Introduction A letter of credit is a financial instrument that a bank or financial institution issues to a buyer on behalf of a seller. It is a guarantee that the seller will receive payment as long as they meet the conditions specified in the letter of credit. This helps to reduce the risk of non-payment …
All about Salary Information File (SIF) Here is a quick guide about SIF for processing payroll in the UAE. Payroll is probably one of the most essential functions of an organization. After all, employees should be paid their agreed-upon salaries on time after working hard throughout the month. The HR or Finance person at every …
Retention Money Retention money is referred to as the sum of money held by the employer as a safeguard for any defects or non-conforming work by the contractor. Treatment of Retention Money Retention money in business and contracting refers to a percentage of the contract value that is withheld by the client or customer for …
Who is an Employee?Employee is one who is employed by the company (employer) based on a contract in an employee-employer relationship to assist the company in various domains specified as per the contract. What is an Insurance? (Source: Investopedia.com) Insurance is a contract in which an individual or entity pays an insurance company in exchange …
Designated Zones in the UAE? In the context of the United Arab Emirates (UAE), “designated zones” refer to specific areas within the country that have been identified and designated for the purpose of Value Added Tax (VAT) regulations. These zones have special considerations and treatments regarding the application of VAT. The UAE VAT law defines …
What is Reverse Charge Mechanism? The reverse charge mechanism is a provision in Value Added Tax (VAT) systems where the responsibility for reporting and paying the tax is shifted from the supplier to the recipient of the goods or services. Instead of the supplier charging and collecting VAT from the buyer, the recipient accounts for …
The CBUAE established a dedicated department in August 2020 to handle all Anti-Money Laundering and Combatting the Financing of Terrorism matters (AML/CFT), which the Banking Supervision Department handled previously. The Anti-Money Laundering and Combatting the Financing of Terrorism Supervision Department (AMLD) serves three key objectives: Through AMLD, the CBUAE coordinates closely with the UAE’s National …
VAT on services rendered in designated zones The treatment of Value Added Tax (VAT) on services rendered in designated zones in the United Arab Emirates (UAE) follows specific rules outlined in the UAE VAT law. Please note that tax regulations are subject to change, and it’s essential to refer to the most recent and relevant …
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Role of Excise The term “excise” generally refers to a tax levied on certain goods produced domestically or imported, often on items considered non-essential or harmful to public health. The role of excise can vary depending on the country and its specific tax policies. Here are some common aspects of the role of excise: 1. …
We at BHMJ ensure you comply with the laws and regulations of our country (the United Arab Emirates). These are the laws the residents and businesses of the UAE are bound to follow (i) Federal Decree Law 2 of 2015: Combating Discrimination and Hatred (ii) Federal Decree Law 29 of 2006: Protecting the rights of …