UAE Wealth.info

We offer the service of bookkeeping in the UAE for companies. The service can be provided remotely without personal presence in the UAE.

Which companies registered in the UAE must do the bookkeeping?

All companies registered in the UAE must do the bookkeeping!

In 2018 the UAE introduced VAT (value added tax). The VAT rate is 5%.

Because of this, many companies fall under the requirement to submit reports as VAT payers. Such companies must register as VAT payers.

Regardless of whether a company falls under mandatory registration as a VAT payer, any company must file bookkeeping reports. The following documents should be stored: balance report, report on profit and loss, statements on the main assets, on calculation of salary, goods and materials, and other accounting data.

Which companies registered in the UAE must register as VAT payers?

A company must register as a VAT payer in the following cases:

• company is resident of the UAE or any country of the GCC;
• at that, a company provides services or delivers goods from the territory of the UAE;
• or, if for recent 12 months a turnover of goods or services subject to taxation exceeds 375,000 dirham (102,180 dollars), or if presumed that in the next 30 days a turnover of goods or services will exceed 375,000 dirham (102,180 dollars).

These rules are also applicable to local companies of the UAE, and to companies registered in free zones of the UAE.

Whether a company does not fall under the requirement on mandatory registration, but still operates in the territory of the UAE and its turnover of taxable goods or services exceeds 187,500 dirham (51,090 dollars), such a company may voluntarily register as a VAT payer.

Among services offered by us is also registration of companies in the UAE as VAT payers. We should also note that in the UAE multiple companies can be registered as one “tax group”.

Requirements to bookkeeping procedures in the UAE

All natural persons and legal entities dealing with any business in the UAE must do bookkeeping record and commercial books on such business with keeping all the tax information.

Every person should submit tax declaration, information, records, data and documents regarding taxes. Reports may be submitted in Arab or English language. If reports are submitted in English, then the UAE Federal Tax Service may request submission of a report in Arab language.

Every taxable person must:

• prepare tax declaration on each reporting period in the defined terms;
• submit tax declaration to the Tax Service according to the applicable rules;
• pay the applicable tax calculated under tax declaration, or with any tax estimate, in terms defined by the law.

In submission of incomplete tax declaration, which does not contain the main information, to the Tax Service, such declaration will be considered not accepted.

Every taxable person is responsible for accuracy of information and data in the submitted tax declaration, and during his/her correspondence with the Tax Service.

Every taxpayer must pay all administrative penalties in the terms defined by the law.

VAT accounting when doing bookkeeping in the UAE

Records regarding all goods and services provided for VAT purposes by a VAT payer (or provided in his/her name), representing goods and services, as well as suppliers and their agents, must be stored. Meanwhile, such records must be detailed enough to let the Tax Service identify goods and services, suppliers and agents.

These records must be stored for 5 years.

Nevertheless, records regarding real estate must be kept during 15 years upon termination of the tax period they belong to.

A Vat payer who performs taxable deliveries of goods and services in the UAE must account deals, so that to verify the emirate where steady office related to delivery is located.

If a VAT payer who performs taxable deliveries of goods and services does not have a steady office in the UAE, he/she must account deals so that to verify the emirate where delivery was received.

UAE Federal Tax Service may perform tax audit

The Tax Service may perform tax audit of any natural person or legal entity for checking if this person follows the laws.

Tax audit may be performed by the Tax Service in its office or at place of the main business of the person regarding whom audit is made, or at other place where such person makes business, keeps bookkeeping reports or goods.

If the Tax Service decides to perform tax audit at place of making business regarding a person subject to audit, or at any other place where such person makes business, stores goods or bookkeeping reports, then the tax service must notify this person at least five working days prior to audit.

Under certain circumstances, a tax auditor may without prior notification enter any place where a person under audit makes his business, keeps bookkeeping reports or goods, while depending on circumstances the place of audit can be temporarily closed for not more than 72 hours.

A tax auditor may enter this way in the following cases:

• Tax Service reasonably finds that a person under audit participates (himself or is involved by other person) in fiscal avoidance;
• Tax Service reasonably finds that without temporary closing of audit place obstacles may occur for performing audit.

Whether a person who obtained prior notice on tax audit attempts to prevent auditor to enter the location, in which audit is to be performed, then a tax auditor under circumstances presuming mandatory closing of audit location has to obtain a written consent of the Director General of the UAE Federal Tax Service; whether a location under audit is a residential place, then an auditor has also to obtain consent of the prosecutor.

Locations that have to be closed for audit must be opened again within 72 hours, if the Tax Service upon expiry of these 72 hours does not obtain the prosecutor’s permission for prolongation of closing for similar duration.

Criminal investigation may only be started under the application of the Director General of the Tax Service.

Documents permitted for request by the Tax Service when performing audit of bookkeeping in the UAE

During performing a tax audit, an auditor may request original copies of documents or their copies, or examples of shares, equipment or other assets from the place of tax audit, if in this place a person makes his business, or if this place is owned by this person, or this person may obtain access to the place according to the law.

Time for performing tax audit of a company registered in the UAE

Tax audit is performed in working hours of the UAE Tax Service. Upon decision of the director of UAE Tax Service, audit can be performed in other time.

Rights of a person regarding whom tax audit in performed in the UAE

Any person regarding whom tax audit is being performed. a tax agent of such person, or a legal representative, must cooperate with a tax auditor so that he could perform his duties.

A tax agent is a person registered in the Tax Service (in the register of tax agents), who represents other person before the Tax Service for execution of his tax duties and execution of related rights.

A person towards whom a tax audit is performed has right:

• request from tax auditors present their identity cards;
• obtain copies of notices on tax audit;
• to be present during tax audit held outside the Tax Service;
• to obtain copies of original documents or digital documents that were withdrawn or obtained by the Tax Service during audit.

Penalties for breach of bookkeeping in the UAE

For breach of bookkeeping (improper bookkeeping accounting) a penalty is provided in amount of 10,000 dirham (2,740 dollars) – for the first breach, and 20,000 dirham (5,550 dollars) – for the repeated breach.

Penalties provided for avoidance of tax payment during bookkeeping in the UAE

Avoidance of tax payment can result in penalty in form of imprisonment or monetary penalty, which amount should not exceed fivefold unpaid tax. These penalties does not influence more severe penalties assigned on the basis of any other law.

Application of a penalty does not eliminate from obligation to pay a tax or an administrative penalty.

A competent court may apply a penalty to any person who directly or indirectly played an important role in avoidance from tax payment.

A person who directly or indirectly participated in avoidance from tax payment bears solidary responsibility on payment of a tax and an administrative penalty, together with a person whom he/she helped.

The Tax Service may not perform tax estimate after five years since expiry of the corresponding tax period, except cases when tax avoidance was proved or registration for tax purposes is absent.   

If avoidance from tax payment was proved, the Tax Service may perform tax estimate within 15 years after expiry of the tax period in which tax payment was avoided.

In cases when registration for tax purposes is absent, the Tax Service may perform tax estimate within 15 years from the date on which a taxable person was to register.

Our services on bookkeeping support in the UAE

We offer a wide range of bookkeeping services that meet financial needs of any business on a global market. We guarantee that the financial reporting corresponds to the International Financial Reporting Standards (IFRS) and undertake to provide the maximum level of professional standards and quality.

Benefits of outsourced services on bookkeeping in the UAE

• Outsourcing the second-tier types of activity may increase the effectiveness and productivity of companies, as other independent bookkeeping company can effectively perform these tasks while having more experience than the company itself.
• companies can significantly reduce costs due to outsourcing of bookkeeping services in the UAE.
• companies obtain access to advanced technologies without investing much money in their own technologies or software.
• companies can focus on their main activity rather than paying attention to accounting systems, which is important for trouble-free operation and development of business.
• during transfer of bookkeeping to professional outsource there are no extra requirements and expenses for hire of bookkeepers.
• available services of more experienced specialists at a lower price.
• no need to teach new bookkeepers.

We offer a number of different options for bookkeeping services in the UAE. Here are the variants:

Remote bookkeeping service in the UAE

This option presumes a remote cooperation.

We will update the information on transaction of your company on a daily basis. This includes updating information on such transactions as payments, income, purchases, and sales. Also, we will perform verification of bank statements, etc. We can perform any other requests of a customer, while services can be provided as under principle of incomplete working day, so as under principle of a full working day.

Data can be provided by a customer via email or other means using Internet. Based on this data we will prepare necessary periodic reports.

Complete bookkeeping in the UAE with arrival of our specialist to your UAE office on a regular basis

Our representative will periodically visit your office in the UAE for input of data on transactions.

We will update data on daily transactions of a company in the bookkeeping software and will create periodic reports for management of a company.

If a company performs relatively few business operations, then one or two visits per month is enough to update bookkeeping. For example, our representative can arrive to your UAE office at the end of each month for updating information on transactions.

This process will encompass data on all sales, purchases, payments, profit and other business operations.

Quarterly reports (internal financial reporting) will be prepared and presented to management of a company at the end of each quarter.

These reports include:

• report on profit and loss (report on aggregate income);
• balance (report on financial state);
• cash flow statement;
• bills payable;
• bills receivable;
• stock analysis;
• comparative report on expenses;
• comparative report on sales outcome;
• analysis of circulating capital;
• analysis of financial indexes.

To obtain regular bookkeeping services, an administrator or secretary in the customer’s office in the UAE must have the basic information on performed transactions, as well as must have a possibility to check documents on them. Such documents include:

• invoices on purchases;
• invoices on sales;
• vouchers on receipt;
• payment vouchers;
• documents on small cash payments;
• bills;
• bank statements;
• copies of bank transfers;

and other documents.

Bookkeeping service in the UAE with arrival of our specialist to your UAE office to check the reporting and prepare final reports

With this option, our representative will visit your UAE office on a regular basis – weekly or monthly, depending on the amount of work and time needed to settle bookkeeping issues.

Meanwhile, all works on input of data must be executed by a bookkeeper of your company working in the office of the company on a full-time basis.

Our services of bookkeeping control will include the following:

• review of bookkeeping registers with necessary verifying documents. Review of documents that need attention and actions of specialists of the highest category. Documents will be forwarded to them depending on the importance of the arising issue.
• providing that description of operations with income was made properly and according to reasonable principles of bookkeeping, and according to the nature of business and agreements.
• analysis of sales from the point of contribution of certain categories of goods, sellers, etc.
• providing that proper accounting of advance payments, non-received income, pre-payment, and other was made by checking of bookkeeping documents and transactions.
• providing that payments made by the company were verified by corresponding documents and approved by corresponding manager or owner.
• providing correct and timely verification of bank accounts.

At the end of each month there will be prepared and issued monthly reports for management, among which are: analysis of financial indexes, analysis of financial reporting, analysis of circulating capital, and other, as well as conclusions of our specialists on review of bookkeeping registers.

Preparing the auditor’s report for companies registered in the UAE

A company must assign an independent auditor!

An auditor’s report shall be prepared by an auditor assigned by a company. To assign an auditor, in address of a registrar a letter of an audit company should be provided. Such letter shall notify that an audit company is now assigned at customer’s company.

An audit company must belong to the list of auditors on sites of registration bodies.

Audit of financial reporting is an independent objective evaluation of financial reporting, which increases value and accuracy of financial reporting prepared by the management of the company. We cooperate with local and international audit companies and can select an audit company meeting your requirements and budget. Moreover, our specialists provide full assistance when performing audit of a company, by keeping relations with auditors, preparing verification letters for auditors, and holding meetings with them.

Submission of bookkeeping reports in the UAE

We not only prepare the necessary reports but also submit them to control bodies upon approval and signing.

Please contact us if you need to obtain Tax Domicile Certificate UAE for a company.

Bookkeeping software in the UAE

To increase productivity and maximize the effectiveness, the current business environment requires bookkeeping accounting systems. Implementation of a suitable system of accounting allows providing necessary conditions for taking reasonable decisions in the process of managing the financial information.

Our specialists will help to implement a suitable accounting system that they will customize according to your business needs, with a possibility of future scaling. Our services include the following:

• analysis of activity and offering the optimum software;
• implementation of the system;
• teaching the personnel, periodical control of the system.

We can do the bookkeeping, e.g. in such systems as FirstBit (adapted 1C), Quickbooks, Sage, Tally, and other.

Price for our bookkeeping services in the UAE

Specialists located in the UAE

We offer services of specialists physically located in the UAE. These professionals also speak Russian. The bookkeeping can be made in any system suitable for the customer (FirstBit (adapted 1C), Quickbooks, Tally, Sage, and other). These specialists can also perform for you an audit, which will later be verified by an audit company in the UAE.

The price for service starts from 550 dollars per month. The final price depends on transactions performed by a company and a monthly turnover of a company, because this defines time necessary for bookkeeping.

Specialists located in Kyiv (Ukraine)

We offer services of specialists physically located in Kyiv (Ukraine). These professionals also speak Russian. The bookkeeping can be made in any system suitable for the customer (FirstBit (adapted 1C), Quickbooks, Tally, Sage, and other).

The price for service starts from 300 dollars в месяц. The final price depends on transactions performed by a company and a monthly turnover of a company, because this defines time necessary for bookkeeping.

How to order the bookkeeping service in the UAE?

To order the service, please contact us at info@offshore-pro.info for obtaining a professional advice on bookkeeping in the UAE.

Then you should pay for our services using a bank card, WebMoney or Western Union, or a bank transfer.

The price for bookkeeping services starts from 300 dollars.

Upon payment a customer should send to us the necessary information and scanned documents.

Contact us to obtain the bookkeeping services in the UAE info@offshore-pro.info right now!