Jaxa Chartered Accountants

Welcoming New Talent to JAXA ✨

We are delighted to welcome Ms. Arya P and Mr. Maneesh Mathew to the JAXA Chartered Accountants LLC family.

As JAXA continues to grow, we remain committed to building a strong team of professionals who bring fresh perspectives, expertise, and a shared commitment to excellence.

We look forward to Arya and Maneesh becoming an integral part of our journey and contributing to the continued success and growth of JAXA.

Welcome to the team, Arya & Maneesh.
Wishing you both a rewarding and successful journey with JAXA.

UAE VAT UPDATE

FTA Public Clarification – VATP045 Concerned Goods: VAT Treatment

Who is affected?
Taxable Persons importing Concerned Goods into the UAE on or before 31 December 2025.

Output VAT
Importing taxable person is obligated to account for Output VAT on imports under RCM.

Tax Invoices – Important Change
For imports prior to January 01, 2026, it is clarified that self-invoicing is not mandatory, if required documents are maintained. Earlier self-invoicing was a mandatory requirement.

Input VAT Recovery
Input VAT can be recovered to the extent the goods are used or intended for making Taxable Supplies, subject to meeting the input recovery conditions.

Keep Supporting Documents to be retained:
Overseas supplier invoice
Relevant UAE Customs declaration
Proper VAT records and reporting

✅ Ensure your VAT records and import documentation are complete and accurate.

UAE Corporate Tax: Treatment of Tax Loss

Key Points

 Tax losses can be carried forward indefinitely.

 Yearly offset limited to 75% of taxable income in future periods.

 Losses incurred before Corporate Tax or related to exempt income cannot be carried forward/utilized.

 Losses may be restricted after a change of more than 50% ownership if the business activity itself changes.

 Tax losses can be transferred between qualifying UAE group companies, subject to specific conditions.

 Businesses claiming Small Business Relief is not eligible for Tax Loss relief.

Key takeaway: Businesses should regularly review their tax losses, ownership structure and future taxable profits to maximize available Corporate Tax benefits while staying compliant.

RAKEZ Audit Checklist 📋
What is Reviewed During a RAKEZ Audit?

A RAKEZ statutory audit reviews the company’s financial records to ensure the financial statements are accurate, reliable, and prepared in accordance with IFRS.

Key Areas Reviewed

📊 Financial Statements
Balance Sheet, Profit & Loss, Changes in Equity & Cash Flows

📑 Supporting Documents
Bank statements, invoices, contracts & payroll records

🔍 Audit Evidence
Verification of transactions, balances & financial disclosures

📋 Auditor’s Report
Independent opinion on the financial statements

Compliance Areas

Corporate Tax
💰 VAT
🛡️ Corporate Tax
⚖️ IFRS

Stay Compliant. Strengthen Your Financial Reporting.

JAXA Chartered Accountants
Your Trusted Partner for RAKEZ Audit & Tax Compliance

Who Qualifies as a QFZP?

A Qualifying Free Zone Person (QFZP) is a Free Zone business that meets UAE Corporate Tax requirements and can benefit from 0% Corporate Tax on Qualifying Income.
Key Requirements

🏢 Free Zone Presence
Established or registered in a UAE Free Zone.

👥 Economic Substance
Maintain adequate employees, assets, and activities in the Free Zone.

💰 Qualifying Income
Generate income that meets the prescribed qualifying conditions.

📊 Transfer Pricing
Comply with related-party and arm’s-length requirements.

📑 Audited Financial Statements
Maintain audited financial statements as required.

⚖️ De Minimis Limit
Non-qualifying income must not exceed the prescribed threshold.

0% Tax on Qualifying Income | 9% on Applicable Non-Qualifying Income

Stay Compliant. Protect Your QFZP Status.

JAXA Chartered Accountants
Your Trusted Partner for UAE Corporate Tax & Compliance

YOUR FINANCIAL STATEMENTS TELL THE STORY OF YOUR BUSINESS.

Are you making decisions based on accurate financial information?

Well-prepared financial statements help you understand:

✓ How your business is performing
✓ Where your money is going
✓ Your assets and liabilities
✓ Your actual financial position
✓ Areas that require attention
✓ Opportunities for future growth

Accurate numbers lead to better decisions.

Don’t just keep records. Understand what your numbers are telling you.

📩 Let our experts help you keep your financial information accurate and reliable.

IS YOUR COMPANY’S ACCOUNTING REALLY UP TO DATE?

Having accounting records is not enough, as they should give a clear, accurate, and timely picture of your business.

A proper accounting health check helps you identify:

✓ Unrecorded or missing transactions
✓ Outstanding receivables & payables
✓ Unreconciled bank balances
✓ Incorrect expense classifications
✓ Inaccurate financial information
✓ Potential Tax compliance issues

Don’t wait for year-end to discover accounting problems.

Keep your books accurate. Keep your business informed.

JAXA Chartered Accountants
Your trusted partner for Accounting & Financial Solutions

Who Requires a DAFZA Statutory Audit? 📊

Eligible Entities 🏢
Statutory audits are mandatory for businesses established in DAFZA, including:
• Free Zone Company (FZCO)
• Free Zone Establishment (FZE)

Submission Timeline 📅
Audited financial statements must be submitted within 3 months from the financial year-end.

Example 🗓️
Financial Year End: 31 December 2026
Submission Deadline: 31 March 2027

Plan Ahead ⏳
Start your audit early to ensure sufficient time for financial preparation, statutory audit completion, and timely submission.

Stay Compliant. Submit on Time. Grow with Confidence.

JAXA Chartered Accountants – A DAFZA-Approved Audit Firm providing reliable statutory audit services to help businesses meet DAFZA's audit and financial reporting requirements accurately and on time.

Why Are Audits Mandatory in JAFZA? 📊

Compliance ✅
Meet JAFZA Implementing Regulations 2016 by submitting audited financial statements annually.

Transparency 🔍
Ensure your financial statements present a true and fair view in accordance with applicable accounting standards.

Trust 🤝
Strengthen credibility with investors, banks, and business partners through independent financial reporting.

Business Growth 📈
Support expansion, funding opportunities, and informed business decisions with reliable financial statements.

Risk Management 🛡️
Avoid trade license renewal delays, regulatory penalties, and business restrictions by staying compliant.

Ensure Compliance. Build Confidence. Drive Growth. 🚀

Choose JAXA Chartered Accountants – a JAFZA-Approved Audit Firm providing professional statutory audit services to help businesses meet JAFZA’s audit and financial reporting requirements accurately and efficiently.