- NEWSLETTER,U.A.E
- February 12, 2024
The Middle East is bracing up as a key player with highly esteemed family offices catering to UHNWIs (ultra-high-net-worth individuals). Leading players are set to infuse the economy of the UAE with a massive $500 billion investment in the next three years. This financial boost will dynamically boost the economic standing of the region, with family offices taking center stage in strategic wealth planning.
A recent study reveals a notable shift in the mindset of family office executives in the UAE. Currently, the focus has expanded beyond investments, unlike historical trends. Family offices in the Middle East are trying to establish a robust operational foundation. Thanks to the favourable regulatory environment in the UAE, family offices can carry out professional operations in the country, leveraging strategic advantages in the region.
Market Trends and Diversifying Portfolio
Wealthy families and individuals are turning to established single family office in Dubai to streamline their finances.
The demand for intergenerational wealth management has witnessed a significant surge in 2024. Families in the Middle East prefer hiring professional teams for successfully transitioning wealth, addressing taxation concerns, and optimizing inheritance. The present investment environment is defined by a wait-and-watch approach along with adequate caution. This demonstrates the need for strategic wealth preservation in the Middle East.
When it comes to innovative family office strategies, the investment landscape has witnessed a notable shift. Family offices currently prefer private credit and equity over public markets, eyeing more lucrative returns. Experts have noted a calculated and cautious approach from leading family offices. Some clients are ready to sacrifice the liquidity of their assets for better returns under uncertain market conditions.
The 3 Rs of Family Office Strategies - Rebuild, Retain, Regulate
The evolving sector of single family office is defined by 3 Rs: retain, and regulate. Top players in the industry are channelling their efforts towards recovering and retaining employees through innovative schemes and engaging with regulators proactively. The focus on transparency has been a priority, as experts recommend exercising caution against over-regulation that might jeopardise family offices from being established in the Middle East. This demonstrates the value of privacy and control.
Emerging Trends and Futuristic Investments
The UAE continues to attract wealthy families globally due to its favorable tax environment. Other factors contributing to this trend include sophisticated lifestyle amenities, a robust financial services sector, and the strategic location of the country. However, experts believe that family offices need to tactically balance growth, family values, and preserving wealth. Technology has a key role to play in this regard since family offices are embracing governance and institutionalization. Now, the focus has shifted significantly to cybersecurity measures and data security.
The report also points out a transformative shift in gender involvement in family businesses. In the Middle East, the role of women in the wealth management of families is being recognized formally. A large number of women have achieved leadership positions in this regard. This trend demonstrates a change in attitude, offering both genders equal opportunities for sponsorship and mentoring with updated regulations. According to the latest norms, gender diversity has been mandated on company boards.
As the UHNW population increases in the Middle East, the family office sector is witnessing substantial changes. From succession planning to diversified investment strategies and ESG considerations, the evolving landscape promises opportunities and challenges alike.
The IMC Group continues to be one of the established players in the Middle East. This consulting firm offers specialized and customized services to address the unique needs of each family office. Whether you need professional assistance in succession planning or personal holding company formation and management, the experts offer tailored solutions to individuals and families.
- Publications
- February 7, 2024
Small business owners often neglect accounting tasks while managing operations and serving customers. Opting for external support for your accounting outsourcing services can be highly advantageous for your business, but it’s crucial to ensure you select the appropriate accounting services.
However, during audit season, they may deduce hours each day to uncover and address discrepancies in accounting or inventory.
Our Accounting Essentials Checklist offers a straightforward, comprehensive starting point for managing your financial records effectively. This guide outlines critical steps to consider in your accounting practices.
Download the guide now to kickstart your accounting journey and ensure accuracy and compliance in your financial operations.
Please complete your details below to download:
- NEWSLETTER, GLOBAL
- February 5, 2024
The private equity sector has weathered unprecedented headwinds over the last year, as evident from reports and market trends. In this post, let’s explore the challenges and triumphs of the private equity sector. A global economic slowdown and rising interest rates have overshadowed traditional avenues. This calls for a re-evaluation of strategies to look out for further resilience in the investment market.
Insights from a research reveal a promising future for the private equity market. By the fiscal-year 2028, the overall assets under management are likely to surge to 8.5 trillion. This is likely to be driven by a compound annualized growth rate of 10%. With this trend, a larger number of individuals will be seeking professional assistance from private client and family advisory service providers.
A surge in the participation of affluent families and individuals is one of the predicted reason this expected growth. With family offices participating in equity investments in large numbers, the focus shifts to the investment landscape and alternative investments.
Shift Towards Retail-Friendly Platforms
According to research, despite a challenging start to the year with a negative 4.5% one-year net internal rate of return, private equity remains resilient. Industry leaders have recognized an inflection point and have been successful in embracing private wealth as a crucial source to raise capital.
The shift towards retail-friendly platforms has been a crucial trend in recent years. Top platforms have lower minimum investments that start from $25,000. Thus, these platforms ensure access to exclusive opportunities that were reserved for institutional investors traditionally.
With the investment landscape evolving, wealth managers are re-evaluating their recommended allocations. Top wealth management companies are largely recommending alternative investments to wealthy clients. Another survey revealed that for the wealthiest families, private equity holdings have soared to 26% of their portfolio assets. As much as 41% expressed their intentions to expand their private equity exposure in the following year.
Experts have rightly pointed out that private equity looks lucrative, since investors can access promising companies in the early phase of their lifecycles. Thus, they can perform better than historical records. This explains why such companies appeal to hungry investors.
The forecast reveals that although returns have been lower in recent years, there’s a divergence between managers. This explains the importance of exploring economic headwinds adeptly. Successful managers will look forward to driving operational improvements, setting themselves apart from the ones heavily reliant on favorable conditions for financing.
How The Private Equity Market Stands In The Coming Years?
A resurgence awaits the private equity market in the coming years. Experts identified two key factors in this regard: stabilizing rising interest rates and a shift in the exit environment. The recent slowing down of global economies will make leading markets look more promising, leading to smoother closures of deals in the coming years.
The resilience of private equity is worth noting, considering the lucrative returns that the market holds for investors. Wealthy individuals and single family office in Dubai need to embrace these opportunities. With adapting strategies to explore market dynamics, the IMC Group remains at the forefront of shaping a prosperous future of its esteemed clients.
- Article, Global
- February 2, 2024
Introduction
The Human Factor in Cybersecurity
Modern Approaches to Cybersecurity Training
Efficacy of Cybersecurity Training
Transition to Workplace Safety
Mitigating Social Engineering Risks
To mitigate social engineering risks, organizations implement practical training models such as:
- Simulated Phishing Exercises: Creating an environment for employees to recognize and resist manipulation tactics.
- Interactive Workshops: Conducting sessions covering the latest security threats, best practices, and real-world examples
Comprehensive Training Strategies
Monthly security awareness campaigns, security notice boards, two-factor authentication (2FA), and clear security policies form essential components of a comprehensive training strategy.
- Monthly Campaigns: Focused on specific safety topics, providing targeted information and resources.
- Security Notice Boards: Visual reinforcement serving as a constant reminder of the importance of workplace safety.
- Two-Factor Authentication (2FA): Adding an extra layer of security, mitigating the risk of unauthorized access.
- Clear Security Policies: Developing and communicating policies on acceptable use, data handling, and reporting procedures.
Conclusion
- NEWSLETTER,SINGAPORE
- February 1, 2024
- Remote Work: Expanding Horizons
- AI in Recruitment
- Unity in Diversity
- Hybrid Work Mastery Initiatives: Achieving Balance
- Shaping Tomorrow's Workforce Skills
- Leadership Development: Shaping Future Leaders
- Eco-Friendly HR Approaches: Guiding Sustainability
- Employee Well-being
- Digital Onboarding Insights
- HR and Blockchain: Ensuring Trustworthy Transactions
- Advanced Data Analytics
- Intelligent Workplace Technology: Enhancing Work Experience
- Future-Focused HR Analytics Insights
- Building an Employer Brand: Attracting and Retaining Premier Talent
- Versatile Work Arrangements: Powering Innovation
- Encouraging Belonging: Workplace Resource Groups
- Gaming for Growth: The Fun Path to Educational Success
- Mental Health Support
- Freelance Ecosystem Expedition: Navigating Integration
- Securing the Cyber Landscape: Advanced Training Strategies
- Virtual Learning Realities: Navigating the Future of Training
- Customized Rewards: Personalized Benefits Packages
- Conclusion: Mapping Your HR Path
2024 HR Trends in Singapore
Remote Work: Expanding Horizons
AI in Recruitment
Unity in Diversity
Hybrid Work Mastery Initiatives: Achieving Balance
Shaping Tomorrow's Workforce Skills
In 2024, Singapore’s dedication to lifelong learning becomes even more pronounced. Employers will actively endorse skill development, including payroll services, by offering chances for upskilling and reskilling and addressing skill gaps through career development opportunities. This guarantees that their workforce stays not only competitive but also ahead of the curve. Begin with advanced learning management systems, streamlining training and development to ensure an efficient and user-friendly process.
Leadership Development: Shaping Future Leaders
Eco-Friendly HR Approaches: Guiding Sustainability
Employee Well-being
Digital Onboarding Insights
HR and Blockchain: Ensuring Trustworthy Transactions
Advanced Data Analytics
Intelligent Workplace Technology: Enhancing Work Experience
Future-Focused HR Analytics Insights
Building an Employer Brand: Attracting and Retaining Premier Talent
Versatile Work Arrangements: Powering Innovation
Encouraging Belonging: Workplace Resource Groups
Gaming for Growth: The Fun Path to Educational Success
Mental Health Support
Freelance Ecosystem Expedition: Navigating Integration
Securing the Cyber Landscape: Advanced Training Strategies
Virtual Learning Realities: Navigating the Future of Training
Customized Rewards: Personalized Benefits Packages
Conclusion: Mapping Your HR Path
The 2024 HR trends in Singapore are more than just passing fads; they serve as keys to unlock a future filled with boundless opportunities. From the evolution of remote work to AI-driven recruitment and initiatives promoting diversity and inclusion, these trends embody a dynamic and inclusive vision for the workplace. To prosper in this constantly evolving landscape of industry trends affecting business performance, adopt these trends and navigate your way to success by enhancing positive employee experiences for a transformative impact on your business, including payroll services.
Thank you for being a part of this exciting journey into the future of HR digital transformation in Singapore. The adventure is only just beginning, and the most promising moments lie ahead for you as business leaders!
- NEWSLETTER, GLOBAL
- January 23, 2024
A recent survey sheds valuable light on the shifting risk appetite for family offices in Asia. The hunger for risks for these family offices used to be bigger compared to other global counterparts, but there has been a change of late. While a general trend was observed of family offices moving away from cash and towards risk assets, Asia stood out as a unique exception to this pattern.
A family office serves as a private client and family advisory firm that high-net-worth individuals often count on. They are different from traditional wealth managers as they offer exclusive services to affluent families or individuals.
The survey, encompassing family office clients with a collective net worth of $565 billion, revealed an interesting trend that merits our attention. Around two-thirds of the surveyed individuals were based outside North America.
According to experts, family offices in Asia chose risky assets to allocate more funds compared to low-risk assets in the initial part of the year. A notable 44% of their assets are allocated to private and public equity, a stark contrast to the 30-33% held in cash and fixed income. Compared to the family offices in Europe, the US, or Latin America, this difference looks much bigger.
Factors Fuelling the High Risk Appetite for Asian Family Offices
Different factors shaped this risk appetite for family offices in Asia. These include early bets on post-Covid recovery in China and historically low rates of interest. While these factors sparked the initial appetite for risk, the trend evolved with the potential slowdown in China and disruptions in global supply chains. This explains the motive of family offices re-evaluating portfolio allocations.
The contrasting performance of equity markets makes the trend more interesting. While Asian markets, led by Hong Kong’s Hang Seng index and mainland China’s CSI 300, experienced declines, the S&P 500 and Europe’s Stoxx 600 demonstrated robust growth.
Singapore emerged as the global hub for family offices, occupying a prominent place in the evolving market. According to reports, Asia houses 9% of the global family offices, with Singapore leading the list. This country has around 59% of Asia’s family offices, as of 2023. This serves as a testament to the city-state’s proactive regulatory stance and attractive tax environment. While Hong Kong has 14% of Asia’s family offices, around 13% are located in India. Thailand, Malaysia, and Pakistan host the remaining family offices.
Many experts consider Singapore to be a preferred destination for global family offices. This makes it a strategic place from where high-net individuals can access different investment opportunities across Asia.
Seeking Professional Financial Advice from Experts
The shifting dynamics of family offices in Asia demonstrate the resilience and adaptability of wealth management strategies. While global trends indicate a move towards risk assets, Asian family offices are re-evaluating their portfolios in response to regional and global economic shifts.
The IMC Group continues to be a trusted partner for family advisory services. With professionals to assist you in handling finances, you can invest in the right avenues to maximize your returns.
- NEWSLETTER,U.A.E
- January 11, 2024
Corporate Tax Registration Process
At the outset, businesses in the UAE need to get their entities registered to establish their legal existence. Thanks to the streamlined process of online registration, it takes little time to get your business registered with the regulatory authorities. Once recognized, businesses in the UAE are recognized as registered taxpayers. The fast process also allows ample time for authorities to review applications and provide feedback.
The Emaratax technology helps corporate tax registration align with the information submitted earlier for VAT. An early application helps in detecting potential loopholes in VAT registration. Fixing these information loopholes is crucial before businesses smoothly complete the corporate tax registration process.
Avoid a AED 10,000 fine by Meeting UAE's Corporate Tax Deadlines. Contact us for Expert Tax Compliance Guidance and Protect your Business.
Knowing License Categories
For businesses operating in the UAE, the different categories of licenses present surprises since they are habituated to working under established category for years. Notably, branches of a UAE company, especially those spanning multiple emirates, are viewed as extensions of the main head office license and do not require separate registration. Obtaining additional licenses merely by appending ‘branch’ to the name may risk categorizing these licenses as separate entities, subjecting them to distinct regulatory requirements.
Businesses operating under multiple sole establishments or civil company licenses across emirates face similar challenges in the emirates. This challenge becomes particularly pressing for companies when they are coupled with separate VAT registrations. This explains why it’s imperative to identify the license category accurately. Businesses aiming to qualify for small business relief (SBR), particularly regarding financial resources, unified management, and shared bank accounts should focus on this crucial process.
Planning to Close the Company in 2024? Clarifications Await
Often, business owners seem to be reluctant to register for corporate tax, particularly when they consider liquidating their company in 2024. It is crucial to dispel the misconception that liquidating a company absolves it from tax obligations. Businesses need to register their commercial entity, submit a corporate tax return for the truncated financial year, and then commence the de-registration process. Any delays in compliance may attract penalties, including those on legal representatives.
Different tax authorities in the UAE need to coordinate on the matter. Therefore, obtaining corporate tax clearance might be a prerequisite for approving company liquidation, prioritizing the importance of timely compliance.
Tax Benefits for Free Zone Companies
Recent developments have granted commodity traders operating from non-designated zones a preferential tax rate of 0% on income generated on qualifying commodity trading. However, companies established in ‘designated zones’ continue to face complexities when it comes to their eligibility for preferential tax rates on direct/third-port shipments and ‘high-sea sales.’
Considering the ongoing debate, it’s important to determine the eligibility of your business based on its location and goods. Relying solely on public consultation documents may not be the logical approach. Free zone companies engaged in various qualifying activities must understand the scopes of inclusions and exclusions regarding their qualifying activities.
Adequate Substance: Ensuring Tax Benefits
For companies eligible for free zone tax benefits, maintaining adequate substance in the respective free zone is imperative. The restructuring required to meet substance requirements could be substantial. With the new era of tax regulations posing considerable challenges, businesses must be meticulous while planning. Inadequate planning or inexperience can lead to missed opportunities or penalties.
The IMC Group continues to be one of the trusted corporate tax consultants in Dubai. Businesses can reach out to these professionals for sound advice and remain on the right track amidst the evolving tax regulatory regime.
- NEWSLETTER,U.A.E
- January 11, 2024
As the UAE braces up for a new era of corporate taxation in 2024, businesses operating in the country should equip themselves with the necessary procedures and knowledge to comply with the upcoming corporate income tax regulations. Successful enterprises and organizations seek corporate tax advisory in Dubai from established partners for adherence to the new policies. Let’s take a look at new corporate tax compliance requirements in the UAE in 2024 in this edition.
- Register for Corporate Tax
- Necessary Documents for Corporate Tax Registration
- Maintaining proper accounting records
- File a Corporate Tax Submission
- Corporate Tax Rates Businesses Musk Know
- Corporate Tax for Free Zone Companies
- Relief for Small Businesses
- Calculating Taxable Profit
- Differentiating VAT and Corporate Tax
- What are the administrative penalties?
Register for Corporate Tax
In the UAE, the implementation of corporate tax is set to commence from the first financial year starting on or after 1st June 2023. All companies, including the ones operating in free zones, should register for corporate income tax, regardless of their existing VAT registrations.
The Emara Tax portal on the Federal Tax Authority’s (FTA) website facilitates this process, offering a seamless registration experience. The registration process is simple, and it won’t take more than 30 minutes to complete the process. A comprehensive video guide is available on the website for FTA to assist businesses. Even companies that have already registered for VAT and Excise Tax can complete their corporate tax registration through the portal.
Businesses that aren’t currently registered for Excise Tax or VAT first need to create a new user profile on Emara Tax. Next, they need to choose corporate tax registration and complete the application process. For your application to be successful, it’s imperative to furnish accurate information and update the supporting documents.
Necessary Documents for Corporate Tax Registration
The necessary documents to complete corporate tax registration of Legal Persons include:
- An Emirates ID of the authorized signatory
- Proof of authorization (POA/MOA) for the signatory
- Trade license or business license
- Passport
The FTA requires businesses to provide accurate percentages of shareholding that correspond to the actual holdings of the owners and align the date or incorporation with the commencement date of the company as per the MOA. Entities must also provide the tax period. Businesses willing to form a Corporate Tax Group have to register individually. They have to obtain a Tax Registration Number and apply to establish a Corporate Tax Group at a later date, according to FTA’s guidelines.
Maintaining proper accounting records
The corporate tax law in the UAE makes it mandatory for businesses to maintain specific accounting records. Companies must seek assistance from professional teams for compliant bookkeeping and accounting. Reputed tax consultants in Dubai can provide you with the necessary assistance and advice in this regard.
File a Corporate Tax Submission
Avoid a AED 10,000 fine by Meeting UAE's Corporate Tax Deadlines. Contact us for Expert Tax Compliance Guidance and Protect your Business.
Corporate Tax Rates Businesses Musk Know
The corporate tax rates in the UAE are based on annual net profits.
- Tier 1: For companies with annual net profits up to AED 375,000, no tax has to be paid
- Tier 2: For companies with profits of more than AED 375,000, a 9% tax rate has to be paid
- Tier 3: Large MNCs need to pay tax at a different rate as per OECD Pillar Two guidelines
Corporate Tax for Free Zone Companies
Relief for Small Businesses
Calculating Taxable Profit
Differentiating VAT and Corporate Tax
What are the administrative penalties?
Businesses in the UAE failing to adhere to corporate tax regulations may face administrative penalties ranging from AED 500 to AED 20,000 from 1st August 2023.
The FTA has launched an extensive awareness campaign to help the business community understanding the implications of corporate income tax. This educational initiative includes several workshops, sessions, and webinars to provide in-depth insights into the Corporate Tax Law. This will help foster a culture of self-compliance among businesses. Both taxpayers and the broader business community will benefit from this programme.
Notably, virtual workshops conducted in Arabic and English on ‘Corporate Tax Registration’ cover critical aspects, including the creation of a new user profile on the Emara Tax portal, necessary documentation, application procedures, and obtaining a UAE Corporate Tax Registration Number.
As a leading company providing corporate tax advisory in Dubai, the IMC Group continues to assist businesses comply with tax norms. With professional guidance, businesses can make conscious decisions to ensure tax compliance.
- NEWSLETTER,SINGAPORE
- January 11, 2024
On October 24, MAS launched a comprehensive public consultation to streamline the regulatory norms for fund managers. The proposed changes involve phasing out the Registered Fund Management Companies (RFMC) regime. This is a crucial move to reinforce regulatory oversight and enhance the standards of the industry.
Introduced in 2012, the RFMC regime succeeded the Exempt Fund Managers (EFMs) regime. It went a long way in enhancing regulatory oversight. MAS is proposing that existing RFMCs re-register as Licensed Fund Management Companies (LFMCs), to align with current industry standards and cater to accredited or institutional investors (A/I LFMCs).
Transitioning Process and Key Changes
Existing RFMCs interested in becoming A/I LFMCs will be required to submit a detailed form within a prescribed application window. This form will specify their assets under management and confirm their commitment to adhere to regulatory requirements established for A/I LFMCs.
RFMCs can continue their operations as usual during the transition period. MAS will retain the SGD 250 million limit on managed assets and a maximum of 30 accredited or institutional investors for RFMCs. RFMCs opting for this transition will not incur any application fees. This will facilitate a smooth transition and encourage the participants of the market to adapt to the evolving regulatory norms.
According to MAS, the RFMC regime has helped in the transition from the EFM regime. A number of RFMCs have become A/I LFMCs, and new entrants are willing to carry out management in Singapore. They are not interested in applying to be RFMCs, but A/I LFMCs.
Next Steps
Participants of the industry can provide their valuable feedback and insights on these proposed changes to MAS till December 31. This brings an opportunity for stakeholders to contribute to regulatory adjustments to further refine them.
At the IMC Group, we understand the significance of staying informed and engaged in regulatory discussions. We encourage our partners to actively participate in the consultation process. This ensures that they can consider diverse perspectives in shaping the future of fund management in Singapore.
- NEWSLETTER, GLOBAL
- January 10, 2024
Now that we are already into 2024, it’s time to have a look at the significant transformations in Governance, Risk, and Compliance (GRC). With global end-user spending on risk management and cybersecurity projected to reach $215 billion, the dynamics of GRC programs are evolving rapidly. As a forward-thinking business, you would be interested to know about governance risk management and compliance trends and seek professional solutions from experts.
It’s time to explore the key trends that will shape the GRC landscape this year.
- AI Revolutionizing GRC
- Connected GRC Strategy for Enhanced Visibility
- Turning Risks to Rewards through Continuous Control Monitoring
- Proactive Compliance as a Business Imperative
- Cyber Risk Optimization for Resilient Enterprises
- Third-Party Risk Management Takes Center Stage
- Better Resilience Can Define Risk Management
- Gaining strategic advantage by quantifying non-financial risks
- Integrated Platforms for Simplifying GRC
- Empowering The Frontline in Risk Management
AI Revolutionizing GRC
Connected GRC Strategy for Enhanced Visibility
Turning Risks to Rewards through Continuous Control Monitoring
Traditional control testing and monitoring fall short in the face of evolving organizational complexities. A study involving 500 risk leaders revealed that 70% consider access to optimized real-time alerts to mitigate the effect of serious risk events significantly. The evolving complexity of organizations renders traditional control testing and monitoring insufficient.
Operating in 2024, businesses need to prioritize real-time risk visibility and continuous control monitoring. This approach strategically monitors and tests security controls, detecting risks, issues, and potential threats automatically from diverse sources of data.
Proactive Compliance as a Business Imperative
The True Cost of Compliance report highlights an 18.8% surge in financial crime compliance expenses since 2020. Tackling such regulatory changes accompanied by compliance costs requires organizations to adopt a proactive stance. This involves leveraging AI on a centralized platform to automate recommendations and integrate enterprise systems with effective compliance and risk management systems to uniformly view compliance.
Cyber Risk Optimization for Resilient Enterprises
Third-Party Risk Management Takes Center Stage
Better Resilience Can Define Risk Management
Gaining strategic advantage by quantifying non-financial risks
Integrated Platforms for Simplifying GRC
Empowering The Frontline in Risk Management
With the spotlight shifting to the frontline in risk management, it’s crucial to delegate more responsibilities to the frontline along with comprehensive training and tools. Advanced GRC technologies, including conversational interfaces and AI/ML, will streamline frontline engagement.
The IMC Group remains committed to empowering organizations with governance risk management and compliance solutions to explore the ever-evolving GRC landscape. With professional assistance on the side, businesses can secure their operations as they stride ahead.
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- 170+ Countries
- 390+ Locations
- 13,000+ Professionals
- 1800 + Global Partners
- 170+ Countries
- 390+ Locations
- 13,000+ Professionals
- 1800 + Global Partners
