Benefits of outsourced CFO services in UAE

Benefits of outsourced CFO services in UAE

Numerous developing growth and middle-market businesses would profit from the knowledge of a seasoned financial and accounting professional, but they are reluctant to shoulder the cost of a full-time CFO or simply find it difficult to fill that position.

These organizations frequently have a bookkeeper and accounting staff on staff, but they frequently don’t have a fully operational accounting department that can handle complicated problems and understand financial data to produce insightful estimates that will help the group move forward.

An Outsourced CFO can be a quick, affordable help when a company finds itself in this situation. With the help of cloud-based accounting tools and virtual team collaboration technologies like Zoom and Microsoft Teams, the Outsourced CFO is typically hired on a time-and-materials or monthly subscription basis.

Focus on business

Business owners can concentrate more on their businesses by using an outsourced CFO. By outsourcing that job to seasoned financial professionals and their businesses, acquiring, training, and retaining accounting expertise is freed up for business owners and executives, allowing them to concentrate on expanding their company and other more important goals.

Improve efficiency

Technologies based on the cloud have opened up some possibilities for integration and automation that can be used to boost productivity and streamline processes.

Guidance

You can count on your outsourced CFO to help you with a variety of financial tasks, including guiding you through complicated financial projects, ensuring that your business is compliant, assisting you in achieving your goals, helping you design strategies to expand your business, and much more. Another advantage of having a specialist like an Outsourced CFO on your team is that you can ask them any questions as they come up and be sure that you will get sound advice to help you.

Saving on costs

You can hire an outsourced CFO for a lot less money for your organization and get the same level of service as you would if you had a CFO employee within your business, as opposed to hiring a full-time CFO as a member of your team and incurring the additional cost of covering their salary and benefits.

KLOUDAC Accounting Firm Dubai, UAE

You should have access to a CFO that is not only affordable but also trustworthy, reassuring, and knowledgeable about your company’s field. KLOUDAC works with dozens of companies just like yours as CFOs and business advisers since they are aware of how difficult it can be to find a good solution for your CFO role and the effect it has on your company. 

How to manage compliance risks

How to manage compliance risks

Take a systematic strategy to identify, reduce, and regularly monitor the compliance risks your company confronts in order to manage compliance risks.

Making sure an organization complies with internal and external rules and policies is a crucial part of owning or running one in order to safeguard it from the risks associated with non-compliance. Understanding and managing compliance with laws and regulations while also assisting in more effective management of the risks connected to non-compliance is the process of compliance risk management.

It can be difficult to know and understand your internal and external compliance obligations, let alone the risks associated with them. For this reason, it’s crucial to establish a process that will give you the confidence that your compliance is being successfully managed while avoiding potential liabilities.

Follow below steps,

Step 1: Establish a structure to categorize your duties.

The first stage is creating a structure that makes sure your business accurately defines and understands its responsibilities and liabilities towards the government, as well as towards its staff, investors, and any other partners. Implementing a cycle to check for new or updated compliance obligations your organization might need to meet is part of this process. The ability to identify and compile the laws, rules and internal policies you must abide by in one location makes using third-party software immensely helpful.

Step 2: Evaluate the risks.

Once you are aware of your organization’s compliance requirements, you should undertake a risk analysis to determine how failure to comply with the requirements could endanger your business. In other words, you should evaluate the threat to your organization from not adhering to a certain standard. You will be able to prioritize your compliance activities as a result of this approach, and you may spend resources accordingly.

Step 3: Implement policies and processes to guarantee compliance.

It is crucial for any organization to protect its compliance efforts by developing rules and procedures, as well as any relevant contracts, that ensure you are timely fulfilling your duties. Assigning ownership and responsibility to particular employees or teams as part of this stage will help you stay on top of the standards you need to adhere to and will also help you plan and be ready for any potential hazards.

Step 4: Report on your compliance risk management activities

It’s crucial to routinely report on the compliance environment at your organization, just like with any management process. In order to determine what is functioning and any inefficiencies that can be corrected, you should assess your duties and the processes and procedures set in place for meeting them. For the purpose of internal or external audits, you should also retain a record of your compliance history. A tool can generate customized reports on your compliance history and progress.

KLOUDAC Accounting Firm Dubai, UAE

Creating a standardized system using the methods above will enable your organization to consistently satisfy your compliance duties and even investigate voluntary standards that could enhance your business operations. Managing compliance is not a one-time project, but rather an ongoing activity. You can get full guidance and support from KLOUDAC.

What is Corporate Tax and what should the companies know?

What is Corporate Tax and what should the companies know?

How Does Corporate Tax Affect Business Owners in the GCC?

In order to draw foreign investors and business owners, the Gulf economies have maintained low or even zero tax rates. Due to the region’s typically advantageous tax regimes, the GCC remains a desirable place for international investment. However, a number of adjustments have been made to diversify the region’s income streams while reducing its reliance on traditional revenue sources. While other countries implement new tax structures, certain countries have previously enacted value-added taxes.

What does corporation tax mean and How does this impact foreign nationals?

A type of direct tax that is levied on business profits is the corporate tax. KLOUDAC gives an end-to-end explanation on all you need to know about UAE corporate tax. In addition to paying taxes on their income, business owners also have to pay taxes on their output, employees, property, and environmental impact.

Non-residents who conduct business in a GCC country through a permanent establishment are subject to corporate tax. Entrepreneurs or business owners in a variety of areas, most notably oil and banking, owe it in multiple GCC countries.

Additionally, there are a lot of government fees and taxes applied to the region’s business sectors.

Why is taxation being promoted with such vigor?

Although personal income taxes are still unheard of in the Gulf, several countries have introduced a value-added tax on consumption, with Saudi Arabia raising the rate to 15% in 2021.

Which countries in the Gulf Cooperation Council (GCC) have a corporate tax system?

Corporate tax rates have decreased internationally from about 50% to about 20% as countries compete for inward foreign investment. However, because these taxes are being applied for the first time, the GCC is an outlier.

The UAE declared that as of June 1, 2023, business earnings will be subject to a 9% tax in the UAE. Bahrain is contemplating adopting it in 2023 as well. 

Certain individual Emirates have imposed a limited corporate tax at rates as high as 55% with regard to oil and gas development and production as well as the offices of foreign banks operating in the United Arab Emirates (UAE). UAE, in contrast, has no business tax.

What function does corporate tax serve in the Gulf Cooperation Council (GCC) economies?

Corporate tax rates vary widely amongst countries, with some being considered tax havens due to their low rates. Various deductions could lower corporation taxes. As a result, the corporate tax rate that a company actually pays is typically lower than the statutory rate, which is the rate that is declared before any deductions.

For business owners, paying additional corporate taxes may be preferable to paying additional individual income taxes. A government uses the money it collects from company taxes as a source of revenue.

VAT and corporation taxes are different. The majority of governments derive their primary revenue from taxes. Taxes help governments to increase their revenue and pay for public spending, but there is a big difference between company taxes like direct taxes and VAT like indirect taxes and excise taxes.

Indirect taxes that are gathered by businesses on behalf of the government include VAT and excise taxes. They should be considered consumption taxes paid by the final customer. 

For businesses that operate or want to invest, the absence of a corporation tax makes the country very attractive. For these reasons, the decision to impose VAT and excise tax was widely supported, and direct taxes on businesses have typically been very low.

Which non-resident corporations might benefit from tax treaties?

The number of double taxation agreements (DTTs) between the GCC and other countries is growing. Tax treaties have a considerable positive impact on non-residents who establish long-term businesses abroad or lessen their exposure to withholding taxes in the four GCC countries. There is no withholding tax or other type of tax for non-residents of the United Arab Emirates.

Most countries require withholding taxes be deducted from work income. The payment of interest and dividends is also subject to withholding taxes in several nations.

The GCC countries’ business tax tracking system.

Using online portals, businesses in the Gulf Cooperation Council (GCC) countries are now submitting their tax returns, contracts, and other papers. By making it simpler for tax authorities to cross-verify data, tax audits can be started when there are deviations from accepted standards.

Regardless of your ownership of a small or large organization, paying the right amount of tax is essential. You can make the right payment by being aware of the rules and laws governing business tax in the UAE. However, running a business comes with a lot of responsibilities, and staying current on tax law changes can be difficult and time-consuming.

KLOUDAC Accounting Firm Dubai, UAE

It would be beneficial if you obtained tax advice from experts in the field. Do not hesitate to get in touch with KLOUDAC for more details regarding our corporate tax in the UAE. Our crew has demonstrated experience in UAE tax issues while providing specialized tax services for a range of local businesses.

accounting for realestate

Accounting for Real Estate in UAE: One of the most booming sectors

The real estate industry in the UAE has witnessed one of its biggest booms in the last few decades. With millions of dollars being invested and transactions going in multi-billions, UAE’s property market is at the cusp of becoming an economic power pillar, riding on heavy foreign investment and a quick delivery model of premium and budget homes. According to a report by Bloomberg, there has been an 89% hike in the price of premium real estate properties in the last 12 months with other popular real estate hubs witnessing a 100% price hike.

While this is great news for the country, it also means more work for the real estate players in terms of their financial planning, submitting their tax papers, and being compliant with all kinds of property tax parameters. Any real estate agency deals with a large number of financial transactions, and accounting and bookkeeping can become a tedious task for them if not handled by a professional Accounting Firm in the UAE. Due to the sheer volume of financial transactions involved, accounting for real estate needs to be done in a more organized and compliant manner to avoid legal hassles and losses.

How will the Federal Corporate Tax on Real Estate Impact Investments


Recently, the UAE Ministry of Finance announced the introduction of federal corporate tax (FCT) for the financial year starting from 1 June, 2023. This means that any commercial or business activity related to the real estate industry will be subjected to FCT whether it is done by an individual in a personal capacity or by a corporate entity. The FCT will be levied on all businesses involved in construction and real estate management and development. This apart, all entities acting as agencies or brokers will also fall under the FCT.

Even though there are still some grey areas in the newly introduced FCT regulations, the initial announcements indicate that the income from real estate investments held by individuals in their personal name meant for personal use will be exempted from FCT. However, it is still not clear if the tax will be levied on multiple property ownership or if those properties are leased out. As far as foreign investments are concerned, the FAQs released by the department indicate that no FCT will be levied on foreign investment income.

On the other hand, all real estate activities undertaken by corporate entities will fall in the FCT category. However, assets held in the Freezones by Freezone entities will be exempted from FCT. But if the same entities hold any properties on the mainland, they will have to pay the tax.

How an accounting firm in UAE can help


A real estate firm has to manage financial transactions of a huge magnitude. Any discrepancy in the records can lead to a long legal battle or huge financial losses. This is why it is advised to hire an accounting company in Dubai to keep accounting and bookkeeping services right on track. An agency with professional accounting and bookkeeping experts with considerable experience in auditing and accounting will help you align your documents with the FCT regulations.

An accounting firm in UAE can help you in multiple ways including:

• Tenant Management
• Accounts Payable Management
• Accounts Receivable Management
• Reconciliation
• Management Reporting
• Business Advisory Services
• Internal and external Audit Services
• CFO Services
• VAT Consultancy Services

That apart a professional accounting firm in UAE will also provide several other supporting advantages that can make a huge difference in the way you manage your real estate-related accounting.

Minimizing errors, maximizing accuracy
Managing in-house accounting for real estate can result in errors and discrepancies. However, hiring an accounting firm in UAE will ensure that all your accounting and bookkeeping activities are 100% errors free and compliant.

Accounting management
When you hire a professional accounting company in Dubai, it will make sure that all your accounting books are maintained properly and on regular basis, allowing you to know exactly what your level of revenue generation is and the profits you stand to earn.

Detecting fraudulent activities
Expert accountants will understand and point out any loopholes in your accounting processes and will also assist you with steps to reduce inherent risk.

Policy, standard, and technology upgradation
A dedicated accounting firm in UAE will be aware of the latest policies, accounting standards, and best technologies to help you with a smooth flow of things. This ensures you are always at the top of your accounting game.

Tax treatment made more efficient
One of the biggest advantages of hiring professional accounting services in Dubai is that they will help you file all taxes well within the deadlines. Doing this will create a positive image of your company in the eyes of the law and will help you comply with tax-related rules and regulations.

Why choose Kloudac?


The real estate industry is one of the fastest-growing industries in the UAE. It will require you to be on your toes so that there are absolutely no loopholes in any tax-related activities. And this is what Kloudac helps you with. Our experienced team, custom-made solutions, quick and trustworthy services, and diverse clientele make us a one-stop solution provider in accounting and bookkeeping. So, if you wish to be on the right side of the tax law, let Kloudac handle your finances for the best results.

 

DDA Audit Report

DDA Audit Report – Submission of Audited Financial Statements

In the last few decades, Dubai has witnessed an enviable transformation in terms of creating a conducive and inclusive business environment. Not only has the city played a pivotal role in helping the government realize its policies of economic diversification, but it has also been the cynosure of several other plans charted out by the government in order to streamline and systematize the country’s economic growth. One such body that has been forwarding its goals is Dubai Development Authority (DDA). It was formerly called Dubai Creative Clusters Authority (DDCA), which was brought into being with the aim of creating an appealing and encouraging business environment that would help in improving financial competitiveness and set a global standard for businesses across sectors.


To ensure this, DDA made the submission of audited financial statements mandatory for all business entities registered with the authority so that there was absolute clarity about where the economy was heading. Under this provision, all businesses must maintain their accounting records and books for at least eight years after the date or a date that the registrar prescribes. The DDA also prescribes that the accounts must comply with the accounting principles or the standards approved by the Registrar. The financial statements must hence be prepared following International Accounting or International Financial Standards as UAE doesn’t have its own accounting standards.

Who needs to submit audited financial documents?

As per the legal requirements, whether a company needs to submit audited financial documents will completely depend on the jurisdiction of where the company is located. According to the latest provisions, the requirements are:

● Every company must invite more than one auditor to audit their documents
● The company must keep the annual financial accounting ready. This includes a balance sheet, and a profit and loss account
● International Accounting Standards and Practices should be applied by the companies for a clear understanding of net profit and loss

● All companies incorporated in free zones must comply with the requirements of their respective free zones

● Your company type will also make a difference. For example, any branch of a foreign company must get its financial documents audited

 

Benefits of keeping audited documents ready

The authorities in Dubai make submission of audited financial documents a mandate for a reason as there are definite benefits of doing that:

  • Determines the correct financial situation of a company. It also determines the reliability of the financial information provided by the company
  • Audits help organizations investigate and assess any financial risks they might face
  • Auditing financial reports will analyze if the business is viable or not. When auditors audit the financial reports in UAE, they are expected to evaluate and assess if the business is capable of revenue and profit generation. This helps the government make better-informed decisions about supporting such businesses
  • Auditing the financial reports also helps organizations find out newer ways of improving their business as auditors can show them the right way forward
  • Auditing makes an organization more credible and trustworthy, which increases its chances of getting more investment and financial support from other organizations as well as the government

Mandatory content to include before the Submission of Audited Financial Statements to DDA

Financial reports are important documents and they help the government analyze the individual financial capabilities of an organization and collectively that of the country. So, it is important not to miss out on providing the right information. So, your financial reports must include:

  • A statement indicating the profit and loss during the financial year
  • A statement of equity and retained earnings or deficit
  • A balance sheet at the end of the financial year
  • Notes to all the financial statements

The organization must also submit a copy of its financial statements the report given by the auditor to the Registrar within seven days of the annual general meeting when audited financial statements are submitted.

When must you submit your financial reports to the DDA?

The DDA had mandated that every company under its legislation must provide the latest audited financial report along with the summary sheet before or on October 31, 2022. The DDA also prescribed a particular format in which the documents must be submitted. The authority had also asked all companies that they must continue submitting the said documents every year within 6 months from the end of the financial year. It should be submitted through the AXS portal to the DDA and it must consist of the following:

  • Account of profit and loss: Gross profit, revenue, cost of sales, operating profits, operating costs, depreciation, amortization, interest expenses, net profit, and other income/loss
  • Balance sheet: Fixed assets current assets, other assets, investments, current liabilities, long-term liabilities, retained earnings, share capital, and reserve and surplus

If an organization fails to be compliant with the rules and regulations laid out by the DDA, it may attract a fine and lead to the non-renewal of its license. If things go as planned, the mainland licensing authorities and free zones across the UAE will make submitting the audited financial statements annually a mandate. Corporate tax laws and other laws are expected to be introduced to closely monitor business activities throughout UAE. The government is hopeful that the introduction of these laws will enable better financial planning and development.

 

Reasons why hiring an accountant can avoid bankruptcy

Reasons why hiring an accountant can avoid bankruptcy

1. Trustworthy & Reliable Service

An accounting firm with practical accounting experience that you might be missing is one justification for hiring them for your company. Even if you’ve studied accounting in class or through online video, faults might still occur. Getting an experienced and reputable firm to handle your accounting is preferable since it may directly impact your money.

 You can also work with independent contractors who have previous direct accounting project experience. Usually, they commit to working on just one project at a time. By retaining their knowledge, you can ensure that your accounting is in top shape and that your company receives the maximum amount of tax benefits.
When seeking for businesses to outsource accounting services, KLOUDAC is one of the most experienced accounting firms in Dubai, UAE.  They are capable of managing payroll, producing financial statements, and performing accounting audits. They provide prompt, dependable services that adhere to your needs and deadlines.

2. Reduced Risk of Fraud

Having accounting experts work on your accounts has several benefits, but one of the biggest is a reduced risk of fraud or mistakes. The probability that your business will be held responsible when this occurs is basically zero. Due to their own reputation to uphold, professional firms make sure the accounts they manage are always accurate. They lessen the risk of fraud and guarantee that your business won’t ever get into legal trouble.

3. Technical mistakes are less likely to happen

The best professionals work for accounting businesses.  Hiring a junior accountant puts you at risk of making in-depth mistakes. Technical professionals are associated with accounting firms and if errors are found in the accounting books, accounting firms may be held accountable. They make sure your finances are in order and that you have access to the best financial resources available.

4. Time is valuable

Time is of the utmost importance when you are the CEO of a firm. You shouldn’t waste it on things like bookkeeping for your business because you should be focusing on expanding your clients and should be in control of running your business. You might avoid errors and spend less time trying to handle your accounts yourself by hiring a third-party provider. These companies can manage your credit cards, represent you in bank negotiations, and collect invoices as necessary. 

You won’t have to do everything yourself, which is the main benefit of employing an accounting firm to handle your company’s accounting needs. If you grant access to an accounting firm, your financial information is secure in their hands. You may focus on expanding your business while keeping your finances in order doing this.

5. Flexibility and ease of use

One of the most obvious benefits of employing an accounting firm for your business is the number of choices available to you. 

Here are a few illustrations: 

  • The adaptability of the accounting business in handling all of your financial needs.
  •  It is simple to use in accounting management and bookkeeping businesses. 
  • Accounting firms can help you expand your company or find areas where you can decrease costs. 

Hiring a company to handle your accounting needs allows you the flexibility you need to expand your company with the aid of the right knowledge. By outsourcing, you may provide the best services without having to pay more for ongoing training.

KLOUDAC Accounting Firm Dubai, UAE

Small firms frequently face significant pressure to balance their budgets and remain profitable. They have faced particularly difficult times in recent years, and many have been forced to shut down. KLOUDAC is a reputable accounting firm with 15 years of service in Dubai, United Arab Emirates and it also has won the certifications for Xero Payroll and Xero Advisor which is awarded by  the industry-leading online accounting software, XERO. 

A guide to IFRS Advisory Services in UAE

A guide to IFRS Advisory Services in UAE

You must adhere to the highest accounting standards when you expand into overseas markets and handle such significant transactions. IFRS is a universal financial reporting standard that is embraced and accepted by all nations. In order to assure compliance and proper paperwork, the majority of businesses comply to this process. However, the system frequently reviews and modifies its policies, which causes uncertainty and necessitates the use of IFRS Advisory Services.

What is IFRS Advisory?

International Financial Reporting Standards, or IFRS, are a fundamental set of instructions for creating financial statements. These universal guidelines assist make financial statements consistent, believable, and comparable around the world. The International Accounting Standards Board, or IASB as it is more generally known, is in charge of publishing the IFRS protocol. Additionally, IFRS acts as a universal language that supports and promotes commercial endeavors with the utmost integrity and openness. As a result, businesses must make sure they adhere to IFRS guidelines in order to maintain effective and sound financial reporting standards.

Benefits of IFRS Advisory Services

  • Enhanced financial reporting’ reliability, comparability, and openness
  • Assists in preventing the uncertainty that results from the reporting standards’ increasing complexity and variations in its requirements
  • Assists a corporation in its efforts to grow and reach new markets abroad
  • Enables the attraction of international investment by acting as a reliable source of financial data.
  • Makes financial statements more exact and accurate, which increases the company’s trustworthiness.
  • Makes managing and complying with VAT reporting and regulations simple.
  • Contributes to the development of a stronger, more effective financial reporting standard that enables better service provision.
  • Increases responsibility, which raises trustworthiness among shareholders and investors.
  • Assists in streamlining decision-making overall, enabling businesses to make more informed choices.

KLOUDAC Accounting Firm Dubai, UAE

Market conditions vary often, and businesses frequently modify their organizational structures to boost their commercial value. KLOUDAC can assist you in navigating and adhering to the special IFRS regulations for organizational changes and restructuring activities in your interim financial statements. We offer specialized employee training based on our IFRS knowledge and skills, either to develop a fundamental understanding of IFRS and IAS or to instruct the specialists on the most recent updates to the standards. 

7 essential strategies to increase your business revenue in UAE

7 essential strategies to increase your business revenue in UAE

You should concentrate on your clients, step up your marketing and sales efforts, assess your pricing tactics, and widen your market if you want to enhance your small business’s revenue. There are several tactics small business owners can employ to boost revenues and enhance bottom lines, regardless of their budget. Achieving success and increasing revenue requires striking a balance between short-term and long-term objectives.

You must boost revenues if you want to keep your company operating. A business’s financial health is good when its sales are growing. The straightforward operational marketing and service strategies listed below might assist small business owners in reducing expenses and increasing income.

1. Identify Your Objectives

You must begin with a specific plan that is in line with your income objectives. Determine what success looks like and plan the path to achieve it. At every stage of your business, it’s critical to establish your income objectives.

For instance, your initial sales target during the start-up phase is to reach profitability. However, after the company makes it through the risky start-up phase, the next objective is to increase sales so that you can finance the company’s strategic expansion, surpass gross and net revenue targets, and create reserves for your organization.

You may focus on the actions that will help you achieve your goals once you have stated them and determined what actually generates sales and money.

2. Prioritize Reoccurring Customers

Small businesses should focus on upselling or cross-selling to current clients rather than devoting resources to attempting to attract new consumers. As your existing consumers are already familiar with your products and services and are therefore more likely to use them, this is substantially more effective and cost-efficient.

Giving your prior customers and clients free gifts and discounts as a sign of your appreciation can encourage them to make another purchase. They get the idea that you went above and above for them because you value them greatly.

Making connections with your customer interaction can also be a great method to attract new clients and accelerate business expansion. Giving existing customers a compelling referral bonus may be a significant win for your business since people are drawn to connect with individuals who think and act like them.

3. Include Bonus Services or Goods

Combining complementary goods and services can boost sales without raising overhead expenses. Savings are frequently linked to bundling. Even if the customer’s savings are minimal, it’s still a much simpler and more affordable sale for you.

4. Develop Your Pricing Plan

The primary consideration when making a purchase is price. Prices for goods and services should be adjusted in accordance with your market conditions and financial objectives.

Only when a price increase has no negative effects on sales will it raise revenues and boost business profits. To position your prices in the market most effectively, you should try to comprehend how the prices of your competitors’ products compare to those of comparable products and how your product stands out among them.

Consider gradually increasing your prices rather than drastically. A slight price increase may not appear significant compared to the full price, but it directly affects the profit margins and the overall balance.

5. Offer Rebates and Discounts

Discounts encourage customers to start purchasing when they are skillfully marketed. Discounts on specific products, such as quantity discounts on two or more products, seasonal reductions, or discounts across the board during a storewide sale, are all possible.

A rebate usually referred to as a deferred discount, is given as a percentage of the product’s price in cash after it has been purchased. While the reduced redemption rate lowers its cost, the advertised discount increases sales.

6. Use Effective Advertising Strategies

Marketing is a clear-cut strategy to increase sales and money. Examine consumer purchasing and product preference data. Create targeted promotions based on strategic plans to reach particular clients with advertising messages and promotional offers.

You can use a variety of marketing techniques and platforms to draw attention to your goods or services. These include social media, email marketing, pay-per-click advertising, and etc.

7. Renew Your Sales Channel

You need to inspire passion and give people a cause to buy in order to re-energize your sales channel. This may be accomplished by including all of your products and services in vibrant, eye-catching sales literature that conveys a sense of urgency, rewarding sales associates, and increasing subscription sales.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC helps you to manage all your finances by guiding you through out the journey. Various financial supports are provided such as financial planning, planning and acquisition of funds, increasing profits and many more.   

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and the certification of Xero advisor from the world-leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping are more convenient for SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software, and more.

How to understand the Comparable Uncontrolled Price (CUP) in UAE

How to understand the Comparable Uncontrolled Price (CUP) in UAE

One of the five primary transfer pricing techniques is the comparable uncontrolled price (CUP) method. It’s utilized to make sure that business dealings between connected companies cost about the same as those with unrelated businesses.

Traditional transaction methods include the CUP technique. To maintain fair pricing everywhere, it examines the terms and conditions of deals struck between linked and unrelated businesses. The comparable uncontrolled transaction (CUT) technique is used to price intangible things, the comparable uncontrolled services price (CUSP) method is used to price services, and the comparable uncontrolled transaction method is used to price tangible items in most other regions of the world. 

The Operation Of The Comparable Uncontrolled Price Method

The internal CUP and the exterior CUP are the two main applications of the CUP technique. We’ll explain them to you.

Internal CUP

The internal CUP technique requires a corporation to identify instances of comparable third-party transactions it has conducted in order to estimate arm’s-length transfer pricing. The CUP approach demands that the terms of transactions with related parties be the same as those of the third-party transactions in order to comply with transfer pricing requirements.

External CUP

The pricing of similar transactions that take place between third parties—to the extent that they exist—can be used by a corporation to calculate arm’s-length transfer prices using the external CUP approach.

Although tax authorities recognize both the internal and external CUP approaches, it is quite difficult for businesses to identify external transactions that are sufficiently comparable to their own. In order to implement the CUP approach, the internal route is typically preferred.

Pros and Cons Of The CUP Transfer Pricing Method

  • The CUP approach is practically error-proof when applied with the proper facts and data; your risk of transfer pricing should be very low. Because it is the most accurate method of determining and defending transfer pricing. The majority of tax authorities advise using this strategy when practical.
  • The CUP method’s drawback is the exceedingly high comparability standard. In order to use this strategy, according to transfer pricing legislation, a number of distinct elements, including volume, contractual terms, and profit potential, to mention a, must be comparable. Alternatively stated, the transactional circumstances must be roughly comparable. Due to the numerous factors that can affect the outcome, it is challenging to meet these requirements.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a reputable accounting firm with 15 years of service in Dubai, United Arab Emirates. Moreover, the industry-leading online accounting software XERO awarded it certifications for Xero Payroll and Xero Advisor. KLOUDAC is also one of Xero’s golden champion partners.

KLOUDAC offers its clients a comprehensive package of services including Financial Consultancy, ability to hire financial professionals, Business setup, Audit and assurance services, Taxation services, Recognized accounting software, and more. As a result, accounting and bookkeeping are more convenient for SMEs when using our services.

What is the new Golden Visa in UAE?

What is the new Golden Visa in UAE?

The golden visa was launched by the United Arab Emirates (UAE) in 2019 as a long-term residency scheme to grant professionals 10-year golden access. International investors and the best talent from around the world can obtain visas in Abu Dhabi under the UAE’s Golden Visa program. This covers professionals and researchers in the sciences and other domains of knowledge, including physicians, specialists, scientists, and inventors. Additionally, it is available to the emirate’s business, entrepreneurial, and real estate investors as well as skilled creative, and athletic persons.

Why was the UAE GOLDEN VISA introduced?

The golden visa was introduced in order to promote the UAE as a location for commercial investment and to promote regional economic growth. The visa was established to honor long-term residents and their contributions to the advancement of their nation. By providing them with a long-term visa that is valid for ten years and may be renewed, the golden visa is a way to acknowledge and thank them for their commitment.

Who can apply for the Golden card?

Entrepreneurs, top executives, investors, talented students, and scientists are among the five non-resident categories that are eligible to apply for the golden card.

What are the expected requirements?

They must meet at least one of the requirements listed below:

  • must deposit up to 10 million dirhams in a UAE investment fund.
  • a partner in a corporation with a stake worth up to 10 million dirhams or an owner of a business with a capital investment of 10 million dirhams.

In addition, the following requirements must be met:

  • Investment money should be entirely owned rather than financed by a loan, and sufficient documentation must be provided.
  • The investment had to have been held by the applicant for at least three years.
  • The applicant must possess proof of insurance for both themselves and their dependents.

ENTREPRENEUR

  • The proprietors of a project in a UAE-certified industry with a value of at least 500,000 dirhams are required to apply.
  • The applicant must be the project’s originator and a recognized business incubator. 
  • They also need to have personal and family health insurance.

SPECIALISTS

  • A professor from any of the top 500 foreign universities recognized by the ministry of education may apply.
  • A candidate with a prize or recognition certificate for his field of expertise may also apply.
  • Scientists with a Ph.D. and 20 years of relevant experience who have significantly advanced their field of study
  • Specialists in disciplines important to the UAE should apply.

CHIEF EXECUTIVE

  • A bachelor’s degree or its equivalent is required
  • Must have at least five years of experience. Must be employed in the UAE and get a salary of at least 30,000 dirhams.
  • Family members, who are required to have health insurance, must be covered.

ELIGIBILITY REQUIREMENTS FOR OTHERS

The ministry of the economy must have approved the patent for it to meet the requirements for inventors, who also need to have a patent that is valuable to the economy of the United Arab Emirates.

In addition, the UAE Ministry of Culture and Knowledge Development must authorize the program’s art and culture specialists.

How can Kloudac help you?

When you set up your business in Dubai, you would need support from the best of the best to identify your business’ needs and cater customized innovative solutions from setting up until growing it. KLOUDAC specializes in Accounting, Auditing, Taxation, Financial Consultancy and Accounting Software Implementation for all your business needs. We have a team of qualified accountants (CA, ACCA, CIMA) who are really dedicated to provide a quality and reliable service to our clients. KLOUDAC was founded with a profound vision of assisting SMEs and Startups in the UAE. We have managed to acquire a large and reputable clientele in various sectors in a few years of time. We continue to grow along with our lients as their success stories equals our success.

Contact us now for inquiries,

Call: +97142569050

Email: info@kloudac.comWebsite: www.kloudac.com

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and the certification of Xero advisor from the world-leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.