert team of consultants and advisors, we at EMT are committed to providing clear, practical business advisory and consultancy services in Dubai and all over UAE to drive the transformation to your organization’s future; help you fine-tune your optimal performance; help you achieve your business/firm objectives and convert your value to becoming agile, forward-thinking organizations that are ready for business challenges.
We provide the following as part of our Business Advisory Services:
- Financial Feasibility& Reports
- Mergers, Acquisitions, & Divestitures
- Market Risk Measurement & Management
- Due Diligence Support
- Corporate Finance
- Project Finance
- Restructuring Services
- Due Diligence Business Restructuring
- Business Valuation
- Brand Valuation
- Financial Modeling/Capital Budgeting
- Business Plan
- In a financial feasibility study, we assist clients by employing a range of risk-return analysis tools and methods to analyze the probable financial ratios (IRR /NPV /Payback period /ROI, etc) which will determine the viability or sustainability of a new business venture, expansion, new product introduction to the liquidation of an existing business venture.
- Due diligence support is a process by which confidential and key legal, financial, operational, and commercial information is reviewed by our expert financial advisors. This process will help companies in analyzing the business in order to build an understanding of key drivers and associated risks.
- As the business grows, the financial requirements increase, requiring one or the other mode of finance to flow into the business for its smooth functioning which forms part of our restructuring service.
- Business valuation is used to estimate the economic value of an owner’s interest in a company. The values (Enterprise Value/ Equity Value) are derived through comprehensive financial modeling techniques, business assumptions and certain other macro-economic factors. Companies would require valuation reports to attract investors, arranging loans, mergers & acquisitions, litigation purposes, joint ventures, succession planning, and valuing net worth.
- In Financial modeling we help clients with all financial modeling requirements including building comprehensive spreadsheet models and reviewing large and complex models, data sets and transaction fundamentals in order to help our clients assess value and track their financial performance.
A successful business planis part of proper planning ensuring how a company manages and grows the business in the long term. Comprehensive business plans include the following:
- Business profile
- Vision, mission and goals
- Market research
- Operational strategy
- Products and/or services
- Marketing plan
- Financial strategy
Team EMT is well-equipped to advise and take care of your requirements in any kind of business advisory service. If you need any assistance in addressing your queries or require further information
What is Excise Tax?
- The excise tax was introduced across the UAE in 2017. Excise tax is a form of indirect tax levied on specific goods which are typically harmful to human health or the environment. These goods are referred to as “excise goods”. When considering whether a product is an excise good, the following definitions apply:
- Carbonated drinks include any aerated beverage except for unflavoured aerated water. Also considered to be carbonated drinks are any concentrations, powder, gel, or extracts intended to be made into an aerated beverage.
Energy drinks include any beverages which are marketed, or sold as an energy drink, and containing stimulant substances that provide mental and physical stimulation, which includes without limitation: caffeine, taurine, ginseng and guarana. This also includes any substance that has an identical or similar effect as the aforementioned substances. Also considered to be energy drinks are any concentrations, powder, gel or extracts intended to be made into an energy enhancing drink.
Tobacco and tobacco products include all items listed within Schedule 24 of the GCC Common Customs Tariff.
From 1 December 2019, excise tax will be levied also on:
- electronic smoking devices and tools
liquids used in such devices and tools
sweetened drinks.
Rate of Excise Tax - According to Cabinet Decision No. 52 of 2019 on Excise Goods, Excise Tax Rates and the Methods of Calculating the Excise Price, the rate of excise tax is as follows:
- 50 per cent on carbonated drinks
100 per cent on tobacco products
100 per cent on energy drinks
100 per cent on electronic smoking devices
100 per cent on liquids used in such devices and tools
50 per cent on any product with added sugar or other sweeteners.
Businesses required to register for excise tax - Under the UAE Federal Decree Law No. 7 of 2017 on Excise Tax, registering for excise tax is the responsibility of any business engaged in:
- the import of excise goods into the UAE
the production of excise goods where they are released for consumption in the UAE
the stockpiling of excise goods in the UAE in certain cases
anyone who is responsible for overseeing an excise warehouse or designated zone i.e. a warehouse keeper.
FTA is committed to providing extensive support and guidance to assist with this; however, the responsibility lies with the business to make sure that any required compliance obligations are fulfilled. - FTA has the power to conduct audits of taxable corporates and subsequently impose penal measures on those that do not comply with the law.