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.
UAE Federal Tax Authority and Tax Accounting in UAE
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 UAE has rapidly increased in UAE, 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.
Importance of Tax Accounting
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 Tax Accounting Services
Why Outsource Your Tax Accounting with Alriyadah?
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.
On which businesses does VAT apply?
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.
Who is required to register for VAT?
What is transfer pricing?
Transfer pricing refers to the price that is charged upon the transfer of physical goods between businesses located under same or different tax jurisdiction.
How many types of accounting are there in the accounting domain?
There exist 8 different types of accounting under the accounting domain:
Alriyadah is one of the top tax consultants in UAE. We understand the company requirements and tailor solutions according to business needs. Our team of experts consists of individuals having high industry experience on the taxation front. We keep in mind the international tax standards while dealing with the taxation process and deliver the optimum service to our clients. To file your tax returns, do contact us – we’d be glad to assist you and help you in framing your business tax structure.