local knowledge. dispatch - iapa · discussions on practice managmenet topics and specialist...
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Welcome to IAPA’s Quarterly newsletter
Q1, March 2018
8SSeptembe2016201
6 2016
IAPA - A global association of independent accountancy and business advisory firms
173 member firms 65 countries
DISPATCHWORK IAPA’s quarterly news publication containing news
and information for Members of IAPA
Creating the fabric of a global society
Global Support.
Local Knowledge.
IAPA Social
Words from the Global Chairman
(India and China). Led by the members
themselves who have a strong passion
to meet, network and do business with
each other, these smaller events were
an excellent success. I am delighted
that so much positivity and knowledge
sharing was generated from them. The
sub-regional meetings are open to any
global member, so please do register
even if you are not part of that locality.
Price Bailey’s Jay Sanghrajka (London
office) attended the Indian meeting
and found it extremely beneficial.
IAPA has appeared in several
accounting press publications since the
New Year, not least because we remain
No. 1 global accounting association in
the UK (International Accounting
Bulletin). We are also ranked 8th
largest global accounting association in
Europe and 11th largest association in
the world (International Accounting
Bulletin).
Dear Members
Warm wishes to you all in what has
been an exceptionally cold UK for the
beginning of our Spring! It is a busy
time for many as the financial year end
approaches, but I hope you have a
moment to take a look at the highlights
from IAPA over the last few months.
I am delighted to welcome many new
members in this March edition of
Dispatchwork. IAPA has appointed 8
new firms in the last 4 months in 4 new
countries. The detail can be found
below, however I would like to take this
opportunity to warmly welcome all our
vibrant new firms and their staff and I
look forward to meeting you at our
various events and conferences
throughout 2018.
Page 3 of this newsletter summarises
the successful sub-regional events
recently held in the Asia Pacific region
over the last
IAPA featured in the February
issue of Public Accounting Report
that discussed ‘Evolving
Technology Top List of
Challenges for Association
Leaders’, giving insight into how
IAPA helps members meet these
challenges. As disruptive
technologies bring about
extraordinary changes to the way
our organisations operate, the
article emphasised the value of
being a member of a global
accounting association, such as
IAPA, that can help members
understand these changes and
address any concerns.
Continued overleaf…
Continued on next page…
Still time to register for Rio…
IAPA International Conference
Rio de Janeiro, Brazil
23-26 October 2016
Visit the IAPA Portal for full details
IAPA recruits 8 new firms in 4 months and in 4 new countries
IAPA recruits 8 new firms across Europe, Asia Pacific and Latin America over the last 4
months and gains new representation in 4 countries.
Last month in February, IAPA established new representation in Mexico and Kuwait by
welcoming 2 excellent, dynamic and fast growing firms; Braun Huerin SC, based in
Mexico City and Almashourah Public Accountants in Kuwait City. Both locations were key strategic recruitment
areas for IAPA.
In January 2018, the IAPA EMEA region welcomed 2 new firms: BWT GmbH, Munich, Germany (part of IAPA
Deutschland) and DG Denetim Danismanlik YMM A.S, Ankara, Turkey, again both key cities for recruitment and
boosting IAPA’s already strong presence in these countries. In December 2017 the EMEA region also welcomed
Solid4U Accountants & Tax Advisors in the Netherlands and Fiduciaire Alpha in Luxembourg (new representation
for IAPA).
November was another strong month for IAPA with the appointment of IAPA’s new Brazilian firm, Triade Auditores
Independentes, as well as Ahuja Valecha & Associates, India, augmenting IAPA’s reach across its Latin American
and Asia Pacific Regions respectively. All these appointments are fantastic firms that bring vibrancy, quality and
exciting new international opportunities to IAPA and we are delighted to welcome them all.
exchange is a high value benefit of
IAPA membership and highlights the
importance of attending our
conferences.
I very much look forward to meeting
many of you in Oslo for the EMEA
regional event. Other key
presentations will be on ‘How to
best market your business and reach
a wider audience with your services’,
a key request from members taken
from our conference questionnaires,
and of course we will be holding
discussion groups on the strategy
and future of IAPA.
Our global conference is now
confirmed 2-5 November 2018,
Miami USA at the Fontainebleau
hotel, which will incorporate the US
Regional and Latin American
Regional events. I know many of
you are planning to attend – we
have a great programme lined up
and a relaxed networking agenda
that will allow you to see the sites of
Miami South Beach in what should
be glorious sunshine at that time of
year.
So save the dates and please do
register for the EMEA 2018
Conference in Oslo. We are
continuously adapting the
conference content to meet your
needs and I very much hope you will
be able to join us.
Martin Clapson
IAPA Global Chairman IAPA Acting CEO
Global Chairman’s
words continued…
Who’s Who @ IAPA
International Board
John
Campbell
Vice-Chairman, Treasurer and Canadian Representative
Martin Clapson
Global
Chairman
Scott Minnig
US Regional Chair
Ozgur
Demirdoven
EMEA Regional Chair
Ramon
Gonzalez
Latin-American Regional Chair
We know that our firms will need to
adapt with the onset of new
technologies and advancements in the
digital world. As such the way we
deliver services to our clients will
change and it is critical to keep on top
of the latest developments for the
efficiency of our practices and the
satisfaction of our clients.
This new era of disruptive technologies
includes A.I, cybersecurity, blockchain
and data analytics and we must
embrace change to stay ahead in this
competitive market and open up new
opportunities for our firms and clients.
The Centre is developing a series of
webinars to address many of these
themes following on from the success
of IAPA’s 2017 webinar launch. It is
through IAPA and its conferences,
focused webinars and member
discussions/networking events that we
can learn more about these advances
and discuss how to adapt, innovate and
stay competitive.
With this in mind I am delighted that
our EMEA 2018 Conference, Oslo,
Norway has introduced a new
specialist forum on Data Analysis – The
Big Data Session. With an industry
specialist presenting an interactive
session, I trust this will be a fantastic
environment to not only learn from our
speaker, but exchange information
amongst ourselves about what we are
doing in our own practices as well as
listen to those who have already
implemented successful new
strategies.
This important face to face knowledge
Mohd Noor Abu
Bakar
Asia-Pacific Regional Chair
Martin
IAPA Asia Pacific sub regional meetings: China, Qingdao 20 December 2017 India, Mumbai 23 February 2018
IAPA’s Asia Pacific sub-regional conference,
Qingdao, China, 20th December 2017
Organised by member firm Unitax Zhenqing Certified Public
Accountants Co., Ltd., China, this was IAPA’s first sub-
regional meeting in China, and a great success.
The theme was ‘Win-Win Co-operation’ and the event
welcomed delegates from IAPA’s Asia Pacific region who had
significant business interests with China. The 2-day meeting
provided a fantastic opportunity for members to network,
discuss prospects of joint work and client referrals, as well as
enjoy the local sights and culture of the area.
Host firm, Unitax Zhenqing Certified Public Accountants Co.,
Ltd, introduced their main services, which was followed by
an interactive session where all delegates discussed and
learned from each other's management model. Key local
policies and information, important for doing business with
China, were also exchanged.
The aim of the IAPA sub-regional meetings is to bring smaller
areas of the Asia-Pacific region together that are connected
by cross-border trading interests, to learn from each other
and identify areas for future business generation. This
meeting in China and was a great success and we extend our
many thanks to Xufen Gu (Unitax Zhenqing CEO) and all at
Unitax Zhenqing Certified Public Accountants Co., Ltd who
organised the event.
IAPA Asia Pacific sub-regional conference,
Mumbai, India, 23rd February 2018
Organised by US Gandhi & Co and Arun Todarwal &
Co, the sub-regional event held in Mumbai was a great
success attracting 18 delegates to network, discuss
doing business in India and neighbouring countires as
well as catch up on key issues facing accounting firms,
such as Blockchain Technology, Cloud Accounting and
Data Analytics for Fraud Prevention.
Local members also gave updates on UAE VAT and
India GST.
As with the sub-regional event in China delegates
valued greatly the opportunity to get to know each
other more, to understand each firm’s business needs
and to see how they can support each other. After a
thought provoking and informative event, delegates
gathered at the India Cricket Club for dinner and
further discussions.
With Asia Pacific being such a large region, these sub-
regional are extremely effective in encouraging ‘local’
members and those with direct business interests to
meet, discuss and share throughts and creative ideas.
With thanks to Kunal Gandhi and Arun Todarwal for
organising the event.
We look forward to seeing many of our global members at
the 2018 EMEA conferenece in Oslo, Norway.
Surrounded by mountains and the sea, this compact,
cultured and exciting city is Europe’s fastest-growing capital,
with a palpable sense of reinvention. Guests will be staying
at the Radisson Blu Scandinavia Hotel, located in the heart
of Oslo, with many of the cultural, historical and natural
sites that the city is so famous for within walking distance.
A fantastic programe has been put together to network and
learn from each other – from both carefully organised group
discussions on practice managmenet topics and specialist
external speakers delivering technical updates all
accountants need to be aware of. Key elements of the
programme are highlighted above right.
In addition, we look forward to welcoming our new
members in person and sharing IAPA’s plans for 2018.
Not only that, we have a daytime cultural tour for our guests
and evening dinning venues for all incorporating sites many
of you would not normally come across if visiting the
country on your own.
If you want to extend your stay and travel the world famous
train journey from Oslo to Bergen, considered one of the
world’s most scenic train rides and a spectaular nautre
experience in itself witnessing Norway’s most spectaular
fjord landscapes, please let us know as we have linked with
a top travel agent to help you plan an agenda.
Please do register by visiting the IAPA Portal, our new
conference website pages are up and running!
IAPA EMEA Conference. Registration is open!
25-27 May, Oslo, Norway
IAPA International
Conference 2018
Miami, USA
2-5 November
Key highlights for our 2018 EMEA conference:
Interactive Marketing Session ‘How to best
market your business and reach a wider
audience with your services’
Group discussions on practice management topics / member success stories
Speed Networking
Specialist Forum: Big Data Analysis. Interactive session
Presentation on ‘Inter Company cost transfer management & tax optimisation for multinational companies’
EMEA Chairman’s Report
Challenges and Opportunities in the Nordic Economies
New members’ presentations
Networking afternoon for delegates and guests: cruising on the OsloFjord. Fantastic evening and guest agenda
IAPA news
IAPA Tax Bulletin
IAPA published its second Tax Bulletin, January 2018.
This document has been produced in response to member feedback that requested a regular synopsis of any new tax rules / country specific tax updates from jurisdictions around the world, to keep IAPA members and their clients up to date and to offer a key point of contact should any member want to know more.
The January issue contained entries from Brazil, France, Cyprus, India, Saudi Arabia and the USA. Feedback has been excellent – thank you to all those that contributed. The next issue will be April 2018.
IAPA rankings
Group of IAPA, increasing benefits between the 2 associations as well as national and international business opportunities.
In terms of the International Accounting Bulletin’s other global ranking data (pubished February 2018), in Europe IAPA is the 8th largest Global Accounting Association, 10th in Asia Pacific and 13th in North America.
IAPA is delighted to be ranked for a subsequent year 'Number 1 Global Accounting Association in the UK', following the International Accounting Bulletin's (IAB’s) UK survey results published earlier this month. This ranking is both in terms of fee data and staff data. IAPA's strength in the UK is maintained thanks to its independent member firms and strong collaboration with the UK200Group. As of 1 April 2018, the UK200Group will officially become a full National Accounting
IAPA social media webinars
IAPA TUTORIALS Welcome Jim Thomas, PDW Group
We are delighted to introduce once again Jim Thomas, PDW Gourp (UK) Ltd who
presented at the IAPA International Conference in Barcelona 2017. Jim was a
fantastic inspiration who captivated his audience as he spoke on ‘Achieving Market
Leading Practice Profitability’. We are pleased to welcome Jim back to IAPA who will be producing monthly thought
leadership blogs in our newsletters and social media. These will be top tips and insights all business leaders / senior
partners should be thinking about. His first article is overleaf ….we hope you enjoy it. Please do let us know and
watch this space as new topics evolve. www.pdwgroup.co.uk
Following on from the success of IAPA’s new 2017 series of webinars, for 2018
the Centre has organised a mini series of Digital Marketing Webinars –
highlighting how accounting firms can create an online presence to attract and
develop new business and the top talent for recruitment. Part 1 was 7 March,
aimed at those who are unfamiliar with social media for business. Part 2, 10
April will focus on how to develop a social media strategy for your firm – to maintain your visibility and online presence in
today’s competitive digital world.
Measuring Organisational Performance! By Jim Thomas, PDW Group (UK)Limited
www.pdwgroup.co.uk
Does your firm have the right organisational measures in
place to improve performance and drive better results?
Measuring the performance of what your employees are
doing and how they are contributing, as well how your
firm is performing, is critical to enable you to enhance
what is working, or improve what is not.
There are a number of components that will affect
performance in a business setting but put simplistically,
there are two contributing variables. If you combine
them properly and invest appropriately, the results are
substantial. We believe 1+1=3:
Variable 1: people and their behaviour.
Variable 2: the supporting systems, processes and tools
we use.
Many SMEs and professional practices do not measure
their organisational performances in a very sophisticated
way. Sure, knowing your top line results, so total
revenue and total cost is one thing, but digging deeper
and having clarity at any one time on what is actually
driving those things up or down is entirely another.
When it comes to properly measuring the performance
of individuals, even more businesses struggle to do this
effectively, with some very significant impacts.
So the vast weight of compelling evidence we have is
that PERFORMANCE MEASUREMENT is the key in
understanding performance in the first place. This then
gives the right insight to allow changes to be made, that
improve specific aspects of performance.
For instance, as a professional services practice, you are
aware that your business revenue performance is
tracking below the target you had set. Why is this? Is it
because you are not cross selling new business services
sufficiently in current clients, or because you are not
winning enough new prospects?
Let’s say you identify it is the new prospect wins/revenue
that are the performance issue. Digging deeper, how
many new leads is the firm generating? How effective are
you at converting the leads you do have into paying
clients? And what about the average spend for new
prospects, how is that doing?
So you see, a below target result for new business
revenue could be a performance issue in one or more of
three key areas:
the lead generation performance to create a pool
of prospects.
that you have a large pool of prospects, but it’s
the conversion effectiveness in terms of getting
these prospects over the line that’s the issue.
Or, that people are just not confident enough to
agree higher fee levels or broaden the services
provided that is dragging the financial return
from new wins downwards.
Without understanding the performance drivers, you may
rush off and make the wrong choices….for example
ploughing on and putting loads of people into networking
environments to generate more leads, where it may just
be that it is the conversion rate or prospects that is the
issue. If it is, this is almost guaranteed to be a lack of
behavioural capability.
Measuring the performance of key components of what
individuals are doing and contributing, as well as where
the firm is performing or not, is critical to enable you to
keep doing what’s working, or change and improve what
is not.
Continued overleaf…
Measuring Organisational Performance!
When it comes to individual performances, we use a simple
phrase in our work. Behaviour drives performance which
delivers results. As we alluded to earlier, systems, tools and
processes play a part in supporting the behaviour of the
person, but all our experience tells us that behaviours (and
skills) are the major contributor to great performances and
results in the workplace.
And what drives behaviour? Well many things drive it…DNA
for a start, but there is also a huge slice of workplace
behaviour (and therefore people performance) which is
down to people’s mindset and attitude and how they ‘feel’
about their work and their environment.
How people feel, and how engaged and motivated they are is
critical. These things can all be significantly affected by what
goes on in the firm, and in particular the quality of the
behaviour of partners, senior leaders and people managers
around them.
These are the people that have the most day to day
influence, and can quite simply enable, or disable the people
around them. This is where much of our work takes us at
PDW Group. We help firms define, measure and transform
the behaviours of their people to improve performance, to
drive better results.
Through IAPA I hope to raise awareness to member
firms about the importance of raising professional
standards to improve the ‘quality and efficiency’ of
what they do, both of which are key performance
indicators in their own right.
Much of achieving this is about having the right
people in the right roles, with the right direction,
capabilities, resources and motivation….and these
things generally don’t happen accidentally…they need
to be purposefully brought about.
Jim Thomas PDW Group
www.pdwgroup.co.uk
© PDW Group (UK) Ltd
Are you following IAPA on social media? Does your firm have a LinkedIn or
Twitter Account?
Discover the benefits of using social media through the IAPA Digital Marketing
webinars. Social Media Strategy for Accountants takes place on 10 April.
Stay in tune with IAPA on social media:
Follow IAPA on Twitter: @IAPAGlobal
Follow IAPA on LinkedIn: IAPA International
The first IAPA webinar of 2018 was presented by Kivanc
Pakel and Varun Tejpal, Executives from Global Operations
at the General Electric Company, who outlined the GE
journey which led to the development of a platform to
provide a simplified, compliant and tax optimised solution
to the problems created by their complex intercompany
transactions.
Kivanc and Varun began the webinar by explaining how,
prior to 2014, GE had a great deal of cross-border billing
with a multitude of service providers and different types of
contracts and agreements; a lot of complicated activity
requiring huge manual effort which led to millions of
dollars of tax leakage, high transition costs and no
available analytics. As a consequence, in 2014, GE
developed their own in-house bespoke platform called
OneBiller which enabled the centralisation of all
agreements using an automated process. By providing
accounting services this centralised way the challenge was
to make sure that costs incurred were transferred
appropriately in a statutory and tax compliant manner
back to the countries where they were being incurred;
back to the beneficiaries and with the right back up for
audit purposes.
The OneBiller system has been a work in progress over
the last 3-4 years and Kivanc and Varun explained how
new functionality is constantly being added resulting in a
95% reduction in cross border transactions, one touch
analytics enabled, 5000+ agreements not required, 80%
reduction in invoices and millions of dollars of penalties
saved. The platform is very scalable without causing
stability issues and can be bolted on top of any ERP
system with minimal implementation cost. Its success is
a function of IT capabilities and an operating team with
a lot of international tax experience.
Kivanc and Varun closed the webinar summing up the
key benefits of the One Biller platform:
Automated process
System driven journal entries
Single platform for analytics
Transparent volume drivers pre and post billing
Statutory and tax compliant
Bill earlier in the quarter for cash settlement and
dispute resolution
Inter-company Cost Transfer Management & Tax Optimisation for Multinational Companies
Understanding Social Media for Accountants – Part 1
Lee Frederiksen, Managing Director of Hinge, began the
webinar by outlining why so many firms use social media
as a marketing technique explaining how social media is
now established as having marketplace acceptance and
is easier, faster and cheaper than face to face
networking. Indeed, studies show that high growth
firms are more likely to use social media for networking
and promoting thought leadership. Lee then introduced
the audience to the main business uses of social media -
networking, content promotion, search engine
optimisation, research and recruiting - and outlined how
each of these can be optimised to make your firm more
profitable.
Watch the webinar to listen to Lee giving useful hints,
tips and recommendations for the use of each one for
your firm. As well as covering LinkedIn, Facebook,
Twitter and YouTube Lee also outlines a less well known,
but very well targeted and potentially useful platform,
Industry Associations, where you can focus on your own
profession or client groups in particular sectors.
Want to catch up with
IAPA webinars? All
recordings can be found
on the IAPA portal.
IAPA New Members
IAPA is delighted to welcome the following new members:
Save the date:
IAPA EMEA Regional Conference 2018, Oslo, Norway
25-27 May 2018
BWT is a multidisciplinary
accounting, audit and tax firm
based in Munich providing an
integrated consulting approach
committed to the highest
standards of professional services.
Their Management Team has more
than 15 years of experience with
both national and international
clients. The firm works closely with
companies in a wide range of
industries including manufacturing,
distribution, technology and real
estate. BWT GmbH has joined IAPA
as a member of IAPA Deutschland.
Contact Partner: Mr Christian Jagosch
Email: [email protected] T: +49 089 411 47681 www.bwttax.com
BWT GmbH
Munich, Germany
DG Denetim Danismanlik
YMM A.S
Ankara, Turkey
DG is a relatively young rapidly
expanding firm, established two
years ago. The firm is very dynamic
and forward thinking with a strong
vision of the future for itself and
clients specialising in audit, taxation
and consultancy in a range of
industry sectors. In addition to their
Head Office in Ankara, DG also have
a branch office in Gaziantep, the
biggest industrial city in South East
Turkey.
Contact Partner: Dr Dogu Sever
Email: [email protected]
T: +90 312 969 0277
www.dgdenetim.com.tr
IAPA New Members
IAPA is delighted to welcome the following new members:
Save the date:
IAPA EMEA Regional Conference 2018, Oslo, Norway
25-27 May 2018
Almashourah
Kuwait City, Kuwait
Established in 2008, Almashourah Public Accountants is a rapidly expanding firm with a team of highly qualified staff providing professional services in Accounting, Auditing, Tax and Advisory Services in the local and Arab region domains. Contact Partner: Mr Meshal Alanezi
Email: [email protected]
T: +96 5224 79356 /7
http://english.almashourahkw.com
Established in 2012, Braun Huerin
SC now employees over 90
employees with a portfolio of
1100 clients, with more than 50%
being international. The main
services the firm provides are
accounting, auditing, tax, payroll,
legal and human resources in the
full range of industry sectors.
Contact Partner:
Mr Jacobo Huerin
Email: [email protected] T: +52 5590 9455
www.braunhuerin.com.mx
Braun Huerin SC.
Mexico City, Mexico
On 25th January 2018, Frankfurt, the IAPA German
member firms met to re-establish the National Accounting
Group (NAG), IAPA Deutschland. All 4 member firms were
in attendance:
TREU-GmbH
Liebhart & Kollegen
HPS Steuerberatungsgesellschaft mbH
BWT GmbH
During this event the firms held robust discussions on issues facing the German audit and tax advisory firms whilst providing support and feedback to each other. Discussions were focused on several key topics of interest, including:
Statutes of the IAPA Deutschland National Group Quality Assurance (Peer Review) requirements in
Germany Data Protection requirements Winning new members for the IAPA Deutschland
National Group
Relaunch of IAPA Deutschland National Group
completed
The meeting provided an excellent opportunity for
IAPA’s new and existing German member firms to get to
know each other well and understand how they can
best collaborate to strengthen the NAG.
We are pleased to confirm that the IAPA Deutschland
Chairman is Jurgen Liebhart, Liebhart & Kollegen,
Stuttgart (bottom left) and the Treasurer is Christian
Jagosch, BWT GmbH, Munich (bottom right).
IAPA Deutschland Chairman
Jurgen Liebhart IAPA Deutschland Treasurer
Christian Jagosch
Following on from IAPA’s successful webinar series with Mindshop, we continue to develop new ideas to further our
collaboration for the benefit of IAPA members. With this in mind, Mindshop have recently surveyed over 160
business leaders and advisors in 9 countries to produce 10 capabilities and 10 high performance habits needed for
business advisory success in 2018. We are delighted to share this report with you and you will find it attached with
this month’s newsletter. We hope you enjoy the read that contains many insights including:
- The 5 phases of Business Advisory
- Top 10 capabilities and high performance habits for advisors in 2018
- Practical strategies advisors can adopt into their plans for 2018
Top 10 capabilities and high performance habits for
advisors in 2018
Taxation and Exemption of VAT in UAE
VAT Structure Categories Exempt • Residential real estate (sale or lease) (after 1
st sale or 3 yrs)
•Local pax transport
•Financial Services (interest etc. excluding fees / charges)
•Supply of bare land
Zero% •Exports (outside implementing states)
•Int’l pax & goods transportation (incl. related services)
•Supply of means of transport (conditions)
•Supply of Investment grade precious metals
•Oil & Gas
•Preventive & basic healthcare
• Education (subject to conditions)
•1st
supply of residential buildings within 3 years
5 % All other which are not covered in exempt or zero % incl but not limited to: •Commercial real estate (sale & lease)
•Exports to implementing states if Customer is not taxable (subject to conditions)
Valuation: Concept Value will + Value will -
• All expenses imposed / recovered (clarification awaited)
• All taxes incl. custom duty, excise etc. except VAT
• Mkt Value of non cash portion of consideration
• Discounts and deductions
• Subsidies granted
• Amount paid on account of customer may not be included
Margin Scheme: On certain products, VAT levied on Profit Margin earned on taxable supplies and not entire value
Due Date
Transaction Condition Date of Supply Supply of Goods Without Transportation Date on which Goods were placed at
Customer's Disposal
With Transportation Date of commencement of Transportation
With installation and Assembly Date of Completion of Installation and Assembly
Supply of Services Completion of Services
Date of Supply Date of Receipt Earlier of 3 Date of Invoice Earlier of the Three
News from IAPA member firms:
Adjustment To Tax Value: Bad Debts Claim of Output tax refund / credit on bad debts subject to all of the following conditions: • VAT on goods and services supplied has been charged and paid • More than six months have been passed on the date of supply • Consideration for the supply has been written off in full or part in the accounts of the supplier • Registrant supplier has notified the customer of the amount of consideration for the supply that has been written off
Input Tax (Credit) | Recoverable Input Tax Input Tax • In carrying on the economic activity, tax borne on goods and services supplied to him or imported by him and • except when import is done with final destination being VAT implementing GCC state Recoverable Input VAT can be used to set off output VAT Restrictions on Recoverable Input Tax – No Input Available • Tax borne goods / services are used for other than economic activity • Tax borne on those goods which are prohibited • Non taxable person • Entertainment, Vehicle (if available for personal use), Goods / services purchased for use by employees (certain exceptions)
Transitional Rules Irrespective of date of issue of invoice or receipt of consideration, if date of supply is after the effective date of VAT Law, VAT is applicable.
No Nature Invoice Issued (before effective date)
Consideration (before effective date)
Supply (before effective date)
VAT Applicable
1 Goods / Services
Yes No No Yes
2 Goods / Services
No Yes No Yes
3 Goods / Services - Partial consideration
No Yes No Yes
4 Goods / Services - Partial consideration
Yes; of full amount Yes; partial No Yes
Taxation and Exemption of VAT in UAE continued
Compliance Maintenance of Records • Tax Invoices, Records and Accounting Documents must be retained for minimum period of 5 years which can be extended upto 15 years for real estate Tax Returns • Quarterly Returns to be filed electronically within 28 days of end of each quarter • May need to return Emirate-wise supply Audit • Federal Tax Authority may conduct of taxable persons on selected basis
Penalty • For Defaults - 3 times VAT (min of AED 500/-) • For Evasion – Upto 5 times plus could result into prosecution for offence under other applicable laws • Notice for tax – DG Decision – Executionary order • Joint Liability – Person who wilfully participates in violating the law shall be jointly liable with person obliged to pay Tax
For more information contact: Vipul Kothari TEL+971 4 3526330 | [email protected] Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal, tax or other
professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions. This publication has been prepared and
issued on the basis of publicly available information, internally developed data and other sources believed to be reliable.
Taxation and Exemption of VAT in UAE continued
Price Bailey, UK, named in The Sunday Times Top
100 Companies to Work For 2018
Price Bailey is delighted to be recognised by The Sunday Times as
one of the UK’s ‘Top 100 Companies to Work For’ in their 2018
survey.
Listed at number 77 within The Sunday Times 18th annual ‘Top 100
Companies to Work For’ in the mid-size category, East Anglian
based chartered accountants and business advisers also received
the Best Companies™ 2 Star accreditation, recognising outstanding
employee engagement.
What is the key to Price Bailey’s success? If any member wants to
know how they achieved it, please do speak with Price Bailey MD
and IAPA Global Chairman, Martin Clapson.
Malta Residence & Visa Programme
The 2015 Malta Residence and Visa Programme
was designed to attract non-EU investors and
provide them with the opportunity to stay
indefinitely in Malta without the need to resort to
costly schemes for their alternative residence in
Europe.
1.1 Global Residence Permit for Non-EU
The Malta Residence and Visa Programme
originated from the Global Residence Programme
(GRP). The GRP was considered as the most
appealing residence scheme available to non-EU,
non-EEA and non-Swiss nationals seeking to settle
their fiscal residence overseas to a more attractive
country.
Similar to the GRP, the Malta Residence and Visa
programme provides a programme for permanent
residence that is both qualitative as well as
financially feasible with the tax efficiency of Malta’s
remittance based taxation system.
1.2 Benefits of Malta’s Residence and Visa
Programme
No minimum stay requirements
A low annual tax liability of a total of
€15,000 per family in Malta, respectively.
A low personal tax rate of 15% on remitted
income
No Inheritance/Wealth Taxes
1.3 Requirements of Malta’s Residence and Visa
Programme
A contribution of €30,000 out of which the
€5,500 are non-refundable
Title of qualifying property or lease of
qualifying property
Title of qualifying investment with an initial
value of €250,000
Capital of €500,000 and/or €100,000 annual
income, arising from outside of Malta.
Health insurance covers for the whole family
in respect of all risks across the European
Union.
Approved beneficiaries of the Malta Residence and
Visa Programme are given 12 months to acquire
property in Malta or Gozo in accordance with the
property rules. Such residents are required to prove
the availability of own address to them in Malta by
submitting a contract of purchase or rental of property
in Malta or Gozo.
Malta Individual Investor Programme By virtue of Legal Notice LN47/2014, the
Government of the Republic of Malta grants
naturalisation by investment to reputable individuals
and their dependents, after a rigid and thorough due
diligence process, who contribute to the economic
development of Malta.
2.1 Qualifications of Application
At least 18 years of age
Makes a contribution
Meets the applicant requirements
Residential address in Malta
Commits to make investment in Malta
2.2 Requirements of Application
Complete an application form
Pay a non-refundable fee of €10,000
Bank charges of €200 per application
Provide a health certificate
Pass a ‘fit and proper’ test
Undertake to remit the total if required
contribution
Undertake to purchase or lease property in
Malta
Main Application to make an Affidavit of
Support for each dependent who is over 18
years of age
Provide authenticated translations into
English where necessary
2.3 Management of Application
The programme will be managed by the Identity
Malta. Only approved agents will be authorised to
promote the programme and to submit applications
on behalf of clients to Identity Malta.
Where the application has been approved in
principle, Identity Malta shall also issue a letter of
approval in principle to the main applicant
requesting that he/she provides (i) evidence of a
global health insurance policy/ies covering the Main
Applicant, spouse, and dependants and (ii) written
undertaking to acquire or lease a residential
immovable property in Malta for a minimum value of
€350,000 or a minimum annual lease of €16,000.
The Main Applicant shall also provide a written
undertaking that he will make such other investment
in Malta to an amount of €150,000 as identified by
Identity Malta and retain such investment for 5 years.
The contribution, less the non-refundable deposit
already aid with the application, is to be settled within
25 days of receipt of the Approval in Principle letter.
2.4 Contribution Values
Main Applicant – €650,000
Child under 18 years – €25,000
Spouse – €25,000
Unmarried child 18 to 26 years – €50,000
Dependent parent of grandparent above 55
years – €50,000
2.5 Additional due diligence fees:
Main Applicant – €7,500
Spouse – €5,000
Child under 18 years – €3,000
Unmarried child 18 to 26 years – €5,000
Dependent parent of grandparent above 55
years – €5,000
At Charles Scerri & Associates, we offer consultancy and
advisory services relating to various aspects of domestic and
international taxation and the Malta tax treatment of different
company structures or transactions of varying size and
complexity to a range of local and international clients. It is
emphasized that the above is intended only as general
information and cannot substitute any professional advice on the
matter with respect to particular situations.
Charles Scerri & Associates The Penthouse, Carolina Court Giuseppi Cali Street Ta’ Xbiex, XBX 1425, Malta
Find out more about IAPA
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Watch IAPA TV
Visit www.iapa.net
News from Stark & Stark, Israel
1. Stark and stark hosted last January the board members of IAPA EMEA, the board members (pictured below) enjoyed a day in the Dead Sea.
3. Stark and Stark have won three prestigious and
important state tenders.
Auditing and preparing financial statement
for the Ministry of Finance (for the
government controller).
Internal and investigative auditing for the
Ministry of Economy and Industry
(Investment Authority)
Internal auditing for the Ministry of Finance.
Left: IAPA Global Chairman Martin
Clapson and Iris Stark.
This photo was published in an article about the visit in a very important economic newspaper.
2. Iris Stark, Vice President of the institute
of certified public accountants in Israel, is
running for office of the chairman of
certified public accountants in Israel, with
the support of the minister of economy in
Israel, Mr. Eli Cohen.
Director of RTF-Audit, Moscow receives award from Russian Finance Minister
Grigory Neverov, the Director of RTF-Audit, Moscow, was recently awarded an official v al Thankyou Letter from the Russian Finance Minister.
This prestigious award is acknowledgement of his active contribution towards his work with the Ministry, in
particular with regard to audit policy making and the new Federal Law on Audit Activity.
Grigory Neverov, who is the Director and a partner in RTF-Audit since its formation in 2002, is also the Chairman of the Quality Control Committee of Russian Union of Auditors, the largest Russian auditors self-regulated organization.
Tel./fax: (495) 637-13-36, E-mail: [email protected]
News from JM Corporate Finance,
The Netherlands
We’re delighted to make you part of the latest news of JM Corporate Finance. News that makes us proud and
news we would like to share with you. JM Corporate Finance with offices in Breda and in Amsterdam is a
specialized and experienced key player in the Dutch Corporate Finance sector.
Acquisition of an architectural and a
construction firm in central Netherlands
This acquisition in the
architectural sector will be a valuable addition for
the new owner’s successful all-round design-
agency. The current customer base, consisting out
of clients in the private building sector, utility-
construction and performing plan-checks will
completely be taken over.
Through the acquisition of these established
companies, with a shared turnover in 2016 of 1.5
million Euro and 15 employees, combined with
positive growth in the construction sector, the new
owner will gain a very strong market position in the
Dutch architectural sector.
Private Equity dominates buyer market
The global Capital Confidence barometer shows
positive signs for the merger- and acquisition
market for the coming period. The transaction
market is driven by low interest rates, wide cash
reserves and highly liquid private equity funds.
Private equity is more and more becoming
competition for banks during an acquisition. The
reason for this can partly be found in the fact that
private equity is very successful in raising new
capital, which leads to a strong representation in the
transaction market.
More often strategic buyers are being overbid by
private equity, next to this the competition between
funds is increasing. In the past we only saw the big
players participate in very large transactions or
through secondary buy-outs.
Nowadays we directly see them as well making
smaller transactions in the Netherlands. Through
increasing competition between themselves, private
equity companies accept more risks and we see
higher entry multiples.
All these developments are very positive for the SME.
Indeed if private equity players are looking for
“positive return”, they will find the profitable SME as
well. And this will cause an increase in financing
possibilities for a SME acquisition. Please keep in
mind; private equity parties are relatively expensive
compared to bank financing. Not only the interest
payment is still higher, often a small shareholding is
being expected/ requested. On the other hand a
private equity player will take care of a more active
management support compared to banks.
So, if private equity would make a funding
possible together with a bank, what could you
want more?
Would you like to get in contact with the JM Corporate
Finance team? Please check our website
www.jmcorporatefinance.nl or send a direct mail to
We would love to expand our International business!
JM Corporate Finance (part of Solid4U Group) T: +31 76-
8870001 Jan van Wijngaarden (Partner; pictured top
right): [email protected] and Bart Koreman (Senior Advisor;
pictured top left): [email protected]
JM Corporate Finance
B.V. assisted the
shareholders with this
sale, which resulted in
signing the contracts on
January 30, 2018.
April 2018
Social Media for Accounting Firms (part 2), 11 April
May 2018
IAPA EMEA Conference 2018, 25-27 May 2018 Oslo, Norway
Uncovering New Revenue Streams Through Technology, 3 May
July 2018
Improving the Proposal Process at Your Firm, 10 July 2018
September 2018
BHD Canadian Conference 2018, 13-15 September Niagara-on-the-Lake, Ontario
How an ISA based audit can be planned, performed and documented
November 2018
IAPA International Conference 2018, 2-5 November Miami, USA Incorporating IAPA US Regional Conference 2018 and IAPA Latin American Regional Conference 2018
UK200Group Conference, 14-16 November Edinburgh, Scotland
IAPA future conferences, webinars 2018