For your
company in Dubai, you may have many questions concerning administrative matters or accounting. In France, you know how things work, but in the United Arab Emirates, not really.
Rest assured: Merritt Middle East will explain everything you need to know about
business accounting in Dubai.
Is keeping accounts mandatory for a company in Dubai?
Are you about to set up a company in Dubai and finalizing the last details? Are you also starting to take an interest in accounting matters? Here is what we can tell you to help clarify things. So yes, keeping accounts for your
company in Dubai is mandatory. You will also need to conduct an annual audit of the accounts.
If you are subject to VAT, you will also need to take the necessary steps in this regard. As a reminder,
VAT was introduced in the United Arab Emirates in 2018. However, it does not apply to all companies: this depends on the business sector and how the company operates.
Therefore, you are only subject to VAT in the following situations:
- VAT is mandatory if your turnover for the past 12 months or the next 30 days exceeds AED 375,000.
- VAT is optional if your turnover (for the past 12 months or the next 30 days) is between AED 187,500 and AED 375,000.
Business sectors such as healthcare and education are exempt from VAT.
Do you have to submit your accounts to the authorities?
Although keeping
the accounts of a company in Dubai is mandatory, you do not necessarily have to submit them to the authorities. In fact, the annual audit report and the company's balance sheet are not required by the authorities in the United Arab Emirates.
But be careful: in the event of an inspection, you must be able to provide them. If you cannot provide evidence of your company's accounting records during an inspection, you may face penalties, particularly financial ones.
This is why we strongly recommend that you keep your Dubai company's accounts properly. Even though they are very rarely requested, you must be able to provide proof if asked. In any case, your business will be much easier to develop if you establish accounting monitoring: this is a key to success for
your company in Dubai.
What about VAT? VAT is slightly different. If your company is subject to VAT, you will need to file a monthly return.
How can our specialist firm help you with your accounting?
To help you keep your accounts, Merritt Middle East offers support in two ways:
- Our packages include the installation, configuration, and training for accounting and invoicing software. It is high-performing and completely free for our clients. This software will enable you to issue invoices that comply with local regulations, including VAT if your company is subject to it, record your invoices and receipts, record your bank statements, and simplify the financial monitoring of your business.
- Our firm can also handle your accounting in accordance with international standards (IFRS). Following the annual closing of your accounts, we will provide you with an income statement, the company's balance sheet, and a ledger. Of course, this service is not free, and its cost varies depending on the complexity of the requested accounting tasks. Contact us to learn more about our pricing packages.
Do you still have questions about
accounting for companies in Dubai in the United Arab Emirates? Contact one of our advisers to discuss this matter. We can provide information based on your company's specific circumstances.
