What Is The UAE Law About Taxes Accounting Essay Essay Example

What Is The UAE Law About Taxes Accounting Essay Essay What is the UAE jurisprudence about revenue enhancements? Are at that place any sectors subjected to revenue enhancements? If yes which sectors? The National Tax of UAE is about holding no existent in the state ; instead the Federal authorities provides an authorization to every Emirate to set up their ain revenue enhancements. No revenue enhancement is levied on the personal income or personal capital additions, Federal Corporate revenue enhancements are besides about negligible, the lone sectors such as oil, gas and petrochemical companies, and residential and commercial renters are levied to pay corporate income revenue enhancement and belongings revenue enhancement severally. No VAT is levied on the services nevertheless service revenue enhancement is indictable on accessing eating houses and hotel services ( Taxes in United Arab Emirates ) . Question 2: We will write a custom essay sample on What Is The UAE Law About Taxes Accounting Essay specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on What Is The UAE Law About Taxes Accounting Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on What Is The UAE Law About Taxes Accounting Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Companies making concern in or seeking to set up concern in the UAE have benefits. State five benefits. Answer: Assorted benefits of making concern in UAE are as follows: UAE economic system is really diverse economic system which provides assorted concern options through accessing such economic chances. It is the cardinal point of assorted trade and commercialism centres which provides a huge exposure to the international market. The state has really low revenue enhancements. Effective Technical support through modernisation. Favorable economic, political, concern and legal environment ( Benefits of making Business in UAE ) . Question 3: What is the difference between the following concern entities established in the UAE? Representative and Branch offices Public A ; Private Joint Stock Companies Answer: Representative and Branch Offices: Representative offices are allowed for the limited selling of goods and services holding the foreign patents while the Branch Offices are permitted to set up the foreign concern in UAE so as to bring forth some specific corporate traffics with their patent entities. Public A ; Private Joint Stock Companies: The capital of public joint stock companies is entirely divided into common stock holding equal valley while private joint stock companies can non merchandise their stock publically ( James R. Hagerty, 2008 ) . Question 4: Why is the private sector in GCC to a great extent dependent on migratory workers? States 2 grounds Answer: Private sector in GCC to a great extent dependent on migrators because of following grounds: Public sectors are largely occupied by the occupant citizen and to remain in the state of UAE, aliens should be employed as per the jurisprudence of the state. Thus most of the private sector occupations are occupied by the aliens and migrators. Due to Working Visa jurisprudence of the state, the migrators accepted to work at low rewards so that they have right to remain within the state and therefore private sector in GCC states employ migrators at low rewards ( Baldwin-Edwards, 2012 ) . Question 5: State 3 UAE labor Torahs. Answer: As per the Federal Law No. 8 of 1980 amended by Federal Law Nos21 of 1981, 15 of 1985, and jurisprudence of 1986, following are the portion of UAE Labor Laws: Employment Contract: As per the UAE Labor Law, two types of employment contracts are allowable: Limited employment Contracts holding specific period of completion and Unlimited Employment Contract which complete the employment term of office on the want of either party. Probation Time period: The probation period harmonizing to Labor jurisprudence can non be more than 6 months and during such period employer or employee can end the employment contract. Working hours: The working hours prescribed for an grownup employee is eight hours per twenty-four hours or 48 hours per hebdomad ( Labour Law in UAE ) . Question 6: It is expected more GCC adult females will fall in work force in the hereafter. What sort of challenges will companies confront? Answer: The prospective challenges faced by the companies due the adult females work force are as follows: Talent Management: One of the biggest challenges for the companies due to adult females work force is the direction of gifted pool of employees. They need to implement a comprehensive attack for the enlisting, choice, preparation and development and the keeping of the employees as per the Islamic norms. They have to better the soft and proficient accomplishments of adult females. Trouble in Accessing the Recognition: The female headed concern organisations are non likely to acquire easy loans and recognition from the market due to the deficiency of marketability accomplishments of adult females. Lack of Full Time Workers: Womans in GCC work force are unable to supply their services on the full clip footing. Resistance towards Change: Womans employees are more resisted towards the organisational alterations ( Ramez Shehadi ) . Question 7: Flexible employment has been credited with lending to three chief macroeconomics benefits in the GCC. What are they? Answer: Flexible employment helps in the part of three cardinal macroeconomics advantages in the GCC: Increasing the workeraa‚Â ¬a„?s engagement in direction: Flexible employment helps in the engagement of more and more workers in the employment sector. Decrease the rate of unemployment: Flexible employment includes offering best inducements to the employees which leads to actuating the inactive people to fall in the work force and therefore reduces structural unemployment. Addition in the general concern legerity: It helps in keeping the legerity of the concern by offering them assorted tools to react towards economic rhythms impeccably ( Haddad, 2010 ) . Question 8: When was the rule of corporate administration introduced in the UAE and for what grounds? State 2 grounds. Answer: Initially, The Corporate Governance was regulated under the UAE Commercial Law 1984 which binds national companies merely. In 2007, SCA expand the ordinance of corporate administration to the joint stock companies established in UAE or any other company which is listed in the security market of UAE. Amendment made by the Ministerial Resolution No. 518 of 2009 which established new Code for corporate regulation and subject criterions that comes into action on 30 November 2009. The grounds for debut of the corporate administration in the state are as follows: The planetary Financial Crisis in 2000, awakened the authorities to compel rigorous administration regulations in the companies of the state. To guarantee the greater efficiency and mentoring in both the capital markets of UAE ( Zawawi, 2011 ) . Question 9: There is physiological opposition in GCC to the issue of corporate administration for a figure of grounds. State two grounds. Answer: The physiological ground behind the opposition of GCC towards the corporate administration issue is as follows: The small inducement against the alteration: The opposition towards the corporate administration of GCC was the utmost force per unit area on the traditional concern households of Gulf part that they were non precisely motivated by the regulators to implement the constructions of corporate administration. Absence of the effectual administration theoretical account: One of the grounds behind the opposition of GCC towards the corporate administration is the absence of appropriate administration theoretical account at the degree of authorities deprive assorted private concern organisations to implement it ( Making Good Governance Good Business in the Gulf, 2010 ) . Question 10: What are the benefits GCC companies can deduce from good corporate administration? Answer: The benefits of good corporate administration to GCC companies are as follows: Best use of capital through decrease in overall cost of capital. Effective direction of external market force per unit areas which leads to sustainable development. Proper reconciliation in the fiscal statements consequences in divergence of the shareholderaa‚Â ¬a„?s involvement. Assurance of the sustainability of the company. Effective resolution and direction of administration issues in the company. Accomplishment of augmented operational results. Increase the profitableness and marketability of the company which leads to heighten its trade name image and trade name equity ( Nadgrodkiewicz, 2009 ) . Question 11: How communicating engineerings change the GCC? State 2 benefits. Answer: Communications Technology is basically the emerging sector in the GCC and is revolutionising the society into cognition powered society. Large organisations are besides comprehensive attack towards its use on strategic every bit good as operational facets of the concern. The revolution has brought in for the society with several driving benefits ( a ) High velocity cyberspace connexions, nomadic computer science and web presence across GCC. ( B ) Increased usage of modern-day engineerings such as informations storage, radio and web security ( Murtaza, 2008 ) . Question 12: How much cyberspace users do GCC states have? Which state has the highest cyberspace use? Answer: The GCC states have overall around 4 million cyberspace users and about 2.5 million of desktop users by doing the internet incursion every bit good as Personal computer incursion of 10 % and 8 % severally. These are the corporate figures and separately it has been determined that the UAE and Bahrain have the highest cyberspace use, with female population top in cyberspace usage in GCC. The market expects a steady growing in internet incursion to about 15-20 % in the following twosome of old ages ( GCC Information Society ) . Question 13: UAE follows the International fiscal Coverage criterions ( IFRS ) . What does IFRS intend? Answer: IFRS, International Financial Reporting Standards has brought into execution by the cardinal bank of the UAE with consequence from the twelvemonth 2001. The IFRS has been adopted owing to the broad usage of International Accounting Standards ( IAS ) globally for the intent of keeping histories to Bankss and other fiscal establishments across the universe. IFRS are fundamentally established set of criterions based on regulations for executing specific interventions while fiscal coverage. This is good due to increasing growing if international concern ( What is IFRS? ) . Question 14: Harmonizing to gulf intelligence article why do GCC states need to modify IFRS to an Islamic format? Answer: GCC Countries are ought to modify the format of IFRS with that to an Islamic format in order to follow and purely adhere to different positions of Islamic Financial Accounting. This is due to the fact that several historical grounds and spiritual differences are associated with Islamic format that calls for different demands for accounting in comparing to that of Western accounting systems. And hence this has been implemented with several exclusions and supplementations ( DORE, 2007 ) . Question 15: Harmonizing to Khaleej times, Gulf states to rush up development of the accounting industry and transparence. What is a manner of increasing transparence in the fiscal study? Answer: Among all of the GCC states, UAE has been emerged as a fiscal centre to run into the transparence rankings of other established markets across the Earth. And hence, Emirates Securities and Commodities Authority conducted in-depth scrutiny of companiesaa‚Â ¬a„? fiscal places to accomplish higher transparence. For accomplishment of transparence in such a volatile market, there is a demand for globally accepted accounting criterions for better revelation of fiscal statements for the intent of comparing across markets and industries globally, finally leting investors to take educated determinations ( John, 2009 ) .