corporatetaxinuae2023

[corporatetaxinuae2023]

How can I do POA for selling my car in the UAE?

A vehicle power of attorney is a legal instrument that allows you to give someone else the authority to handle your car’s affairs on your behalf. In the United Arab Emirates, a vehicle POA can be used for the purchase, sale, import, and export of automobiles, as well as for vehicle registration, renewal, and number plate acquisition. When an expat leaves the UAE, they usually employ a car POA, asking their friends to handle the sale on their behalf.

In a vehicle power of attorney, anyone can serve as an agent. Moreover, you can designate Al Ahram Investment in a vehicle power of attorney as your reliable representative.

Documents Required for UAE Residents:

• The principal’s passport, visa page, and Emirates ID.

• The attorney’s passport, visa page, and Emirates ID

• Any further paperwork or data that, based on the kind of POA, may be needed.

Documents Required for Non-UAE Residents:

• The principal’s passport.

• The attorney’s passport, visa page, and Emirates ID

any further paperwork or information that would be needed, based on the kind of POA.

Powers Included in a Vehicle POA

In the United Arab Emirates, a vehicle power of attorney may contain the following authority:

• Buy and sell an automobile.

• Get money from the sale of a car.

• Register your car.

• Renew a car’s registration.

• Bring a car into the UAE.

• Export a car outside of the UAE.

• Hire a car on a person's or business’s behalf.

• Purchase and renew auto insurance.

• Pay fines for moving infractions.

• Sign papers to transfer ownership of a car.

• Participate in government offices such as the licensing and traffic divisions.

Benefits of a Vehicle POA

The benefits of a vehicle power of attorney in the United Arab Emirates are as follows:

• In the event that the car’s owner is unavailable, the duties pertaining to the vehicle are managed by a power of attorney for vehicles.

• The car’s owner is free to designate a reliable representative to look after his car.

• In the UAE, a vehicle power of attorney can cover any kind of vehicle, including a car, truck, motorcycle, bus, etc.

• By using a vehicle power of attorney, owners can designate the authorities they want to assign.

• A POA for a car reduces owners’ stress. The designated individual will always be accessible to carry out the tasks in accordance with your preferences.

• A single vehicle POA can be used to grant all of a vehicle’s authority.

• A vehicle POA may be granted for an indefinite or limited period of time.

• Vehicle POAs are accepted by all UAE government agencies, banks, and service providers. You can complete all of your transactions with ease by using a single document.

• The POA for the car may be withdrawn at any moment.

Signing Process

The location of the signing and notarization determines the process for both. One may sign the car POA from within or outside of the United Arab Emirates.

Option 1: Signed and utilized POA vehicle in the UAE

Any Emirate’s notary public is able to witness the signing of a vehicle POA. To notarize a vehicle POA, all notaries must adhere to the same procedures. Anywhere in the United Arab Emirates, a car POA notarized by a notary public is recognized and acknowledged.

The Dubai Notary Public offers online notarization.

By using Dubai Notary Public’s online notarization service, you have the option to notarize the car POA online. The vehicle POA can be notarized through the BOTIM app by using this service. The steps are as follows:

• The Dubai notary public must receive an email with the final copy of the vehicle POA as well as the principal’s and agent’s identity cards. The principal’s cellphone number—which is connected to the BOTIM app (Zoom App)—should be mentioned in the email’s body.

• Through a video conversation via the BOTIM app (Zoom App), the notary public in Dubai will confirm the names of the principal and the agent. The POA will be approved by the Dubai notary public after verification.

• The notarized vehicle POA will be issued by the public notary in Dubai. The vehicle POA is available for pickup at the appropriate Notary Public office location.

Notarization Online (Abu Dhabi)

The Abu Dhabi Judicial Department also provides online notarization services in Abu Dhabi (ADJD). The following is how ADJD digitally notarizes a vehicle POA:

• The ADJD portal will receive the vehicle POA upload. Both Arabic and English must be used in the uploaded POA. You must upload the principal’s, lawyers, and legal translator’s identification cards to ADJD in addition to the POA.

• The payment link provided on the ADJD website can be used to pay the notarization costs. After ADJD approves the POA, the payments are made.

• ADJD will use a video call to confirm the principal’s and agent’s identification following the payment of the required government fees.

• You’ll receive an email with a digitally signed copy of the car POA. In the UAE, this digital copy is accepted as an authentic proof of authenticity.

Option 2: Automobile POA signed outside of the UAE but utilized there

You have the option to sign the car’s POA in your home country. For the vehicle POA to be legally accepted in the UAE, it must be attested by each of the departments listed in the following table:

• Place of residence

• Foreign Affairs Ministry

• UAE Consulate

• UAE

• Foreign Affairs Ministry

• Ministry of Justice following translation into Arabic

A car POA signed in the UAE but used outside of the country

In the United Arab Emirates, a vehicle power of attorney may be executed in front of any notary. For the vehicle POA to be deemed legal, it must be notarized by both the company’s embassy or consulate in the United Arab Emirates and the UAE Ministry of Foreign Affairs.

[corporatetaxinuae2023]

Is Your Business Ready for the Changes in Corporate Tax for 2023?

The government of the United Arab Emirates said on January 31, 2022, that a new company tax will be implemented. Historically, the United Arab Emirates has not taxed corporate earnings, with the exception of a small number of businesses including international banking and resource exploitation. However, a large number of businesses operating in the territory will have to start paying the new 9% corporation tax rate as of the fiscal year that starts on June 1, 2023.

Not every firm in the UAE will be impacted by the new corporation tax, and many will be exempt from paying it altogether.

Features of the Corporate Tax Regime

Dubai’s business tax regime consists of a variety of laws, such as corporate taxes, VAT systems, tax-free zones, and the lack of federal income tax.

· Who can be taxed?

Tax will be imposed on legal entities with illustrious legal persons, such as LLCs, PSCs, PJSCs, LLPs, and others. Furthermore, any foreign legal entity that resides in the United Arab Emirates and generates money will be subject to charges. While corporations operating in free zones will pay no corporate taxes as long as they adhere to all regulations, this also applies to free zone businesses that transact business with the mainland. Corporate taxation laws may also apply to UAE citizens and non-residents.

Tax rates

Businesses that make less than AED 375,000 are subject to 0% tax; those that earn more than that amount are subject to 9% tax. Additionally, bigger international corporations with differing business circumstances will be subject to a separate tax rate.

Who is exempted?

A participation exemption from corporation tax is provided under corporate tax legislation when dividends are received or shares of a subsidiary firm are sold. Additionally, corporations that are held entirely by the government, charitable organizations, public benefit organizations, investment funds, and firms involved in the exploitation of minerals and oil are not subject to corporate taxes.

Calculating taxable income

Typically, the tax rate and income are ascertained using the account net profit or loss that is displayed in the business’s financial statements. If the firm experiences a loss, it may deduct up to 75% of the value from its taxable income in subsequent years.

Groups

It could be possible for a collection of businesses to create a tax group where they might all be considered as one single taxable entity. In order to accomplish this, a business or subsidiary must not register in a free zone or be an exempted party.

Tax credits

The system will permit a credit in tandem with foreign tax paid in a foreign jurisdiction against foreign tax revenue that has not been exempted in an effort to prevent double taxation.

Will businesses operating in free zones pay taxes?

How companies operating in free zones will be affected by the new UAE corporation tax is still up in the air. The government has announced that enterprises operating in free zones will continue to enjoy the benefits of the pre-agreed incentives relevant to their individual free zone. Free zones could, however, elect to alter the regulations in the future and perhaps even impose a levy.

Free zone corporations are often required to pay corporate tax on the revenues they make from doing business with mainland enterprises.

Free zone businesses won’t really have to pay any taxes, but they will still need to register and file a corporation tax report.

Dubai’s Corporate Tax Advisory Services

Being Al-Ahram Investment corporate tax advisers in Dubai, we have extensive knowledge of Dubai’s tax rules and regulations and can help firms maximize their tax strategies, reduce their tax payments, and ensure compliance. Together with our corporate tax specialists in Dubai, we can provide you with the assistance and guidance you need to meet your financial goals and make wise decisions while navigating the intricacies of corporate taxes in the area.