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How to eSign a document: eSignature legality for Accounting and Tax in UAE

foreign [Music] and welcome to my YouTube channel if you already subscribed to this YouTube channel you know that we talk about fintech financial educational investment lifestyle and in general how to be the top one percent in the world if you're not yet subscribed to this YouTube Channel show me your super smash the button right now I guarantee you it's worth it and I try to deliver every day a lot of free content so please show me your support in this video of today I want to talk about the UI tax and but there is a huge confusion about what and where you should report what and since when so I try to make everything very very simple so uh first of all we should completely separate the vit and the corporate tax are two different tax and first of all we should totally consider them as two different process so there will be some uh specific requirement for the vat some other specific requirement for the corporate tax so first of all who has to register for the vat the value added tax now every company who it's very simple so there is no possibility to make any type of mistake so any company who is registered in mainland or in a free zone providing service to the Hawaii with of 375 000 ahead more or less hundred thousand dollars of taxable income should register for the vat now the process is pretty much simple you can apply for your butt number in website of federal tax Authority I will show the link in the description of this video and as well I will put a link to my company asteroid where you can text them by the way if you tell that you are one of my follower and that you subscribe to my YouTube channel you can have a 200 discount on vat report so I'll just write the details in in this video so coming back to what I was talking about you can register yourself or you can appoint any company who is entered to register your company for what and asterisk is one of those company so the process is basically very simple every month you should keep a bookkeeping as well you can keep your bookkeeping in any bookkeeping software even in Excel if your transaction or not so so much it doesn't really matter important that you have the details about all the transaction in and out of your company so uh every month you should declare how much you receive and how much you spend and how much is the vat on your invoicing and how much is the vat you pay on invoice out so that after the end of the quarter you can compensate the vat what you receive and the vat what you have to pay and you can file in your return and it will be clear if you have to pay some but or if you have to receive any Factor credit so it's pretty much quite standard quite clear now let's talk now about the corporate tax so first of all it's a really new tax it was introduced at the beginning of this year and it will be only effective from the 1st June 2023 so basically in um a couple of weeks now let's try to understand what the corporate tax is so basically the corporate tax is a tax on the profit so as in all other country you have money in and money out and what is left on the account is just your profit I try to simplify of course I know that some of you now will start to say okay something I can deduct I'm trying to do very very simple so without complicating with all the options you have just image you sell your service for 10 your costs are six so four is your net profit on that profit you should pay nine percent now who has to pay this nine percent first of all if you are a Mainland company then you are registered as Mainland company in the UI then 100 you should pay the nine percent on your profit now how to calculate since when you should uh you should report and you should pay your corporation tax so the the day of the first June is the board line so every every company have a license and typically your license have an issue date and expired date now for all the license that will be issued after the first June 2023 then their accounting here will be considered starting in a period when the taxation is effective what does it mean that the first accounting here you should pay corporation tax on is any accounting here starting from 1st June 20 23. now this is only for the mainland company but you should consider that you should as well register for corporation tax and for what so the process are different one is register for corporate tax so you have an account where you can log in every day well at the end of the year or any anytime you want to check your position and you can submit data so there are two process one is the creation of the account to submit your corporate tax and the creation of account to submit your Bot so these are two process what you do only once other processes are reporting so submission of your tax return a submission of your vat return so this submission of your corporate tax you have to do every year submission of vat you should do every quarter now in order to know which day is relevant for your specific business I really recommend to visit a professional firm to not try to do all yourself or as I told before the beginning of this video I leave a link to my company asters they will help with everything you know and they will explain absolutely everything you need in order to register your company and be always um up and running without having any penalty and any problem so now let's coming back to the corporation to the corporate tax now who has to register so we saw that for what any company freelance freelance free zone Mainland company everybody has to register for vat if their turnover is more than 375 000 Dirham now for the corporation tax who has to register and submit a report so anyone the same free zone freelance Mainland license no make no any difference if you have a taxable here after the 1st June 2023 so any Financial year after the first June 2023 you should register I'm not saying that you should pay you should register for the corporate tax account in federal tax Authority website now it does matter you are a free zone you are a freelance you are a Mainland you have to register now the fact that you have to register does not means that you have to pay tax on it but you should report your income and once you report your income ing to the fact that you are a free zone or you are a Mainland or you are a free zone who operate within the UI the tax Authority will decide your taxation be zero or nine percent to make the same the thing very simple basically uh in terms of registration in terms of report there is no any difference between free zone trial and freelance and Mainland the only difference is that Mainland will be taxed nine percent on the profit while the free zone will be taxed zero at least for the moment on their profit but the process of registration the process of reporting is absolutely the same for every entity in the way so I hope that I was pretty much clear about it um if you have any question obviously you can let me know in the comments uh and um I will try to reply to all your questions uh if you have any doubt or if you have your uh if you already have your own company and you don't know what to do I really recommend to contact asteroids I will leave the link and you can tell that you watch a video of Alex that you are one of my follower and you will have two hundred dollar bonus discount so once again thank you for watching this video let me know in the comments show me your support and see you soon