New accounting rules in the UAE

New accounting rules in the UAE - Makebiz

With the introduction of corporate taxation in the Emirates, it became necessary to supplement the accounting requirements. Now financial reporting should be subject to international standards, which allow to streamline reports, systematize data on transactions and provide transparency to the accounting system. 

International financial reporting standards require reporting of annual balance sheet, employee salaries, transactions, total company income and changes in equity. Consolidated financial statements should include the profits of all subsidiaries, except for the movement of funds within the group of companies. 

It is worth bearing in mind that from mid-2023, the corporate tax is 9% and is payable by companies with income over AED 375,000. In such a case, it is necessary to get registered and obtain a registration number. 

It is the maintenance of documentation in accordance with international standards allows the company to have a clear picture of profits, which allows it to register in time with the tax office and avoid penalties during inspections by the Federal Tax Administration. Sanctions are provided for incorrect maintenance and storage of documentation. 

Accounting reports are filed with the FTA regardless of the amount of income no later than nine months after the end of each tax period.

In order to minimize risks and file reports in accordance with the applicable standards, it is better to turn to specialists. Sign up for a free consultation and learn more about the peculiarities of accounting in the UAE.

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