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Statutory Audit
We conduct an integrated audit, which combines the financial statement audit,independent and objective assurance on financial information, transactionsand processes.
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Limited Review
We offer services relating to reviews of historical financial informationby expressing negative assurance on such historical financial information.
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Agreed Upon Procedures
We engage with organisationsto perform specific procedures and report findings to conform to their needs.
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Financial Reporting Advisory Services (FRAS)
Our team provides timely advice on the impact of accounting changes to assist businesses in the development of an appropriate implementation roadmap.
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Business Consulting
Grant Thornton UAE provides organisations with implementable plans that drive sustainable growth strategies to grow and optimise their business performance.
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Business Risk Services
Organisations need to understand risks thoroughly to be able to manage them better. Grant Thornton UAE helps businesses achieve the best balance between minimising risk exposure, optimising profitability and developing compliance review checklists.
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Regulatory Advisory Services
Grant Thornton UAE's extensive understanding of the overarching supervisory framework within the region equips our professionals to support financial institutions comply and abide by the set of regulatory mandates throughout the rapidly evolving ecosystem.
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M&A and Transactions Advisory
Grant Thornton UAE works with organisations on transactions from start to finish, assisting with strategy, identifying risks, executing deals, and helping to unlock their potential for growth and value creation.
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Restructuring Advisory
Grant Thornton UAE is committed to realising value for shareholders, in a way that recognises and supports the interests of all stakeholders. Our solutions maximise value, provide clarity and direction, and accelerate recovery and transformation for businesses.
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Technology Advisory & Cybersecurity
IT and technology are fundamental to drive the performance of businesses. Through leveraging the power of technology, Grant Thornton UAE helps organisations define and identify growth opportunities to achieve value-driven transformation and innovation.
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Forensics
Fraud and corruption pose a growing challenge worldwide. As the commercial landscape changes, an increasingly regulated environment requires stringent governance and compliance processes. Grant Thornton UAE helps organisations navigate challenges and crisis with a hands-on approach coupled with the use of technology.
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ESG Services
The Environment, Social and Governance (ESG) agenda has gained significant traction over the years, to become one of the key strategic aspects of any business. It is imperative that all organisations, irrespective of industry sector, engage with their stakeholders and prioritise ESG practices to unlock sustainable growth opportunities.
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Corporate Tax
Our diversified team of corporate tax subject matter experts combines a perfect blend of international experience across several industry sectors, technical expertise, and commercial nuances with a commitment to deliver exceptional value to your business.
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VAT
The VAT team at Grant Thornton is well versed with the VAT Laws applicable across the region and holds valuable experience and professional accreditation in assisting clients across diverse industries to comply with the VAT obligations.
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Transfer Pricing
Grant Thornton UAE assists its clients in providing transfer pricing solutions that are implementable and operational, considering the facts and concerns of its clients.
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International Tax and Tax Due Diligence
Grant Thornton UAE supports multinational groups to optimise their tax structures. We can also assist businesses in analysing existing group transactions and inter-group supplies, as well as advising on potential implications of various taxes to facilitate an efficient Group tax structure.
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Economic Substance Requirements
Economic Substance rules were introduced in the UAE in 2019, requiring UAE businesses that undertake certain ‘Relevant Activities’ to maintain and demonstrate adequate substance.
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Customs and International Trade
The team at Grant Thornton is positioned centrally to assist the businesses with global cross-border tax structuring, planning and compliance needs.
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Excise Tax
We provide Excise Tax related advisory and compliance services to the producer, importer, and the storekeeper of excisable goods
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Incorporation and PRO
We provide guidance and help with setting up new entities in the UAE’s mainland and all the UAE free zones, as well as re-domiciliation of companies in the UAE. Our team drafts the needed legal documents and interacts with government authorities on various regulatory matters.
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HR & Payroll Services
HR & Payroll Services
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Outsourcing Advisory Services
Outsourcing Advisory Services
Economic Substance Requirements in the UAE for DIFC Entities - Revised Deadline
17 May 2020With respect to Economic Substance Regulations, Dubai international Financial Center has recently announced a notification filing update to be carried out through the DIFC Client Portal.
Revised Notification Deadline – 12th of June 2020
Following the recent update from the DIFC, the notification deadline for Licensees registered in DIFC is 12th of June 2020.
Return/ Report Deadline – 31st of December 2020
- Return/Report filing requirement applies to DIFC Licensees that undertake a Relevant Activity
- DIFC Licensees that undertook a Relevant Activity during financial year ended 31stof December 2019 must submit the Return/ Report by 31st of December 2020 i.e. 12 months after the financial year end
Economic Substance Test for DIFC entities:
In order to meet the Economic Substance Test, a DIFC Licensee needs to demonstrate all three of the following conditions:
- Adequate employees, physical assets & expenditure in the UAE
- Core Income Generating Activities (“CIGA”) are undertaken in the UAE
- Directed and managed in the UAE
Please note it is important to analyze and conduct an impact assessment of the businesses activities in order to determine whether the business falls under the purview of ESR in the UAE.
As per the guidelines introduced by the DIFC, in order to determine whether a Relevant Activity is taking place, a substance over form approach should be followed. This means looking beyond what is stated on the commercial license to what activity is being undertaken by the entity.
Penalties for non-compliance
Non-compliance with the obligation to file an economic substance notification before the deadline may be subject to a fine of up to USD 25,000 from the Registrar of Companies under Article 31(2) of the Operating Law, DIFC Law No. 7 of 2018. In addition, penalties ranging from AED10,000 to AED50,000 will be imposed under ESR. The fines increase to between AED 50,000 and AED 300,000 for the subsequent fiscal year.
Background - Economic Substance Regulations
On 30th of April 2019, the UAE enacted the Economic Substance Regulations (“ESR”), through Cabinet Resolution No. 31, including all Free Zones and Financial Free Zones, such as the Dubai International Financial Centre (“DIFC”).
Economic Substance for DIFC entities
On 17th of December 2019, DIFC issued specific guidelines on ESR applicable to all DIFC entities including private companies, public companies, partnerships (LLP, LP and GP), foundations, non-profit organisations, and branches established in DIFC.
The ESR, which apply to financial years commencing from 1st of January 2019, further requires DIFC entities that undertake “Relevant Activities” to demonstrate” Economic Presence” in the UAE in relation to the activities they undertake.
See Grant Thornton’s tax alert for further details here.
How GT can assist:
In this regard, our tax experts can provide support to all DIFC businesses with conducting:
- Economic Substance Impact Assessment for UAE entities
- Assistance in Filing Economic Substance notification
- Assistance in Filing Economic Substance Return/ Report with the DIFC
For further clarification and details regarding the above Tax Alert, please feel free to contact Steven Ireland, the Head of International Tax, and Amisha Anil, the Tax Assistant Manager.
