Tax Registration Calculation & Reporting

Tax Registration

The first step in tax compliance is registering with the relevant tax authority, which is essential for businesses operating in regions where Value Added Tax (VAT) and other taxes apply. VisionPrime supports businesses through:

1. Initial Assessment: VisionPrime helps businesses determine if they meet the registration threshold for VAT or other applicable taxes. This step involves assessing annual revenue, business activities, and industry-specific requirements.
2. Documentation Preparation: To register for VAT or other taxes, businesses must provide certain documents, such as a trade license, passport copies of owners, Emirates ID (for UAE-based companies), and financial records. VisionPrime assists with gathering and preparing all required documents, ensuring accuracy and compliance.
3. Registration Submission: Once all documents are prepared, VisionPrime submits the tax registration application to the appropriate tax authority, such as the Federal Tax Authority (FTA) for VAT in the UAE, and follows up to secure approval.

Tax Calculation

Accurate tax calculation is crucial for both regulatory compliance and financial planning. VisionPrime’s tax calculation services help businesses manage their tax obligations effectively and include:

1. VAT Calculation: For businesses registered for VAT, VisionPrime calculates the amount of VAT to be collected on taxable supplies (sales) and VAT paid on purchases. The difference between the two is either payable to the tax authority or refundable, depending on the net VAT balance.
2. Corporate Tax Calculation: As corporate tax regulations continue to evolve, VisionPrime stays updated on the latest tax rates and exemptions to provide accurate corporate tax calculations for clients. This service involves calculating taxable income by adjusting profits for allowable deductions and credits, ensuring clients only pay the necessary amount.
3. Withholding Tax and Other Obligations: Some businesses are also subject to withholding tax on specific payments to non-resident entities. VisionPrime helps businesses understand their obligations in this area, calculating withholding tax and ensuring timely payment to avoid penalties.
4. Expense and Deduction Analysis: VisionPrime performs detailed reviews of client expenses to identify eligible deductions, helping businesses reduce taxable income. Deductible expenses might include operational costs, employee salaries, and depreciation on capital assets, depending on regional regulations.

Tax Reporting

After calculating taxes, businesses are required to submit periodic reports to the tax authorities. VisionPrime manages the entire reporting process, ensuring timely submissions and compliance with local regulations.

1. VAT Returns Filing: VisionPrime prepares and files VAT returns based on the periodic reporting schedule set by the tax authority, often quarterly or monthly. The filing process includes listing taxable sales, purchases, and VAT payable or reclaimable, supported by accurate documentation and records.
2. Corporate Tax Returns: For businesses subject to corporate tax, VisionPrime assists in preparing and filing annual tax returns. This involves compiling financial statements, calculating taxable income, and applying deductions accurately to determine tax liability.
3. Record Keeping and Compliance Audits: Tax authorities may require businesses to maintain detailed records of transactions and tax filings. VisionPrime assists clients in setting up and maintaining organized tax records, which can be accessed for audits or compliance checks. This record-keeping practice reduces the risk of errors or omissions and ensures compliance in the event of an audit.
4. Advisory and Adjustments: Regulations and tax laws are subject to periodic updates, and VisionPrime provides ongoing advisory support to help clients stay informed of any changes. VisionPrime also assists with adjusting filings if any discrepancies or errors are identified post-submission, ensuring accurate reporting.