ABC of Changing your Accountant in Dubai

ABC OF CHANGING YOUR ACCOUNTANT IN DUBAI

Accountancy is a fundamental part of any business and it is vital that accounting duties are executed properly. Moreover, than just dealing with the figures, most accountants offer a full-circle service of managing tax, bookkeeping and often payroll too which makes them a key part of many companies. But what happens if the service that your accountant is providing falls short of your expectations? Many people do not realize that changing your accountant if you are unhappy could be easier than you think.

1) Consider why you are unsatisfied

There are a number of common complaints which people may have with their accountancy service. Some of the most typical ones tend to lack communication with accountants failing to answer calls or respond to emails or not doing this in a timely fashion. Other problems center around fees charged by accountants with many finding this to be erratic and different each month making it hard for companies to budget for accountancy costs. Some also find that it difficult to meet costs when accountants charge them per phone call or email making it an expensive affair to seek even the simplest advice. Here are the complaints we hear the most:

Phone calls and emails are not returned in a timely manner…or not at all.
Proactive tax planning and strategic advice from the accountant simply don’t happen.
Tax returns are often put on an extension instead of being filed on time.
Inadequate answers are given to questions about tax law.
The invoice amount is a “surprise”… after the services have been provided.
Frequent correspondence is received from the government due to simple filing errors.
An accountant is distracted from serving clients due to having other business interests.

The good news is that if you are unsatisfied with the service that you are paying for from your accountant, you do not have to suffer in silence.

2) Find a new accountant

This may seem like an unusual step, but the consequential tasks will make it clearer why this may be a beneficial first port of call. Firstly, consider the aspects of your current accounting offerings which are making you unhappy. If it is the unforeseen costs or ‘bill surprises’ then you could benefit by looking at accountancy firms that charge a fixed fee for their services, so you always know what you are going to be charged regardless. Whether you decide on a fixed-fee service or charge per service accountant, you should ensure that all chargeable fees are made transparently clear to you right from the beginning to avoid any surprises.

Another fundamental aspect is choosing an accountant that provides a comprehensive service, accountants use jargon on a daily basis, but a good accountant should be able to make all communication clear and stable for their clients. Most accountants will offer a free no-obligation initial chat which could help you to decipher if they could be right for you. Moreover looking for an accountancy firm who is members of well-established professional bodies like the Institute of Chartered of Accountants could offer you further peace of mind.

3) Switch over

It really could be as simple as that. In contrast with the misconception that changing accountants is a practically impossible affair, your new accountant could handle the whole switching process for you taking the weight off your mind.

Your accountant could write to your previous accountant and request all the necessary paperwork. You will need to sign a change of accountants’ letter which most accountants can provide you with and guide you through. People often worry that they may offend their previous accountant but the truth is that most firms have clients who move on at some point for one reason or another and will be used to dealing with this, members of the Institute of Chartered Accountants are trained on how to deal with this.

The most important thing is that you are paying for an accountancy service that you are fully satisfied with. Once the switchover has taken place, the final step is to discuss your business needs in detail with your new accountancy firm and explain exactly what you are hoping for so that they have the relevant information to provide you with the best possible solution.

So, if you are out there worried about replacing your current accountants, in this economic climate, don’t settle for less and contact us at profitsplus.ae to sort your accounting needs now.

The guaranteed way to raise money for your small business

Loans for business used to come under the banner of banks but that time is gone now. Banks now only lend money to companies which are low risk or can secure the loan amount against assets.

It is much more difficult in Dubai to get business loans as almost 80 percent of the population consist of ex-pats. Who may well exit, depending upon situations in both Dubai and home country. But it’s not as if they will not pay up on their debts before actually exiting.

Small businesses struggle the most as the cash flow is inconsistent at times which can hinder the growth of that business at times. The common traits which a failing small business has is them having an absence of funding and taking on more debt to pay the original debt off. Moreover, if the timing of these events is coinciding, this may well yell doom for the business itself. With that being stated, it is no doubt that small business is the lifeline of a country.

So how does a small business owner compete in not only the local market but with freelancers as well? Those freelancers sitting across the globe with lesser overheads.

Appropriate Practices for Business Owners

Investors, individuals or institutional, look for a number of things when deciding to lend:

Owner – the character behind the enterprise is the most important, so emerge as a likable man or woman and professional in your enterprise endeavors. If you prepare a meeting, keep to it, if you want to make a payment do it straight away, if you make a promise, make certain to deliver on it. Your popularity will unfold shortly within the business neighborhood and amongst your peers. These are the equal individuals who could be contacted or approached for lending in the future.
Accounts – hold precise debts from the day you begin and no longer when you want a loan. Maintaining accurate books is so important and have to no longer be ignored. Try to use a cloud accounting software program that offers you get admission to real-time administration accounts.
Processes – create a stable workflow in your business, get organized, forms go in documents do now not draw. Keep data well organized, maintain a CRM device if possible.

These are just the basics of any enterprise and without these, you will war to elevate even the smallest loan.

Personal Loans

When borrowing for your small commercial enterprise it may also be less complicated to borrow personally, specifically if you are on an employee visa inside your personal company. Banks and Credit Cards (not recommended) will lend to personnel with 3-6 months of revenue proof.

The following are links to platforms that would be a good start to personal lending:
1. SouqMal: This is an exquisite place to start for non-public lending. Applying via SouqMal will assist you to get admission to a heap of lenders in the UAE with just one application.
2. MyMoneySouq: Another amazing platform to get right of entry to hundreds of personal lending picks with just one application. Review the lending charges and the terms all online earlier than talking to anyone.
3. Friends & Family: Always the high-quality and cheapest option, subsequently the reason to be a high-quality individual two

Business Loans

Banks are the closing vicinity we recommend for Business Loans, there are many small enterprise pleasant alternatives and we analyze some of these below:

Friends and family. At the top of the list are pals and family. Consider approaching those who are employed as a substitute than entrepreneurs. People who work have much less time to consider innovative investment alternatives and generally stop storing their money in financial savings debts paying less than 3% per annum. If you can offer them a return of over 5%-10% per annum, then you should be a better option for most humans who truly work and save.
Beehive.ae, think about going to people but through a platform. Beehive is a peer-to-peer lending platform that connects small enterprise owners with buyers without the want for a conventional intermediary. Its focus is on finance from AED 100k on reimbursement terms from 6-36 months. Check it out on www.beehive.ae
Eureeca.com, a terrific platform for those looking to raise extra than $200k. Launched in 2013 the group at Eureeca has helped many high increase corporations increase widespread amounts. Check them out on www.eureeca.com
Dubizzle, What the…? I hear you ask, Dubizzle, Really? Well, Yes. Dubizzle is an exquisite platform in Dubai and posting in their business section for an investor, with as plenty detail as possible, does without a doubt work. Just be careful to pick the proper person.

Although there are many other options, I in my view accept as true with these are an exceptional vicinity to start, however, take note to make sure the following statistics in place:

Access to a correct set of accounts. We can assist with that www.profitsplus.ae
Good processes, software, and CRM. Check out Zoho CRM
Try to maintain the enterprise in the blue by way of reducing overheads and growing your fees. Only develop when it is justified.
A solid internet site will also assist and a top nice online presence.

Good Luck with your fund-raising exercise and do message me if you need any help. If you want to speak to an advisor to help you with VAT, Funding or Accounting in AE then contact me, Ali Afzal, on +971585442030 or email me on ali@profitsplus.ae

Zero-Rated VAT for Companies in the UAE

Zero-rated vat agencies based totally in the UAE review their unique VAT application.

There are numerous customers who while being located here in the UAE, are using zero-rated supplies which begs the question, whether this person should consider registering themselves for VAT.

Many clients, who were part of the esteemed profits tax consultants, have been reported to register for vat during the closing of 2019, or else they would have faced banking problems with transactions.

Some of these clients even as far to confess that their institutions made them register for vat as they had large sums of money coming and going via their own accounts.

Which again begs the question that, what is the appropriate approach to registering for zero rated vat?

So we went ahead on your behalf and asked the FTA, their answer is as quoted;

‘If you only make zero-rated supplies, you can also follow to be excepted from registering for VAT.

You still need to complete a VAT registration application, but you should reply “Yes” to the question: “Are you applying for an exception from VAT registration?”

This actually means that if you have an organization in the UAE producing zero rated supplies, then it a dire necessity to have to register for vat in UAE with the FTA. The only problem is the softwares which need to be set up properly for them to work.

Let us put it into perspective that, all of our zero-rated buyers have put in the incorrect vat utility and can no longer declare that they are taking advantage of an exception to the generally followed rules.

Some of our customers have experienced losses or penalties of up to 20,000 AED because of asking for amendments in the wrong way. They failed to realize that all their supposed amendments needed to be made within the 20-day limit set by the FTA

So, it is our profound recommendation that you thoroughly check your initial vat application, and that it was made in the correct order. With that being stated, we can surely rely on the FTA to begin inquiries into companies who stated on their forms, sales of up to 6m AED but failed to reach that milestone.

Making Tax Digital in the UAE

Filling out taxation forms and filing for returns is a time-consuming process, it can sap all our energy and disrupt our schedules but change is happening and tax authorities around the world are shifting from traditional filing methods to all integrated digital platforms often integrating with third-party software’s to capture the masses and make it easy for clients and advisors to partake in the digital tax revolution.

What is digital taxation?
Digital taxation is set to revolutionize the way businesses file for their taxes. No longer would business owners need to fill out self-assessment forms and prepare their taxes when software can handle all that for them. Digital taxation is the process of using compatible cloud accounting software to file taxes.

Cloud accounting software can also help with the day-to-day functionality of your business. They can help you track transactions, keep accounting records and prepare invoices. They can even help you avoid legal penalties by archiving and managing your records.

Making Tax Digital (MTD) in United Kingdom (UK)

When it comes to digital taxation, the UK is the undisputed frontrunner. UK Government’s non-ministerial tax collection wing, also known as Her Majesty’s Revenue and Customs (HRMC), is collaborating with accounting software developers to digitize the tax administration system by 2020 through its MTD campaign. The campaign aims to make tax collection simpler and error-free.

MTD replaces manual processes such as form filling and paperwork with accounting software. It also reduces the HRMC’s overhead expenses. It saves both time and money by standardizing the tax process through technology.
MTD requires VAT-registered businesses to maintain their records digitally. It is also compulsory for businesses to use the MTD software to file their returns before April 1, 2019.

UAE taxation system

Digital tax seems convenient and hassle-free so when will it be launched in UAE? The UAE government is also making attempts to digitize taxation procedures. Take, for instance, the digital stamps the Federal Tax Authority (FTA) introduced for tobacco products.

Yet, the progress remains slow and steady. Right now though, the UAE government only has an e-portal for taxation. Users can visit the portal to fill out their required information. The process remains manual since the portal is not synced with accounting software.

We can’t wait for when the UAE government introduces this system and simplifies the tax system.

How can digital platforms help with taxation?

Innovative digital platforms are sprouting up to assist people with their tax claims and planning. Platforms like the UK-based RD Vault can sync with accounting software to generate invoices, update books, prepare tax credit claims and track their progress. One such solution is Xero, a Cloud Accounting Software solution used by Profits Plus Accountants and tax consultants in Dubai.

Xero is an all-in-one solution, it can be used to prepare reports and maintain taxation records. This enables you to use one platform instead of a cluster of applications to deal with your accounting and taxation needs.

If you are interested in knowing how a cloud accounting software such a Xero, can help your business then feel free to get in touch with Mubashir Malik, Partner at Profits Plus Accountants in Dubai, UAE. Contact Ali Afzal by email on a.afzal@profitsplus.ae or call on 0585442030.

Profit Margin Tax Scheme [Used Car Sales]

11 Nov 2019
Ali Afzal
Accountant, Business, FTA, Profit Margin Scheme, VAT
No comment

Profit margin tax is a value-added tax (VAT) scheme created by the FTA AE for the benefit of the used goods industry.

The scheme allows VAT to be applied only to the profit portion of the goods sold, provided full VAT has been charged on the goods previously.

Working Example

Ahmed buys a brand new car from a dealer in Dubai. He pays AED 100,000 plus 5% VAT. Regardless of how he purchases the car i.e. full cash or on finance VAT of 5% has been paid on the total value of the car. Now since he is a consumer and not a UAE business that has undergone VAT registration, he will NOT be able to claim for VAT return, according to the FTA rules.

6 months later Ahmed decides to sell the Car to Khaled (a used car dealer) based in Dubai. After agreeing on the price of AED 80,000 Khaled pays Ahmed in cash. Ahmed then sells the car through his showroom for a price of AED 85,000.

Let’s calculate his VAT liability

Purchase Price	AED 80,000
Selling Price	AED 85,000
Profit	AED 5,000
VAT Liability (5% of AED 5,000)	AED 250

Common Mistakes

Deducting expenses before calculating the Profit; there is no provision in any FTA portal publications that allow for the deduction of expenses on the used car before calculating the Profit element on which the VAT is applied. Therefore you cannot deduct car polishing, car repairs, and other expenses before calculating the Profit on which VAT is applicable.
Charging Profit Margin Tax to used cars 2017 or earlier; Profit Margin Scheme can only be used for cars where the FULL VAThas been previously applied, therefore since cars previous to 2017 or earlier have not had the full vat applied it is not possible to apply the Profit Margin Scheme to these cars.

NOTE: Profit Margin Tax can still be applied to cars 2017 or earlier but only if the full vat was applied by a used car dealer in the chain of events.

If you are looking for an accountant in Dubai then speak to Ali Afzal, a Managing Partner at the firm. You can reach him directly on a.afzal@profitsplus.ae.

Note: www.profitsplus.ae is a domain belonging to Profits Accounting and Bookkeeping, an accounting and bookkeeping firm registered with Dubai Economy, Trade License No. 796316.

Why You Can’t Ignore Xero Cloud Accounting Software

The Evolution of Cloud Accounting

In the past few years, we have witnessed the birth and rapid evolution of cloud computing, with more and more traditional services being replaced by their far more efficient, affordable and secure alternatives. Accounting is no different and thanks to the hectic pace technology are moving at, the question is no longer whether you should move to small business cloud accounting but rather, when.

Problems with traditional accounting software

The drawbacks of traditional accounting software in the UAE, certainly play a role in the shift to cloud accounting. The data in the traditional accounting software system isn’t up to date and neither is the software. What’s more, the software only works on one computer – the data needs to be manually transferred between devices, usually by virtue of USB drives. This presents a myriad of other issues, mostly to do with security and reliability.

Traditional accounting software and services in the UAE are outdated since they are rooted in the idea that only one person should have access to the data. This means that important people within your business may not have access to the financial and customer details, which impairs productivity and diminishes the level of customer service your organization can provide.

What’s more, traditional accounting software tends to be costly and updates and regular maintenance are expensive (often not included in the initial price), time-consuming and challenging especially if you’re not tech-savvy. Keeping backups is rarely one and even then, it may cost you more time and money than it’s worth.

When it comes to your company’s financial needs, you cannot afford to settle for outdated accounting services that charge you too much while bringing almost no value to the table. What you need is an experienced, qualified and pioneering accounting firm that will handle every single detail, provide you with cutting-edge accounting tools and allow you to focus on your company’s future growth instead of book-keeping.

What is cloud accounting?

Cloud accounting is the alternative to traditional accounting software, whether it’s on-premises or self-install. The only difference is that small business cloud accounting is hosted on remote servers, similar to the Software as Service business model: data is sent to the cloud where it can be processed and returned to the user.

This means that all functions are performed off-site, rather than on your desktop which minimizes issues related to reliability and security. All you need to take advantage of cloud computing is a reliable connection to the Internet or another network via a cloud application service provider. Because of that, cloud accounting is far more flexible than traditional software – the accounting data can be accessed from any point around the world and from any device that has an Internet connection. What’s more, cloud accounting software in the UAE like the one Profits Tax Consultants use can update your financial information automatically and provide you with real-time financial reporting.

Profits Plus is a cloud accounting firm based in Dubai that will go above and beyond to ensure that your company is provided with qualified accounting services and support your company’s growth and expansion. Our state-of-the-art small business cloud accounting partner software is run by experienced British accountants who have spent more than 20 years of working with British companies and VAT.

Xero Cloud Accounting Software in UAE

One of the key players in the shift towards cloud accounting is Xero, a New-Zealand-based software company that develops cloud-based software for small and medium-sized businesses. Their small business cloud accounting software lets companies share access to the latest business numbers with their teams, accountants and bookkeepers so everyone – including team members around the world – are kept in the loop and up to speed.

This means that you can easily log into any Xero file you want by simply using your Internet connection. You can share access with your accountant who in turn can not only open the file but make adjustments, prepare and lodge BAS and tax returns, and provide real-time assistance if needed. This saves up time and money as the accountant doesn’t necessarily have to send the data back and forth, either digitally or physically.

We at Profits Plus truly believe Xero accounting software has transformed the modern world of accounting in the UAE. Instead of having a monthly meeting with your accountant where you pile mountains and mountains of paper files, you can easily manage your accounting information in real-time. This helps you make faster and more effective decisions. Unsurprisingly, in the past 12 months alone, Xero has shipped more than 1,2000 features and product updates, most of them designed to provide accountants with back time and helping them migrate to methods of value-priced billing while increasing their workload at the same time.

Profits Plus is a 100% cloud-based accounting service, which means that you will be able to take advantage of the flexibility, convenience, and practicality of cloud service based on the Xero Small Business Cloud Accounting Software. In addition, we will integrate accounting systems inside your company, offer you book-keeping as well as expense management services that will enable you to monitor your company’s growth, expenses and earnings.

Benefits

In a nutshell, cloud accounting software like Xero enables professionals in the UAE to save time, and businesses to enjoy greater flexibility, reliability, and security when it comes to financial operations. Xero certified accountants can create a lot of efficiencies going beyond that of manual data entry: using the cloud service, they can finally have time to analyze the work and truly help small businesses remain cash flow-positive.

Some of the benefits associated with using cloud accounting software for business purposes in the UAE are increased accessibility, productivity, organizational reporting and improved back-up and recovery. Small business cloud accounting software can improve the productivity within your organization by saving you enough time to focus on actually running your business rather than spending valuable resources on bookkeeping and accounting.

What’s more, a Xero certified accountant can access your accounting and financial information from any point around the world. This makes it the ideal option for businesses that have remote employees or work with accountants from abroad. This also frees you from having to install and maintain software on individual desktop computers (so you can save money on your IT infrastructure and training expenses). With small business cloud accounting, you can also improve the communication within your business as employees in other departments, branch offices or remote areas can access the same data and version of the software, and make changes if needed.

Xero also makes it easier for you to get real-time reporting and visibility throughout your organization. With cloud computing, subscription-based models are the most popular option – you can pay a subscription to receive updates as soon as they’re launched, without having to invest more money in additional software purchases.

Xero also provides you with better backup and recovery capabilities. Xero, cloud accounting software, makes storing and recovering data more convenient and reliable than in-house servers. All these benefits also ensure cloud computing is one of the most, if not the most, cost-effective option on the market. If you’re looking for a Dubai accountant, working with someone who is Xero certified can save you a lot of time and expenses in terms of maintenance and management of data and servers.

What the future holds

Given the many benefits cloud accounting software in the UAE offers to small and medium businesses, it’s not surprising that experts believe that cloud accounting will become the new normal. What’s more, Xero and similar software may become even more important and relevant as AI and machine learning grows in popularity.

Since we are a 100% cloud-based firm, we are able to offer you high-value, low-cost accounting services by cutting down on conventional, obsolete and expensive hardware and software and passing those savings on to you and your brand. Our mission is to establish an honest, trusting and lasting relationship by going the extra mile and ensuring your satisfaction. Choosing Profits Plus means having a whole team of highly-experienced British accountants at your disposal.

If you’re looking for a UAE accountant but have not yet made the switch to cloud accounting software, it may be a good idea to put a framework in place as soon as possible. Steadily working towards a plan is the key to enhancing what you already have and prepare for the future – and by the looks of it, the future of accounting is synonymous with cloud accounting.

If you are looking for an accountant in Dubai then speak to Ali Afzal, a Managing Partner at the firm. You can reach him directly on a.afzal@profitsplus.ae.

Note: www.profitsplus.ae is a domain belonging to Profits Accounting and Bookkeeping, an accounting and bookkeeping firm registered with Dubai Economy, Trade License No. 796316.

Tally ERP 9 [9 Reason You Should Not Use Tally ERP 9]

Thinking of purchasing Tally ERP 9? Read this article before making that decision.

Disadvantages of Tally ERP 9

Not user-friendly at all. I have met many CEO’s and In-House Accountants who contact me soon after setting up Tally ERP 9 and ask me to provide them with our accounting services simply because they realize how complex it is to use Tally ERP 9. Unless you are a qualified accountant or have employee a qualified accountant with at least 2 years’ experience Tally ERP 9 is just not user-friendly and thus not appropriate for small businesses with limited resources.
Single screen software. Tally ERP 9 does not allow you to work on more than one ledger at a time which makes it difficult to review work whilst making entries into the ledger. This is a very basic function and means that it really slows down the accounting process.
Useless paid upgrades. You have to purchase any upgrades and in fact, there is little noticeable difference between Tally 4 and Tally 9 but the cost of upgrading is expensive as you require the call out from Tally Partners and typically this will cost between AED 1000 and AED 2000 per installation.
Not ideal for multi-branch. The only way to operate tally from multi-sites is to use VPN and this is hardly practical today. To make it effective you have to invest in servers and LAN bundled with Tally.net and then don’t forget the consultancy and implementation costs.
No flexibility on Chart of Accounts. The default setting button is not provided and if you want to change the setting after configuration settings are done you will have to restart and delete all the ledgers and start again from the beginning. Once you have created the journal voucher it is not possible to make changes in it. This makes Tally 9 very rigid and difficult to use.
No central support. Tally 9 is not supported centrally by Tally itself and instead, you have to rely on the partner network and the fees charged can vary significantly as well as the level of expertise, not always related.
Low Security. Do not lose your password as it is difficult to retrieve data without the password and very time-consuming.
Loss of data. Since Tally ERP 9 software is desktop or server based on the risk of losing your data is huge should your machine crash or become infected by a virus.
No customization or module integration. It is not possible to customise Tally 9 or integrate with any other software.

Still thinking of purchasing Tally ERP 9?

I didn’t think so.

As an alternative consider Xero Cloud Accounting Software. We are a xero certified silver partner in Dubai and provide the software free of charge as part of our vat accounting packages.

How to Prepare for a Corporate Tax Audit in the UAE

With the introduction of corporate tax in the UAE, businesses must now prepare for the possibility of a corporate tax audit by the Federal Tax Authority (FTA). A tax audit can be triggered randomly or due to inconsistencies in filings, and non-compliance could lead to financial penalties and reputational damage.

What to Expect in an Audit

Review of financial statements and transactional records
Cross-checking VAT filings and corporate tax returns
Examination of intercompany transactions and transfer pricing
Validation of deductible expenses and documentation
Interviews with key staff or finance team members

Best Practices for Audit Readiness

Maintain a complete and organized record of invoices, receipts, and contracts
Reconcile financial data monthly and perform regular internal reviews
Ensure your bookkeeping and accounting are handled by certified professionals
Identify and correct discrepancies proactively
Create an internal compliance calendar for important filing and payment deadlines

Role of Technology

Using accounting software and cloud platforms allows for real-time tracking and secure storage of your financial records. This minimizes the risk of errors and simplifies the audit process. Digital records also allow faster access to historical data when required during audit queries.

How Profits Plus Supports You

From preparing documents to liaising with FTA officials, our audit support team ensures your business meets all compliance checkpoints. We also conduct mock audits and provide reports to improve your systems before a real review occurs. Our team works with you to build a documentation strategy and advise on best practices for long-term audit readiness.

Choosing Between Freelance Accountant vs. Professional Firm

As your business grows, managing financial tasks becomes more complex. One important decision is whether to hire a freelance accountant or engage a professional accounting firm. Both options have pros and cons depending on your needs, scale, and budget.

Freelance Accountant

Cost-effective for very small businesses or startups
Flexible working hours
May offer personalized service for short-term projects
Limited scope of services and scalability
Higher risk of delays or inconsistency during peak seasons
May not be familiar with complex regulatory requirements

Professional Accounting Firm

Access to a team of qualified experts across various financial domains
End-to-end services including tax, compliance, payroll, and audit support
Better equipped for regulatory reporting and FTA communications
Higher reliability, data security, and structured operations
Dedicated account managers and timely service delivery
Ability to scale with your business as it grows

Long-Term Considerations

Outsourcing to a professional firm can bring structure and continuity, especially when facing regulatory deadlines or audits. Firms also invest in ongoing staff training, new technologies, and compliance updates that ensure accuracy and reduce risk.

Why Profits Plus Stands Out

We understand the nuances of UAE regulations and offer scalable services that grow with your business. Whether you need quarterly financial reviews or full-time outsourcing of your finance department, we bring consistency, accuracy, and industry best practices. With Profits Plus, you get a strategic financial partner committed to your long-term success.

Corporate Tax in the UAE: What Businesses Need to Know in 2025

As the UAE rolls out corporate tax regulations, businesses across the country must prepare for compliance and strategic planning. Starting from June 2023, companies with a net profit above AED 375,000 are required to file and pay corporate tax. By 2025, tax compliance will be under stricter scrutiny, and the Federal Tax Authority (FTA) is expected to enforce tighter audit and filing processes.

What You Should Know:

The current tax rate is 9% on qualifying profits above AED 375,000.
Free zone businesses may still benefit from 0% tax if they meet specific criteria such as not conducting business with mainland UAE.
Businesses must register with the FTA, maintain audited financials, and file tax returns annually.

Who Is Affected?

Small, medium, and large enterprises operating in the UAE, including local and international companies, must evaluate how these regulations apply to them. Entities previously enjoying complete tax exemption will now need to reassess their tax obligations.

In addition, business owners need to consider how corporate tax impacts cash flow and pricing strategies. Proactively adapting your business model to account for the new tax regime is crucial to remain competitive and compliant.

The Role of Strategic Planning

Tax planning will become an essential part of financial management. Businesses should consider restructuring, reviewing transfer pricing practices, and ensuring financial statements are up to date and compliant with international standards. Staying ahead of regulatory updates, leveraging tax incentives where applicable, and adopting proper accounting systems can prevent costly errors and penalties.

How Profits Plus Can Help

Profits Plus assists businesses through each step of corporate tax readiness, from FTA registration and documentation to tax return filing and audit preparation. Our tax experts ensure your business remains compliant and penalty-free while optimizing your tax position. We also offer advisory on free zone tax status, deductible expense planning, and automation of tax reporting.

Why Bookkeeping is the Backbone of Your Small Business

finance and accounting concept. business woman working on desk u

Accurate bookkeeping is essential for making informed financial decisions, staying compliant with regulations, and planning for sustainable growth. Yet many small businesses underestimate the importance of consistent recordkeeping until they face issues such as tax errors, cash flow shortages, or compliance penalties.

Key Benefits:

Tracks income and expenses in real time
Makes VAT, corporate tax, and audit preparation easier
Helps identify profit leaks or areas of overspending
Enables better budgeting and cash flow forecasting
Supports strategic planning and investment readiness

Common Bookkeeping Mistakes to Avoid

Not separating business and personal expenses
Missing receipts or incomplete documentation
Delayed data entry and reconciliation
Relying solely on spreadsheets with no backups
Ignoring small discrepancies that can lead to larger problems

Choosing the Right Bookkeeping Solution

Manual bookkeeping or spreadsheets can be error-prone and time-consuming. Modern businesses benefit greatly from using accounting software that automates entries, generates reports, and syncs with bank accounts. Cloud-based bookkeeping solutions also improve collaboration and data security.

How Profits Plus Supports You

We provide tailored bookkeeping services that suit the nature and scale of your business. Whether you’re a startup or a growing SME, our professionals ensure accurate records, timely financial statements, and readiness for any financial review or audit. With our cloud-based solutions, you can access your data securely anytime, anywhere. Our goal is to help you stay organized, tax-ready, and prepared for strategic growth.

Top 5 Mistakes to Avoid When Filing Corporate Tax in Dubai

With the UAE’s corporate tax regime now in full effect, accurate and timely filing has become a critical part of doing business in Dubai. Whether you’re a mainland company or operating in a free zone, avoiding common tax mistakes can save your business from costly fines and delays.

At Profits Plus, we’ve supported businesses across the UAE in getting corporate tax ready. Below are the top 5 mistakes to avoid when filing your corporate tax return in 2025.

1. Missing the Corporate Tax Filing Deadline

All businesses must file their corporate tax returns within 9 months after the end of their financial year.

For businesses with a year-end of 31 December 2024, the filing deadline is 30 September 2025.

Missing this deadline can lead to administrative penalties and interest on unpaid taxes. We recommend setting reminders and preparing early.

2. Inaccurate or Incomplete Financial Records

Corporate tax is calculated based on net profit, following international accounting standards. Errors in your financial statements can result in incorrect tax returns or delays in filing.

Keep your bookkeeping up to date and ensure all expenses, income, and adjustments are well documented.

3. Failing to Register with the FTA

Even if your business qualifies for the 0% tax rate (i.e., taxable income under AED 375,000), you are still required to register with the Federal Tax Authority (FTA) and obtain a Tax Registration Number (TRN).

Registration is done through the EmaraTax platform and should be completed as early as possible to avoid bottlenecks.

4. Neglecting Transfer Pricing Compliance

If your business engages in transactions with related parties (e.g., group companies), you may need to prepare and maintain transfer pricing documentation.

This includes a Master File, Local File, and other declarations depending on the size and structure of your business. Ignoring this can result in FTA queries or audits.

5. Filing Without Expert Guidance

Corporate tax in the UAE is still new, and many businesses are unaware of the finer details. Filing on your own without professional support could result in missed obligations or errors.

At Profits Plus, our tax experts ensure accurate filings, timely submissions, and full compliance—saving you time, money, and hassle.

Final Thoughts

Corporate tax compliance is not just about filing a return, it’s about ensuring your financial practices, reporting, and submissions meet FTA standards. Avoiding the above mistakes can protect your business from penalties and ensure a smooth tax year.

Need help filing corporate tax in 2025?
Let Profits Plus take care of it for you from registration to submission and beyond.

Corporate Tax Filing in Dubai 2025: What Businesses Need to Know

As the UAE’s corporate tax regime matures, businesses across Dubai are now required to file corporate tax returns in line with the Federal Tax Authority (FTA) regulations. Whether you’re a local SME, a free zone entity, or a multinational firm, understanding your tax obligations in 2025 is essential.

At Profits Plus, we simplify the tax process for you. As certified tax and accounting professionals based in Dubai, we provide complete support for corporate tax registration, filing, and compliance—so you can focus on running your business.

What Is Corporate Tax?

Corporate tax is a direct tax on the net profit of businesses. Introduced under Federal Decree-Law No. 47 of 2022, it aligns the UAE with international standards for tax transparency and economic substance.

Who Must File Corporate Tax in 2025?

Mainland companies (LLC, PSC, PJSC, etc.)
Free Zone companies (both qualifying and non-qualifying)
Foreign entities with a permanent establishment in the UAE
Any business with a trade license and taxable income above the threshold

UAE Corporate Tax Rates for 2025

0% for taxable income up to AED 375,000
9% for taxable income above AED 375,000
15% (or more) for certain multinational groups under OECD BEPS Pillar Two rules

Note: Even companies with 0% tax must still register and file returns.

Filing Deadline for Corporate Tax Returns

You must file your corporate tax return within 9 months of your financial year-end.

Example:
If your financial year ends on 31 December 2024, your filing deadline is 30 September 2025.

Documents Required for Filing

Audited or reviewed financial statements
Income and expense details
Profit & loss statement
TRN (Tax Registration Number)
Transfer pricing documentation (if applicable)

Returns must be filed via the EmaraTax portal.

Penalties for Non-Compliance

Late registration penalties
Fines for missing filing deadlines
Interest on unpaid taxes
Additional administrative penalties

How Profits Plus Can Help

At Profits Plus, we offer:

FTA registration & tax advisory
Tax filing and documentation support
Accounting & bookkeeping integration
Ongoing compliance monitoring
Transparent, fixed-fee pricing

Our team ensures your business remains fully compliant with UAE tax laws, saving you time, reducing risk, and allowing you to operate with confidence.

Conclusion

Corporate tax compliance is now a core part of doing business in Dubai. Whether you’re a startup or an established company, proper tax filing in 2025 is essential.

Let Profits Plus be your trusted partner in navigating the corporate tax landscape. Contact us today to get started with your filing or learn more about our tax services.

Quick Overview of Understanding of VAT in the UAE 2025

Value Added Tax (VAT) in the UAE remains a crucial aspect of business operations, impacting companies across various industries. As of 2025, staying informed about VAT regulations ensures compliance and helps businesses optimize their profits legally.

VAT Overview in the UAE

Introduced in 2018 at a standard rate of 5%, VAT applies to most goods and services. Businesses exceeding the mandatory revenue threshold must register for VAT, collect it from customers, and remit it to the Federal Tax Authority (FTA). Profits Plus helps businesses navigate these tax obligations efficiently.

Key VAT Considerations for 2025

Compliance Updates – The FTA continuously refines VAT guidelines. Companies should monitor updates to avoid penalties.
Zero-Rated & Exempt Sectors – Some sectors, like healthcare and education, benefit from VAT exemptions or zero-rated classifications. Understanding these distinctions can impact cost structures.
Input VAT Recovery – Businesses can reclaim VAT on eligible expenses, reducing their tax burden and improving cash flow.
Filing & Deadlines – Timely VAT returns and payments prevent fines. Automation tools can simplify VAT record-keeping and submission.
Cross-Border Transactions – Companies involved in imports and exports must understand VAT implications on international trade.

Optimize VAT Management with Profits Plus

Whether you’re a startup or an established business, understanding VAT is essential for maintaining compliance and maximizing profitability. Profits Plus provides expert tax advisory services to help businesses stay ahead in the evolving UAE tax landscape. Visit Profits Plus to ensure your VAT strategy aligns with 2025 regulations.

5 Taxation Tips for Businesses in Dubai: Maximizing Profits Legally

Dubai offers a business-friendly tax environment, but companies still need to comply with regulations while maximizing profits. Here are some essential taxation tips to help your business stay compliant and profitable.

Understand Corporate Tax Requirements

The UAE has introduced a corporate tax for businesses earning over AED 375,000 annually, set at 9%. However, free zone companies may still benefit from tax exemptions if they meet the requirements. Staying updated with corporate tax laws is crucial for financial planning.

Leverage VAT Compliance

Value-Added Tax (VAT) applies at a standard rate of 5% on goods and services. Businesses must ensure proper VAT registration, maintain accurate invoicing, and file returns on time to avoid penalties. Utilizing professional VAT consultants like ProfitsPlus can help manage compliance efficiently.

Maximize Allowable Deductions

Businesses can legally reduce taxable income by claiming deductions on expenses like employee salaries, rent, marketing, and operational costs. Proper bookkeeping ensures all deductible expenses are recorded accurately.

Utilize Free Zone Benefits

Many Dubai free zones offer tax incentives, including zero corporate tax on qualifying activities. If eligible, structuring your business within these zones can help optimize taxation strategies.

Seek Professional Tax Advisory

Partnering with expert tax consultants such as ProfitsPlus ensures your business remains compliant while maximizing savings. Professional advisors can help you implement the best strategies tailored to Dubai’s evolving tax laws.

For expert tax solutions, visit ProfitsPlus and enhance your business profitability legally.

Digital Transformation in the Financial Sector: Getting Ready for the UAE Vision for a Paperless Economy

The UAE has been an innovation leader for decades, and its forward-thinking Paperless Strategy is transforming the financial industry. Through its rapid pace of digital transformation, businesses are shifting their old-school finance practices to automated, tech-enabled solutions at a whirlwind speed. This transformation isn’t just about cutting paper—it’s about enhancing efficiency, raising compliance, and optimizing financial operations.

So what does this mean for UAE businesses? Let’s explore how business can change and thrive in this new digital-first financial environment.

Understanding the UAE’s Paperless Vision

The UAE government has been adopting some risky measures for digitalization. With initiatives like the Dubai Paperless Strategy and using blockchain-enabled transactions for the government, the country is planning to be paperless in every aspect by the year 2030. So, the businesses will have to implement cloud accounting, AI-powered financial automation, and e-billing systems in order to remain compliant and efficient.

Regulatory bodies and financial institutions, such as the Central Bank of the UAE and the Federal Tax Authority, are also encouraging businesses to adopt digital reporting and e-invoicing in a bid to make tax compliance and financial documents easier.

Major Benefits of Going Digital in Finance

1. Cost and Time Efficiency

Moving to cloud accounting platforms and machine learning-powered bookkeeping highly minimizes the need for human intervention, hence reducing errors and saving time. Reconciliation of finances in systems powered by artificial intelligence can be done in a matter of minutes rather than hours.

2. Enhanced Compliance and Security

Regulatory requirements in the UAE are evolving, and real-time financial reporting becomes essential. Digitalization facilitates VAT compliance, tax submissions, and audits seamless. Furthermore, blockchain technology and AI-driven fraud detection offer an additional layer of security to financial transactions.

3. Improved Decision-Making

With easy access to monetary data, enterprises are able to make well-considered choices supported by appropriate analysis. Analytics based on artificial intelligence help recognize financial trends, automate cash management, and foresee future growth.

4. Easy Integration with Fintech Solutions

The UAE fintech sector is booming with a number of digital payment systems, AI financial advisory services, and blockchain financial solutions. Businesses that are connected to such technologies can deliver improved customer experiences, automate payroll systems, and improve transactional efficiency.

How UAE Businesses Can Adapt to the Paperless Economy

1. Invest in Cloud Accounting Solutions

Options like Xero, QuickBooks, and Zoho Books provide automated financial tracking, live reporting, and seamless integration with UAE’s VAT compliance regulation.

2. Leverage AI to Automate Financial Processes

AI is revolutionizing invoice processing, expense tracking, and financial forecasting. Leveraging AI-powered tools can help reduce the possibility of human errors and increase efficiency.

3. Implement Digital Payment Solutions

With the UAE going more cashless, businesses must include digital wallets, online banking, and contactless payment modes to stay competitive.

4. Comply with E-Invoicing Regulations

The Federal Tax Authority (FTA) has been encouraging e-invoicing for smooth VAT compliance and auditing. Businesses must switch to digital invoicing platforms to escape penalties and remain compliant.

5. Leverage Blockchain for Financial Security

Blockchain technology is being adopted by financial transactions in tamper-evident record-keeping, faster settlement, and reduced potential for fraud. Secure cross-border payments and smart contracts are possible with blockchain in UAE enterprises

The Future of Finance in the UAE

The UAE’s push toward going paperless is more than a trend—it’s a whole transformation in business practices. Companies that embrace financial digital transformation will gain greater efficiency, enhanced security, and more informed decision-making.

With the right techniques and tools, businesses can not only satisfy regulatory requirements but gain a competitive edge in a digitally enhanced financial world. The future of finance in the UAE is digital—is your business ready?

AI in Accounting: How UAE Businesses Can Automate Financial Processes Efficiently

Accounting is no longer about mere number-crunching and book-balancing—it’s innovation, efficiency, and strategic decision-making. In the UAE, businesses are now adopting Artificial Intelligence (AI) in accounting to automate tasks, enhance accuracy, and adhere to compliance. With routine work now being taken care of by automation, finance teams can now invest their time where it counts most: business growth.

Why AI is a Game-Changer for Accounting in the UAE?

AI is no buzzword; it’s transforming industries, one of which is accounting. Small and large UAE businesses are employing AI-driven solutions to automate accounting processes. These are reasons why AI is generating buzz in finance & some of them are:

Automation of Repetitive Tasks: With AI, now manual data entry, invoice handling, and reconciliations are possible, eliminating human errors and optimizing efficiency.
Real-Time Financial Insights: AI dashboards provide real-time access to financial health, enabling firms to make sound decisions.
Regulatory Compliance: UAE’s evolving tax landscape, with VAT regulations in effect, requires accurate reporting. AI helps businesses stay compliant by computing taxes and submitting on their behalf.
Fraud Detection and Risk Management: AI identifies transaction anomalies, enabling firms to stop fraud and manage risk effectively.

How Can UAE Businesses Implement AI in Accounting?

Regardless of the common misconception, implementing AI in accounting does not mean replacing human accountants but enhancing their productivity. The following are the ways UAE businesses can implement AI in their accounting processes:

1. Bookkeeping Automation

The days of manually writing down every transaction are gone. AI-based accounting software like Xero, QuickBooks, and Zoho Books can automatically categorize expenses, generate financial reports, and reconcile bank transactions in real-time.

2. Tax Compliance Based on AI

With the UAE implementing VAT and corporation tax regulations, businesses need to stay compliant. AI-driven tax software calculates VAT charges, files returns, and accurately calculates tax submissions to prevent penalties.

3. Intelligent Expense Management

AI can read and process receipts, track employee expenses, and even identify suspicious spending habits. It makes cost management and budget optimization a breeze.

4. Predictive Financial Forecasting

AI not only analyzes past data; it predicts future trends. With AI-powered forecasting software, businesses can anticipate cash flow fluctuations, develop investment strategies, and make informed financial choices.

Overcoming Hurdles of AI Adoption

Although providing advantages, AI adoption in accounting also possesses its own set of challenges. Businesses can face:

Initial Investment Costs: AI-powered solutions may be expensive, but the payback in terms of efficiency and time saved is higher than the initial investment.
Data Security Challenges: Since financial data is computerized, cybersecurity is paramount. Firms must ensure that AI products comply with UAE’s data protection regulations.
Workforce Adaptation: Workers may be concerned about being replaced by AI, but in reality, AI assists accountants by automating mundane work, allowing them to focus on strategic work.

The Future of AI in UAE Accounting

As UAE businesses embrace digital transformation, AI accounting will be the new standard. As machine learning and data analysis continue not to slow down, AI accounting will simply get smarter, offering unmatched precision and effectiveness.

For UAE companies that want to stay ahead of their competitive landscape, integrating AI into the accounting system is not a choice—it’s a necessity. And this where top-notch UAE accounting firms such as Profits Plus are fully integrating it in their day to day operations. So, if you also want to unleash the full potential of your financial team, get in touch with Profits Plus today to get things going!