BACKGROUND
We were approached by a growing UAE group of companies, comprising a holding company and several operating trading subsidiaries. The Group had failed to maintain compliant accounting records for two years.

CHALLENGES
1) VAT Non-Compliance: Failure to register for VAT by the mandated deadline. They also incorrectly treated imported services due to a misunderstanding of the Reverse Charge Mechanism.
2) Structural Issues: The holding company was forced to enter into contracts and pay the subsidiaries' main marketing and operating expenses due to the subsidiaries' lack of operational bank accounts. This led to significant tax risks. The holding company incurred expenses that violated its business purpose. In fact, these expenses are not deductible for corporate tax purposes.
3) Distorted Financials: A material mismatch developed across the entities, with revenue and corresponding expenses being reported in different companies.
4) Lost VAT Recovery: Incorrect contracting and invoicing led to the loss of the Group's right to recover Input VAT on significant marketing and operating expenses.

OUR SOLUTION
We conducted a full accounting restoration. We filed VAT returns for all past VAT periods. We then implemented an inter-company recharge mechanism to align revenues and expenses correctly, adhering to Transfer Pricing principles.

RESULT
100% Compliance: All historical tax risks were resolved and settled.
Tax Efficiency: The "P&L gap" was closed. The Group's structure is now optimized for Corporate Tax, ensuring all expenses are correctly deducted.
Recovered VAT: The VAT Group structure now allows the client to recover Input VAT, stopping the financial losses.
Clarity: Management now has accurate financial data to drive business decisions.

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BACKGROUND
We were engaged by an international trading company in the UAE specializing in re-export (goods purchased in China and sold to Europe) where the goods were never physically imported into the UAE.

CHALLENGES
1) The company paid Output VAT at a rate of 5% on transactions that were Outside the Scope of UAE VAT.
2) The company failed to properly account for inventory in accordance with IFRS (IAS 2 – Inventories), which resulted in distorted financial statements and an incorrect calculation of the Cost of Goods Sold. This error had a significant impact on the taxable income for Corporate Tax purposes.

OUR SOLUTION
We confirmed 100% of their transactions were "Out of Scope VAT." We prepared and filed Voluntary Disclosures with the FTA to correct all past returns. We implemented correct inventory accounting under IFRS (IAS 2) to establish an accurate cost base and Cost of Goods Sold calculation.

RESULT
We successfully recovered 200,000 AED for the client in overpaid VAT. Restoring the IFRS-compliant accounting eliminated financial distortions, enabling the correct calculation of their Corporate Tax base and avoiding future penalties for inaccurate reporting.

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BACKGROUND
A rapidly expanding UAE Free Zone IT company was aiming to secure Qualified Free Zone Person (QFZP) status to benefit from the 0% Corporate Tax (CT) rate.

CHALLENGES
The initial assessment by previous tax consultants was negative. Their opinion was that the company did not qualify because its Non-Qualified Revenue (specifically, sales to the UAE mainland) exceeded the strict limits set by the De Minimis rule.

OUR SOLUTION
1) We implemented a new system to strictly segregate and accurately track all revenue and costs into two clear categories:

• Qualified Income (eligible for 0% CT).
• Non-Qualified Income (subject to the De Minimis threshold).

2) Verified De Minimis Calculation: Using verified data, we performed a precise calculation to determine the company's actual ratio of non-qualified income.

RESULT
Compliance Confirmed: The precise accounting proved that the company did comply with the De Minimis threshold.
QFZP Status Maintained: The IT firm successfully retained its status as a Qualified Free Zone Person.
Direct Savings: By avoiding the standard 9% Corporate Tax rate, our intervention secured a direct annual saving of 350,000 AED for the client.

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BACKGROUND
A major UAE-based Crypto Investment Firm, specializing in the long-term holding and management of virtual assets, faced a critical compliance issue.

CHALLENGES
1) Incorrect Policy: The company was treating its trading inventory as "Intangible Assets" under IFRS (IAS 38).
2) Valuation Risk: Using the IAS 38 Cost Model prevented the company from reflecting the true, daily market value of its trading portfolio.
3) Distorted Reporting: This misclassification risked an unqualified audit opinion and provided investors with a misleading picture of the firm's volatile profitability and performance.

OUR SOLUTION
1) Functional Analysis: We demonstrated that the crypto assets were acquired and sold in the ordinary course of business—making them Inventories, not long-term investments.
2) IAS 2 Classification: We drafted a new Accounting Policy classifying the trading portfolio under IAS 2 (Inventories).

RESULT
Accurate Valuation: The P&L now reflects the true economic performance of the trading firm.
Unqualified Audit: Auditors accepted the policy change, as it was based on the correct IFRS interpretation (IAS 2 exception), leading to a clean audit opinion.
Reduced CT Risk: The transparent Fair Value approach ensures the Corporate Tax (CT) base is derived from the most current and defensible data, minimizing the risk of tax authority adjustments.

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BACKGROUND
We were approached by a UAE-based international content licensing firm (films and streaming rights).

CHALLENGES
The company was incorrectly recognizing 100% of its revenue upfront from 12-24 month contracts. This "one-time recognition" violated IFRS 15 and created artificial profit spikes.

OUR SOLUTION
We analyzed the client's contracts and overhauled their revenue recognition system to align with IFRS 15.
We overhauled the client's revenue recognition policy to align with IFRS 15:
1) Over Time Recognition: We established that the service is a performance obligation satisfied over time.
2) Deferred Revenue: We implemented a Deferred Revenue model, booking upfront payments as a liability and recognizing revenue on a straight-line basis over the contract's life.
3) Retrospective Adjustment: We performed a retrospective adjustment to correct all prior financial periods.

RESULT
Optimized Tax & Cash Flow: The artificial profit spike was eliminated. The Corporate Tax liability is now spread correctly over the contract term, resolving the premature overpayment and dramatically improving cash management.
Successful Audit: The new policy was confirmed by external auditors as fully compliant with IFRS 15, ensuring accurate financial reporting.

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BACKGROUND
A rapidly growing service company in the UAE, employing over 50 staff.

CHALLENGES
The company had never registered with the mandatory Wages Protection System (WPS), paying all salaries via cash or direct bank transfers.

OUR SOLUTION
Immediate WPS Registration: We fast-tracked the company’s registration with MOHRE, connecting them to an authorized WPS agent bank.
System Implementation: We established a fully automated system for monthly payroll processing, ensuring the timely preparation and upload of the WPS Salary Information File (SIF) moving forward.

RESULT
Blockage Averted: We successfully initiated WPS payments, preventing the MOHRE service blockage and safeguarding the company’s ability to renew visas and hire new staff.
Fines Minimized: By providing irrefutable proof of historical payments, we were able to drastically reduce the expected amount of non-compliance penalties imposed by MOHRE.
Tax Protection: Salary expenses are now processed through the official WPS system, making them fully verifiable and deductible for Corporate Tax purposes.

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