Dubai

VAT Deregistration in the UAE: A Guide All Business Setup. Corporate PRO, VISA Related Services: Contact Tycoon Documents, Dubai Apply Online Contact us The UAE has been operating under a 5% Value Added Tax (VAT) regime since 2018, covering most goods and services, particularly those related to the corporate sector. While businesses must comply with VAT obligations such as record keeping, filing VAT returns, and adhering to deadlines, there are scenarios where VAT deregistration is necessary. What is VAT Deregistration? VAT deregistration is the process by which a business ceases to be registered for VAT. This typically occurs when a company’s taxable transactions fall below the threshold set by the UAE’s Federal Tax Authority (FTA), or when the business stops trading altogether. Once deregistered, the business is no longer required to charge VAT on sales or claim VAT on purchases. However, they are also exempt from the administrative, financial, and legal burdens of VAT compliance. Conditions for VAT Deregistration in the UAE Eligibility for VAT deregistration depends on several factors: No Longer Providing Taxable Supplies: If a business ceases trading or providing taxable supplies and does not expect to have taxable transactions in the next 12 months, it must deregister. Falling Below the Voluntary Threshold: If the value of taxable goods and services provided by the business over the past 12 months falls below AED 187,000 (the Voluntary Registration Threshold), the business must deregister. Falling Below the Mandatory Threshold: If the taxable turnover drops below AED 375,000 (the Mandatory Registration Threshold), the business must apply for deregistration after 12 months of voluntary registration. Note: Voluntary registration requires a company to remain VAT-registered for at least 12 months before it can deregister. Steps to Deregister for VAT Log into the FTA Portal: Go to the FTA web portal and log into your Taxable Person Account using your Tax Registration Number (TRN). Select Deregister Option: In the VAT section, choose the “De-register” option from the “Actions” menu. Choose the Reason: Select the reason for deregistration from the drop-down list (e.g., no longer providing taxable supplies, value of taxable supplies below the threshold). Upload Documents: Provide supporting documents for your deregistration request. Submit Application: Complete and submit your application form. FTA Review: Wait for FTA approval. The review process typically takes around 20 working days. Submit Final VAT Report: Once pre-approved, file your final VAT return with the FTA. Clear Outstanding Liabilities: Settle any outstanding VAT debts or request reimbursement, if applicable. Receive Deregistration Certificate: Once the process is complete, download your Deregistration Certificate from your e-Services account. Key Considerations The final VAT return and payment of outstanding VAT must be completed within 28 days of the deregistration’s effective date. Failure to do so can result in penalties. Businesses must continue filing VAT returns until the deregistration is officially approved. Non-compliance with the deregistration process or delays can lead to penalties, including an initial fine of AED 1,000 and additional monthly penalties of AED 10,000. Additional VAT-Related Costs Penalties for Late Deregistration: AED 1,000 initially and up to AED 10,000 monthly. Deemed Supplies: Goods or services involved in a business may be considered as deemed supplies and should be included in the final VAT return. VAT Support Services by Tycoon Documents Tycoon Documents offers a wide range of VAT-related services, including: VAT registration and deregistration Filing VAT returns Consultancy on VAT compliance and corporate tax By handling the complexities of VAT deregistration and offering guidance on compliance, Tycoon Documents ensures that businesses can efficiently manage their tax obligations and avoid penalties. Contact Tycoon Documents for a consultation on how they can assist with VAT or other business needs. Call Us 24/7 971 56 993 1404/02 OR Get Your Consultation FREE! Request Appointment

How to Get a Mortgage in the UAE: A Comprehensive Guide for 2024 All Business Setup. Corporate PRO, VISA Related Services: Contact Tycoon Documents, Dubai Apply Online Contact us Overview of Mortgage in Dubai for 2024 The UAE’s real estate market has always been a vital aspect of the country’s economy, attracting both local and international investors. While many property transactions are made through cash or developer payment plans, mortgages have become increasingly popular. In 2024, the mortgage landscape in Dubai is expected to change due to several key factors, including declining interest rates, rising rental prices, and the potential for refinancing. Key Factors Influencing Mortgages in Dubai in 2024: Lower Interest Rates: The UAE central bank follows the Federal Reserve’s monetary policy due to the dirham’s peg to the US dollar. A 100-basis point reduction in interest rates is expected by 2025, making borrowing cheaper and driving demand for mortgages. Increased Rental Prices: As rental prices continue to rise in Dubai, the gap between mortgage payments and rent narrows, making buying property a more appealing option for some renters. Refinancing Opportunities: Current mortgage holders in Dubai will likely explore refinancing options as interest rates drop, allowing for better terms on their loans. Investment Opportunities: Lower mortgage rates might attract investors who see opportunities in the short-term appreciation of Dubai’s high-value real estate. These factors are likely to shift the mortgage market in 2024, making it an opportune time for both new buyers and existing homeowners to reconsider their mortgage options. Mortgage Eligibility in the UAE Mortgage options are available to UAE citizens, residents, and non-residents, although the terms and conditions vary by demographic. General Eligibility Criteria: Age Requirement: Borrowers must be between the ages of 21 and 65. Minimum Income: For salaried individuals, the minimum income requirement is AED 15,000 per month, while self-employed individuals must earn at least AED 25,000 per month. These figures may vary slightly depending on the bank. Down Payment Requirements: UAE residents must make a down payment of at least 25% for properties valued at AED 5 million or less. For non-residents, the down payment increases to 50%. Loan Term: Mortgage terms in the UAE typically range from 5 to 25 years, depending on the lender. Employment History: Banks may require a minimum employment period or several months with the current employer to assess job stability. Credit Score: A good credit history is essential for securing a mortgage, especially for non-residents and self-employed individuals. Mortgages for Non-Residents Non-residents are allowed to obtain a mortgage in Dubai, but banks tend to offer more restrictive terms. Typically, non-residents can only finance up to 50% of the property’s purchase price, and the down payment requirement is higher. Additionally, mortgage terms are usually shorter, and the interest rates may be slightly higher compared to UAE residents. Non-residents can only purchase properties in freehold areas of Dubai, where foreign ownership is allowed. Required Documents for a Mortgage in Dubai To secure a mortgage in Dubai, borrowers must first obtain pre-approval from a bank, after which they can proceed to select a property. Below is a breakdown of the required documentation: For UAE Residents: Copy of Visa and Passport Emirates ID Salary Certificate (to confirm income) Proof of Residence: A lease agreement or a utility bill suffices. Bank Statements: Typically for the last 6 months. Credit Card Statements For Non-Residents: Copy of Passport Bank Statements: Usually covering the last 3 to 6 months. Additional Documentation: Some banks may require tax returns, corporate documents, or audited financial statements for business owners. The Mortgage Process in Dubai The process for securing a mortgage in Dubai involves several key steps, from initial consultations with banks to property registration. The following is an outline of the general procedure: Pre-Approval: The first step is to obtain pre-approval from a bank or use the services of a mortgage broker. Pre-approval indicates that the bank is willing to extend a loan based on your financial standing. Property Selection: Once pre-approval is secured, borrowers have between 60 to 90 days to select a property that fits their budget and preferences. Negotiation and Deposit: After selecting a property, the buyer negotiates terms with the seller and signs a letter of intent. A deposit, typically around 10% of the purchase price, must be paid to the seller. Final Mortgage Approval: The borrower then submits a mortgage application to the bank, which includes a credit check and a property appraisal. If everything is in order, the bank approves the mortgage. Legal and Administrative Procedures: After mortgage approval, the borrower must complete the legal and administrative processes, including the registration of the property with the Dubai Land Department (DLD). Mortgage Payment: Once the process is completed, the borrower starts making monthly mortgage payments based on the loan’s terms. Types of Mortgage Programs in Dubai Banks in the UAE offer a range of mortgage products, each catering to different borrower needs. The two most common types are fixed-rate and variable-rate mortgages. Fixed-Rate Mortgages: A fixed interest rate is set for an initial period, usually between 1 to 5 years. This offers predictability, as the monthly payment remains consistent. After the initial period, the interest rate may adjust to a level exceeding the Emirates Interbank Offered Rate (EIBOR). Variable-Rate Mortgages: Variable-rate mortgages adjust according to changes in EIBOR. While borrowers benefit from lower payments if rates decrease, they also bear the risk of rising payments if rates increase. Other Mortgage Options: Discounted Rate Mortgages: This is a type of variable-rate mortgage where borrowers receive an initial discount on the bank’s base rate. After a set period, the discounted rate adjusts to the standard variable rate. Mortgage Refinancing: Borrowers with an existing mortgage can refinance their loan under better terms. This may involve switching to a bank offering a lower interest rate, reducing monthly payments, or shortening the repayment term. Additional Mortgage Costs in Dubai In addition to the down payment, borrowers should be aware of other costs associated with obtaining a mortgage in Dubai: