ACCOUNTING | AUDITING | TAXATION



ACCOUNTING | AUDITING | TAXATION SERVICES



Mudhish Business Solutions offers comprehensive accounting management and tax consultancy services in the UAE. Our expert team is dedicated to managing your accounts efficiently, ensuring accuracy and compliance with regulatory standards. Additionally, we provide expert tax consultancy services, helping businesses navigate the complexities of UAE tax laws and optimize their tax strategies. With Mudhish Business Solutions, you can trust that your financial matters are in capable hands, allowing you to focus on driving your business forward with confidence.



Accounting & Bookkeeping





Relieve the burden of daily financial tasks with our comprehensive accounting and bookkeeping services.



Online and Onsite Options: Choose between convenient online services or personalized onsite support to best suit your business needs.


Dedicated Experts: Our team of experienced professionals ensures your transactions and reconciliations are handled seamlessly.


Accurate Records: Maintain precise and up-to-date financial records for informed decision-making.



Tax Consultancy Services





Our skilled professionals will assess both your personal and business tax requirements. Then we’ll create a financial strategic plan that’s tailored to your company’s needs. Our personnel have the skills and knowledge they need to comprehend the taxation system. Furthermore, we provide services for our customers using sophisticated tools, and methodologies.



How do Tax consultants add benefits to a business in UAE?


Hiring a tax consultant is a preferable choice since it makes a corporate entity knowledgeable of the country’s tax rules. Tax professionals assist in the preparation of tax-related matters. They benefit your company by doing the following:


  • Lower your tax liability by staying up to date on the latest tax amendments
  • Assisting you in deciding whether the VAT system is best for you – voluntary or mandatory
  • Analysing the tax advantages and disadvantages of your company’s activities
  • Implementing a metrics-based evaluation to assess industry trends and its tax implications


Different Categories of Tax in UAE



The United Arab Emirates (UAE) has been one of the foremost appealing destinations for budding firms, mid-sized firms, and major corporations because of its 0% personal income tax as well as a multitude of business permits and operations permitted in the free zones and cheap import tariffs. The UAE government has always made an effort to make the country’s tax environment as attractive and reasonable. The United Arab Emirates has produced different tax categories over a period.



A - CORPORATE TAX


For the fiscal year beginning on or after June 1, 2023, the United Arab Emirates has decided to impose a corporate tax on business profits. The proposed UAE corporate tax rates are as follows:


  • There is no tax on taxable income up to AED375,000
  • Taxable income above AED375, 000 is subject to a 9% tax rate


Non-Taxable Income & Exemptions


  • Businesses that engage in commercial activities and the exploitation of natural resources
  • On domestic and cross-border payments, there will be no withholding taxes.
  • Individuals who own shares or other assets in their own name and get dividends, capital gains, or other forms of income. Individuals who have bank accounts or savings plans earn interest and other income.
  • An individual’s earnings are determined by their salary or employment income.
  • Dividends and capital gains are generated by qualifying shareholdings in a UAE firm.
  • Intra-group transfers and reorganizations that qualify
  • Individuals who do not require a company license or license to invest in real estate in the UAE can do so in their personal capacity.



B - VALUE ADDED TAX (VAT)



VAT (Value Added Tax) which was established on January 1, 2018 is a sort of indirect tax that is collected on the purchase and sale of goods and services. The UAE government’s decision to impose VAT is part of a larger approach to minimize the nation’s reliance on oil and petroleum products as a source of funding, and the VAT rate is 5% on a range of products.



Zero rated supplies include:


  • Medical Supplies and Equipment
  • Trading in gold, silver, and platinum
  • Natural Gases and Crude Oil
  • Residential sold for the first time.
  • Healthcare
  • Exports, as well as international transportation
  • Education



Exempt supplies include:​


  • The provision of certain financial services as defined under VAT legislation
  • Residential real estate
  • Vacant land
  • Passenger service in the local area



C - EXCISE TAX



Excise tax is a type of indirect tax levied on things that are often damaging to people or the environment.

The following items must be categorized as excise commodities:



  • Tobacco-based items
  • Carbonated drinks excluding unflavoured aerated water
  • Electronic smoking devices and equipment
  • Drinks that have been sweetened.
  • An energy drink is any beverage that is promoted or sold as such and includes stimulator ingredients that provide mental and physical stimulation


The following items are free from excise tax in the UAE:


  • Standard 654 of the GCC Standardization Organization recognizes beverages for particular dietary requirements.
  • Standard 1366 of the GCC Standardization Organization recognize beverages consumed for medicinal purposes.
  • Beverages that are ready to drink (with at least 75 percent milk or milk substitutes)
  • Baby formula or baby food



In the UAE, the excise tax percentages for qualifying items are:


  • Tobacco items receive 100%
  • 100% on e-cigarettes and e-cigarette accessories
  • For carbonated beverages, 50% is the tax
  • 50% off items containing added sugar or other sweeteners
  • 100% for energy drinks



D - TOURIST TAX



Tourists must pay a tourist tax at eateries, hotels, hotel apartments, and resorts across the country. In the UAE, various facilities may levy one or more of the following taxes:


  • 10% off the room rate
  • Municipal fees are 10%
  • The service charge is 10%
  • The Tourism Dirham Fee was implemented in Dubai in 2014, and it is levied by hotels, hotel flats, guest houses, and vacation homes in the emirate.
  • The Tourism Dirham Fee is payable per room per night and varies from AED 7 to AED 20, depending on the hotel’s star rating.
  • The city tax (varies from 6% to 10%) The tourism charge is 6%. ​


Tax Consultancy Services in the United Arab Emirates at a Reasonable Rate!

Get one-stop guidance with expert tax consultancy services in the UAE, which are as follows:





VAT Consultation in UAE





We deliver efficient VAT consultation services to help the business organization with the simple operation of a firm, based on our in-depth knowledge in interpreting and implementing VAT.



VAT Check-up in UAE


MUDHSIH – A tax consultant in Sharjah, UAE uses a hands-on method for conducting a thorough VAT Health check of company transactions and evaluations of ongoing practices and methods from a VAT taxation perspective.



VAT Registration in UAE


Businesses must follow tight VAT requirements while applying for VAT in Dubai. According to VAT laws, if a company’s annual income reaches AED 375,000, it must register for VAT. If a company’s yearly revenue is between AED 187,500 and AED 375,000, it is optional to register under UAE VAT law. Furthermore, if the value is less than AED 187,500, the business is exempt from this regulation’s registration requirements. MUDHISH provides VAT registration services in UAE



Tax Advisors & Business formation



For all forms of tax-related concerns, businesses must designate a qualified tax agent. In Dubai, MUDHISH can provide you with an in-house tax adviser that is both dependable and faithful.



VAT Return Filing in UAE



VAT returns must be filed monthly or quarterly, depending on the size of the business. Customers can rely on MUDHSIH to assist them with submitting VAT returns in UAE on time and accurately, as well as walk them through the process of resolving outstanding tax liabilities.


VAT Implementation in UAE


For businesses, knowing the fundamentals of VAT is essential. Adherence to VAT regulations is never a simple task. MUDHISH specializes in VAT implementation in UAE. We support the customer by providing businesses with VAT-related advice and training.



Advisory on VAT Transactions


VAT transaction advisory services are a type of service in which a VAT expert evaluates specific business transactions to see if VAT is applicable. This lets them look at how VAT impacts businesses and identify what changes they need to make to their accounting systems and business operations.




Importance of tax consultants



- Assist you with tax returns and audited financial statements Detailed instructions on how to properly calculate tax payments

- Design strategies for avoiding fines and interest on your tax returns in the future

- Assist you renew your company’s rights and permits as well as performing audits

- Provides latest information on any updated tax policy matters

- Assists in the creation of tax-adjusted balance sheets and the handling of tax concerns





Why choose MUDHISH for your Tax Consultancy Services in Dubai?



Our skilled professionals will assess both your personal and business tax requirements. Then we’ll create a financial strategic plan that’s tailored to your company’s needs. Our personnel have the skills and knowledge they need to comprehend the taxation system. Further more, we provide services for our customers using sophisticated tools, and methodologies.





Financial Statement Audit





We deliver efficient VAT consultation services to help the business organization with the simple operation of a firm, based on our in-depth knowledge in interpreting and implementing VAT.



It has never been more important to have confidence in a financial statements audit. Audit quality is of fundamental importance for maintaining trust in the financial reporting process and the integrity of financial information, specifically in the changing economic and legal environment. That is why MUDHISH works continually to ensure that the audits of the financial statements are carried out to their highest standards.


We provide financial statements audit services to many clients across UAE and the middle east region. The experience and expertise of our audit team covering all industry segments and service sectors enable us to focus on critical areas of business such as risk, adequacy of internal controls, and potential areas of fraud.



Q&A



Frequently Asked Questions – Accounting Services







1. Is it mandatory for Companies in UAE to maintain proper books of accounts?


As per UAE Commercial Companies Law, Federal Law No 2 of 2015, every Company is required to maintain proper books of accounts and appoint a registered auditor to get its books of accounts audited every year.


2. What are the primary purposes of maintaining books of accounts in UAE?


Books of Accounts are typically maintained for four main reasons, e.g., Legal Requirements, Management control of Businesses, informing investors and shareholders on the organization’s financial health, and other third-party requirements, e.g., Banks, Municipalities, or Financial Institutions.


3. Why should I outsource my accounting & bookkeeping activities in UAE?


Outsourcing services have become a mainstream practice in the business world and accounting is not an exception. By hiring an outsourced accounting firm, you don’t have to deal with the burdens and expenses that come with having in-house employees or doing it all by yourself.



4. What are the key benefits of hiring a professional Accounting Firm to manage and maintain my books of accounts in UAE?


Cost-effective: Reduces overheads of your business. Outsourcing is always cost-effective when compared with in house facility.


Accuracy: Expertise in accounting and reporting services ensures the highest accuracy in the results.


Focus on core: With complex statutory norms and non-core functions, outsourcing accounting and compliance work help clients focus on the area with higher returns.


5. How do you know it is time to outsource your bookkeeping and accounting services in UAE?


Some situations commonly compel you to decide on outsourcing your bookkeeping and accounting needs. When your company is growing, and on multiple fronts, a considerable amount of financial information needs to be processed and can’t be handled by in-house accounting personnel.


6. Can outsourcing of bookkeeping work for a small business in UAE?


Bookkeeping outsourcing works very well for small businesses and start-ups. With the advancement of cloud and software as a service (SaaS) technology, outsourcing is available easily for small businesses. Many small and medium-sized businesses benefit from our outsourced bookkeeping & accounting service.


7. Which are the most commonly used accounting software in UAE?


From small to medium-sized companies, the most commonly used Accounting Software are Quick Books, Tally, Zoho Books, Sage, SAP, and more.


8. Will I lose control of my business by outsourcing bookkeeping and/or accounting?


No. You always maintain 100% control of your decision. All we do is to provide the relevant data & information & may give you advice on your request. In fact, you gain more control as you are now empowered to make timely & more accurate decisions based on accurate facts & figures.


9. How can an outsourced accountant in UAE do better and yet cost less?


Professional Accounting Firms deploy Accountants who are experts in their field. They assign each work according to the skills, qualifications & experience of the staff. There are appropriate controls and procedures in place to ensure accuracy and quality. They use the latest technology and skills to save time and improve quality and accuracy.




Compliance & Risk Advisory



We specialize in assisting businesses with a wide range of compliance requirements, including ESR, AML, WPS and various other regulatory frameworks.



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