Newsletter Archives - Page 17 of 57

Newsletter, U.A.E

UAE Participated In IMFC Meeting

May 17, 2021

UAE Minister of State for Financial Affairs, Obaid Humaid Al Tayer participated in the recently held spring meeting of the International Monetary and Financial Committee (IMFC) convened in a virtual format together with the annual meetings of the International Monetary Fund (IMF) and the World Bank Group during April 5 to 11 2021.

Ministers of Finance and development, Central Bankers, representatives of civil society organisations and private sector executives attended this meeting to discuss global economic concerns, the latest global economic developments and the financial and economic outlook due to the Covid-19 pandemic. The agenda of the meeting also included poverty eradication, the effectiveness of financial aids, global economic and financial systems including issues of high debt risks and international economic and development policies.

The Minister of State for Financial Affairs emphasized UAE’s resolve to work hand in hand with the international communities to overcome the risks and challenges posed by the pandemic and ensure sustainable economic recovery and growth.

Abdulhamid Saeed, Governor of the UAE Central Bank, Kristalina Georgieva, Managing Director of the International Monetary Fund, and many finance ministers from different countries also took part in this meeting.

Al Tayer appreciated IMF’s initiatives and timely interventions for world economic recovery with a revised growth prospect of six per cent for 2021 globally from a negative growth experienced during the previous year that also supported more foreign company formation in Dubai.

The minister also echoed similar concerns as reflected by IMF over the possibility of an imbalanced economic recovery in the Mena region widening the inequality gap arising out of disproportionate economic and social effects and stressed upon fiscal priorities aimed for achieving inclusive sustainable economic development.

“We welcome the Global Policy Agenda devised by Kristalina Georgieva, managing director of the International Monetary Fund, as a comprehensive framework for recovery. The UAE will continue supporting the IMF’s endeavours to mitigate the financial and economic repercussions of the pandemic to achieve global recovery and attain strong, sustainable, balanced and comprehensive economic growth,” he remarked.

Al Tayer added that healthcare continued to be the topmost priority including production and distribution of vaccines for speedy economic recovery. He also informed that USE joined the global efforts to develop and produce covid 19 vaccines with a targeted figure of 200 million doses of Hayat-Vax vaccine annually.

The minister welcomed the initiative of IMF to reallocate Special Drawing Rights (SDRs) for middle and low-income countries as it would help them to fund healthcare systems and take preventive measures against the virus. He also appealed for increased lending and technological support to these countries.

He also noted, “Beyond just recovery, we must pursue socially inclusive and environmentally sustainable models of growth as the only path forward in the post-COVID-19 era, where the IMF can support by facilitating the exchange of expertise, supporting capacity building, and enabling funding efforts.”

Al Tayer added: “As a general principle, we urge the IMF to advance its climate agenda in accordance to the Paris Agreement, which enjoys multilateral consensus, by supporting countries to achieve their Nationally Determined Contributions, while considering their national circumstances and development priorities.”

UAE has taken several social, economic and political measures to mitigate the adverse effects of the pandemic and has demonstrated its commitment by promoting new business set up in Dubai, he highlighted. He also made some additional recommendations including maintenance of a strong, adequately resourced and quota-based fund and highlighted the need for transparent communication to win and maintain public trust.

The IMF Board of Governors responsible for monitoring and management of the world financial and monetary system and timely actions on disruptive issues e.g. covid 19 pandemics are provided with appropriate reports and suggestions during the IMFC meetings.

Newsletter, Singapore

Everything You Want To Know About Singapore Tech.Pass 2021

May 6, 2021

In an attempt to boost the already developed technological ecosystem of Singapore, the Economic Development Board (EDB) on 12th November 2020 announced the official launching of Tech. Pass specifically targeting the founders, leaders and technical experts with proven experience in globally reputed and established high growth technology companies.

Tech. Pass is a Singapore work permit for foreigners that allows established global tech professionals to come to Singapore for spearheading technical innovations and training the local Singaporeans on the latest technologies. The Tech. Pass is an extension of the Tech@SG programme which was launched in 2019 as part of Singapore’s efforts to attract smart Industry 4 technical talents to promote Singapore’s position as one of the top technological hubs.

Tech. Pass is now included in the Singapore work pass schemes in Singapore, which include the Employment Pass in Singapore and Entrepreneur Pass (EntrePass) however with some differences in administering bodies, validities and fees.

Since the time of launch, the Tech@SG programme has been providing best in class technical talents to many companies in potential growth areas including digital, biotech, cleantech, agritech, fintech, medtech.

This programme has also been providing necessary access to business networks and facilitating employment pass in Singapore (EP) applications for the core technical team members comprising highly accomplished entrepreneurs, business leaders, or technical experts.to Singapore and provides them with flexibility in participating in a variety of activities that can contribute to the tech ecosystem.

However a Tech. Pass holder cannot be automatically eligible for the Tech@SG Programme unless their company meets the separate company eligibility conditions to qualify for the programme.

Tech. Pass offers multiple benefits over other Singapore work passes with greater flexibility in their participation in certain activities in Singapore including

Start and run one or more tech companies;
Become an employee in more than one Singapore-based companies
Become a board of director
Be a shareholder or investor
Engage in Singapore companies as advisor or mentor
Become a Lecturer/ Professor in a Technical Institute
Work as a corporate trainer
Bring a spouse, children, and parents on either a Dependant’s Pass (DP) or a Long-Term Visit Pass (LTVP).

Singapore has come up with a set of Criteria for Tech. Pass programme with a validity of two years allowing the holder to

Start and operate one or more tech companies
Be an employee in one or more Singapore-based companies at any time
Transit between employers or to an entrepreneur
Be a consultant or mentor, lecture in local institutions of higher learning, or be an investor and director in one or more Singapore based companies
Sponsor stay for spouse, children, and parents in Singapore on either a Dependant’s Pass (DP) or a Long-Term Visit Pass (LTVP) issued by MOM

Eligibility Criteria for Tech. Pass has been defined by EDB and to be eligible for the pass, applicants must satisfy any two of the following conditions:

Drawn a minimum fixed monthly salary (in the last 1 year) of SGD 20,000 or equivalent foreign currency
Possess minimum 5 cumulative years of experience and in a leading role in a tech company with a valuation/market cap of at least USD 500 million or at least USD 30million funding raised
Have at least five cumulative years of experience in a leading role with major contributions in the design development and deployment of a tech product with a minimum of 100,000 monthly active users or at least USD 100 million annual revenue generation
Business owners and any other candidates with annual income over SGD 240,000 or its equivalent in a foreign currency

Tech. Pass is renewable only one time for two years subject to fulfilling the following conditions

An assessable income of SGD 240,000
Assessment is done by the Inland Revenue Authority of Singapore for salaries and/or business income
Proof of Annual business spending of minimum SGD 100,000
Employing at least 1 local PME4 or 3 LQS5 and
Performing a minimum of two roles mentioned in the two below columns and one of which should be from the first column as a minimum

First Column

Founded a company engaged in tech-based or tech-enabled products or services
Served a top role in a Singapore based Tech company such as Asia Pacific MD, CEO, CTO
Worked in at least two Singapore based Tech companies
Employed in a Singapore Tech company as a technical team leader and a particular tech field
Employed as a Technical Team leader in two or more Singapore based companies

Second Column

Served a Board of Director in a Singapore based company and not necessarily a Tech company
Worked in Singapore-based start-up as a mentor/advisor
Employed in Singapore Institute of Higher Learning (IHL) as a professor or lecturer or adjunct professor/lecturer
Engaged as a trainer in some form not covered by 2nd and 3rd points mentioned above such as workshops, corporate training classes etc.
An Investor in one or more Singapore based Tech companies.

The Tech. Pass Application Process involves

1. Pre-application activity include verification of eligibility and preparation of supporting documents
2. Applying for Tech. Pass by downloading the Tech. Pass application form for yourself and dependents if applicable
3. Filling up the soft copy of the application form and obtaining an auto-generated payment reference number
4. Taking print out of the application form and getting the form signed with relevant supporting documents specified in the application form
5. Making Payments of SGD 105 for each application via PayNow or Telegraphic Transfer
6. Uploading completed and signed application form with the following documents

Payment receipt
Travel documents and
Supporting documents for dependants confirming your relationship with the DP/LTVP applicant, verification of Vaccination Requirements document issued by HPB, as appropriate

7. Getting the Pass Issued

It usually takes around 8 weeks to process Tech. Pass applications unless there are requirements for additional documents and information.

Once approved, you will receive an IPA letter by email providing 6 months for coming and getting the pass issued for the start work or business activities in Singapore.

The Fees involved is SGD 225 for each pass and SGD 30 for each Multiple Journey Visa, whenever applicable. No extension to the IPA is granted.

The Tech. The pass has come into effect from January 2021 with a quota available for the first 500 applicants on a first come first serve basis.

India, Newsletter

India Enjoys Growing Trade and Investment From the UK

April 15, 2021

India and the UK share long historic ties and as one of the leading G20 investors, the UK has made an investment of 29.56 billion USD in India since 2020 and the number of UK businesses has jumped more than two times during this period with many new India company formation.

The sectors that have been witnessing strong investment growth are healthcare, consumer goods, retail, and infrastructure. Both the countries have long been working to strengthen and improve the trade and investment relationship including enhancement of collaboration in technology and pharmaceuticals.

India having the world’s third-largest startup base can join hands with the UK which has the third-largest Unicorn base in the world to create business growth and employment.

There is no bilateral free trade agreement (FTA) between the UK and India however as a part of a roadmap to future FTA and during the 14th Joint Economic and Trade Committee (JETCO) meeting convened in 2020; trade and investment ministry officials from both countries committed to set up Enhanced Trade Partnership (ETP) between the two countries expected to be officially launched during the visit of the UK Prime Minister during 2021.

UK Investment Status in India

In collaboration with the Department of International Trade (DIT) and Confederation of Indian Industry (CII), Grant Thornton Bharat a reputed consultancy firm in its ” Britain Meets India” report emphasized a stronger trade and investment relationship between India and the UK, especially after covid and post-Brexit. The report highlighted some facts about some information on UK investment in India as under

UK FDI in India increased from USD 898 million in 2015-16 to USD 1,422 million in 2019-20.
572 UK companies in India contributed a total turnover of 46.73 billion USD providing direct employment to 416,121 people
The goods and services sector contributed to 26.7 billion USD during 2020
India is the preferred country for the UK for economic partnership especially post Brexit
Top-ranked sectors being watched by the UK companies are industrial and business service sectors with Maharashtra topping the list of preferred investment destinations followed by Haryana, Delhi, Tamil Nadu, Telangana, and Karnataka.
Enhanced and continued business collaboration during post covid made India-UK trade and investment partnership stronger.
Supply chains for Indian pharmaceutical products and surgical masks remained uninterrupted for the UK and other countries as humanitarian gestures including future investment for mutual economic prosperity
Relentless collaboration between the two countries in the research, design, and manufacturing of vaccine has further enhanced the investment relationship between the two countries
Dyson Technology, Aviva Life Insurance, Diageo Business Services, RMD Kwikform, and FMC Technologies have been termed as the fastest growing UK companies in India, and Vedanta, Vodafone, Hindustan Unilever, United Spirits India have become the top 20 UK companies by revenue. I
Top UK employers in India include G4S Group, Vedanta Resources, and HSBC Holdings

Sector-Specific Business Opportunities in India for UK Investors

As per Invest India report, the following Indian business sectors are drawing maximum interest amongst the UK investors

Indian Chemicals sector nearly contributes to 3 percent of world production of chemicals with more than 80,000 products and generating more than 2 million people and permitting 100 percent FDI through faceless automatic route. Tata Chemicals, Atul, Reliance, and Asian Paints are major players in this segment.

The electronics and Telecommunications sector with smartphone manufacturing is the second-largest in the world with a projected turnover of approximately 400 billion USD by 2025. FDI up to 100 percent is allowed through an automatic route. Consumer and industrial electronics, computer hardware, and LEDs do also come under this sector and Samsung, Apple, LG, Intex are the major players.

The Food Processing segment is the second-largest in the world and dairy, fruits, vegetables, poultry, fisheries come under this sector with 55 mega food parks spread across the country. Britannia, Nestle, Amul, and Hatsun Agro are some major players, and 100 percent FDI is permitted through the automatic route.

The E-commerce and Retail sector is the third-largest in Asia and online grocery, e-pharmacy, and social commerce are the sub-sectors. 100 percent FDI is allowed and Adidas, Marks & Spencer, Dyson are some major players.

Aerospace and Defense sector with the second largest armed forces and worth 42.7 billion USD allowing 49 percent FDI under automatic route and 100 percent under the government route with BEL and HAL being the major players.

The IT and Business Process Management (BPM) sector contributes to 8 percent of the country’s GDP with more than 500,000 high skilled professionals.

Why Choose India Over Other countries

As per the recent forecast, India would be the third-largest economy in the world with a huge domestic market and has considerably eased the process of How to register a private limited company in India for improving the country’s ranking in the ‘ease of doing business index.

The following are some reasons that are attracting overseas investors to do business on Indian Soil

India has received 73.45 billion USD FDI inflow in 2019-20 and one of the fastest-growing economies
Global maritime trade to shift from the Pacific to Indian ocean providing India growing economic influence
India improves its position in global innovation index 2020
India has the largest youth population in the world
National Infrastructure Pipeline initiative has been announced and is being undertaken for providing world-class infrastructure facilities
Rising global competitiveness and drastic improvement in Global Competitiveness Index

Newsletter, U.A.E

DIFC Innovation License for Startups

April 15, 2021

Dubai International Financial Centre (DIFC) is the fastest growing financial center in the Middle East and Africa (MENA) region and has been dedicated to the economic excellence of the nation by promoting technological innovation and providing a conducive and enabling environment to the technology and financial services industries.

DIFC, acting as the harbinger of economic prosperity in the Middle East, Africa, and South Asia (MEASA) region as the largest financial free zone has recently announced a new license for startups called Innovation License when the DIFC corporate startup license holders under this scheme will join the communities of more than 200 technology companies, 2000 plus firms with more than 25000 professionals.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai originally announced this Innovation license during early 2020 to attract new categories of businesses to the financial center as a key initiative of Dubai Future District with a provision of subsidized commercial licensing option for USD 1500 per annum minimum.

Innovative and creative business entities will be able to grow and expand their business utilizing the legal and regulatory framework of DIFC complemented by world-class intellectual property and data protection rights.

“The new DIFC Innovation License provides an important springboard for future economy pioneers to establish, upscale, and future proof their business within the stable framework of a world-leading global financial center,” added Salmon Jaffery, Chief Business Development Officer, DIFC.

Salmon Jaffery also highlighted, “It is an exciting new offering that we hope will attract technology-led, sector agnostic start-ups that will disrupt the technology and financial sectors. These types of businesses have an important role in shaping the economic future of Dubai, UAE and the region. They will be welcomed by members of DIFC’s ecosystem and become a central part of the new Dubai Future District.”

Officially launched in August 2020, the initiative has already started witnessing new startups and entrepreneurs opt for Innovation license and in the applicable areas of IT infrastructure, Software Development, Internet and cloud migration consultancy, Smart Technology, R&D, and computer consultancy

Besides offering co-working spaces at an affordable rate of USD 500 per month, DIFC provides numerous benefits to Innovation License holders including a registration fee of USD 100, USD 250 data protection fee; securing up to 4 visas when renting flexible desk space, and 50 percent subsidy on additional visas.

IMC is a Dubai-based PRO services company with a team of highly qualified and result-oriented professionals and is well conversant with the local laws and regulations. In addition to rendering our round-the-clock active support in the entire licensing and registration process, we will also help you in identifying the most suitable business activities that can result in a high level of success under this new DIFC Innovation Licensing scheme.

Newsletter

Global Economy Will Witness Stability and Growth In 2021

April 15, 2021

2021 will move towards economic prosperity with strong economic and profit growth throughout the year in equities, real estate, and bond markets including particular commodities; Invesco, the Investment management firm, and a global company headquartered in Atlanta with regional offices in 26 countries reports.

“Given the apparent success of vaccine rollouts in the developed world, we believe the global economy will show solid growth in 2021, partly as a function of a rebound from a deep recession, partly due to a gradual release of pent-up demand and also due to financial support, especially in the US. At the same time, we expect major central banks to continue providing generous support,” said Paul Jackson Global Head of Asset Allocation Research of Invesco in a report on 29th March Monday 2021.

Market Experts and strategists from Global Market Strategy Office in the USA are upbeat on the cyclical assets and businesses such as restaurants, hotel chains, airlines, furniture, high-end clothing retailers, and automobile manufacturers as the global economic indicators are trending in the right and upward direction buoyed by positive market sentiment at the backdrop of a huge economic push by most governments, high liquidity, and vaccine rollout.

However, many learned economists and market experts including Invesco cautioned about some unforeseen challenges and narrated some factors that could dampen this economic growth forecast. As also noted by Jackson from Invesco, the five reasons mentioned below can force us to shift our priorities and preferences and make us more defensive in our approaches.

Lingering of the covid pandemic with a resurgence in virus infection
Disruption in economic recovery triggered by a reduction in government spending, curtailment in economic stimulus, collateral damages, lowering of government support and incentives to businesses and households
Rise in inflation forcing central banks towards inflationary measures with increased interest rates
Higher bond yields and an unfavorable correlation between equities and bonds
The current markets are at a historic high as the hope for economic recovery has already been priced in

“We think the most likely problem is that markets have priced in a lot of recoveries. If we are to remain positive about cyclical assets, we need to become even more aggressive in our assumptions about growth and future spreads/valuation multiples. We are happy to do this, given that we now feel more comfortable about the global recovery, but it has the downside of forcing us to accept that government bond yields will rise more than we previously thought,” Jackson remarked.

The economic growth projections are made on certain assumptions such as stable interest rates and continuation of asset purchase.

Experts from Invesco believe that a positive correlation will be maintained in bond yields and equity prices for economic growth to continue.

Besides, Invesco expects real estate yields to be more attractive compared to other asset classes and will mitigate the risk of higher bond yields.

“Even if cash flows bounce less strongly than for equities, yields are high and we expect them to be stable,” Jackson added.

Energy and industrial metals are considered expensive while Agricultural commodities are cheap and would act as a cushion against rising inflation and interest rate hike.

Europe and the emerging markets are on the list of favorites of Invesco and mostly to gain during global economic recovery and expansion.

Many research institutions including OECD believe that by the end of 2021, more than 80 percent of the global population will develop immunity against the virus mostly contributed by vaccination drives and the economy will grow at a rate of 7 percent and more which would be a big jump.

Newsletter

Managing Your Payroll Outsourcing Services

April 15, 2021

The secret to a successful business lies in building trust with the stakeholders and meeting them halfway in all business dealings. Payroll outsourcing services is no exception and considering it as your business partner and an extension of your internal HR team can help establish open and honest communication between you two significantly contributing to the business’s performance.

Payroll management is one of the trickiest functions in an organizational and business perspective where accuracy and timeliness are of paramount importance.

Managing payroll is not just about handing over a paycheque to your employee at the end of the month rather consists of a set of administrative functions including employee benefits, taxation, turnover, incentives, etc which are often complex, cumbersome, and stressful.

What is Payroll Outsourcing and How Does it Operate?

Payroll outsourcing involves contracting an external entity to handle payroll tasks. This external provider manages various aspects such as taxes, direct deposits, and routine processes like garnishments and salary calculations. Additionally, they may offer tools for convenient 24/7 access to payroll details for both businesses and employees. Opting for payroll outsourcing enables businesses to streamline operations, cut down on paperwork, and decrease the time HR staff dedicate to payroll duties, ultimately saving both time and money.

Payroll outsourcing services offer multiple benefits and are

Saves time
Ensures tax remittance correctly and on time
Other value-added services
Comprehensive reporting with elaborate information
Ensures timely compliance of revised regulations of the pension plan, insurance, etc.
Saves money
Ensures minimum Employee grievances
Easy access to the latest technology
Ensures Smaller carbon footprints with reduced paperwork
Review and Analysis of data for strategic planning

Besides maintaining trustworthy business relationships, efficient management of payroll outsourcing services also includes the following

Deciding on the point of contact for payroll service providers within your organization with clearly defined responsibilities can go a long way in bringing success for your payroll outsourcing. There should be someone authorized to have a strategic relationship with the vendor and preferably be someone from the payroll function with one to one relationship with the service provider’s representative responsible for the overall account of your company.
Ensuring free and open communication with regularly scheduled meetings is also necessary with the respective point of contact. While the day-to-day contacts meet regularly on a weekly or fortnightly basis to keep a tab on the current payroll issues and immediate action plans, the strategic top-level contacts can meet every month suggesting future improvement programs on customer’s account performance, customer service issues, if any including plans for forthcoming changes to the account. Top management executives should also meet at prescribed intervals usually once in six months for account review meetings focused on the company’s key policy changes, M&A, etc. including new value-added offerings and any technological up-gradation from the payroll outsourcing services.
Tracking and Validations of invoices are critical for ensuring financial compliance and business transparency with your vendor. For global payroll vendors, fluctuating exchange rates can significantly change the bill of expenses needing careful monitoring and validation of invoices.
Reviewing value-added services from your vendors is important and needs to be reviewed on a scheduled frequency between the top management of two partners. Staffing, training, technological innovations including accounting could be potential areas where your payroll outsourcing services can actively contribute.
Conducting periodic performance and focus reviews through Service Level Agreements and Key Performance Indicators are is mandatory to ensure satisfactory compliance with and adherence to documented agreements and performance metrics and necessary corrective and preventive actions required for payroll outsourcing services.
Signing a non-disclosure agreement with your payroll vendor is often necessary considering the privacy and confidentiality of payroll data and to safeguard it from being stolen.

FAQs:

What are the advantages and disadvantages of contracting out payroll services?

Among the benefits of outsourcing payroll are time savings, error reduction, enhanced compliance, and access to specialized expertise. However, entrusting sensitive information to a third-party provider means relinquishing some level of direct control.

How does the process of outsourcing payroll function?

When a company entrusts some or all its payroll tasks to an external entity, it’s referred to as payroll outsourcing. Apart from handling payroll processing, comprehensive service providers typically assist with tax filings, ensuring compliance with regulations, maintaining data security, and managing unemployment claims.

Is opting for payroll outsourcing advisable?

Every business decision has advantages and disadvantages, and payroll outsourcing is no exception. Before engaging with a comprehensive payroll service provider, employers should ensure that the vendor can fulfil all their needs and has a dependable track record.

What advantages do payroll outsourcing services offer?

Employers can save time and money by outsourcing their payroll tasks. This frees them from extensive administrative duties, allowing them to concentrate on expanding their business. Moreover, enhanced accuracy can avert expensive fines. Full-service payroll providers with adaptable payment options and self-service applications can also enhance employee contentment.

Newsletter, U.A.E

World Alliance of Inter Financial Centres (WAIFC) Accorded Membership to The Dubai International Financial Center (DIFC)

April 15, 2021

In March 2021, the WAIFC board unanimously agreed to recognize the DIFC, the leading financial center in the MEASA region as a member of the association, the 4th from the GCC to spearhead the development of digital finance and in the areas of Fintech, Sustainable Finance, and Innovation.

As a non-profit organization located in Brussels and founded in July 2018 in Paris, the WAIFC represents the top nineteen global financial centers across four continents that promote and share best practices in the field of finance with a varied scope of activities and benefit from the collective strength of its members. The alliance as city governments and other financial institutions also facilitates cooperation amongst the group members and interaction with the general public besides developing and promoting their financial Centres.

As a member of WAIFC, DIFC as the highest-ranked financial center in the MEASA region will now collaborate with other leading global financial centers in Tokyo, London, Paris, Frankfurt, Toronto, and in many other countries on global best practices some of which are already entered into memorandums of understanding with DIFC.

DIFC with the vision to drive the future of finance is focused on embracing new and innovative technologies in the field of finance and aims for achieving sustainable economic and social goals including Environmental protection.

“We are very pleased to have DIFC join our association. Dubai is a leading global financial center, and DIFC will undoubtedly bring a valued contribution to our initiatives. We are very much looking forward to working with the colleagues in Dubai,” remarked Jennifer Reynolds, the Chairwoman of the WAIFC.

CEO of DIFC Authority, Arif Amiri highlighted: “DIFC is pleased to be joining the World Alliance of International Financial Centres. The Centre is looking forward to representing Dubai and building partnerships with other members so we can be a collective force for good. Together we can make progress in areas such as FinTech, innovation, sustainable finance, and developing digital economies. We can align our approaches which will allow us to cohesively drive the future of finance.”

Dr. Jochen Biedermann, Managing Director of the WAIFC, added: “DIFC has been an observer to WAIFC since last year, and we are delighted that it will join WAIFC as a full member now. DIFC has had a phenomenal development in less than twenty years from its first steps to one of the world’s leading financial centers. We are very much looking forward to exchanging best practices and learning from each other.”

Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of DIFC with his able leadership taken DIFC to the pinnacle of its performance during 2020 amidst global economic uncertainty caused by the pandemic and elevated the country’s status as a pivotal global economic destination with many businesses reporting exponential growth, including capital markets, asset management, FinTech, professional services, and banking aided by a conducive FinTech and venture capital environments, cost-effective licensing and easy DIFC management startup license, flexible regulation, innovative promotional events, and easy access to funds for start-ups.

Newsletter

Digital Sky is Overcast with Multi-Clouds Now

April 15, 2021

Of late, a multi-cloud strategy has become the leading option for business entities as the survey found an increase in usage of approximately 15 percent between 2019 and 2020 mostly fueled by covid 19 pandemics. Multi-cloud is composed of more than one cloud platform including public, private, and hybrid clouds. Independent of any single cloud platform, a multi-cloud platform offers increased flexibility, reduced cost, enhanced scalability, and many other advantages. There also remain some cons that need to be addressed before switching over to multi-cloud such as increased training needs of personnel, reduced interoperability between applications and services, non-availability of many skilled professionals, increased operational hiccups, logistical complications, etc. However, the benefits far outweigh the cons.

What are the Pros and Cons of a Multi-Cloud Platform?

A quick look into the benefits of multi-cloud platforms often justify its enhanced usage by business entities and the most common benefits are

Continuous Availability with little or no possibility of a service break down if one cloud goes down a business can be functional on other deployed clouds
Flexibility and freedom of choice of platforms and solutions best suitable for your business needs
Empowering customers to negotiate on price with ample visibility on cost and benefits
Faster speed and better network performance with service providers having data centers closer to your locations
Improved scalability based on business demands and extent of usage
Quick innovation due to increased access to a wide range of tools and choosing clouds providing the best sets of services
Better prevention of DDoS attacks as data is stored on different platforms
Mitigating shadow IT as individual departments have accessibility to solutions as per their needs and without any need to bypass IT department

Though investing in a Multi-Cloud solution is usually a smart and beneficial investment strategy, it also comes with its fair share of challenges as

Increased management complexities arising out of vendor-specific monitoring consoles and cloud architectures
Increased remuneration and short supply of skilled professionals including architects, developers and testers and, administrators
Multiple factors influencing billing and pricing for increased issues with cost analysis and reporting
Security issues as a multi-cloud environment are more difficult to secure with several aspects to consider including encryption key, SS/TLS encryption, secrecy management, access controls, etc.
Compliance issues as vendors can have non-standard models
Complexities in the integration of individual SaaS solutions and reduced interoperability

What are the benefits of Cloud Accounting?

As flexibility is the essence of today’s business, we should be able to manage business operations independently of a central setting. Cloud Accounting and Bookkeeping Services offer us this advantage with several other benefits as mentioned below

Ease of accessibility from anywhere and anytime
Automated accounting tasks
Real-time accounting data with better accuracy
Ability to coordinate and collaborate even when physically distanced
Improved data security

Strong platform features are indispensable while you choose a remote accounting platform and must-have functions that can enable you to communicate, update and share accounting data, secure information, and manage operations.

Cloud accounting platform Zoho is equipped with tools that enable remote working with several additional features and Zoho Implementation partners can identify, customize, integrate and implement the right set of Zoho tools to effectively address every business needs.

What are Multi-Cloud Models?

Multiple clouds provide strategic services to meet specific business and technical needs and are primarily classed as Software-as-a-service, or SaaS, Infrastructure-as-a-service, or IaaS and Platform-as-a-service, or PaaS.

There are many players in the multi-cloud market segment and deployments can either be a blend of public plus public or public plus private clouds. There can be different models based on business functions running on different platforms such as production running on on-premise infrastructure and development running on a public cloud. In a separate model, a single business function can run simultaneously on a multi-cloud.

What is the Future Outlook of Multi-Cloud Systems?

Multi-cloud environments are going to stay and flourish with time due to cost optimization, operational ease, and increased effectiveness. Cost optimization tools are also coming to the market for analyzing processes to maximize cost savings.

As per global surveys and market research in 2021, the multi-cloud management market is all set to expand at a CAGR of more than 25 percent between 2020 and 2026.

Newsletter, Saudi Arabia

Saudi Arabia is All Set to Introduce E-Invoicing

March 31, 2021

A draft resolution detailing the technical and functional implementation guidelines of E-invoicing has been released on 18th March 2021 by Saudi Arabia’s General Authority of Zakat and Tax (GAZT) as an addendum of earlier released regulations published during December last year.

The E-invoicing implementation has been planned in two phases, the first one going live on 4th December 2021 followed by the second phase that would go live on 1st June 2022 GAZT has also announced that all businesses may not be needed to comply with the requirements by 1st June 2022 and the details will be published as a separate resolution afterward.

Unlike a handwritten or scanned invoice, an electronic invoice is generated, stored, and amended in a structured electronic format through an electronic solution that includes all the requirements of a tax invoice. Credit and Debit Notes issued in an Electronic format, as a result of amendments conducted in the Electronic Invoice are called electronic notes and don’t include photocopied or scanned paper notes.

E-invoicing will be used for VAT purposes and will apply to all taxable persons excepting the non-resident taxable persons and any other party issuing tax invoices on behalf of a supplier subject to VAT. Exempt supplies and imports of goods and services subject to Reverse Charge Mechanism (RCM) are excluded from E-invoicing requirements

The contents of an electronic invoice will have all Terms, requirements, and conditions applicable to tax invoices as per Article (53) of the VAT Implementing Regulation. All applicable provisions of tax invoices will apply to Electronic Invoices, including the rules of storage of tax invoices stipulated in the VAT legislation, and specifically, Article (66) of the VAT Implementing Regulation.

For simplified e-invoices and notes, a Quick Response (QR) code of a Base64 format with up to 500 characters must be generated and printed on simplified e-invoices and E-notes. Additionally, controls/mechanisms should be implemented to avoid tampering of the e-invoices.

The e-invoice and E-notes must be issued in XML or PDF format and shall generate a universally unique identifier. For simplified e-invoices and E-notes, businesses will need a cryptographic stamp to be included on the electronic invoices or notes.

The details regarding implementation timelines, targeted groups, and specifications for generation, storage and integration including approved external provider details for E-invoice Generation Solutions will be issued by the GAZT at a later date.

The implementation of Electronic Invoicing will have two phases and will include two specifications

Phase one is for the generation and keeping of tax invoices and electronic notes in a structured electronic format issued through an electronic solution that combines all the requirements of tax invoices.
Phase two is the Integration of the electronic solution of taxable persons used for generating electronic invoices and notes with the system of GAZT for data sharing.

The Kingdom of Saudi Arabia has planned to introduce e-invoicing as a step towards global best practices aiming for increased compliance with tax obligations, better consumer protection, and fair business competition.

As E- invoicing is made mandatory, businesses that need to issue E-invoices and/or E-notes as per E-invoicing Regulations must make themselves aware of necessary requirements.

All businesses must carry out an initial gap analysis for evaluating if their existing system and technical specifications of E-invoicing complies with the draft resolution requirements.

GAZT also welcomed public comments that can be shared till 17 April 2021 allowing taxpayers and E-invoicing service providers including advisors and other interested parties to comment on the draft resolution.

Newsletter, Oman

Oman VAT Executive Regulation – Important Highlights

March 22, 2021

On 14th March 2021, the much-awaited Executive Regulations of Value Added Tax (VAT) was issued by the Head of Oman Tax Authority (OTA), His Excellency Saud bin Nasser Al Shukaili vide Ministerial Decision 53/2021. Oman’s Official Gazette no. 1383 published the regulations with guidelines for implementation. The VAT system in Oman will come into force on 6th April 2021 and the Sultanate is going to join the other three GCC member states viz the UAE, Saudi Arabia, and Bahrain to introduce the levy.

VAT is being introduced in Oman keeping in perspective of the county’s ‘Oman Vision 2040’ initiative that stipulates the roadmap to diversify the oil-based economy to non-oil sectors including logistics, manufacturing, and tourism.

Online Registration for VAT

Only those holding a “commercial registration number” (CRN) can register for VAT through the online portal of OTA. The necessary forms and guidelines for registration were provided after OTA decided to implement a staggered registration schedule for those requiring VAT registration.

The schedule is staggered based on the income and businesses with an annual turnover of more than OMR 1 million can apply for VAT registration till the time it goes live. The upcoming registration schedule for income exceeding OMR 500,000 is likely to commence on 1st April and last till 31st May 2021.

Important Highlights of VAT Executive Regulations

The Executive Regulations provide ample clarity on most of the significant areas that were debated, discussed, and exhaustively studied over a long period considering social and economic impacts and clarify the applicability, rules, and procedures of the VAT Law including supplies, supply provisions, administrative matters, and penalties, tax points during transactions, VAT for online services, value assessment of supplies, exemption, and tax adjustments, totally exempted supplies, applicability in special economic zones, customs duty waiver, registration, de-registration, requirements of documentation, tax filing and invoicing, VAT returns, etc.

It is important for businesses to clearly understand the regulations that provide guidelines on the scope and extent of VAT exemptions and zero-rating. Businesses operating in areas that are exempted or zero-rated must be aware of the proper scope and applicability of such exemptions and zero-rating for their business activities and benefit from it.

Companies qualifying for VAT must also know other aspects of how VAT will affect their businesses and accordingly formulate appropriate plans and strategies for VAT compliance from the very first day. Some of the vital regulations are listed below:

Scope and Applicability of VAT

1. VAT Exempt Categories

The Sultanate of Oman has planned to levy VAT at the standard rate of 5 percent on most goods and services. The country, however, has announced some exceptions for essential food items, medical care, education, and financial services which will be exempt from VAT. According to OTA some 94 food items have been kept away from the VAT list including milk, meat, fish, poultry, fresh eggs, vegetables and fruits, coffee and tea, olive oil, sugar, nutritional products for children, bread, bottled drinking water, and salt to name a few.

2. VAT-Zero-Rated Categories

A zero-rated good doesn’t attract VAT owing to its social importance as a necessity. The sale of zero-rated goods is not taxed and credits are given on VAT paid on inputs. Any company engaged in dealing in zero-rated supplies is not included in the mandatory requirement of VAT registration.

Zero-rate or no VAT is imposed in Oman on essential commodities such as education and healthcare.

Businesses related to oil and gas; certain food items; cargo and passengers in global trade, some precious metals like gold, platinum, and silver; some life-saving medicines, medical equipment, and import and export of items can qualify for zero-rated VAT in Oman.

3.VAT-Other Categories

Besides the VAT exempt and zero-rated categories, some other categories classed as essential services also enjoy VAT exemption including financial services, reselling and renting of residential buildings, healthcare services and related goods and services, educational services, local passenger transportation services, import of goods to countries where there is no VAT and any return of imported items, goods, and services for military forces, supplies for no profit and charitable organizations, etc.

Commodities given free of charge such as any sample for business promotions will only attract VAT if the value exceeds either OMR 50 per person or OMR 1,000 in a year collectively and beyond these values, the commodities will be treated as deemed supplies and VAT will be levied on those.

Pre-Registration Input Claim of VAT

Per Executive Regulation Article 73, any input tax incurred before the registration can be claimed within 3 years maximum and article 74 says that the input tax incurred before registration for supplies of services can be claimed within 6 months maximum.

OTA must be informed within 30 days of registration for submitting a claim. For a tax claim valuing more than OMR 50,000 for goods stored as stocks, the audited stock list must be submitted to OTA for a claim.

Compliance of VAT

The Executive Regulations are mandated by the Omani Government stipulating certain compliance requirements which need to be compulsorily adhered to by an individual or company qualifying for VAT as per the regulations. Not complying with the stated compliance requirements may attract penalties as specified under the Executive Regulations.

Tax Invoicing of VAT

The executive regulations mandate the preparation and issuance of proper tax invoices for every single taxable supply including a deemed supply and against receipt of advance. The tax invoice should have all information prescribed by the OTA such as serial no, date of supply and receipt of payments, description and quantity of goods, details of customers and sellers, etc.

There is also a provision for a simplified tax invoice with less information than that in a complete tax invoice and is subject to prior conditional approval of the OTA that is usually received within 15 days from the date of application. A simplified Tax Invoice Format is mentioned in article 147 of the Executive Regulation with mandatory inclusion of the phrase “Simplified Tax Invoice” on it.

Tax Period and Return Filing of VAT

The taxpayers will need to file their returns every quarter starting from 1st January to 31st December of any calendar year. The VAT returns need to be filed online through a government portal and in the format specified by the OTA. The tax return along with the payment of the VAT must be done within 30 days from the end of a specific quarter.

Claim and Refund of VAT

The Executive Regulations demand all VAT claims to be submitted in a prescribed claim application format designed by OTA with specific information of VAT refund claimed, the reason for the refund including the tax period for which the VAT claim applies. All claims of refund must be submitted to the area authority within a maximum of five years from the end of the tax period for which it is due.

The VAT return can be claimed under the following conditions.

If an extra VAT amount is paid then the due amount
If VAT is paid by a non-resident of Oman
If the VAT is paid by a foreign government or military or diplomatic officials
If VAT is paid by foreign travelers while purchasing personal goods in Oman and not in commercial quantity and for carrying with them
Refunds arising out of changes in the regulations and as announced by the OTA through Executive decisions from time to time

Services under the Reverse Charge Mechanism (RCM) of VAT

As per article 151 of Executive Regulation concerning imported goods or services, the taxpayer is responsible for recording the RCM. Unlike forward charging, a Tax invoice must be issued to self with RCM VAT in his favor if the supplier is a foreign resident and not registered with the OTA for paying the VAT.

Maintaining Records of VAT

The Executive Regulations specify the records to be maintained by the taxpayers including but not limited to the following.

Details of day to day transactions in chronological order.
Details of Inventory with inventory levels, items name, and types on a regular periodic basis.
Details of supplies of imported and exported goods and services.
Details of supplies of goods and services from GCC countries.
Details of all Customs related transactions.
All tax invoices including supporting documents issued by the taxpayers.
All tax invoices and supporting documents received by the taxpayers.
Records of information for validation of appropriateness of individual tax treatment.

Appeals for Tax Treatment of VAT

The Executive Regulations describe the method for putting an appeal before the OTA and in connection with the tax assessment or adjustment or any decision for VAT registration by the OTA. All appeals to the OTA need to be submitted in the Arabic language.

Penalties for Non-Compliance of VAT Regulations

Penalties amounting to OMR 500 to 5,000 are imposed for certain non-compliance such as

Delay in submitting compulsory VAT returns
The VAT registration certificate is not displayed properly and not visible to everybody
Record keeping, accounting records and books, and necessary documentation are not maintained as per the specified requirements.

Some non-compliance can attract higher penalties and maybe as high as OMR 10,000 which are

Inappropriate refund claims not supported by authentic records and documents.
Non-submission of registration cancellation request when compulsory by the regulations.
Incorrect recovery of VAT and knowingly.
Inappropriate processing of VAT inclusive goods and services.

Residential Areas Inclusive of VAT

Article 83 of Executive Regulations stipulates that hotel apartments, ungrounded structures, any place providing bed and breakfast, any tourist complex don’t come under the purview of residential buildings and are subject to usual VAT rates under rules of taxable supplies.

Agent of a Company

Article 19 of Executive Regulation makes it mandatory for any company acting as an agent and working in the name and representing the principal, the agent company must notify the Tax Authority about such arrangement by submitting a power of attorney and including this in its regular scope of activity. The details of principal and beneficiary must also be documented on all the records such as invoices and contracts. The agent must mention a disclaimer on all documents that he is performing all activities on behalf of the principal.

Though enough clarifications are provided in the VAT Executive Regulations, there are still areas needing further clarity. However, the articles specified in the Executive Regulations make it clear that the Tax Authority will be strict and vigilant on the actions of the taxable person. Adherence to these regulations is the key essence as evident in each article.

The introduction of VAT will surely help the country in generating an extra revenue stream though businesses dealing with capital goods may find the market and demand slightly subdued initially. As essential items are mostly kept out of the domain of VAT, it will not put much burden on common Omani citizens.

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