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16th May 2024 Hello and welcome to the NumberNinjas.ae blog! We are thrilled to launch this dedicated space for freelancers, entrepreneurs, early-stage businesses, startups, small business owners, micro businesses, and non-finance managers in Abu Dhabi, Al Ain and Dubai. Our mission is to empower you with the knowledge and tools you need to navigate the complex world of accounting and bookkeeping, ensuring your business thrives and grows. Why This Blog? At NumberNinjas.ae, we understand that managing your books and ensuring your business meets the requirements for regulatory compliance in the UAE can be daunting, especially for those who have never completed an accounting and bookkeeping course. That's why we've created this blog—to demystify accounting and bookkeeping and make understandable for everyone. Here’s what you can expect: Understanding Accounting and Bookkeeping Terminology We’ll break down complex accounting jargon into simple, easy-to-understand terms. Our goal is to help you grasp the basics and beyond, so you can confidently manage your business finances. Making Your Accounts Harder Your financial statements are a crucial tool kit for the successful management of your business. Use them to reduce costs and drive growth. We’ll share insights to help you make informed financial decisions, optimize cash flow, and plan for the future. Accounting Tips From best practices in bookkeeping to case studies from our expert accountants' own experiences we’ll provide you with the knowledge to avoid the common pitfalls. Regulatory and Compliance Updates Understanding and implementing your accounting obligations as a small business owner in the UAE can be challenging and time consuming, diverting your focus away from running your business. We’ll use this blog to keep you updated on the latest compliance requirements and updates, including VAT registration and filing, corporation tax registration and filing, federal payroll regulations for mainland businesses (Wage Protection System), Go AML registration for anti-money laundering and counter-terrorism awareness and best practice, and corporate bank account opening procedures and requirements, to ensure your business remains compliant at all times and avoids penalties which can be in the form of hefty fines and restrictions placed on the operations of your business and more. Promoting Our Accounting and Bookkeeping Services Discover how NumberNinjas.ae can support your business. Where appropriate, we'll support our blog articles by highlighting our range of accounting services can provide you with the necessary solutions, from bookkeeping and outsourced payroll services to audit preparation and tax filing. Learn how our expertise can optimize your accounting and help you achieve your financial goals. News and Achievements Stay connected with us! We’ll share exciting news, updates, and achievements from the NumberNinjas.ae team. Whether it’s a new service launch, a client success story, or an industry recognition, we want you to be part of our journey. Join Us on This Journey We invite you to join us on this journey towards financial literacy and business success. Whether you’re just starting out or looking to take your business to the next level, the NumberNinjas.ae blog is here to support you every step of the way. Thank you for visiting our blog. We look forward to sharing valuable content with you and helping your business thrive in Abu Dhabi, Al Ain and Dubai. If you have any questions or topics you’d like us to cover, please let us know in the comments. Together, let’s make your numbers work harder for you! Check out our first post: "A-Z of Accounting and Bookkeeping Terms for Small Businesses". Warm regards, The NumberNinjas.ae Team

17th May 2024 Welcome to the NumberNinjas.ae blog! Whether you're a startup, entrepreneur, freelancer, or small business owner in the UAE, understanding accounting and bookkeeping terms is crucial for effectively managing your business finances and ensuring your meet your tax obligations. To help you, we've compiled this A-Z glossary of common accounting, bookkeeping and tax-related terminology, with specific UAE references, to provide you with both understanding and confidence. Let's dive in! A-Z of Accounting and Bookkeeping Terms A Accountant: A qualified person who is responsible for accurately recording a company's financial transactions. Accounting: The process of recording and maintaining accurate records of a company's financial transactions. Accounts Payable (AP): Money owed by a business to its suppliers or creditors for goods and services received. Accounts Receivable (AR): Money owed to a business by its customers for goods or services delivered. Accruals:  Revenues which have been invoiced but payment is yet to be received and costs incurred but not yet paid e.g. a 12-month office lease which is paid quarterly. Accrual accounting: Revenues and expenses are recorded when they occur regardless of whether the associated funds have been exchanged. Audit: The process of inspecting a company's financial accounts by an external, independent organisation. Audits are usually conducted annually. The auditor will provide a set of audited financial accounts for a specified accounting period (usually the financial year) and it is these audited financial accounts that are considered the company's official accounts which may be required to be lodged with various government authorities. B Balance Sheet: A financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity. Bookkeeper: A qualified person who is responsible for the accurate recording a company's financial transactions. Bookkeeping: The process of recording financial transactions and maintaining financial records. C Cash Basis Accounting: Revenues and expenses are recorded when the money involved in a transaction either enters or leaves the account.. Cash Flow: The movement of money in and out of a business, crucial for maintaining liquidity. Chart Of Accounts: A master list of all of a company’s financial transactions, categorized by account-type, e.g. revenues, expenses, liabilities, assets and equity. Closing the books: Exercise carried out by an accountant at the end of a financial period, when all transactions have been recorded and approved.  Accountants usually organize monthly closings and year-end closings. Once a company’s books are closed, they can be used for official financial reports, e.g. external auditing of accounts. Corporate Tax: Tax imposed on business income. The rate for corporate tax in the UAE is 9%. Cost of Goods Sold (COGS): The direct costs attributable to the production of goods sold by a company. D Deductible Tax: Tax that has been paid. Depreciation: The allocation of the cost of a tangible asset over its useful life. Double-Entry Accounting: A system of accounting in which every transaction affects at least two accounts, ensuring the accounting equation (Assets = Liabilities + Equity) remains balanced. Due Tax: Tax that is calculated and imposed. E Equity: The owner's interest in the business, calculated as assets minus liabilities. Excise Tax: A tax imposed on specific goods in the UAE, including tobacco, electronic smoking devices and tools and the liquids used in such items, carbonated drinks (excluding sparkling water), energy drinks and sweetened drinks. The purpose of this tax is to reduce consumption of these goods whilst raising revenues for the government that can be spent on public services. Expense: The cost incurred in the process of generating revenue. F Federal Tax Authority (FTA): The authority responsible for collecting tax on behalf of the UAE government. Financial Statements: Reports that summarize the financial performance and position of a business, including the balance sheet, income statement, and cash flow statement. Financial Year: Following the Gregorian calendar, a 12-month period for which companies prepare their financial statements. For new companies in the UAE, the first financial year must be between six and 18 months.  Therefore, companies established before June in any year and wanting their financial periods to follow the calendar year, need their first financial year to end in December in the year of establishment. Also referred to as Fiscal Year. Fixed Assets: Long-term tangible assets used in the operation of a business, such as machinery, buildings, and equipment. G General Ledger: A complete record of all financial transactions of a business, organized by accounts. Generally Accepted Accounting Standards (GAAP): An accounting method followed by accountants for recording transactions and preparing financial statements to provide a complete overview of a company's financial health. Gross Profit: The difference between revenue and the cost of goods sold. H Historical Cost: The original cost of an asset, as recorded in the accounting records. I Income Statement: A financial statement that shows a company's revenues and expenses over a specific period, resulting in net profit or loss. Input Tax: Tax paid by or due from a person when goods or services are supplied to him, or when conducting an import. Inventory: The goods a business holds for the purpose of resale. J Journal Entry: A record of a financial transaction in the accounting journal. Just-in-Time Accounting (JIT): An inventory management strategy that aligns raw-material orders with production schedules. K Key Performance Indicators (KPIs): Metrics used to evaluate the success of a business in achieving its objectives. Kiting: A form of check fraud that involves writing a check for more than the account balance. L Liabilities: Obligations or debts that a business owes to others. Liquidity: The ability of a business to meet its short-term financial obligations. M Margin: The difference between the selling price of a product and its cost. N Net Income: The total profit of a business after all expenses have been deducted from revenues. Notes Payable: Written promises to pay a certain amount of money at a future date. O Operating Expenses: The costs required to run the day-to-day operations of a business. Output Tax: Tax charged on any supply considered as a taxable supply. Overheads: Costs incurred for a company to operate, but which don’t contribute to the its products and services, e.g. rent, insurance, marketing etc. Owner Equity: The owner's claim on the assets and capital of the business. P Payable Tax: Tax that is due for payment to the Federal Tax Authority (FTA). Payroll: The total amount of wages and salaries paid by a business to its employees. In the UAE, mainland businesses are required to register with and pay their employee's salaries via the country's federal payroll system called the Wages Protection System (WPS). Prepaid Expenses: Payments made in advance for goods or services to be received in the future. Q Quick Ratio: A measure of a company's ability to meet its short-term obligations with its most liquid assets. R Reconciliation: The process of ensuring that two sets of records (usually the balances of two accounts) are in agreement. Recoverable Tax: Amounts that were paid and may be returned by the Federal Tax Authority (FTA) pursuant to the tax laws in the UAE. Retained Earnings: The accumulated net income of a business that has not been distributed to shareholders as dividends. Revenue: The money a business receives for the sales of its goods and services. S Sales Revenue: The income received from selling goods or services. Statement of Cash Flows: A financial statement that shows the cash inflows and outflows of a business over a period. Stocktake: The process of counting all goods that a company is holding for resale and recording the quantities. T Tax Evasion: Illegal means resulting in the reduction of the amount of the due tax, non-payment of tax, or an unfounded tax refund. Tax Group: Two or more companies registered with the Federal Tax Authority (FTA) for tax purposes as a single taxable person. Taxable Income: The portion of income subject to taxation. Tax Registration Number (TRN): A unique number issued to a company by the Federal Tax Authority (FTA) when it applies for VAT registration. A VAT-registered company must include their TRN on any document related to tax, e.g. tax invoices, credit notes and VAT returns. Tax Period: A specific period of time for which the payable tax shall be calculated and paid. Tax Return: Information and accounts data specified for tax purposes which must and filed by all companies registered for tax in the UAE. Corporation tax returns are filed annually, whilst VAT returns are filed quarterly. Trial Balance: A report that lists the balances of all general ledger accounts to ensure that debits equal credits. U Unearned Revenue: Money received by a business for goods or services not yet delivered.Unsecured Loan: A loan that is not backed by collateral. V Variable Costs: Costs that vary directly with the level of production or sales. Value Added Tax (VAT): A tax imposed on the import and supply of goods and services at each stage of production and distribution, including the deemed supply in the UAE. The current rate of VAT in the UAE is 5%. VAT Registration: The procedure for registering with VAT with the Federal Tax Authority (FTA). Companies must register for VAT when the value of their taxable supplies and imports exceed AED375,000 (the mandatory registration threshold) in the previous 12 months or if they anticipate exceeding the amount within the next 30 days. Companies can voluntarily register for VAT in the instance the value of their taxable supplies, imports and expenses during the previous 12 months exceeds the voluntary registration threshold of AED187,500, or they anticipate exceeding the amount within the next 30 days. Vendor: A person or company that supplies goods or services to a business. W Wages Protection System (WPS): The UAE's federal payroll system, requiring all mainland companies registered with the Ministry of Human Resources and Emiratisation to pay their employees through the WPS system. The purpose of WPS is to ensure that mainland workers in the UAE are paid the correct amount, as per their labour contract, and on time. Affected companies which do not comply face penalties which will prevent them from being able to apply for new work permits. Companies exempt from WPS obligations include: Fishing boats and public taxis owned by nationals, banks, houses of worship, seamen and workers of foreign companies or their subsidiaries working in the UAE who receive their salaries outside of the country. For more detailed information about WPS, visit our sister company's blog. Working Capital: The difference between a company's current assets and current liabilities. Write-Off: The reduction of the value of an asset to zero due to it not being collectible or it being worthless. X XBRL (eXtensible Business Reporting Language): A standard for exchanging business information, particularly financial data. Y Yield: The income return on an investment, usually expressed as a percentage. Year-End: The end of a business's financial year, when annual financial statements are prepared. Z Zero-Based Budgeting: A budgeting method where all expenses must be justified for each new period, starting from a "zero base." Zero-Rate Tax: A tax imposed on the supply and import of specific goods and services in the UAE, including a variety of transportation and related goods and services thereof; investment precious metals; first supply of residential buildings, buildings for charities and buildings converted to residential use; crude oil and natural gas; education; preventative and basic healthcare. We hope this A-Z glossary helps you better understand the key accounting and bookkeeping terms essential for managing your small business. Bookmark this page and use this blog post as your go-to reference tool whenever you need to check any accounting terms with easy-to-understand definitions which are specific to the UAE. At NumberNinjas.ae, we're here to support you with all your accounting needs in Abu Dhabi, Al Ain and Dubai. Discover how simple managing your business finances can be with our monthly accounting and bookkeeping services. Explore our next blog post, "UAE Small Business Accounting: Legal Requirements Explained". Online now! Subscribe to our blog for more informative and useful content in a style which is easy for everyone to understand, even non-finance managers! If you have any questions or comments related to this blog post, feel free to post in the comments and start a conversation. Spam comments will be deleted. The NumberNinjas.ae Team

22nd May 2024 Welcome back to the NumberNinjas.ae blog! Today, we're going to help small business owners in the UAE to by explaining your accounting and financial filing obligations. Interpreting the various laws and implementing the necessary measures to ensure accuracy and compliance can be challenging and time consuming, especially for non-accountants, so we're highlighting the keys points, in an easy-to-understand manner to help you. Awareness and understanding will encourage you to take the necessary actions to avoid financial penalties and ensure your company is compliant and in good standing with a good credit rating. In this blog post we'll cover: UAE Small Business Accounting: Legal Requirements Explained 1. Maintaining Accurate and Up-To-Date Records 2. Payroll and Employee Records 3. Value Added Tax (VAT) Compliance 4. Corporate Tax Compliance 5. Audit Requirements 6. Excise Tax Compliance 7. Anticipated Tax Relief for R&D 8. Conclusion 1. Maintaining Accurate and Up-To-Date Financial Records Every mainland company in the UAE (i.e. companies which are not licensed by and located in a free zone), are required to adhere to the Federal Decree Law No. (32) of 2021 on Commercial Companies which outlines the minimum obligations in relation to accounting records. Every UAE mainland company must: Keep up-to-date financial records. Keep financial reports for five years from the end of the financial year. Appoint a UAE-licensed auditor to carry out an audit of the accounts, annually. Prepare financial accounts including a balance sheet and profit and loss statement. Prepare accounts in line with International Accounting Standards. Provide a free copy of the latest audited accounts to any shareholder, upon written request, within 10 days. Companies’ financial accounts are required to record payments, receipts, purchases, sales, profits and expenses; and maintain: Balance sheets Profit and Loss (P&L) statements Fixed assets records Inventory statements and records of stock takes Records of salary payments Tax returns Do UAE Free Zone Companies Have to Keep Financial Accounts? Historically, only a few of the UAE’s free zones required companies licensed in their jurisdiction to file their annual accounts, although companies were always encouraged to maintain records for good financial practice. Now, with the implementation of corporation tax in the UAE, free zone authorities are driven to insist upon their licensed companies maintaining and filing their financial accounts at the time of their license renewal. Although we've explained the UAE accounting requirements, maintaining accurate financial records is the foundation of a successful business, but it can be a daunting task, especially for those without an accounting background. For additional help, explore our previous blog post: A-Z of Accounting and Bookkeeping for Small Businesses in the UAE. At NumberNinjas.ae, we understand the importance of meticulous bookkeeping and offer comprehensive Accounting and Bookkeeping Services to take this burden off your shoulders. Our team of experienced accountants will ensure that your financial records are up-to-date, organized, and compliant with the latest regulations. From invoicing and expense tracking to bank reconciliations and financial reporting, we've got you covered. Outsource your accounting needs to us and focus on what you do best – growing your business. Discover our Accounting and Bookkeeping Services and let us handle the numbers while you handle your passion. 2. Payrol and Employee Benefits WPS Compliance: UAE mainland companies registered with the Ministry of Human Resources and Emiratisation (MOHRE) are required to pay employees through via the federal payroll system called the Wage Protection System (WPS). For companies to be WPS-compliant you need to: Register with your bank for the processing of WPS Create a Salary Information File (SIF) every month for each employee, detailing various information, including your employees’ UID numbers from MOHRE, the number of days worked, salary amount being paid, employee bank account details etc. (SIF templates vary by bank and the amount of information collected varies accordingly.) Upload the SIF to the bank on time to avoid penalties in the form of blocks preventing you from applying for new work permits. The SIF file is processed via MOHRE and will be automatically rejected if it doesn’t meet the requirements. However, upon approval, the funds will be debited from the company account and electronically transferred to each employees’ personal account. WPS Exemptions: Companies exempt from WPS obligations include: fishing boats and public taxis owned by nationals, banks, houses of worship, seamen and workers of foreign companies or their subsidiaries working in the UAE who receive their salaries outside of the country. Employee Benefits: Maintaining accurate records of employee-related entitlements and expenses is essential, including leave entitlement, sick leave and pay, and End Of Service Benefit (EOSB) also referred to locally as gratuity. Upon completion of one year's service, employees start to accrue gratuity at a rate of 21 days per year for the first five years of service and 30 days per year thereafter. Pension Contributions for Emirati Employees: When employing Emirati nationals, companies need to adhere to additional requirements relating to their pension, as follows: Your company is required to register with the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) 5% of an Emirati’s monthly salary must be deducted when processing the payroll and diverted to the ADRPBF. You are required to contribute an additional amount to the ADRPBF on the employee’s behalf, equivalent to 15% of their monthly salary. Remove the burden of setting up your SIF file ready for processing your first payrol and streamline your payroll and employee benefits management with NumberNinjas.ae! Our expert payrol setup and outsourced payrol services ensure accuracy and compliance, freeing you to focus on growing your business. Plus, as you business grows and you start to employ Emirati nationals, we will handle your Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) registration, ensuring your employees' futures are secure and your company remains compliant. Scan the QR code to contact Raja Wajahat, Co-Founder and Finance Master of NumberNinjas.ae to simplify your payroll processes and enhance your employee benefits management. 3. Value Added Tax (VAT) Compliance It is mandatory for companies to register for VAT with the Federal Tax Authority (FTA) when their annual turnover exceeds AED375,000. Companies may opt to voluntarily apply for VAT when their annual turnover reaches AED187,500. As per Federal Decree-Law No. (8) of 2017 on Value Added Tax, key VAT compliance requirements are as follows: Tax Registration Number (TRN): Ensure your TRN is mentioned on any tax-related documents, e.g. tax invoices and VAT returns. VAT Invoicing: Tax invoices must be issued for all taxable supplies, within 14 days of the supply. A compliant tax invoice must include the following information: “Tax Invoice”, name, address and TRN of both the supplier and recipient (TRN is only necessary for the recipient if they are VAT-registered), unique, sequential tax invoice number, date of issuance, date of supply if different from date of issuance, description of goods and services, unit price, quantity/volume of supply, payable VAT rate, payable amount (in AED), any discount, total amount payable in AED, amount of tax payable in AED, and the exchange rate (if applicable). Record Keeping: Companies are required to keep records of all taxable supplies, tax invoices, tax credit notes, taxable supplies that have been disposed of or not used for business matters, taxable supplies for which input tax was not deducted, exported taxable supplies and adjustments and corrections to tax invoices. Additionally, it is required to maintain VAT records showing output tax, output tax on taxable supplies accounted for via the reverse charge mechanism, output tax after corrections or adjustments, input tax and input tax after corrections or adjustments. These records are required to be retained for a minimum of five years following the end of the tax period. In relation to real estate, records must be retained for a minimum of 15 years. Advertised Prices: All prices for taxable supplies must include VAT at the prevailing rate, currently 5%, unless they are for export or in the instance the customer is VAT registered themselves. UAE VAT Return Filing: The FTA allocates tax periods to new registrants. These are usually quarterly. Companies are required to file their VAT returns and make any VAT payments within 28 days of the end of each tax period, or on the next working day if the 28th day falls on a weekend or public holiday. VAT returns must include the following details for the relevant tax period: value standard tax rate supplies and the imposed output tax, per Emirate, tax refunds provided to tourists under the Tax Refunds for Tourists Scheme, value of zero-rated supplies, value of VAT-exempt supplies, value of supplies received which are subject to the reverse charge mechanism, imported goods, value of purchases and expenses incurred if you are seeking to claim the input tax, and the refundable tax value, and any supplies subject to the reverse charge mechanism in order to recover input tax. Notification of any company changes: Inform the FTA of any amendments of information within 20 business days of the occurrence. Navigating VAT registration and filing can be complex and time-consuming, but it doesn't have to be. At NumberNinjas.ae, we offer a comprehensive VAT registration and filing service, as well as a variety of support services designed to give you peace of mind. Our experienced professionals ensure that your VAT obligations are handled accurately and timely, so you can focus on growing your business. Don't let VAT compliance stress you out—outsource it to us and rest easy knowing you're in expert hands. Learn more about our VAT Registration and Filing Services. 4. UAE Corporate Tax Compliance It is mandatory for all companies in the UAE to register for corporation tax. Upon successful registration, the FTA will issue registrants with a Certificate of Registration for Corporate Tax in the United Arab Emirates, which contains the registrant’s unique Tax Registration Number (TRN). UAE Corporate Tax Registration Deadlines: In February this year, the FTA issued new deadlines for corporate tax registration, which are based upon the month in which your trade license was issued. Check the table below to find out when your company needs to be registered by: Companies incorporated after 1st March 2024, are required to register within three months of the date of issuance of their trade license, unless they are recognized under the legislation of another country and controlled in the UAE, in which case, the company is required to register within three months following the end of its financial year. Failure to register on time will incur a fine of AED10,000. Do Free Zone Companies Need To Register for Corporate Tax in the UAE? Free Zone Companies (FZCOs and FZEs) are required to register for corporate tax and to file an annual tax return; however, provided you are complying with free zone regulations, i.e. conducting your business within the free zone or overseas, and not conducting business with UAE mainland companies, and can demonstrate adequate substance in the free zone relative to the nature and level of your activities and qualifying income, you will be exempt from corporation tax under the Free Zone Corporate Tax Regime. Any free zone companies which are conducting business with UAE mainland companies or are generating revenues from excluded activities, e.g. income from certain regulated financial services, intangible assets and immovable property, are excluded from the Free Zone Corporate Tax Regime. However, a de minimis allowance has been implemented for non-qualifying income, which must not exceed 5% of your total revenue or AED5 million, whichever is lower. In the instance the free zone company exceeds the de minimis allowance, you will not be able to benefit from the Free Zone Corporate Tax Regime for a minimum period of five years. During that time, you will be subject to corporate tax at the prevailing rate (currently 9%) on your taxable income over AED375,000. As per as per Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, the key corporate tax compliance requirements are: Corporate Tax Rate: For most companies in the UAE, the corporate tax rate is 0% on taxable income up to AED375,000, and 9% on taxable income of AED375,000 and above. For foreign banks in the UAE, the corporate tax rate is 20%, and for oil and gas companies the rate is as per their specific concession agreements. In relation to Global Minimum Tax (GMT), Pillar Two of the OECD Global Anti-Base Erosion Rules  (GloBE Rules) targets Multinationals Enterprises (MNEs) with annual revenues of AED3 billion to pay a minimum of 15% tax in respect of excess profits in each jurisdiction in which they operate. In March 2024, the UAE Ministry of Finance launched a digital public consultation on the implementation of GMT with relevant stakeholders. Therefore, large MNEs can expect the rate of tax applicable to their operations in the UAE to increase at some point within the next couple of years. Taxable Income Exemptions: The following income is exempt from UAE Corporate Tax: dividends from UAE licensed companies, dividends from ownership in a foreign juridical person, certain income from a domestic shareholding, e.g. capital gains, foreign exchange gains / losses and impairment gains or losses, income from a foreign branch subject to claiming Foreign Permanent Establishment exemption, and income earned by non-residents from the operation or leasing of aircrafts or ships in international transportation where certain conditions are met. Corporate Tax Exemptions: The following types of companies are exempt from UAE Corporate Tax: UAE federal and Emirate-level government departments and authorities, companies wholly owned by a government entity carrying out mandated activities, qualifying companies mining UAE natural resources and qualifying public benefit entities. The following types of companies can apply to the FTA for exemption: qualifying investment funds, qualified public or private pension or social security funds, and UAE companies wholly-owned and controlled by certain exempted entities and undertaking certain activities. UAE Corporate Tax Period: 12 months mirroring the company’s financial year. UAE Corporate Tax Returns: UAE companies will be required to file a corporate tax return and pay the tax due within the 9 months following the end of the tax period. Navigating the complexities of corporate tax can be overwhelming, but with NumberNinjas.ae, you don't have to go it alone. We offer specialized Corporation Tax Registration and Filing Services to ensure your business stays compliant with UAE tax regulations. Our team of seasoned professionals will handle everything from registering your business for corporate tax to accurately preparing and filing your tax returns. By outsourcing your corporate tax needs to us, you can rest assured that your tax obligations are met accurately and on time, allowing you to focus on driving your business forward. Explore our Corporation Tax Registration and Filing Services and let us take the stress out of UAE tax compliance. 5. Audit Requirements All mainland companies are required to have their financial accounts audited. Some free zones require their licensed companies to submit audited accounts whilst others accept un-audited accounts. Free zones operate under their own individual regulations; therefore, free zone companies must check the financial reporting requirements related to their specific free zone to ensure compliance. 6. Excise Tax Compliance This is only applicable to companies producing, importing or stockpiling excise goods in the UAE. Such goods include tabacco and tobacco-related products and carbonated, sweetened and energy drinks.  As these regulations apply to a limited number of companies, we aren’t including the specific obligations for companies within this blog.  However, if you believe that your companies needs to register for excise tax, you are welcome to contact us for clarification. Scan the QR code at the bottom of this blog post to contact Raja Wajahat, the co-founder and Finance Master of NumberNinjas.ae who will be happy to assist you. 7. Anticipated Tax Relief for Research & Development As part of the UAE’s long term goals to develop the country into a Research and Development (R&D) hub for future economic sectors, it is likely there may be tax relief for qualifying R&D companies. In April 2024, the UAE Ministry of Finance launched a digital public consultation on potential implementation of a R&D tax incentive. 8. Conclusion Staying compliant with the UAE's accounting and legal requirements is essential for the smooth operation and growth of your small business. At NumberNinjas.ae, we're here to help you navigate these obligations with ease. Our expert team can assist you with bookkeeping, VAT compliance, corporate tax, and more, ensuring your business remains on the right track. If you have any questions or need assistance, don't hesitate to contact us. Stay tuned for more insightful content to help your business thrive in Abu Dhabi, Al Ain and Dubai! Subscribe to our blog for more informative and useful content in a style which is easy for everyone to understand, even non-finance managers! If you have any questions or comments related to this blog post, feel free to post in the comments and start a conversation. Spam comments will be deleted. The NumberNinjas.ae Team

UAE VAT Registration And Filing Navigating VAT registration and filing requirements in the UAE can be daunting. Getting it right is essential to avoid financial penalties and increased scrutiny from the Financial Tax Authority (FTA). ​ At Number Ninjas, we simplify the VAT registration process, ensuring timely registration and issuance of your Tax Registration Number (TRN), enabling you to issue tax invoices and recover eligible input tax. Our experienced accountants, proficient in UAE VAT legislation, can also manage your quarterly VAT returns, accurately calculating VAT due and ensuring your business remains compliant, giving you peace of mind. The Importance of VAT Compliance ☑️ Prevents financial penalties. ☑️ Guarantees precise financial reporting. ☑️ Boosts the credibility of your business. Allow NumberNinjas.ae to manage the complexities of staying compliant with VAT regulations for the financial well-being of your business so you can concentrate on growing your business. UAE VAT Services UAE VAT Registration 3,000 AED One-Time Fee We manage the entire registration process, ensuring timely and accurate submission. Get Started We will arrange and submit your VAT registration, whether you are applying for voluntary or mandatory VAT registration. We will liaise with you to ensure your VAT registration is actioned at the correct time, avoiding any fines. We will obtain your Tax Registration Number (TRN). We will supply a copy of your VAT Registration certificate. Peace of mind your registration is taken care of by experienced professionals. UAE VAT Filing Service 1,500 AED Quarterly We calculate and file your VAT returns in line with the latest regulations. Get Started We will calculate your input tax and output tax, as well as any reverse charge mechanism amounts and adjustments to generate your tax due amount. ​ We split your VAT transaction values by Emirate, as required by law. ​ We will file your tax return with the Federal Tax Authority, on time, every quarter. Pay only for what you need: Our quarterly VAT filing saves you from monthly charges. UAE VAT Health Check 5,000 AED One-Time Fee. Recommended annually. Optimize VAT transactions through review, error identification, and recommendations. Get Started We will conduct a thorough examination of your VAT records and transactions to identify any discrepancies, errors, or areas of non-compliance. We will provide expert advice on how to optimize your VAT processes, including potential savings and efficiency improvements. We will report on the health of your company's VAT compliance, assuring you that your business meets all current VAT regulations, reducing the risk of penalties and enhancing financial accuracy. An extra set of expert eyes ensures accuracy and compliance.

Meet Raja Wajahat: Your Trusted Partner in Financial Management At Number Ninjas, we understand that the backbone of every successful business is its financial clarity and management. That's why we are proud to introduce Raja Wajahat, a co-founder and the financial mastermind behind our operations. Renowned for meticulous accounting and bookkeeping, Raja was initially recruited by the co-founders of Number Ninjas due to his expertise. His proven track record and the trust he earned led to a partnership. Raja's journey in finance is marked by a steadfast commitment to integrity, precision, and the pursuit of knowledge. My Story Professional Excellence and Expertise Raja brings a wealth of expertise to Number Ninjas, with skills that span across bookkeeping, financial reporting, VAT and Corporation Tax registration and filing, and much more. His proficiency in GAAP, job costing, and budgeting ensures that your financial operations are handled with the utmost accuracy. Raja's approach is results-oriented, focused on delivering clear and actionable financial insights that drive business growth and enhance revenue. Academic and Professional Credentials Raja's academic background is as impressive as his professional achievements. He holds a Master of Commerce (M. Com) and a Bachelor of Commerce (B. Com), along with certifications as an Accredited Compliance Officer (ACO) and a Diploma in Information Technology. Currently, he is pursuing a Certified Management Accountant (CMA) qualification, which reflects his relentless pursuit of excellence and his commitment to staying at the forefront of the accounting field. Multicultural and Multilingual Abilities Having worked in Dubai since 2019, Raja is a seasoned professional who understands the nuances of the region's financial landscape. His linguistic abilities include fluent English, native Urdu and Hindi, and conversational Arabic and Persian, enabling him to serve a diverse clientele and navigate various cultural contexts with ease. A Personal Touch Beyond the numbers, Raja is a family man, deeply devoted to his young family. His passion for cricket and continuous learning speaks volumes about his character—dynamic, focused, and ever-evolving. Raja's personal interests, like his professional endeavors, are pursued with enthusiasm and dedication. Why Trust Raja with Your Accounting Needs? Choosing Raja as your accounting expert means entrusting your business's financial needs to someone who not only excels in his field but also values integrity and transparency. His track record of simplifying complex financial data into understandable reports means that you, too, can make informed decisions that propel your business forward.At Number Ninjas, Raja Wajahat isn’t just a co-founder; he’s a pivotal part of why our clients can focus on what they do best—running their businesses. With Raja and Number Ninjas, your finances are in capable hands, letting you turn your attention to growth and innovation.

Accounting Solutions to Empower Your Financial Growth Explore our comprehensive suite of accounting and bookkeeping packages, designed to streamline your financial management at any stage of your business. At Number Ninjas, we boast meticulous expense and sales tracking, along with timely management of accounts receivable and payable. We ensure that your monthly profit and loss statements and balance sheets are prepared with precision and delivered on time, helping you understand your financial health at a glance. Getting Started with Number Ninjas Welcome to outsourced accounting and bookkeeping services with Number Ninjas! Our straightforward process is designed to streamline your accounting, allowing you to focus more on running your business and less on managing your books. To quickly set up and start benefiting from our expert services, follow these steps: S elect the right package for your needs, easily set up automated monthly credit card payments, upload your company documents, and begin submitting your monthly transactions. We'll handle your accounting and deliver your P&L statement and balance sheet each month after closing your books. See how simple managing your finances can be. Choose Your Monthly Accounting Price Plan Launchpad 5,000 AED Every month + AED2,5000 Chart of Accounts Setup (one off fee) Ideal for freelancers, early-stage and micro businesses with a few monthly transactions. 12-month plan. Get Started Expense Register ​ Sales Register ​ Bank Statement Reconciliation ​ Accounts Receivable ​ Accounts Payable ​ Fixed Assets and Depreciation ​ Monthly/Yearly Closing Procedures ​ Profit & Loss Statement Preparation ​ Balance Sheet Preparation ​ Up To 50 Transactions Per Month Growth 7,000 AED Every month + AED2,5000 Chart of Accounts Setup (one off fee) Perfect for growing businesses needing to manage moderate transaction volumes. 12-month plan. Get Started Everything in the Launchpad plan with a higher volume of transactions. ​ Up To 100 Transactions Per Month Expansion 9,000 AED Every month Perfect for larger businesses with higher monthly transaction volumes. 12-month plan. Get Started Everything in the Growth Plan with a higher volume of tranactions. ​ Up To 250 Transactions Per Month ​ Complimentary Chart of Accounts Setup Automatic renewal unless cancelled in line with our Terms and Conditions. Enterprise Custom services tailored to the needs of companies with large transaction volumes and/or with accounting needs relevant to your specific type of business. ​ Call us to discuss your specific requirements so that we can arrange a quotation personalized to your company's unique needs. Call Now Elevate Your Financial Well-being Choose Number Ninjas as your trusted accounting partner and enjoy a multitude of benefits specifically tailored to empower freelancers, entrepreneurs, and small businesses like yours. Enhanced Financial Accuracy Gain total peace of mind with our precise financial reporting. Read More Scalable Solutions Enjoy the flexibility to expand your accounting and bookkeeping needs as your business grows, paying only for the services you use. Read More Cost Savings Identification Discover opportunities to reduce costs and optimize your spending. Read More Expert Guidance Gain financial guidance from our experienced accountants, helping you avoid costly and uninformed decisions. Read More Informed Decision-Making Make better business decisions based on a clear understanding of your actual financial status—crucial for growth. Read More Cost-Effective Professional Services Access essential accounting services without the expense and hassle of hiring an in-house accountant or purchasing costly software. Read More Timely Compliance Ensure your monthly and year-end closings are consistently on time, helping you meet regulatory deadlines without stress. Read More Cash Flow Management Maintain effective control over your cash flow, ensuring you have funds when and where you need them. Read More Focus on Your Business Free up your time to concentrate on scaling your business and nurturing your client relationships by outsourcing your accounting functions. Read More Strategic Financial Planning Leverage our expertise to develop strategic financial plans that optimize tax advantages and enhance profitability, positioning your business for long-term success. Read More Certifications, Qualifications and Experience Raja Wajahat, Number Ninjas' Founder and Finance Master With a proven track record for optimizing accounting systems to reduce costs and enhance growth, Raja also has a flair for identifying discrepancies, saving hundreds of thousands of Dirhams. About Me Which Accounting Software is Best? Number Ninjas' team of accountants excels in a wide range of accounting software packages, including Zoho, Xero, E-Freight, Tally, Emerson, QuickBooks, Sage 50, Centra, and Focus, among others. This expertise ensures a seamless transition of your accounting services, regardless of the software your company currently uses. For startups and businesses still selecting their accounting software, Number Ninjas does more than just bookkeeping. We provide personalized insights and recommendations tailored to your specific business needs. Our goal is to help you choose the software that best fits your requirements, transforming complex data into clear, actionable reports that empower you to make informed decisions. Partner with Number Ninjas and gain a skilled, flexible, and understanding accounting ally. Our team is committed to ensuring your accounting functions are precise, compliant, and perfectly aligned with your business objectives, whether you're just starting out or are well-established. Call Now Testimonials What our clients are saying " As a long-time client of NumberNinjas.ae, I cannot recommend their services highly enough. The team’s expertise and precision in handling our accounts have been nothing short of exceptional. Every financial challenge or question that arises is met with comprehensive solutions that not only meet but often exceed our expectations. ​ Numberninjas.ae commitment to staying ahead of industry trends and tailoring their services to better serve their clients’ needs is second to none. Their proactive approach and dedication have played a pivotal role in our financial management strategy, ensuring our company’s financial health and compliance. If you’re looking for reliable, expert, and forward-thinking accountants, NumberNinjas.ae is the team you want by your side. ​ In addition to the statement above, I particularly appreciate the personal touch provided and never feel like just another client. " ​ Nicholas Flashman Deeside Maritime FZCO