Ensure Digital Signature Lawfulness for Business Transaction Management in UAE

How to eSign a document: digital signature lawfulness for Business Transaction Management in UAE

well hello everybody thank you in for joining uh we have Mr officers joining with us we're really excited to host this webinar for you um I hope all of you are aware that this webinar will be hosted in Malayalam by our partner uh who will be shortly joining us hi hi good afternoon called thank you all for joining the session yeah so uh we have our partner Mr upsell from Alchemist accounting who has over 11 years of global and GCC experience in Finance Tax advisory audit and consultation uh they've been providing services to hundreds of clients in UAE and Middle East other countries of Middle East his expertise in providing practical Solutions complying with legal Provisions help businesses to operate efficiently in the region so a very warm welcome to you Mr Absa thank you um so we he'll be taking uh the webinar forward from yes uh Mr uh we will be we will be starting now I think there's a little technical Village and Mr Absol is will be joining us again webinar will be in Malayalam but the slides will be in English Mr jitu uh as you all are all aware that during the webinar um whatever doubts and questions you have uh you can keep them till the end because we will be having a live q a session with Mr of um you know with him and yeah Mr afzal will be happy to answer all your questions during the Q a so you have the questions uh section where you can post all your questions during the Q a session there's a tab call questions which will be visible to you as an audience where you can post your questions yeah so uh two minutes and we'll start the session uh thank you so much for joining in yes uh sorry for this you know some technical inconvenience yeah now it is working the camera is working now okay awesome so I had given you a brief introduction and a very very warm welcome to you um please take this uh webinar forward from here and I've also informed everybody that uh there will be a live q a session after the webinar is over so keep uh please keep all your questions ready and Mr will also will be happy to answer yeah sure thank you thank you so thank you all uh very good afternoon thank you all for attending this session from first to June 2023. um are there foreign there were a lot of representations made after that then in uh ninth or ninth December 22 after almost eight months uh Federal degree law number 47 published so uh as per the law We performed from June 1st 2023 tax law is going to be effective in UAE foreign by the first June 2023 effective data so foreign Financial year tax due date tax due date as per the tax law nine months after the tax period of tax due date a tax due date in order uh tax return to December follow a financial Year Jan to 31st December 2024 tax nine months after the end of the tax period due date is tax slow application so the resident in the rainbow other natural person of um a person which is not a natural person but having a legal existence for example a company uh you will establish a little company it can be Mainland company or a free zone company okay is taxed rather income uh derivatives company other taxable and Global income is tax foreign foreign should be related to the business conducted in UAE then uh you know major difference foreign cabinet foreign okay so it would I don't determ what are the important permanent establishment otherwise foreign uh like a Brands Factory Workshop land I'm gonna do inclusive list uh tax law uh we know uh explains in London uh whatever uh you know uh list of examples foreign uh investor manager uh investment manager under activities uh text over another again certain conditions are not you know uh uh match then we can record it as a permanent establishment so we're gonna come any state source to income and then another level uh numbers permanent establishment so State Source income uh you know uh Tax store defense uh derives the income derives from a resident person a non-resident person or a resident person income from activities you know happened and the assets located uh you know rights uh used or services rendered in the state above elaborative activities of service in the state income received from a restaurant person you know towards interest you know in relation to an asset located uh in the UAE I'm gonna do a detailed a list of examples uh tax law provided you know uh State social income experience tax law corporate tax rate uh explains ebooks foreign tax rate okay but there is always a threshold another tax slower defense Communications FAQs public consultation documents 375 000 AED 37500 taxable income and taxable profits taxable income means taxable profit zero percentage then nine percentage applicable will be uh on the balance 25 000. 400 000 taxable income corporate taxes I hope it is clear any free zone personator uh tax law for another zero percentage on qualifying income and nine percentage on other income so you would again uh qualifying income or do free zones we need to wait for the cabinet decision so uh you know um uh zero percentage we need to see the transaction and see whether it is qualifying or not so qualifications separated provisions so tax law uh you see the term qualifying free zone personally zero percentage corporate tax benefit for a free zone person qualifying Freedom personality tax law foreign income conditions uh you know uh if you want to call a free zone as a qualifying freezer substance as a member of oecd inclusive framework UAE ESR regulations economic substance regulations okay so there are listed activities in the ESR regulations context foreign for getting a more detailed understanding of what is a qualifying income for a qualifying free zone person so Random with the condition qualifying income condition not elected to be subject to corporate tax am I going to freeze on person in normal personality taxable income computers either corporate tax nine percentage certain conditions are not bad match then you know they can opt for that so you know free zone you know taxable income calculated uh tax nine percentage transfer pricing regulations especially for free zone person uh public consultation documents foreign 10 dollar transfer pricing complaints for a free zone person example we do a free zone company Mainland Branch International Freedom personal uh some of this is corporate taxes benefits the Freedom Company about transfer facing regulations same you know service or same for the same transaction related to the party is a consistent diet economy the related party ideas so here to uh you know uh your purpose transfer pricing regulations any other conditions as per the ministry about extreme conditions accumulative conditions foreign benefit is number two um okay assumptions from corporate action so a corporate tax acceptance by default automatic title exception foreign which is much higher than the corporate tax rate of nine percentage uh you know especially they had to request to The Authority for such exception and that exemption need to be granted by the federal tax Authority so I'm gonna wait them okay uh you know uh category of persons qualifying public benefit entities second qualifying investment fund third pension or Social Security fund then the fourth one a juretical person Incorporated in the state fully owned and controlled by any of the three category of persons uh the last one any other persons determined by the cabinet decision so ethereum category of persons in the case they can get this exemption provided they you know applied for it and you know get the approval from the authority any uh corporate tax uh computation so corporate tax computational cases under the taxable income computers okay then we need to apply nine percentage to the taxable income to arrive at B corporate tax so uh tax slope number uh corporate tax in the case of taxable income computers accounting income as per the financial reports or financial statements prepared in ance with the accepted Accounting Standards IFRS so IFRS the financial statement accounting income uh so we had to do certain adjustment to the accounting income then we will arrive at the taxable income taxable uh you know beyond the threshold limit of 375 000 nine percentages so we need to apply nine percentage on it withhold tax credit second one foreign tax credit for example you know for the same income uh Euro taxable person foreign countries you know upon certain conditions you know they can Avail this credit so we can get a credit actually offer uh foreign tax then any other credit or relief to be specified in a decision by the cabinet so ethane uh deduction uh you know uh corporate tax payable the model uh CM then we will get the net the corporate tax payable welcome um second release third one deductions fourth tax loss relief then unrealized gain or losses transfer pricing adjustments incentives or special release for qualifying business activities any other uh you know any income or expenditure not otherwise be considered in determining taxable income as per the decision by the cabinet so ethereum adjustments we need to do on the accounting income to arrive at the taxable income incomes tax law uh certain incomes accept income classified e incomes taxable income uh dividend received from a UAE entity accepted second dividend received from F4 in entity second part of the different receipt from a foreign capital gain and any other incomes okay from an NDT which is which can be a UE entity or a foreign entity foreign so today uh dividend the receipt from a foreign foreign exception condition ownership interest should be at least five percentage at least five percent is you know ownership and diagonal second how to Investments at the time of claiming such exceptions uh even the investment you know you have an intention to hold it for 12 months at the time when you are filing the tax return again how do uh income for example you know a dividend income from a foreign entity okay tax rate you know the participation uh interest is nine percentage or more even you know if you are getting a dividend from a foreign country a foreign entity the dividend is accepted provider our investing company participation in uh you know interesting how to invest or similar you know the corporate tax or similar taxes on the level at least nine percentages then all the other conditions of a participation I know exemption are fulfilled but at the same time that country is not having a corporate tax any uh fourth one not more than 50 percent of the industries you know assets okay are not qualified for participation extension if it is directly held by the actual person uh last one any other conditions to be specified by the cabin decision so ethering conditions income foreign cannot be detected okay okay uh uh for the customers shareholders supplies or other business partners employees included so uh you know stakeholders kind of expenditure entertainment related you know we may have to add back that to the accounting profit fifty percentage of such expenditure is not allowed net interest expenditure okay nothing this expenditure means interest expenditure minus interest you know received or interest income foreign is allowed for the current tax period the balance amount of such interest expenditure we can carry forward for the subsequent 10 tax periods foreign tax 75 percentage of the current periods taxable in Ghana okay you know for Infinity period uh carry forwards yeah but at the same time for the current tax periods you know that uh you know the tax laws Etc in the taxes here foreign the answer is no e cases 75 percentage of the current taxable income 70 000 area balance loss again Infinity period like uh carry forward number two uh otherwise another tax law tax laws uh changes in such ownership um our entity during this period the same along a similar right in the active distance activities uh foreign corporate tax as well uh you know the conditions you know for forming a tax group is entirely different uh you know resident person company to form a Tax Group with one or it's you know more uh subsidiaries so the parent company you know parents subscribe relationship okay then second thing parent company should own at least 95 percentage of shareholdings voting rights or profits and necesses in the subsidiary importance again uh second one uh 95 percentage of the you know shareholders available Allah the last one group entities should follow the same Financial year and the same accounting standards so ethereum conditions okay tax law uh you know a Tax Group a corporate tax law Tax Group in the uh uh foreign statement preparation member company you know remember company Tax Group and the executable approach uh you know tax law uh explains in the Tax Group related provisions thank you any uh tax grouping in the case 375 foreign corporate tax es Company accounting uh Records maintains your importance Financial reports in ance with the IFRS preparation okay uh Records taxable person five years other corporate tax in the case of Wittenberg are the seven years on okay code are the transfer pricing related regulations documentation okay foreign foreign [Music] uh related party transactions uh you know transfer pricing uh applicability uh ifo existing accounting transactions review that other related party transitions certain category of persons Financial accounts you know uh foreign filing the return without any delay or without you know making any uh violations in that uh you know paying the uh you know corporate tax to Authority timely uh complexity uh thanks a lot for the in for a lot of insight on the corporate tax and um taking us through the entire presentation you can please not this email and uh you can share your questions your queries can be definitely mailed to Mr Officer you can always reach out to him for more such queries we also have a support team at Zoho books who will be happy to help you and assist you with uh any of your Cloud accounting or any such query uh with this we will come to end of the session thanks a lot everybody for joining in the session uh and especially Mr absal thanks a lot for giving us such an insightful session on corporate tax um for any further queries you can reach out to Zoho books a customer support or researcher and um we will be sending everybody a recorded session and for everybody who's voted for a personalized demo we will definitely reach out to them for for the one-on-one demo um we have in chats everybody thanking you for the session thank you all thank you all you know for your cooperation and patience I should say because corporate tax of course it's not you cannot make it that interesting it's a you know something uh very uh kind of a subject so thank you all for your participation yeah thanks a lot everybody I'll be uh ending this session with uh here right now so have have a great day ahead thank you