Frequently Asked Questions

Yes, we conduct a regular check of all your business accounts, your daily transactions and financial reporting. We conduct thorough checking of all financial records to find if there are any gaps, errors or frauds and help you streamline the whole accounting system of your business with full honesty and confidentiality.

Yes, we conduct a regular check of all your business accounts, your daily transactions and financial reporting. We conduct thorough checking of all financial records to find if there are any gaps, errors or frauds and help you streamline the whole accounting system of your business with full honesty and confidentiality.

Accounting can help in identifying redundancies in business contracts and areas of unnecessary spending and thus can suggest ways to reduce these expenses. By optimizing business processes we can help reduce costs and save money.

Accounting services take care of many aspects concerning a business like

• Finance and Accounts - This covers financial statements, income statements, balance sheets and transactions.
• Human Resource Management - It includes employee database management, payroll processing, insurance and deposit, leave application processing, claims management, etc.
• Tax Services - Company’s tax structure, tax audits, tax filing and returns.
• VAT services - It covers VAT registration, VAT accounting, VAT filing and returns.

First, check the qualifications of the team of the firm which you are planning to hire. Then check what are the industries where the firm has provided bookkeeping services. This will give an idea of their domain knowledge. Lastly, you can check for reviews from past clients and how their experience was. Any company with good experience and a wide client base will be happy to share all this information with you.

Our bookkeeping services include account review, data entry, bank reconciliations, financial charts, VAT compliance and MIS reports.

Any records related to the business activities that will help the FTA to review the business transactions. The required documents and the time period to maintain records are mentioned in Federal law no (7) of 17 on Federal Law Procedures.

In Mainland companies, the owner has 49% ownership and the local sponsor has the remaining. Free zone companies are 100% owned by the owner and are cheaper to set up. Offshore companies are the cheapest to set up and 100% owned by the owner if it resides outside UAE and it has no Visa requirements as well.

To set up a company in UAE, you need to first identify and select a business activity and a jurisdiction (offshore, free zone and mainland). After that, you determine the company structure and apply for a business license. Finally, you get the business registered, draft MoU, get approval and rent a place.

A VAT-registered business should

• Charge VAT on taxable services and goods supplied by them.
• Claim VAT paid on goods and services.
• Keep a record of VAT transactions and invoices.

Businesses need to fulfil tax obligations and comply with VAT regulations. They need to align their accounting and bookkeeping as per the VAT laws. The best way to do so is to hire a professional VAT consultant who can guide you on how to comply with VAT.

5 years

Yes, if they supply taxable goods and services in UAE, only in cases where there is no UAE resident responsible for accounting for the same supplies.

The following amendments can be made only with FTA’s approval:

• Applicant’s details
• Contact details
• Banking details
• Information regarding VAT application
• Business relationships
• Declaration

The Edit button is used for changes that can be done without FTA’s approval. Such changes when made using the Edit button reflect in the profile automatically. On the other hand, the Amendment button is used for changes that reflect only after FTA’s approval.

Following are the reasons for penalties:

• Not registering for VAT
• Not submitting VAT returns timely
• Not maintaining records
• Tax evasion offences

Yes, In such a case the group’s representative should inform the authorities within 20 days of the termination of the leaving member’s eligibility.

If compulsory deregistration is delayed, there is a penalty of AED 10,000. The deregistration application should be submitted within 20 business days.

If a company’s turnover in the last 12 months is less than the mandatory threshold, the company should deregister.

As per the law, all local supplies are subject to 5% VAT. However, transactions related to education, healthcare, transportation and real estate are accounted for as zero-rated or exempt.

The main difference between the two is that suppliers of zero-rated goods and services can reclaim or refund full input VAT. However, the suppliers of exempt goods and services cannot reclaim or refund input VAT because either they are not registered or even if they are, they are the end users.

A tax invoice must include the Date of issuance, customer and supplier’s name, address and TRN, description of the goods supplied or service rendered, VAT rate and VAT amount payable.

Both legal and natural persons fall in the corporate tax bracket.

Legal persons are the companies and other types of persons incorporated in the UAE. It also includes foreign legal persons with a permanent establishment in UAE or earning an income in UAE. These legal persons are Limited liability companies, Private shareholding companies, Public joint stock companies and entities established under the law.

Natural persons include sole establishments or proprietorships and individual partners in an unincorporated partnership who conduct a business in UAE.

The following entities are exempt.

• UAE Federal Government, Government of the Emirates, their departments, authorities and public institutions.
• Government-owned companies in UAE conducting the sovereign activity and are listed in a cabinet decision.
• Companies involved in the extraction and exploitation of natural resources within the scope of Emirate-level taxes.
• Charities and public benefit organizations listed in a cabinet decision.
• Public and regulated private social security and retirement pension funds.
• Investment funds subject to certain conditions.

Free zone companies may fall into the corporate tax bracket based on the income earned from business activities in UAE. Any income from offshore activities may be tax-exempt. As the corporate tax has not yet come into effect, the impact on free zone companies is not clear now.

You can apply online through the Federal Tax Authority website www.tax.gov.ae.

A reconsideration request is addressed in 40 working days unless additional information is required.

Yes, a dispute can be raised against the decision made by the reconsideration committee in the Tax Dispute Resolution Committee(TDRC) in the Department of Justice.

You will receive a notification from a licensed auditor from the FTA. The notification can be a phone call, email or written notice and it will include information like the time, location and date of the audit.

A tax auditor checks the company books and records including invoices, bank statements, rental records, contracts, receipts, journals and ledgers, property details, filed tax returns, mortgage documents, credit card statements and bank statements of company directors. Adjustments done for taxation purposes in the books of accounts. After the assessment, if all records are accurate you get a completion letter stating that the tax audit is closed. In case errors are found, there can be reassessment and either you are entitled to a tax refund or you owe tax payment.

Any services relating to the Tax Residency Certificate in the UAE are welcomed by Parsh. Our knowledgeable and experienced staff will make your job easier by getting the relevant documents and certifications to finish the TRC procedure on time.

The tax residence certificate in Dubai has a one-year validity period from the date of issue.

Tax residency certificates are not available to offshore corporations; therefore, they should get a tax exemption certificate.

In order to be eligible to apply for a TRC, the company must have been established for a period of at least one year.

Financial accounts must be audited or prepared by an accredited audit firm and attached with other required documents to the application. The report must be certified and stamped by the audit firm. The audited financial report to be attached to the application must cover the year for which the certificate is requested. If the certificate is requested for the present year, the audit report must be covering the past year.

For an audit to be precise and accurate the most essential factor would be the company's ability to keep track of its income and expenses depending on its accounting and bookkeeping services.

During the audit, we will take complete care of the accounting part of the process and additionally will assist your auditor, clear their queries if any, and ensure smooth coordination to get your audit done and stamped promptly. Additionally, we will ensure compliance with all the statutory regulations.

Planning to audit in-house by maintaining accounts and professional financial records is not the ideal course of action for an organization or a company. It might turn out to be an inefficient process or might even lead to a negative impact on the firm, as the in-house process might not be able to provide the care and competence required to maintain such financial records, which will eventually lead to a faulty or erroneous audit.

Outsourcing accounting to prepare accurate audits will reduce the firm’s administrative burden and will lead to increased flexibility to meet changing business needs, and enhanced company focus, with the assurance of service continuity.

Financial health reporting is important for management to make informed business decisions based on facts about the company’s financial health. Potential investors and banks will also use your company’s financial reporting to decide if they want to invest or loan you money.

Financial health reports require a strong command of finance and accounting skills. They can be time-consuming to create. This is particularly true if you are not familiar with the correct formatting. It is best to hire professionals to help you prepare financial statements. This will save time, cut costs and ensure accuracy.

The detailed financial reports provided by Parsh after evaluating and analysing your books and records will help you evaluate your company's financial performance of the past and identify problems for which we’ll suggest solutions as well. Taking into consideration your financial health, we’ll also suggest a plan for your upcoming fiscal year.

Using cloud-based accounting solutions, you may digitally manage all of your business information. With just a few clicks, you may complete a variety of tasks, such as opening your accounts, producing and sending invoices, tracking payments, and more.

With these virtual services, you will considerably save on other expenses such as maintenance of physical records or Sit-in costs for accountants.

With our digital accounting services, you can get real-time financial reports, anytime and anywhere, with just a click of a button away since all of the digital data is accessible from any device which will definitely help you grow your business.

With Accounting Consultancy, you can get the full accounting department experience without the hassle and cost of an internal employment procedure. You have access to skilled and qualified finance professionals who can relieve you of your financial duties and free up your valuable time for you to focus on the administration and management of your company.

Outsourcing accounting will reduce the firm’s administrative burden and will lead to increased flexibility to meet changing business needs, and enhanced company focus, with the assurance of service continuity.

Whether you are a new business or an existing one trying to establish your accounts, it will be an optimum business decision to avail of these services.

We will come up with a modus operandi for you to establish a proper chart of accounts, books and accounts and will assist you with Audit, Tax and VAT services, with our Accounting Consuatnacy services on your side, you will be in complete compliance with all the statutory regulations.