December 2022 - Affiniax

Awarded as best CA & auditors at the IRECMS Dubai awards 2022

April 22, 2024December 13, 2022 by Affiniax

It is a great pleasure for us to announce that we have been awarded again as the best CA & Auditors at the IRECMS Dubai Awards 2022.

Obtaining this recognition two years in a row shows us that we are continuing on the right path, and encourages us to continue improving and growing to offer our clients the best possible service.

Thank you all so much for this opportunity and for the fantastic experience!

EmaraTax – Important Alert for all Tax Payers (from FTA – Federal Tax Authority, UAE)

August 29, 2023December 5, 2022 by Affiniax

Effective 5 December 2022, FTA online e-services portal shifted to EmaraTax.

It is important for all Tax Payers to access the online FTA account through the new online e-services portal now “EmaraTax”.

To access the online FTA e-services account (for all Tax Payer services e.g., Submitting VAT returns etc.) all Tax Payers must reset the password by following the instructions provided on the FTA’s website.

It is advised that all Tax Payers holding valid accounts with FTA must reset their password by following the instructions providing on the e-services portal of FTA https://eservices.tax.gov.ae/.

Once the password reset request is generated, Tax Payer shall receive an email from official FTA emailer with <Temporary Password>, once that <Temporary Password> is entered on the new online e-services portal (EmaraTax) of FTA, Tax Payers will be eligible to set a new password to the online FTA e-services portal (EmaraTax) and fulfill their Tax Obligations.

Since this is a major transition, it is advised that all Tax Payers have the procedures followed as described by the FTA.

It is important to understand that the new system offer only “4 Attempts” (with incorrect/invalid/old password) to access the online FTA account. Should you require any assistance in updating the password to access the new online FTA’s e-services portal “EmaraTax”, reach us at taxation@affiniax.com and we will assist you through this transition smoothly.

#EmaraTax #FTA

New Criteria for Tax Residency Certificate (TRC) In the UAE

August 29, 2023December 5, 2022 by Affiniax

Overview:

The government of UAE, through its Cabinet Decision No. 85 of 2022 for the determination of tax residency, issued a guideline on 2^nd September 2022 to determine the tax residency for a natural and legal person.

The new rules broaden the criteria of UAE tax residency as this embarks another step taken by UAE in strengthening its position in global tax compliance and provides much-needed clarity with regard to the statutory definition of UAE tax residency.

Brief:

Prior to the issuance of this decision, the UAE did not have a statutory definition for ‘tax residency.’ Previously, the Federal Tax Authority (FTA) determined the tax residency for natural persons primarily based on the number of days spent in UAE (at least 180 days in a relevant year) supported with certain documentary requirements, and for legal persons, it must have been established for a period of at least one year supported with certain documentary requirements.

Significant changes pursuant to the issuance of the decision for the determination of new tax residency:

For Legal Persons:

As per Article 3 of the Cabinet Resolution, a legal person (i.e., the company or entity) shall be considered a tax resident of UAE in either of the following cases:

If it was incorporated, formed, or recognized in accordance with the legislation in force in the State, and that does not include the branch that is registered by a foreign juridical person in the State; or
It is considered a Tax Resident in accordance with the Tax Law in force in the State.

For Natural Persons:

As per Article 4 of the Cabinet Resolution, a natural person (i.e., an individual) shall be considered a tax resident of UAE, whereby any of the following conditions are satisfied:

If his usual or primary place of residence and the center of his financial and personal interests are in the State, or he meets the conditions and criteria determined by a decision from the Minister; or
If he has been physically present in the State for a period of 183 days or more, within the relevant (12) twelve consecutive months; or
If he has been physically present in the State for a period of 90 days or more, within the relevant (12) twelve consecutive months, and he is a UAE national, holds a valid Residence Permit in the State, or holds the nationality of any member state of the Gulf Cooperation Council, and meets any of the following:
He has a Permanent Place of Residence in the State; or
He carries on employment or Business in the State.

However, as per Article 6 of the Cabinet Resolutions, if any International Agreement sets out certain conditions for determining tax residency, the provisions of that International Agreement on determining the tax residency shall apply for the purposes of this International Agreement.

The Minister shall issue a decision specifying the form and manner of issuing certificates for determining the tax residency for the purposes of the International Agreement.

Effective Date of this Decision

This decision shall be effective from 1^st March 2023.

Application for Tax Residency Certificate (TRC)

The legal or natural persons who satisfy the aforementioned conditions shall submit a request to apply for a TRC, which shall be approved as per the requirements of the FTA. The FTA may further ask for more relevant documents to satisfy itself to issue TRC as and when required.

Role of “Affiniax Partners” in TRC Application?

The “Affiniax Partners,” with its team of experts, shall guide you (all natural and legal persons) in determining eligibility and application for TRC.

Please feel free to get in touch with our team of experts.

Written by Ms. Neha Upadhyay.