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Why Hiring a VAT Consultant in Dubai is Essential for Small Businesses
  • Article, U.A.E

Why Hiring a VAT Consultant in Dubai is Essential for Small Businesses?

Dubai continues to be a global commercial hotspot, offering a plethora of privileges to small businesses. With its ease of doing business, robust transit network, and business-friendly policies, it appeals to entrepreneurs across the globe.

The tax-free regime in Dubai before 1st January 2018 further transformed the city into a global investment hotspot.

Being a small business, it pays to adhere to the tax norms in the country. Working with seasoned tax advisory professionals, businesses can comply with legalities. Right from registering for VAT to tax auditing, hiring experts for VAT advisory would streamline your growth trajectory.

What services do VAT consultants in Dubai provide?

Getting entangled in legal hurdles would be the last thing small businesses expect. In the UAE, failure to comply with the existing VAT norms invites hefty penalties. Companies specializing in VAT advisory can guide your business and help you deal with your VAT liabilities accurately. With professional minds backing your business, you can focus on your priorities.

Reputable VAT consultants offer a plethora of services, including:

  • VAT Registration and deregistration
  • VAT advisory
  • Explaining VAT regulations
  • VAT return filing
  • Assistance in processing payment to FTA
  • Purchase invoice reviewing
  • Internal VAT audit
  • Mitigating VAT liabilities

5 Reasons Small Businesses Should Hire VAT Consultants

Here’s why forward-thinking businesses in Dubai closely collaborate with experts for accurate VAT advice.

1. They are experts

Being informed professionals, tax advisory companies in Dubai educate their clients about their liabilities. So, you don’t bear the risk of miscalculating payments or levying the wrong rate from customers. Established VAT consultants bring their comprehensive knowledge to the table, helping your business navigate through the complex regime.

2. Accuracy matters

While filing VAT, accuracy happens to be the magic word. Reputed VAT consults never hesitate to walk the extra mile to cross-check details. Working with experienced tax advisors, you remain secure from committing generic mistakes during return filing or the initial tax registration.

3. Risk analysis and mitigation

One of the best perks of seeking VAT advisory from consultants is their ability to manage risk. Experienced tax professionals are capable of identifying compliance risks. Accordingly, they advise their clients to stay on the right track, keeping them out of the woods. This way, you wouldn’t be at the risk of being pulled up for unintentional non-compliance with VAT norms.

4. Flawless VAT audit preparation

Remember, FTA would allow your business just 5 days to respond to a VAT audit query. Top VAT consultants prepare their clients for stringent tax audits. Just after filing your VAT, they help businesses understand the supporting documents. Besides, the consultants capture relevant field data and keep their clients well-poised for VAT audits.

5. Capitalize on opportunities

In case your business turnover lies in the Dh187, 500 to Dh375, 000 bracket, registering for VAT isn’t mandatory. However, getting your firm registered brings several benefits that are easy to overlook. Reputed VAT consultants help their clients make the most of these opportunities.

Conclusion

Fulfilling complex tax obligations in Dubai and remaining compliant involves the experienced handling of your accounts. Why not hire the best VAT consultants in your city to spearhead your business? IMC Group, one of the most esteemed companies specializing in VAT advisory in Dubai, can handle your tax matters with expertise.

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2023 Middle East M&A Outlook: Brace for Surprising Developments
  • Article, U.A.E

2023 Middle East M&A Outlook: Brace for Surprising Developments

Gulf SWFs and PE firms have substantial financial resources to support significant M&A activity.

The Middle East’s M&A sector experienced a deceleration in 2022, with both corporate and financial investors adopting a cautious stance due to surging interest rates and growing economic unease. Although M&A transactions sustained their robustness during the initial months of 2022, they lost momentum as the macroeconomic situation progressively worsened throughout the year.

The year 2022 has presented several economic and financial challenges that have made dealmaking a complex task on a global scale. Among the main obstacles has been the constricting credit environment, with banks limiting their funding for leveraged buyouts due to increasing interest rates and an overall aversion to risk. As a result, the issuance of leveraged loans to support private equity (PE) acquisitions have mostly come to a halt in Europe and the Middle East.

Despite the global challenges, the Middle East has experienced a modest decrease in the number of deals, from 366 in the first nine months of 2021 to 343 in the same period in 2022. The UAE, Saudi Arabia, and Israel were the most sought-after countries by buyers, with companies headquartered in these locations representing 20.7%, 9%, and 54.2% of the total deals in the region, respectively.

Amid the increasingly challenging economic climate, most M&A transactions in the Middle East were focused on recession-proof sectors, such as non-discretionary consumer goods and healthcare, while technology, media, and entertainment remained popular. Additionally, infrastructure deals proved to be a highlight in the region’s M&A activity.

Looking ahead to 2023, we anticipate a new dealmaking environment characterized by the same challenges that affected the market in the latter part of 2022. As a result, we expect the M&A sector to remain sluggish, particularly in the first half of the year. Despite this, the performance outlook, potential public-to-private opportunities, distressed situations, and lower valuations could present new avenues for dealmaking and unlock previously pent-up deals.

Nevertheless, in this increasingly complex environment, the timelines for completing deals are likely to be longer, and the risk of executing transactions successfully is higher.

Here are some potential trends that could shape the M&A market in the coming months:

Undeployed Reserves:

In the short-term, powerful corporate buyers may hold an edge, but the M&A market will still depend on sovereign wealth funds (SWFs) and financial sponsors, who have ample dry powder available for investment. As economic conditions shift, these funds will likely become more selective and focus on opportunities that enhance their existing portfolios or offer cash-generating potential. Despite a slowing fundraising pace, we anticipate that SWFs and financial sponsors will remain key players in the M&A market.

Small-scale acquisitions:

While financing options remain limited and large-scale opportunities are scarce, private equity firms and sovereign wealth funds may shift their focus towards smaller-scale bolt-on acquisitions. These types of acquisitions can add value to portfolios of SWFs and PEs, particularly when traditional growth channels are no longer viable, and exit routes become limited. During times of uncertainty, investing in familiar businesses and platforms may also prove to be a more sensible strategy for SWFs and PEs.

Mergers and acquisitions in distressed companies:

It is worth noting that, contrary to expectations, we did not observe a substantial increase in mergers and acquisitions involving financially troubled companies thus far in 2022. However, we anticipate this may change in 2023 as worsening economic conditions begin to pressure company balance sheets. This could lead to asset sales and operational restructuring, ultimately creating potential opportunities for mergers and acquisitions in distressed companies.

Divestitures:

We anticipate increased divestiture opportunities as economic conditions become more uncertain, causing larger companies and conglomerates to re-evaluate their strategies and shed non-essential assets. Moreover, activism investment remains a potent catalyst, with many investors able to establish positions at reduced prices during a downturn in the stock market. For SWFs and PEs, divesting non-core business units from their portfolio companies, while more intricate, may yield superior returns.

Environmental, Social, and Governance:

ESG factors are becoming an increasingly important consideration for both corporate and financial buyers in their M&A activities. This trend is expected to continue and gain momentum in 2023. Investors closely scrutinise targets’ ESG practices, including their impact on the environment, diversity and inclusion policies, and supply chain management. These factors are now essential components of investment decision-making and can have a significant impact on deal outcomes. They can also influence the availability and cost of financing, giving sponsors an advantage in securing debt funding.

In 2023, M&A buyers are expected to shift towards more resilient sectors in the face of economic headwinds, including non-discretionary consumer, healthcare, infrastructure, and specific sub-sectors within technology, media, and entertainment. These sectors are better positioned to withstand economic uncertainties due to strong demand, recurring revenue models, and the ability to mitigate rising operating costs arising from inflation. Moreover, the ongoing trend of digitalization across businesses will provide impetus to technology-related sectors. Infrastructure assets will also be a key focus, given their asset-heavy nature and ability to generate stable cash flows, thus providing downside protection.

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A Comprehensive Guide to Statutory and Supplementary Employee Benefits in India
  • Article, India

A Comprehensive Guide to Statutory and Supplementary Employee Benefits in India

India is a great place to hire remote workers who speak English. But, because of complicated employment laws in India, companies need to know about employee benefits to follow the rules and stay competitive. This guide explains Indian employee benefits to help companies grow their business in India.

What are the Different Kinds of Employee Benefits Available in India?

In India, there are two types of employee benefits: statutory and supplemental. Statutory benefits are compulsory, and supplemental benefits are offered to attract and retain talent. The government enforces statutory benefits such as state insurance, gratuity payments, and provident funds. Supplemental benefits like personalized health insurance and disability coverage are additional.

Here are some detailed Statutory and Supplemental benefits.

Mandatory Employee Statutory Benefits in India

Statutory benefits are mandatory, legally required benefits that employers must provide to employees, such as medical insurance and paid time off. Employers can also offer supplemental benefits to enhance existing benefits, and fringe benefits to provide additional compensation. These benefits help attract and retain top talent.

Understanding Social Security Benefits

Indian employment law mandates two types of social security benefits – Employees’ State Insurance (ESI) and Employees’ Provident Fund (EPF). The EPF scheme covers retirement funds, pension, and life insurance and is a mandatory savings scheme for employees, requiring contributions from both employers and employees. The scheme aims to ensure financial security for retired employees. Understanding social security benefits is crucial for both employers and employees.

Employees’ State Insurance (ESI) Medical Insurance Benefits

The Employees’ State Insurance (ESI) Act in India applies to businesses with at least 10 employees earning less than INR 21,000 per month. Employers contribute 4.75% of their employee’s wages to the ESI fund, while employees contribute 1.75% of their wages. This entitles employees to medical benefits, including hospitalization, maternity, disability, and sickness benefits, among others. The ESI Act ensures that employees have access to medical benefits and financial support during challenging times. Employers must adhere to the ESI Act and contribute to their employees’ ESI fund to comply with Indian employment law. This ensures to cover the dependent family members of the employee.

Employees’ Provident Fund (EPF) Retirement Fund Benefits

The Employees’ Provident Fund (EPF) Act was established under The Employees’ Provident Fund and Miscellaneous Provisions Act of 1952. Employees working for companies with 20 or more employees and earning less than INR 15,000 per month must contribute 12% of their wages monthly, while employers contribute their part additionally. Upon retirement, employees receive a payout from the EPF, including interest.

Employees’ Pension Scheme (EPS) - Eligibility and Benefits

The Employees’ Pension Scheme (EPS) in India collects a percentage of an employee’s income to provide a pension after the age of 58. When employers contribute 12% of the employee’s salary to the Employees’ Provident Fund (EPF), 8.33% goes to the EPS. The scheme provides pension payments for life, and in case of the member’s demise, their nominee will receive the pension. The scheme carries no investment risks for employees as the Indian government sponsors the EPS and guarantees returns.

Employees’ Deposit Linked Insurance Scheme (EDLI)

Employees’ Deposit Linked Insurance Scheme (EDLI) in India: An automatic life insurance policy offered by the EPF scheme where the registered nominee receives a lump-sum payment in the event of the insured person’s death. The scheme is funded by 0.5% of the employer’s 12% salary contribution towards EPF.

Exploring the Benefits of Gratuity

Gratuity benefits are available to employees who have worked for their employer for over five years and retire, resign, or become disabled. The gratuity payment is equivalent to 15 days of wages for every year of employment. This scheme applies to employees working in establishments with 10 or more employees, including factories, mines, and ports.

Supplemental Benefits for Employees in India

Supplemental benefits are extra perks that employers provide to enhance the medical, retirement, and insurance coverage of their workers. These benefits often extend to the employees’ families and offer a higher level of coverage than the mandatory benefits. Examples of supplemental benefits include dental and vision insurance, retirement contributions, and extended leave. With workers worldwide seeking employers who prioritize their well-being and that of their families, a robust supplemental benefits package has become essential in attracting and retaining top talent. As such, employers are increasingly offering such packages to make their companies more attractive to prospective employees and keep their current workforce satisfied.

Supplemental Medical Coverage for Employees Benefits

Supplemental Medical Coverage is a common benefit offered by employers to their management-level employees, providing additional coverage beyond their basic medical insurance plans. This type of coverage often includes maternity care, cancer treatments, and fertility treatment, and may also extend to dependents and partners.

Supplemental Life and Accidental Death & Dismemberment (AD&D) Coverage Benefits

Employers often offer supplemental life and accidental death and dismemberment (AD&D) coverage to employees as an additional benefit. This type of coverage provides employees with peace of mind, knowing that their families will be taken care of in the event of an unexpected tragedy.

Supplemental life insurance typically covers an employee’s beneficiaries in the event of their death, with the payout amount determined by the employee’s salary and chosen coverage level. AD&D coverage provides additional benefits to an employee or their beneficiaries in the event of a serious injury or death resulting from an accident.

Offering supplemental life and AD&D coverage can set a company apart from other employers in the eyes of job seekers. It shows that the company values the well-being of its employees and their families and is willing to go above and beyond to provide them with additional protection and support.

Providing Compliant and Competitive Employee Benefits Packages in India

Global companies that want to hire employees in India attract and retain top talent by offering comprehensive and compliant benefits that exceed the market standard. Still, ensuring your benefits packages are competitive and legally sound is complicated. Instead, work with an experienced global partner like IMC Group to create market-specific rewards packages on your behalf.

Our Global Benefits solution helps employers gain a competitive edge in the hiring process by offering locally competitive benefits packages that go beyond statutory requirements and ensure your talent feels valued. Plus, you gain peace of mind knowing that your benefits offerings always comply with local labor laws.

If you’re looking to attract top-tier talent in India, IMC Group is your solution.

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Four Compelling Reasons Why Businesses Should Consider Hiring Talent from India
  • Article, India

Four Compelling Reasons Why Businesses Should Consider Hiring Talent from India

If you’re looking to hire top-notch IT talent, India should be on your list of global destinations. Many companies around the world rely on Indian talent to thrive in today’s digital era. India’s abundant pool of skilled and educated professionals in the technology industry is a significant draw for companies seeking innovative solutions.

1: India's Talent Pool Continues to Grow as a Prime Destination for Hiring

India is an ideal location for a talent hunt, as it boasts a significant number of highly educated and skilled workers, and millions of students join the workforce every year. This talent pool makes India a prime destination for companies looking to hire skilled workers. The Indian Government’s vision to create a technologically advanced and digitally empowered society is being reinforced by the recent New Education Policy that emphasizes the integration of technology into education. This effort includes initiatives such as high-speed internet availability, seamlessly integrated services, mobile phone and bank account enablement, and universal digital literacy, among others.

With these strategies in place, the Indian government is recognizing the nation’s potential as a global technology leader and positioning it as a top talent market for companies looking to recruit top-tier workers.

2: India: The Top Destination for Sourcing Skilled Tech Talent

The demand for skilled workers in the technology sector is increasing rapidly. As a result, businesses are turning to India, which is recognized as the top global destination for sourcing tech talent by the India Brand Equity Foundation.

Indian IT & BPM have established over 1,000 delivery facilities in approximately 80 countries, and in the next five years, 40 percent of Indian developers are expected to enhance their skills. The IT sector’s export revenue is projected to increase by eight to nine percent annually.

To support this growth, the Indian Government is investing heavily in infrastructure. Additionally, India ranked second in the 2019 Agility Emerging Markets Logistics Index, with 48.1 percent of those surveyed expecting India’s e-commerce market to grow at the same pace as, or even faster than China.

3: Leveraging India's Cost-Effective Workforce for Your Hiring Need

Compared to other regions such as Asia, Latin America, Africa, and Eastern Europe, salaries for web developers in India are lower, making it an attractive option for companies seeking to minimize their hiring costs. Despite this, a report by NASSCOM indicates that 79% of HR leaders anticipate significant challenges in keeping up with the rapidly evolving technology landscape. This underscores the importance of hiring qualified professionals who are up to date with the latest trends and technologies, and India’s pool of skilled talent can be a valuable resource in meeting this need.

4: How Regulatory Changes are Making the Country a More Attractive Destination for International Companies

In 2019, the Indian government introduced the Personal Data Protection Bill in parliament, aimed at safeguarding individuals’ personal data and preventing companies from misusing it. However, the bill also has implications for international companies that are hiring in India, as it provides a framework to protect their data as well. This legislation is critical in ensuring that businesses are able to operate in a secure environment, which is essential for companies with sensitive data such as financial information, trade secrets, and proprietary data.

The Personal Data Protection Bill establishes guidelines for collecting, processing, and storing personal data, and mandates that companies obtain consent from individuals before collecting their data. This is a crucial safeguard that ensures individuals have control over their data and how it is used. The bill also stipulates that companies must implement reasonable security practices and procedures to protect personal data from unauthorized access, modification, disclosure, or destruction.

Overall, the Personal Data Protection Bill is a positive development for international companies looking to hire in India, as it demonstrates the government’s commitment to protecting their data and creating a secure business environment.

Hiring Talents in India with an Employer of Record EOR Services provider

Looking to expand your business overseas and hire top talent, but worried about the compliance and legal complexities of doing so? Look no further than an Employer of Record (EOR) solution!

An EOR takes care of all the legal and administrative details of hiring international employees, including payroll, taxes, benefits, and HR. With a locally compliant entity in place, you can avoid the red tape involved in registering with local authorities and rest easy knowing that your business is fully compliant with all relevant laws and regulations.

With an EOR, you can focus on what you do best – growing your business and tapping into the global talent pool. Contact us today to learn more about how an EOR can help you expand your business overseas and hire the best talent, hassle-free!

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From Compliance to Growth
  • Article, Global

Unlocking the Future: A Study of EOR & PEO Industry Trends

Difference between peo eor

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Singapore: The Ultimate Destination for Family Offices, A Magnet for Wealthy Indians and Foreigners
  • Article

Singapore: The Ultimate Destination for Family Offices, A Magnet for Wealthy Indians and Foreigners

According to the Monetary Authority of Singapore (MAS), the assets under management in Singapore have seen a substantial increase over the decade from 2012 to 2021, reaching SGD 5.4 trillion. This marks a three-fold growth from SGD 1.6 trillion in 2021 and recorded a 16% increase in assets in the 2021 itself.

Most of this growth came from outside of Singapore, of which about one-third really is from Asia-Pacific countries. Singapore’s reputations as are stable and well-regulated financial centre has earned it the nickname “Switzerland of the East”. The country’s favourable business environment and its position as a hub for wealth management have made it an attractive destination for investors around the world.

In early 2020, the Monetary Authority of Singapore (MAS) introduced the Variable Capital Company framework, which was designed to attract investment funds, including Single Family Offices. This piece of legislation has proved to be a crucial step towards enhancing the investment landscape in the country.

What is a Single Family Office?

A Single Family Office (SFO) is a private company that provides comprehensive wealth management services for a single wealthy family. It offers a wide range of services, including investment management, estate planning, tax planning, financial planning, asset protection, philanthropy, and family governance.

How to set up single family office in Singapore?

There are well-equipped consultancies with great proficiency to assist you in establishing your venture for a Single Family Office in Singapore. With extensive knowledge and expert assistance, you can be confident that your family entity will be set up efficiently and effectively.

What are some things that you might need to consider before setting up a Single Family Office?

As the world’s second-largest group of billionaires resides in Mainland China, the high-net-worth (HNW) and ultra-high-net-worth (UHNW) sector in Asia has grown by 7.9% despite the Covid-19 pandemic. This growth has presented new challenges for HNWI`s and UHNWI`s in terms of wealth management, estate planning, succession, budgeting, and philanthropy.

Traditional fund management may not be equipped to handle the complex and diverse financial portfolios of HNWI`s and UHNWI`s while meeting their needs. This is where the concept of a Single Family Office comes in as a new solution for wealth management for these individuals.

What attracts ambitious entrepreneurs to set up a Customized Single Family Office solutions in Singapore?

Making it an attractive destination for both local and foreign investors, in addition to its favourable business environment, Singapore is known for its high standard of living, excellent healthcare system, and top-notch educational institutions. The city-state has a multicultural population, making it a melting pot of different cultures, traditions, and cuisines. This contributes to a rich and diverse cultural experience for its residents and visitors.

Furthermore, the government of Singapore has made significant investments in infrastructure and technology, which has helped to make it one of the most technologically advanced countries in the world. This has led to the growth of numerous high-tech industries such as IT, biotechnology, and engineering.

What are your Goals for setting up a Single Family Office?

The objective of setting up a Single family office should always be defined and clear, but the primary goal would be is to secure the wealth and legacy of future generations. To achieve this, it requires a comprehensive wealth management strategy that takes into account not just the immediate future but also long-term planning.

Overall, an increasing number of Single Family Offices in Singapore are taking advantage of Singapore’s favourable laws and regulations in setting up their Entity, to build a legacy that goes beyond not just financial growth but accumulation of wealth.

IMC is the trusted Single Family Office advisor and supports services that are available to assist with setting up a strategic office in Singapore. The company’s wealth management services can help you in providing tailored investment management, estate planning, trust and fiduciary services, tax planning, financial planning, asset protection, and philanthropy, all aimed at ensuring the continued prosperity of your family.

Our family governance experts can also assist you in creating a vision and mission statement for your family office, one that outlines your goals and aspirations, whether it’s in finance, technology, property, or environmental protection.

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What is a PEO? – What is it, How it Works, and When Can You Benefit
  • Article, Global

What is a PEO? – What is it, How it Works, and When Can You Benefit

When expanding globally, it can be overwhelming to navigate the plethora of acronyms and jargon in the world of international employment. But don’t let technical language hinder your progress. In the interest of simplifying things, we will clarify the most perplexing term – Professional Employer Organization.

The definition of PEO?

A PEO is a company that provides comprehensive human resources services to businesses. These services can include recruitment, payroll processing, benefits management, other administrative tasks, and assistance with local employment laws and tax compliance.

PEO shares the HR responsibilities and liabilities. PEO takes over the entire range of HR functions such as employee benefits, compensation and payroll administration, workers’ compensation, and employment taxes.

This is where the Confusion Arises…

The terms “Professional Employer Organization” (PEO), “Employer of Record” (EOR), “Global Employment Organization” (GEO), and “Global PEO” are often used interchangeably, but there are some variations depending on your location.

In the United States, the term PEO is typically used and refers to a co-employment model where both the client company and the PEO have rights and responsibilities as an employer.

The client company manages the employee’s day-to-day duties, while the PEO handles legal employment and personnel-related functions like payroll. One important distinction to keep in mind is that co-employment requires the client company to be a legally registered entity in the country where the employees are based.

Is a Professional Employer Organization (PEO) the right choice for my business?

PEOs are essential for companies looking to expand internationally, as the process of global expansion involves navigating various administrative, regulatory, and financial challenges, which can be overwhelming.

Navigating the different employment regulations in various countries, regions, or states for non-resident companies can be a significant challenge for international expansion, especially for those unfamiliar with concepts such as 13th-month or 14th-month payments.

A Professional Employer Organization (PEO) can handle all the challenges that come with expanding internationally. Businesses are required to have a legal entity while the PEO handles the entire HR responsibilities, manage benefits such as health insurance, help with recruitment and stay up to date on local regulations, allowing companies to focus on their core business operations.

In addition, companies that work with a PEO tend to experience faster growth, lower employee turnover rates and have a decreased risk of failure in the international business world.

If you want to accelerate your growth plans and hire employees in a different state or country, partnering with a PEO will be a beneficial decision for your global expansion journey. To learn more about our international PEO services, contact us today.

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PEO vs EOR: Which is the Best Option for Hiring Globally?
  • Article

PEO vs. EOR: Which is the Best Option for Hiring Globally?

Difference between peo eor

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VAT Alert in UAE: What Every Entrepreneur Needs to Know
  • Article, U.A.E

VAT Alert in UAE: What Every Entrepreneur Needs to Know

Taxpayers in the UAE should prepare for new VAT changes effective January 1, 2023. It is advisable to consult tax consultants in Dubai promptly due to the significant impact of the recent amendment on your business.

Key dates

  1. The revised, amended provisions became effective from January 1, 2023
  2. As per new rules, qualifying registrants must submit reports from July 1, 2023
  3. The FTA kindly requests Qualifying Registrants to inform them by March 15, 2023

FTA updates the UAE VAT’s Tax Policy and Executive Regulation. The Federal Tax Department has modified the essential regulations surrounding UAE VAT:

Federal Decree-Law No. 28 of 2022 Modifications, Part I (Tax Procedures)
II. Act No. 8 of 2017’s executive rule amendments (Executive Regulations)
Based on the interpretation of the precise wording of the pertinent legislation, we have offered a comprehensive understanding following table:

1. The Federal Decree-Law No. 28 of 2022 updates Federal Decree-Law No. 7 in 2017 of a UAE on VAT, which will take effect on March 1, 2023.

Article Title Modification IMC Remarks
1 Meaning The terms “Tax Residency Certificates” and “Tax Residency” now have new terminology. A few small changes were also applied to the tax and business concept. For the Corporate Income taxes of June 1, 2023, the changes above were done to the legislation to ensure compatibility.
5 Linguistic In addition to Arabic, the Council can consider materials in other languages. In particular, if the Government demands it, an Arabic version could be necessary. Corporate and personal coordination with the Tax Authority will be improved.
7 Legal Advocates Members, too, can comply with any new obligations and present tax records to the Board. If the taxpayer is a juvenile or incompetent, there are no restrictions on filing the tax return.
10 Voluntary Disclosure (VD) When there is no increment of taxable income, individuals must file the VD. The segments and penalty provisions will be outlined in the Executive Order. Taxpayers may not be able to rectify errors in the subsequent report.
16 Power to do an internal audit
  • An extension from 5 to 10 business days for tax audit
  • Authorities can inspect the premises without a warrant
  • Five additional days
  • Cooperation between the taxpayer and the Official is essential
23 Tax Evaluation
  • Within 10 days, the FTA should provide taxation and inform the payer. When the taxpayer is failed in
  • Registered application and VAT payment
  • Due taxes
  • Error in return
 Help taxpayers determine the appropriate income tax.
24 Penalty for Regulatory Evaluation Administrative fines ranging from a set AED 500 penalty to a high equal to double the taxes Reduced the burden on taxpayers
25 Tax Offenses and Sanctions
  • Tax fraud, unauthorized withholding of taxes, and tax settling may result in a prison term or a financial penalty
  • Prison if the appropriate penalty is not paid unless it is cancelled
  • Financial fines or prison terms for falsifying information, data breaches, or obstruction of justice
 It lessened the strain of covering the initial sum—someone who fully adheres to the legal system and supports the Authorities.
32 Submission of a complaint and any other non-acceptance instances Within 40 business days, an appeal to the Council’s judgment must be filed. Taxpayers are given more time to submit their complaints.
36 Jury’s appeal system processes The panel’s judgment could be challenged within forty days. Chance to challenge in courts within the given timeframe
46 Limited Time Period Whenever five years have passed, the authority can impose tax assessments or perform tax audits in case:

  • FTA issues an auditing notification
  • The taxpayer submits a VD
 It gives the Authorities more chance to execute tax evaluations within the given timeframe, appearing in judgment.

In addition, the following additional sections are added for offenses involving taxes, reviews of valuations, complaints, and reviews.

Article no. Details
26 Measures and Techniques
27 Agreement on Tax Fraud Charges
28 Petition for a Taxation Modification
29 Increase in Timelines

2. Cabinet Decision No.99 of 2022 revised Executive Regulation – Law No. 8 of 2017 and will prevail on January 1, 2023.

The concept of service has now been changed in Article 3, exempting services offered by an entity to carry out duties as a board of any private or Government organization.

Article 72, which deals with monitoring the contributions made, has already been modified to the following extent:

  • Where a taxpayer has a business located in the UAE, no permanent premises must have detailed records
  • When services provided by a taxpayer into an ECO surpass AED 100,000,000, they must maintain documents to demonstrate the Emirate wherein the supply is acquired
  • The crossover threshold is also used to determine the provision’s relevance
Our Comments:

Since adjustments must be made to how enterprises are now operating, a modified federal decree-law, tax regulations, and administrative regulations are released. Therefore, organizations must ensure that the changes above are made to the relevant evidence and procedures as soon as possible before the law takes effect to prevent any legal implications.

How can IMC help?

IMC can assist your business by conducting a simulated audit that replicates the type of assessment the FTA may work. This audit will pinpoint any areas of non-compliance and provide recommendations to align your business with the UAE VAT regulations.

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A Guide to Handle Remote Recruitment Process
  • Article, Global

A Guide to Handle Remote Recruitment Process

The COVID-19 pandemic and technical improvements throughout industries forced businesses to adopt remote working as an essential component of the fundamental corporate strategy. Even so, every firm performance in times of turmoil depends on its ability to transition towards this novel standard operating style.

Due to this change, businesses’ three most frequent difficulties are finding, recruiting, and keeping successful remote workers. Many service providers offer Global EOR Services for recruiting ideal remote employees.

Employing workers remotely necessitates a more deliberate approach. Furthermore, 73% of employees and 83% of employers stated that remote work is a tremendous success in worldwide surveys. Not only are you attempting to connect the ideal individual with the right job, but you are also looking for people who would be comfortable working remotely. Let us explore more about this:

Remote working: An overview

Everything is evolving due to remote working, including our views on work-life balance, communication methods, and efficiency evaluation techniques. Several regulations that previously set the limits of our working lives have changed due to the “massive remote operational experiment.

The job market will undoubtedly entail decentralized, transnational, co-located, and remote skilled workers that use online tools to stay in contact efficiently. Several businesses have practically stated a WFH “permanent” plan, and according to 53% of American survey, participants will do at least some of the future projects from home.

Essential Points to Consider While Recruiting Remote Staff:

While it may be simple to hire remotely, it might be more challenging to switch to a workspace that values remote workers. Once you’re managing payment in several nations, attempting to interpret several employment rules, and managing taxation, geographical boundaries still play a significant role.

Finding world-class talent in the industry is among the significant issues businesses undertake. Despite millions of available jobs posted daily, the employment market is highly competitive. Let us consider some important aspects while managing remote working recruitment:

1. Payroll Management:

Despite the most straightforward situations, payroll might be a hassle, particularly for small enterprises with financial accounting. Managing payroll might be legally risky if you recruit people worldwide in new regions.

The logical move is to connect with Payroll outsourcing solutions for a sustainable administration of the employers of reference in case the company wants to build a branch overseas.

2. Probability of A Permanent Establishment

Organizations with a consistent presence in a nation are referred to as “permanent establishments” for accounting purposes. If the nation has a permanent establishment, corporate income taxes could be levied overseas. Companies may also adhere to regulatory requirements that differ from those of other foreign businesses.

3. Invention and IP Rights

Even traditional office structures allow for a country’s capital of workplaces at a time, creating intellectual property rights a little easier to understand. Global recruits make it a little more complicated.

There are times when remote workers do not use business property, tools, or expertise. Losing IP rights due to ignorance of international norms may lead to legal disputes, reputational harm, and other issues.

Advantages of Remote Working:

Global Employee Benefits Solutions manages the merits and drawbacks of remote work. Meanwhile, building diverse personnel was never more straightforward, thanks to software products that support routine activities and streamline communication.

The primary benefits of remote working for business units all centre on how it affects regular activities, profitability, and workforce well-being. Below are a few benefits of working remotely for the corporate project team:

Savings on Teamwork Activities

Spend less on social occasions like birthdays or Christmas parties and allocate the money to higher-impact projects. So, the expense of items like renting premises and activities supplies, is far lower when you also aid in work teams digitally. Using digital technology makes it perfectly feasible to create a positive environment for remote employees.

Interaction is Upgraded

Getting together on the same level has never been more straightforward than today, Accessing email threads or excessively laborious performance reviews and consolidating all conversations, documents, and clearances within a location is of much hassle.

Advanced Skilled Workforce

Commercial firms are no longer confined to recruiting locally. It gives them a much better opportunity to discover a candidate with the specific qualifications, expertise, and personality that will fit in with the company. Recruiting native speakers, include viewpoints from distinct cultures, and assemble a diverse team of experts to develop together.

Improvements in Employee Wellbeing

Indeed, allowing the staff to remote work may help them maintain a healthy work-life balance. People can alter the environment to accommodate their requirements better, become at ease in their attire and technological schedule, and attend to their bodily and psychological demands.

Gains in Efficiency

According to research, remote employees are 20% to 25% more efficient than those working in an office. There seem to be more possibilities to take regular breaks when required. It helps improve general performance, focus, and innovation with many other advantages. It also provides reduced social interruptions.

Process of Remote Work Recruitment:

It’s essential to begin employing the remote professional until you’ve established the chosen Global PEO Services.Reviewing the ability and experience difference you’re aiming to close is the first step in the procedure. Let us assess the detailed process:

Develop a Job Specification

For the audience to grasp the position, its needs, and its aspect to fit inside the organization, job skill sets must be helpful. You would like to encourage the candidates to enrol while keeping it brief and straightforward.

Examine Resumes and Choose the Ideal Candidate

After posting the job requirements, one must examine the applications. The system will determine the submitted applications, but it is essential to evaluate it immediately and eliminate any minimally skilled candidates.

Arrange the Teleconference Interview Schedule

Several minor adjustments will be made to the subsequent conventional stages for remote hiring. Plan a live interview with the applicants you’ve chosen rather than a face-to-face one. Set up a date for a teleconference by communicating via message and email to the applicants for the interview.

Evaluate the Candidate's Competence

As shortly as the call begins, one should evaluate the application as one would for the position. After asking them all the concerns you would ask regarding an internal appointment, find out if they can work remotely.

Examine the References

Indeed, check recommendations to confirm a candidate’s employment record and work style, as you would with any employer. Specialist references can verify a candidate’s abilities as an employee and validate job duties inside a particular organization.

Develop an agreement

No employment is considered legitimate without a written employment agreement outlining the specifics of the deal you’ve negotiated. With existing employees, you probably have a suite of standard documentation that can be customized for every recruit. Examine that to make sure they accommodate remote employees’ expectations.
Conclusion:
All business executives and personnel can take advantage of working remotely. Flexibility in working remotely can positively affect both parties’ performance, work-life balance, and expenditures. Some organizations set the benchmark with their business solutions and achievements since they understand that recruiting remote workers is frequently the most effective approach to cover skills shortages and produce incredible outcomes.

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