Accounting plays a very important role for any organization, be it a start-up or a well-established business entity. The reach of accounting in setting up a business has leveraged extensively and because of that many sub-categories have been discovered under accounting. One such category is tax accounting. The term ‘tax accounting’ refers to accounting done for taxation purpose that specifies the guidelines that are to be followed by an individual or an organization while filing a tax return. It is dedicated to preparation, analysis, and presentation of tax returns and tax payments and is also known as cash-based accounting. Tax laws vary from country to country.
The accounting standards in the UAE are based on the standards set by the International Financial Reporting Standards (IFRS). The introduction of taxation system by the Federal Tax Authority (FTA), UAE has been carried out with the intention to diversify the regional economies and expand business reach globally. As we have seen tax accounting has captured the global market, its importance and need have been accepted at an international level be it for individual or corporate use. Just like the count of chartered accountants in Dubai has rapidly increased in Dubai, the tax accountants have also been continuously increased at a speeding rate. The Federal Tax Authority UAE in 2017 has taken a step to initiate the registration process opened for tax agents, tax accounting software vendors in the Emirate.
Till now you have seen and understood the basic concepts of tax accounting. Payment of tax is a compulsion for any business under this business planet. Even a minor fault could result in a heavy business loss. Tax accounting is totally dedicated to the tax domain that is essential for individuals as well as for any business. Now, let’s understand the importance of availing tax accounting and the reason behind its tremendous growth:
Alriyadah, since its inception, has been dealing with the financial front of the various business. Sorting the tax issues is one of the core domains of the firm. Our team of offer prepares tailor-made solutions that suit the business entity based on the nature of the business it is involved in. On-time delivery of solutions and projects is another important feature that we strictly follow. We have a wide range of satisfied clients globally dealing with different businesses. To become a part of our network, do contact us. We would be happy to assist you and deal with the tax structure of your business.
VAT applies equally on tax-registered businesses managed on the UAE mainland and in the free zones. However, the UAE Cabinet defines certain free zones as ‘designated zones’, which are treated as outside of the UAE for tax purposes. The transfer of goods between designated zones is tax-free.
Transfer pricing refers to the price that is charged upon the transfer of physical goods between businesses located under same or different tax jurisdiction.
There exist 8 different types of accounting under the accounting domain:
A double tax treaty is an agreement signed between two countries in order to avoid the double taxation that takes place during the import and export of goods.