- Article, Global
- July 5, 2024
Enhancing Decision-Making With AI
Streamlining Financial Operations
Enhancing Risk Management
Driving Strategic Planning
Better Financial Reporting
Conclusion
Using CFO Artificial Intelligence in financial tasks is necessary to make them run more smoothly. It can help people make better choices and grow in a planned way. Using AI, CFOs can deal with complexity, take advantage of chances, and stay ahead of the competition. One can check out specific CFO Advisory Services to get expert advice on how to use AI successfully.
- Article, Global
- July 1, 2024
The digitized business environment has witnessed the integration of AI into most of the core departments of enterprises. Particularly, AI has revolutionized fields like finance and accounting, which are vital for every organization across different verticals. Forward-thinking entrepreneurs are embracing AI-enabled systems to remain competitive, as these intelligent systems provide valuable insights and save their time.
Prioritizing data safety and the efficiency of operations, leading companies have already switched to cloud accounting services. Along with IoT and AI, cloud accounting is one of the key features that define Industry 4.0, highlighting the pivotal role of AI in shaping the future of accounting and finance.
How does AI streamline finance and accounting?
AI significantly automates processes involved in accounting and financial tasks. This liberates as much as 80% to 90% of the time for your workforce, as technology handles mundane operations. Automation not only significantly reduces the time spent on repetitive tasks, enhancing output quality by minimizing human error, but also provides a sense of relief to your team, allowing them to focus on more strategic and value-added activities, thereby reducing their workload and increasing their job satisfaction.
Almost all accounting functions have been automated by AI, from banking to audits and payroll to tax. This has significantly transformed business operations. AI not only enhances output and productivity but also ensures greater auditability and transparency. It reduces time-consuming tasks that were manually handled in traditional organizations. With the power of machine learning (ML), finance professionals can now accurately forecast financial statements based on historical data, providing a solid foundation for decision-making and potentially revolutionizing the way financial planning is done.
On the other hand, Robotic Process Automation (RPA) is used by accounting heads to handle repetitive tasks efficiently. These include analyzing documents and vast amounts of data, eventually relieving your financial team from non-core tasks.
Crucial applications of Intelligent Automation and RPA in accounting
Have a look at the key applications of RPA and intelligent automation in accounting:
- Processing documents in real-time: AI uses natural language processing and computer vision to process documents. Accounting professionals benefit from real-time reports, which help them to make proactive decisions.
- Automated authorization: AI processes and automates document authorization, which improves different internal accounting processes. It streamlines tasks like invoicing, procurement, preparing expense reports, and accounts management.
- Detecting fraud: Powerful ML algorithms have been designed to analyze vast amounts of data to identify potential fraud. These algorithms flag issues to be reviewed, thereby preventing loss of revenue.
7 Ways to Use AI in Accounting and Finance
1. Processing payables and receivables
2. Onboarding suppliers
3. Procurement processes
4. The scope of auditing
5. Managing cash flow
6. Expense management
7. Chatbot support
Outsource finance and accounting services to experts
With most of your competitors embracing cloud accounting technologies, it’s time to streamline your operations. The most cost-effective approach is to outsource finance and accounting services to established service providers like the IMC Group. With outsourced accounting and financial services, you can entrust experts to streamline your process, reduce costs, and drive the growth of your business. While the professionals take care of your finance and accounting services, you can focus on your core competencies and achieve success. A professional team will leverage AI and other leading technologies to ensure a flawless accounting system for your organization. Seek expertise when it matters the most and embrace the growth trajectory.
- NEWSLETTER, GLOBAL
- June 26, 2024
HR professionals across the globe currently find themselves divided over their opinions on the use of artificial intelligence (AI) in the recruitment process. While one group is eager to embrace intelligent technologies to streamline their hiring mechanism, others prefer cultivating more restraint while adopting AI. Amidst this raging debate, a middle ground is gradually showing up, where HR leaders acknowledge the importance of incorporating AI tools into their operations. Interestingly, top HR professionals are seeking AI tech solutions to ensure that they remain on the right track while incorporating AI.
The evolution of AI is evident in different sectors that are adopting the technology to enhance their operations. Currently, 76% of HR leaders believe that it’s imperative for them to incorporate AI solutions into their operations within the next couple of years. Failure to do so will put them in the backseat, as their competitors are likely to harness the power of AI.
- Why Does AI Matter for Human Resource Leaders?
- How Do HR Leaders Strengthen The Hiring Process Through AI Integration?
- The Role of AI In Employee Engagement And Talent Management
- AI in Learning and Development
- AI in Streamlining Payroll Management
- AI in Enhancing Employee Satisfaction and Retention
- AI-Powered Decision-Making in HR
- Potential Obstacles and Key Considerations for AI Integration in HR
- Harmonizing AI with Human Efforts
Why Does AI Matter for Human Resource Leaders?
Across the globe, HR leaders are embracing AI since this technology emulates human intelligence through programmed machines or systems. Intelligent systems in the HR departments mimic the human thought processes. As these tools work on more data over time, they gain competence in solving problems, learning from their previous interactions. Thus, these tools are capable of making accurate predictive analyses.
AI significantly helps HR leaders curtail costs, automating routine tasks and evaluating extensive datasets. Sophisticated tools have been developed to extract insights to ensure informed decision-making across HR departments. AI leverages natural language processing (NLP), data analytics, and machine learning (ML) to carry out a wide range of tasks, ranging from acquiring talent to onboarding and assessing employee engagement to managing people.
Have a look at the four crucial applications of AI in HR operations.
1. Screening and recruitment tools
2. Generative AI
3. Chatbots and virtual assistants
4. Performance management systems
How Do HR Leaders Strengthen The Hiring Process Through AI Integration?
The advent of AI has revolutionized the hiring process, as HR leaders use smart tools to enhance operations in the following ways.
- Streamlining recruitment: AI tools are trained to identify qualified candidates quickly. Thus, these tools refine the pool of candidates and shortlist the best ones for specific roles.
- Quality of resources: The quality of hires remains the most powerful asset for any organization. AI algorithms scrutinize the historical performances of employees to predict how successful an employee can be in a particular role. Smart tools also help HR leaders in sourcing passive candidates.
- Applicant analysis: With AI tools, recruiters can speed up the hiring process as the technology quickly evaluates the profiles of candidates, their resumes, locations, salary expectations, and career aspirations.
The Role of AI In Employee Engagement And Talent Management
HR professionals can leverage AI-driven tools to enhance talent management and boost employee engagement initiatives—from promoting employee growth, engagement, and retention to sourcing and recruiting top candidates. Here’s how AI equips HR leaders to provide outstanding experiences for both candidates and employees:
- AI-powered solutions help HR leaders improve talent management and employee engagement programs—from identifying and hiring top talent to fostering employee development, engagement, and retention. Employee engagement: AI is necessary to carry out surveys, collect feedback, and analyze the sentiments of employees. In this way, HR professionals detect retention risks and find out areas of improvement.
- Talent management: Using AI, HR leaders design personalized career paths that align with the skills and goals of each employee. Thus, they identify opportunities for upskilling, provide feedback, and develop succession plans.
AI in Learning and Development
AI algorithms play a pivotal role in analyzing employee feedback, performance evaluations, and past learning engagements. This helps the organization in several ways, as presented below.
- Developing customized learning experiences: AI helps HR leaders understand the uniqueness of each employee. Thus, these tools develop customized learning programs considering the learning style, career aspirations, and skill gaps of each individual.
- Career progression through competency mapping: Intelligent algorithms provide accurate predictions of talent requirements in the future and identify upskilling opportunities. Thanks to AI-driven skills databases, talent acquisition and HR leaders craft career trajectories to optimize internal talent while visualizing the future needs of their organizations.
AI in Streamlining Payroll Management
Incorporating AI into HR reduces human errors in payroll management. AI automation streamlines routine tasks, relieving HR professionals to focus on their core competencies that need human expertise.
AI enhances precision by automating tasks like payroll processing and benefits administration, thereby minimizing human error. This accuracy guarantees correct compensation and benefits for employees while reducing mistakes. Moreover, intelligent systems automate compliance checks, mitigating risks of errors, penalties, and legal challenges.
According to research from a top firm, human errors in payroll are common, with missed or incorrect time punches being the most frequent. Fixing these errors incurs both direct and indirect costs, averaging $291 per incident. Some errors, such as those related to employee onboarding, can be even more expensive, averaging $635 per incident.
AI in Enhancing Employee Satisfaction and Retention
AI algorithms excel at data analysis, predictive modeling for employee turnover, and developing retention strategies based on the preferences of employees. Check out how AI strengthens employee retention efforts.
- AI empowers employees to automate the scheduling of shifts to ensure proper work-life balance
- HR leaders use AI to provide additional training to employees to combat new challenges and recommend growth strategies to boost engagement
- AI helps in identifying behavioral patterns such as falling behind schedule to understand the needs of employees and address their pain points effectively
The transformative power of AI enables HR leaders to make faster decisions with accuracy. This goes a long way in refining the hiring process, tweaking strategies and enhancing the overall satisfaction of employees.
AI algorithms are trained to analyze market data trends and workforce data, forecasting future needs and making adjustments in real-time.
AI-Powered Decision-Making in HR
HR leaders highly value the ability to make quick and accurate decisions. AI offers enhanced data and insights, which HR professionals are increasingly using to save time, increase efficiency, optimize recruitment processes, and reduce costs.
AI-powered recruitment platforms provide real-time insights into job postings, candidate sourcing, and hiring processes. This capability allows HR teams to refine their strategies based on applicant feedback, improving the candidate experience and increasing conversion rates. Moreover, AI algorithms can analyze workforce data and market trends to predict future needs, allowing HR teams to adjust staffing levels and recruitment strategies in real-time.
According to SHRM research, the use of AI in HR is rapidly expanding, offering greater flexibility in various HR functions:
- Recruitment and Hiring: With a 64% adoption rate, AI enhances talent acquisition by creating job descriptions, generating interview questions, and reviewing resumes.
- Professional Development and Training: AI tools can suggest or customize educational opportunities, track learning progress, aid in upskilling or reskilling, and develop new training content.
- Workforce Performance and Optimization: Although still emerging, AI in performance management aids in objective performance reviews, goal setting, workforce planning, and automating labor-intensive HR tasks.
Potential Obstacles and Key Considerations for AI Integration in HR
Although AI offers many advantages, integrating it into HR processes involves addressing several challenges and considerations, including:
- Concerns about data protection and privacy due to the collection, storage, and analysis of personal information.
- The risk of algorithmic bias if AI systems are trained on data that is not diverse, equitable, or inclusive.
- The reliability of AI outputs, as there is potential for the provided information to be factually incorrect.
- Issues of transparency, ensuring that applicants and employees understand how their information is being used and how decisions are made by AI systems.
- The ongoing need for human oversight and input in the talent acquisition process.
Harmonizing AI with Human Efforts
Adopting the future of HR necessitates acknowledging the dynamic interaction between AI advancements and regulatory frameworks while committing to continuous learning and adaptation. HR leaders need to stay updated on AI innovations and regulatory requirements.
Engaging actively in industry forums, pursuing continuous professional development, and collaborating with regulatory bodies are essential for the responsible and ethical integration of AI into human resources. By taking this proactive approach, HR teams can effectively navigate challenges and seize opportunities, ensuring compliance and positioning HR as a driver for innovative organizational change.
IMC Group leads in future-of-work technologies, including AI, providing globally compliant employee benefit solutions, worker mobility solutions, and global payroll service. This allows both employees and employers to concentrate on their essential tasks while leaving the complexities of HR management to IMC Group.
- NEWSLETTER, GLOBAL
- June 21, 2024
In the fast-evolving global business environment, following the growth trajectory turns out to be a challenge. Forward-thinking enterprises seek due diligence services from professional teams to remain on the right track.
In this edition, we will discuss how due diligence practices have been evolving with the inception of AI. We have also highlighted the strategic advantages it offers in structuring deals, risk mitigation, and post-transaction integration. With these guidelines, business leaders can explore the challenges associated with striking deals during M&A activities with confidence.
What makes due diligence so crucial?
Due diligence services serve as a crucial mechanism to identify potential risks and opportunities within M&A transactions. Check out these four crucial functions of due diligence in this context.
- It helps in the early detection of red flags, pinpointing deal-breaker issues that could significantly affect the viability of the transaction or require further negotiations
- Due diligence is necessary to evaluate factors that impact price negotiations, like pending litigation, contractual obligations, or concerns related to regulatory compliance
- Experts offering mergers & acquisitions advisory services prioritize due diligence since it helps in understanding and mitigating risks inherited by buyers after the acquisition
- Through due diligence, business leaders can gain comprehensive insights into the financial health, operations, and potential business prospects of the target company
Involvement of the partner in due diligence
Partners play a critical role in driving effective due diligence practices.
- Collaborating closely with clients, partners help them grasp strategic business goals and risk tolerance levels, thereby aligning their efforts with their priorities
- Partners guide and direct companies through due diligence to streamline processes and carry out thorough investigations, besides advising them on intelligent resource allocation
- Partners play a key role in assessing and communicating critical issues identified during due diligence. Thus, they help businesses make informed decisions and carry out discussions with transparency
- Working with partners, companies can oversee the development of the due diligence reports and make sure that they reflect their client interests accurately. Thus, you gain a detailed insight into risk considerations and strategic objectives to make informed decisions
The Evolving Nature of Due Diligence Powered By AI
The integration of AI-powered tools has revolutionized due diligence practices. Intelligent technologies offer strategic benefits in reviewing documents and assessing risks.
- With AI tools, enterprises can quickly and accurately review large volumes of documents like financial statements, contracts, and regulatory filings
- AI algorithms are capable of detecting potential risks, patterns, and inconsistencies. Thus, these tools point out areas that require closer scrutiny
- AI-powered platforms streamline due diligence processes, improve data organization, and foster better collaboration among diligence teams. This significantly strengthens your risk mitigation strategies
- Business leaders and decision-makers count on AI-generated for valuable information and actionable recommendations to structure deals and negotiation tactics
The evolving nature of due diligence justifies why mastering Due diligence for effective M&A is crucial for companies eyeing rapid expansion.
Seek Professional Due Diligence Services
Advancements in AI technology are likely to further complicate due diligence. Successful businesses are likely to consult reputed partners like the IMC Group for due diligence services. With seasoned advisors on the side, global enterprises can effectively leverage AI tools and navigate complex deal landscapes effectively. The professionals can strengthen their approach to due diligence with better risk-mitigation strategies, leading to successful deal outcomes.
- NEWSLETTER,U.A.E
- June 18, 2024
Federal Tax Authority Announces Decision No. 7 of 2024
On September 25, 2024, the Federal Tax Authority (FTA) issued Decision No. 7 of 2024, which grants an extension for filing the Corporate Tax Return and settling the tax liability for certain companies, as outlined in the Federal Decree-Law No. 47 of 2022 on Corporate Taxation.
Key Details of the Decision: The new deadline for filing and settling Corporate Tax has been extended to December 31, 2024, provided the following conditions are met:
- The company was incorporated, established, or recognized on or after June 1, 2023.
- The company’s tax period ends on or before February 29, 2024.
Under Article 51 of Federal Decree Law No. 47 of 2022, known as the “Taxation of Corporations and Businesses” (UAE CT Law), taxable entities are required to register. The Federal Tax Authority (FTA) is empowered to set the registration timelines for all taxable persons.
The FTA issued Decision No. 3 of 2024, outlining the necessary registration deadlines, which are likely to be effective from 1st March, 2024. On 4th June 2024, the FTA released a ‘Corporate Tax Public Clarification’ titled “Registration Timelines for Taxable Persons for Corporate Tax”. It presents taxable persons with detailed timelines for submitting their tax registration applications. As a part of the clarification, the FTA has given examples to help taxpayers adhere to the prescribed timelines.
Every taxable individual, including those operating within a free zone, must secure a corporate tax registration number. Taxable individuals are required to retain all pertinent records and documentation for a duration of seven years after the end of the tax period. Upon request by the FTA, taxpayers are obligated to provide the financial statements that were used to calculate their income for the specified tax period. Corporate tax applies to all “taxable persons,” whether they are residents or non-residents.
For all taxable entities, it’s imperative to register with the FTA by the specified deadlines. In case of non-compliance, they need to shell out AED 10,000 as an administrative penalty for late submissions. Depending on the type of taxable person, the deadlines in FTA Decision No. 3 vary.
- Natural Person
- Non-Resident Juridical Person
- Resident Juridical Person
Analysis
A. Resident Juridical Person
Incorporated or Established Before 1st March 2024
A juridical person incorporated or recognized before 1st March 2024 must submit a Tax Registration application based on the month of the issuance of their license, within the deadlines specified in FTA Decision 3 of 2024, regardless of whether the license is valid or expired.
Example: Company X possessed a license that expired on 31 March 2022.
Company X, being a Resident Person incorporated in the UAE, must submit its Tax Registration application referencing the month of the issuance of its license. Although the license expired, the application for Corporate Tax registration must reference April, with a submission deadline of 30 June 2024.
Incorporated or Established on or After 1st March 2024
For juridical persons newly incorporated or recognized in the UAE on or after 1st March 2024, a Tax Registration application must be submitted within three months of their incorporation, establishment, or recognition.
Example: Company Y, incorporated on 16 June 2024 in Sharjah, is a Resident Person because it was established in the UAE. Since it was incorporated after 1st March 2024, the company must submit its Tax Registration application by September 16th, 2024, which is within three months of its date of incorporation.
30-Minutes Free Consultation:
Juridical Person with POEM in the UAE Before 1st March 2024
A juridical person incorporated or recognized abroad but managed and controlled (POEM) in the UAE is considered a Resident juridical person under UAE CT Law. In case such a person doesn’t hold a license as of the effective date of FTA Decision 3 of 2024, it’s imperative to submit a Tax Registration application within three months from that date, which is by 31st May 2024.
Example: Company Z, incorporated on 1 April 2019 in the UK, has had its POEM in the UAE since 1 April 2022. It is a Resident Person as of 1 June 2023 due to its POEM in the UAE. Since it is a Resident Person before 1 March 2024, Company Z must submit a Tax Registration application referencing its date of license issuance.
Given that Company Z doesn’t hold a UAE licence since its board meetings are only conducted in the country, it needs to submit its application for Tax Registration within 3 months of the effective date of FTA Decision No. 3 of 2024, which is by 31 May 2024.
Juridical Person with POEM in the UAE After 1st March 2024
A juridical person incorporated, established, or recognized under foreign legislation but with POEM in the UAE on or after 1st March 2024, must submit a Tax Registration application within three months from the end of its financial year.
Example: Company A, incorporated on 1 April 2024 in Germany, follows a financial year from April to March. All its strategic decisions and board meetings and 2024 and 2025 are organized in the UAE.
Company A is a Resident Person due to its POEM in the UAE for the financial year that ends on 31 March 2025. Since Company A became a Resident Person in the UAE after 1 March 2024, it needs to submit a Tax Registration application within 3 months from the end of its financial year. This deadline has been fixed on 30 June 2025.
Key Considerations
If a juridical person holds an expired license which is not yet cancelled as of 1 March 2024, they should submit their Tax Registration application based on the month of the original license issuance.
If a juridical person holds multiple licenses as of 1 March 2024, they should use the license with the earliest issuance date to determine deadline of the Tax Registration application. The earliest issuance date should be based on the year of license issuance, but only the month of issuance is relevant for deciding the deadline.
Determining whether or not a juridical person is effectively managed and controlled in the UAE requires an assessment of the specific circumstances and facts of the entity and its activities.
B. Non-Resident Juridical Persons
Non-Resident Juridical Person with a PE in the UAE Pre-1st March 2024
For a Non-Resident Juridical Person having a Permanent Establishment (PE) in the UAE before 1st March 2024, the CT Registration application deadline is within 9 months from the recognition of the PE for CT purposes in the UAE. This timeline may be extended if an International agreement on Double Taxation Avoidance (DTAA) stipulates a longer duration for PE recognition in the UAE, in which case the provision of the DTAA remains valid.
Example: Company B, established on 15th July 2008 in the UAE (FY from June to May), established a branch in Dubai on 01 May 2023. The company falls under CT regulations from 01 June 2023 (as per UAE CT Law, effective from this date).
Assuming all PE criteria are met, the permanence of PEs in the UAE is assessed over a six-month period, ending on 01 December 2023.
Non-Resident Person with a PE in the UAE On or After 1st March 2024
In case a Juridical Person has a Permanent Establishment (PE) in the UAE, the deadline to submit a CT Registration application is within 6 months from the recognition of the PE for UAE CT purposes. Also, if a Double Taxation Avoidance Agreement (DTAA) extends the duration for recognizing a PE in the UAE, the provision of DTAA remains valid.
Example: Company C, incorporated on 22 October 2019 in Luxembourg, established a branch in Abu Dhabi on 01 July 2024. Considering that it met all other PE requirements, the permanence of the PE in the UAE is evaluated over a six-month period, concluding on 01 January 2025.
Therefore, the PE recognition date for Company C is 01 January 2025 (6 months from 01 July 2024). The company must submit its CT Registration application within 6 months from the recognition date of the PE, by 01 January 2025. Therefore, the due date for CT Registration is 01 July 2025.
Non Resident Person having nexus in the UAE prior to 01 March 2024
For a Non-Resident Juridical Person having a nexus in the UAE where it derives its income from Immovable Properties in the country, the due date to file the CT Registration application will be from 3 months from the effective date of FTA Decision no. 3 of 2024.
Example: Company D was incorporated on 3 January 2024 in Oman, and it purchased residential property for investment purposes in Dubai on 10 January 2024. On 15th February, the company rented out the property. Company D does not have a Permanent Establishment in the UAE. In this case, it will be considered as a Non-Resident Person because Company J is a Non-Resident Person because it is not a Resident Person and has a nexus in the UAE. Even though it purchased the property on 10th January 2024, it had no income from it till February 15th. Therefore, its nexus in the UAE is considered to be on 15th February 2024.
Company D, being a Non-Resident Person with a nexus in the UAE before 1st March 2024, should have submitted its Tax Registration application within 3 months from the effective date of FTA Decision No. 3 of 2024, on 31 May 2024.
Want to Know more about Corporate Tax Advisory in Dubai UAE?
Non-Resident Person with Nexus in the UAE After 1st March 2024
C. Natural Person (Resident and Non-Resident)
For a Resident Natural Person with a business turnover exceeding AED 1 million during a Gregorian calendar year in the UAE, the deadline to submit a Tax Registration application is by 31 March of the subsequent Gregorian Calendar Year (starting from 1 January 2024).
A Non-Resident Natural Person with a business turnover from a Permanent Establishment (PE) in the UAE exceeding AED 1 million during a Gregorian calendar year needs to submit the application within 3 months of fulfilling the requirements for which the entity needs to pay Corporate Tax.
Example: Mr. X is considered a tax resident in Spain as per an international double taxation avoidance agreement between the two countries. However, he travels to the UAE from 27th January 2024 to carry out business as an independent IT consultant. Thus, he creates a PE in the country as per the applicable international agreement to avoid double taxation. The business turnover for Mr. X in the 2024 Gregorian calendar year amounts to AED 1.2 million, which exceeds the AED 1 million threshold on 10th November 2024.
As a Non-Resident Natural Person, Mr. B meets the requirements of being subject to Corporate Tax with a turnover of AED 1.2 million from a PE in the UAE. Thus, he needs to submit his Tax Registration application within 3 months of fulfilling the criteria of being subject to Corporate Tax. Calculating 3 months from 10th November 2024, this date comes to 10th February 2025.
Points to Remember
- If a Non-Resident Juridical Person has both a PE and a nexus in the UAE, the due date of the CT registration application is the earlier of the two deadlines
- If a Double Taxation Avoidance Agreement (DTAA) extends the duration for recognizing a PE in the UAE, the DTAA provision remains valid
- NEWSLETTER,U.A.E
- June 12, 2024
Dubai Industrial City, a leading industrial and logistics hub in the region and part of TECOM Group PJSC, has announced a significant expansion that can strengthen the manufacturing sector in the UAE. It has acquired a massive space of 13.9 million square feet of additional land as a part of this strategic move. The announcement was made on May 27-28 during the Make it in the Emirates Forum in Abu Dhabi program. This acquisition promises a boost to the country’s manufacturing sector, enhancing local supply chains and expanding the home-grown manufacturing sector in Dubai and the UAE. The significant acquisition by Dubai Industrial City is likely to encourage foreign players eyeing a business setup in Dubai to benefit from its growth trajectory.
Dubai Industrial City secured this expansion through a massive transaction of AED 410 million. It was announced in the presence of notable figures like the UAE Minister of State for Public Education and Advanced Technology, Sarah Al Amiri. Other key figures present during the announcement include Omar Al Suwaidi, the Undersecretary of the UAE Ministry of Industry and Advanced Technology, Malek Al Malek, Chairman of TECOM Group, Abdulla Belhoul, the Chief Executive Officer of TECOM Group, and Saud Abu Alshawareb, Executive Vice President of Industrial at TECOM Group.
The new operational capacity comes as a response to the remarkable performance and demand evident in recent months. The Dubai Industrial City recorded an occupancy rate of 97% in the first quarter of 2024 in its land lease portfolio. This marks an impressive Y-o-Y increment of 12%. This phase comes after a robust growth trajectory in 2023, with its customer base recording a 17% increment. This portfolio includes more than 1000 international, regional, and local companies.
One of the key attractions of the newly acquired plots is its strategic location. It is seamlessly connected to the rest of the country, enhancing the land bank of Dubai International City. This expansion is strategically aligned with other growth initiatives in the country like the Make it in the Emirates, Operation 300bn, and the Dubai Economic Agenda ‘D33’. All these initiatives collectively fuelled increased demand for high-quality industrial spaces in the region.
With this expansion, the role of Dubai Industrial City as a premier destination for manufacturing and industrial activities further solidifies. Dubai continues to make significant contributions to the vision of the UAE to establish itself as a global manufacturing hub. The city aims to attract more investment by providing high-quality industrial space and supporting local manufacturers. Thus, it supports the diversification and economic resilience of the UAE.
Professional support for company formation in Dubai
With its expanding land bank, Dubai Industrial City continues to attract global businesses in hundreds. Reputed teams of professionals like the IMC Group continue to be one of the most trusted partners, comprehensively assisting new businesses in company formation in Dubai. Enterprises willing to capitalize on the economic resilience and growth potential in Dubai must reach out to the experts for professional consultation and guidance. An experienced team of advisors can guide new businesses with crucial legal issues, and tax compliance besides helping form a company in Dubai.
- NEWSLETTER,U.A.E
- June 12, 2024
The FTA (Federal Tax Authority) of UAE has established deadlines for submitting Corporate Tax registration applications as a part of their efforts to strengthen strategic partnerships with Taxable Persons. Taking to various media channels, the authority disseminated this information to ensure smooth and accurate tax compliance.
In this edition, we have presented you with all the deadlines and requirements to ensure compliance with corporate tax.
New Extended Deadline 2024
The Federal Tax Authority (FTA) of the UAE has announced an extension for corporate tax filing and payment deadlines for certain businesses.
Entities with short tax periods ending on or before February 29, 2024, now have until December 31, 2024, to file their returns and complete tax payments. This applies to companies established, formed, or recognized on or after June 1, 2023, whose first corporate tax period is shorter than the standard 12-month cycle, according to the Federal Tax Authority.
Khaled Al Bustani, Director General of the FTA, explained that the extension is intended to provide businesses ample time to meet their tax obligations without incurring administrative penalties.
The UAE’s federal corporate tax system, introduced with a 9% rate for financial years starting on or after June 1, 2023, applies to companies with annual profits exceeding Dh375,000 ($102,100).
In May last year, the Ministry of Finance confirmed that businesses with turnover exceeding Dh1 million in a calendar year will be subject to corporate tax. The tax system is designed to apply only to income derived from business activities.
Earlier Deadlines in 2024
The Director General of FTA, AL Bustani stressed the importance of meeting deadlines in FTA decision No. 3 of 2024, which is likely to be effective from 1st March 2024. Taxable Persons holding licenses issued in January and February, not considering the year of issuance, and juridical persons without holding a license as of 1st March 2024 need to submit their Corporate Tax registration application by the deadline of 31st May 2024. Besides, resident juridical persons holding licenses that were issued in March and April have a deadline of 30th June 2024 to submit their applications, regardless of the year of issuance.
Businesses operating in the UAE can have a look at this corporate tax compliance guide and ensure adherence to the new regime.
Campaigns to Spread Awareness
The FTA carried out this campaign during the launch of a new awareness workshop in Dubai. This is a part of the second phase of the comprehensive campaign by the FTA to educate business sectors and stakeholders on Corporate Tax Compliance. The campaign was initiated last year and aims to enhance knowledge on taxation, besides encouraging Taxable Persons to voluntarily comply with tax regulations.
With an impressive attendance of 842 stakeholders, including 52 senior officials from public and private sectors, the workshop witnessed record participation. Currently, the FTA is intensifying its efforts to enhance direct communications with tax stakeholders and business sectors throughout the country through virtual and physical workshops. The authority is also engaging with business assemblies and economic councils in industrial and commercial areas to achieve this goal.
Importance of Free Zones
Highlights of the Workshop
Registration Process
Professional Assistance to Ensure Tax Compliance
While FTA strives to ensure tax compliance through its comprehensive approach, businesses operating in the UAE must be well-informed and prepared to fulfil the new set of obligations. Trusted corporate tax consultants in Dubai like the IMC Group continue to play a vital role in this evolving ecosystem, offering expert guidance and support to businesses navigating the changing tax regime. Successful companies operating in the country habitually partner with these professionals for assistance in ensuring tax compliance. This approach proves effective in fostering a robust and compliant economic environment in the UAE.
- NEWSLETTER,SINGAPORE
- June 12, 2024
With the climate change crisis intensifying all around the globe, different countries are committing to ambitious sustainable targets. Singapore, one of the global business hubs, stands out with its initiative to achieve net zero emissions by 2050. This is a formidable goal for a small island nation with limited land and natural resources.
The government has developed its Singapore Green Plan 2030, which defines the blueprint of concrete sustainability targets for the next decade. According to this plan, by 2026, the country aims to reduce the amount of waste sent to landfill per capita each day by 20%. The plan also seeks to increase the output of solar energy, while Singapore is likely to turn 80% of its buildings by 2030. Enterprises bracing up for Singapore company formation, therefore, need to align their strategies to these sustainability goals. Over the years, Singapore has turned into an attractive destination for eco-friendly businesses. For enterprises incorporated in Singapore, it’s essential to seek professional support from experts to ensure compliance.
Creating a Sustainable Ecosystem in Singapore
Green Tech Industry in Singapore
Singapore’s Talent Pool Driving its Green Economy
Green Projects Incentives from the Government
Tax Benefits
Financing Schemes and Cash Grants
Different government agencies in Singapore are committed to supporting sustainable businesses in the country. These enterprises are eligible for cash grants that cover various business expenses. For instance, the Resource Efficiency Grant for Emissions (REG(E)) co-funds expenditures for industrial facility projects for verifiable and measurable mitigation of carbon. The government has set a benchmark of at least 500 tonnes of carbon footprint reduction per annum for businesses to qualify for this grant, which would cover around 50% of the qualifying costs. This Grant helps businesses cover a part of their expenses incurred to adhere to mandates related to climate.
The REG(E) was first introduced in 2022 for local companies in the retail, food manufacturing, and food services sectors. During the 2024 Budget, it was extended to other sectors like data centres, maritime, and construction.
The Sustainability Reporting Grant helps businesses with at least S$100 million annual revenue prepare their first sustainability report. It will cover up to 30% of the qualifying cost, while the government capped the amount at S$150,000 per company. For SMEs, a new program will be launched to streamline the path to preparing their first sustainability reports. It will cover as much as 70% of the eligible costs for the first year and 50% for the two subsequent years.
Often, establishing a start-up company in Singapore comes with obligations to meet sustainability goals. Startups and businesses can seek loans up to S$50 million from the Enterprise Financing Scheme – Green to support green projects.
What Should Businesses Expanding to Singapore Do?
Businesses expanding to Singapore often need to invest in new materials, technologies, and processes to comply with the stringent sustainability goals in the country. In the short run, no significant cost savings may be visible. However, enterprises benefit from increased profitability over the long run, along with enhanced brand reputation.
Here’s what businesses expanding to Singapore must do:
- Seek funding: Acquire support from the Enterprise Financing Scheme to support upcoming green projects.
- Cost-effective approach: Take advantage of tax credits and grants on expenses incurred on adopting sustainable practices.
- Position the brand as a leader: Establish the company as a frontrunner in the green economy to attract eco-conscious investors and customers.
During Singapore company formation, forward-thinking businesses seek comprehensive professional support from the IMC Group. With experts guiding them through the complex regulatory norms and helping in maximizing government funding, tax benefits, and credits, businesses can confidently achieve their sustainability goals.
- NEWSLETTER,U.A.E
- June 11, 2024
With the evolving nature of modern risks, family offices strive to adopt a proactive stance to secure finances. Traditionally, these organizations faced risks limited to investment and financial stability. However, wealth owners today face a multiplicity of risks, such as reputational risks, financial risks, issues with physical security, and even online vulnerabilities. While thwarting all these risks completely is almost impossible, a competent single family office in Dubai needs to understand the evolving nature of risks and protect the future generations.
In this edition, we present four essential guidelines for family offices to manage modern risks.
How can Family offices manage new threats to protect future generations?
1. Explore new types of risks
Risks keep evolving when it comes to financial management. For family offices, it’s essential to adapt a rapidly evolving risk management strategy to address technological advancements, geopolitical shifts, and increased mobility. The secret to success lies in introducing innovative risk management strategies and staying abreast with global and regional security trends.
A report published in 2024 found that the biggest risk lies in reputation management, with 27% off respondents citing this threat. Other risks include wealth transfer and succession, and investment returns, each accounting for 22% of the threats.
Understanding new types of risks can help Single Family Office in Singapore address emerging threats.
2. Establishing a comprehensive strategy to manage risks
Family offices should work on a comprehensive strategy to manage risks, addressing threats like digital, physical, reputational, and emotional security. Thus, a multi-layered approach is essential, including the implementation of robust cybersecurity strategies, securing physical premises, and protecting the reputation of a family. At the same time, the strategy should ensure the emotional well-being of the staff and family members.
This is why it’s essential to partner with the right service provider like the IMC Group. Professionals with a proven track record and expertise can significantly enhance the risk management capabilities of a family office.
3. Establishing a Robust Cybersecurity Posture
When it comes to risk management, top professionals prioritize cybersecurity. Single family offices should deploy measures like 2FA (two-factor authentication) and educate their clients against social engineering. These simple steps can ward of as much as 90% of cyber threats. Experts also recommend using password managers and securing all remote access points to draw a reliable line of defence.
A report reveals that 53% of family offices engage external service providers to strengthen cybersecurity.
4. Nurturing a Culture of Security Awareness
Family offices must educate their staff and family members about potential security risks and best practices. Only 33% of family offices carry out routine security risks, so it’s crucial to engage a professional specializing in these aspects. These training sessions go a long way in cultivating a proactive mindset towards security. This ensures that every member within the organization is aware of their role in maintaining security.
Proper security management is essential to secure sensitive information and assets. Forward-thinking single family offices deploy a comprehensive insider threat program that includes ongoing training, clear policies, and a culture of security awareness. All these measures mitigate threats posed by all sorts of insider actions- both intentional and unintentional.
Ensure Long-Term Security with Professional Support
- NEWSLETTER,U.A.E
- June 11, 2024
Over the years, Dubai has emerged as the global hotspot for businesses with a robust commercial ecosystem. Forward-thinking entrepreneurs are keen to expand their footprints in this Middle Eastern Country, known for its opulent lifestyle and luxurious appeal. Ambitious business leaders around the globe seek professional guidance from consultants, streamlining the process of company formation in Dubai. From its business-friendly environment to demographic advantage, Dubai appeals to successful brands with a plethora of benefits.
Let’s take a look at the top reasons justifying the popularity of Dubai as a global business hub.
Why is Dubai Ideal for Setting up a Business?
If you are wondering why Dubai is best for business, here are ten reasons that demonstrate the tremendous potential of this city.
1. Business-friendly environment
2. Demographic advantage
3. Favourable Visa scheme
4. Sophisticated infrastructure
5. Diverse Financial Sector
6. Business-friendly tax policies
The tax environment in Dubai is one of the best in the world for investors. After setting up a business in Dubai, entrepreneurs can take advantage of tax benefits and exemptions in free zones. With a business setup in Dubai UAE free zone, entities can benefit from minimal corporate tax, while personal income tax isn’t levied in the country.
7. Dynamic business environment
8. Diverse cultural scenario
9. Economic free zones
10. Silk Road initiative
Professional Assistance to Set Up a Business in Dubai
Global entrepreneurs thinking of setting up their operations in Dubai often look out for a strategic partner for consultation and advice. The IMC Group continues to be one of the leading partners, facilitating company formation in Dubai. This group of professionals, with its tailored solutions, network, and expertise, empowers entrepreneurs to capitalize on the tremendous opportunities in Dubai and understand its complex regulatory norms to ensure compliance. From establishing a presence in free zones to accessing investment avenues and fostering collaborations, the IMC Group lends its comprehensive assistance in driving entrepreneurial success in the thriving business ecosystem in Dubai.