• VAT:

This would be a secondary source of raising revenues for governments in the Gulf Cooperation Council (GCC) and is expected that and additional revenue of Dh12 billion would be generated in the first year post implementation of VAT.

The move to implement VAT was devised post the sharp decline in oil prices and under the recommendation of IMF to have a fiscal consolidation in the GCC, the governments schemed out plans for diversification of and reduction of subsidies.

• When does it come into effect?

Vat comes into effect at 5 percent on the 1^st of January, 2018 in the GCC.

• How does VAT work?

As a first phase, all companies that report revenues more than Dh3.75 million annually, would have to be registered under the GCC VAT system and those who report between Dh1.87 million to Dh3.75 million will have an option to register for VAT in this phase. The second phase however will make it mandatory for all companies to be registered under the system, regardless of the revenues declared. These phase wise schematic implementation have been confirmed by the Undersecretary of the UAE Ministry of Finance, Mr.Younis Al Khoury.

• Will VAT be applicable to everything?

UAE has no income tax on salaries and will thereby remain tax-free in many ways even after VAT comes into effect. The country has free zones which offer tax free environment including 100 per cent foreign ownership in free zones.

The government plans to either zero-rate or exempt many supplies which are most likely to impact the common man, so that the impact of VAT is minimized. The usual plans when introducing a VAT by any government would be to focus more on taxing discretionary expenses made by consumers, while being cautious about the lower strata being unaffected.

• What does not attract VAT?

The government has declared about a 100 food items, health, education, bicycles, and social services that would be exempted from VAT.

• Where will VAT be applicable?

The tax category is defined for products in Electronics, smart phones, cars, jewellery, watches, eating out, and entertainment. It is also expected that excise duties will be applicable on certain beverages that are deemed to be harmful to health, including those with high sugar content.

• Will VAT be a bane to business?

If your business is in the supply of goods or services that are subject to VAT (including at the zero rate) you can reclaim VAT which you incur on costs. When your business deals with activities that are exempt from VAT, you cannot reclaim VAT incurred on costs, and it is indeed a cost to your business.

•  Will VAT affect prices/margins?

As VAT is a tax levied on the price, it sure does affect with prices and margins. However, it would be under the sole discretion of the supplier to accommodate the fluctuations within or out of the costing.

• How to plan?

As there is little or no time left to make changes, it is ideal that the impact be best understood and plan as to how to deal with it, depending upon the size and complexity of the business.

• Why is the VAT now a move by the GCC?

With the sharp decline in oil revenues, the need for diversifying income sources and having a fiscal consolidation has resulted in the birth of VAT in the GCC.

The post 10 Facts About VAT in the UAE appeared first on Being Dubai.

Gratuity Calculation in UAE

Every employee working under the companies registered under the Ministry of Labour is bound to enjoy certain rights and privileges by the UAE Labour law. The employees are protected under this ministry while the companies have some responsibilities to fulfill for the welfare of their staff. One of the major clauses in this is the gratuity or the end of service benefits or remuneration.

Often when you have to resign without any notice or terminated you may not be in a position or you may not have the time to calculate your gratuity. Every employee who has one year of service or more is entitled to gratuity. Days of work during which the employee is absent without pay is excluded from the number of days worked.

Here’s what you need to know while calculating your gratuity. This calculation will vary for resignation and termination. It will also be different for employees working under limited contract and unlimited contract.

If an employee has broken the contract due to one or the other reason, the person has no eligibility to claim the gratuity. If the contract has been fulfilled then one can claim twenty one days salary for the number of years worked. For more than five years service, the first part remains the same and then after the fifth year, thirty days salary for each year worked is the calculation.

If the person has a service of more than a year but less than three years, then the gratuity is calculated as one third of twenty one days basic salary for every year of service. If the service is for more than three years but less than five, then the person is entitled to get two-third of twenty-one days’ basic salary for every year worked. For a person with five years of working experience, he/she gets twenty one days salary for every year worked for the first five years and thirty days salary for years worked after that.

If you are terminated with more than one year and less than three, you are eligible for twenty-one days salary for each year worked. The above said rule goes for calculation of gratuity between three to five years too. For employees who have worked for more than five years, the law is same as that of resigning between the same periods. That is, twenty one days salary for every year worked for the first five years and thirty days salary for each year worked after that.

There are other benefits the employee can claim in case of termination. Any paid leave that has not been utilized should be paid. Overtime wages that is due needs to be given as well. A notice period as mentioned in the agreement at the time of employment should be paid. Expenses should be paid in full to the country of domicile of the employee. Any compensation for unreasonable dismissal should also be given.

The maximum gratuity amount should not exceed beyond two years of that employee’s gross salary. Any discrepancies in the calculation or any fraudulence in the payment can be brought to notice to the Ministry of Law directly or through their online portal.

The post Gratuity Calculation in UAE – All You Need to Know appeared first on Being Dubai.

Starting from Friday, September 9, both Etisalat and Du allows you to pre-order Apple’s latest smartphone, the iPhone 7/7+.

Apple launched iPhone 7 and 7 plus – featuring water-proof as well as dust-proof (IP67) and with a processor that is 240 times faster than its predecessor iPhone.

The new iPhones now comes in two sizes and five finishes. Apple names it as ‘The Jet Black’ which is almost similar to the high glossy piano finish. It is also available in all matte black, silver, gold and rose gold.

The new iPhone 7 /7+ is bundled with lots of simple and extravagant features.

iPhone 7 has:

• All new A10 Fusion Chip
• New plush force touch home button
• Lesser antenna lines
• Dual tone quad LED Flash
• 12MP Improved Camera with OIS(Optical Image Stabilization)
• 7MP HD FaceTime Camera
• Lightening headphone port
• Stereo Speakers
• IP67 Dust and water resistant
• Constructed in 7000 Series strong aluminium
• New Taptic Engine
• Improved Apple Pay
• Improved retina display with 25% more light.
• 2 x Faster than iPhone 6
• Longest Battery life in an iPhone (2+ Hours)

Apart from iPhone 7,  iPhone 7+ has:

• Dual 12MP sensors (f/1.8, 28mm & f/2.8, 56mm)
• Focus Pixels
• OIS
• 2x optical zoom
• 5 Inch IPS LCD Screen (401PPI)

The new iPhones won’t be available with 16GB storage options, instead it will be available from 32GB, 128GB and a whooping 128GB! The Price list of the iPhones are as follows:-

iPhone 7

32GB – AED 2599
28GB – AED 2999
256GB – AED 3399

iPhone 7 Plus

32GB – AED 3099
28GB – AED 3499
256GB – AED 3899

Update: Apple iPhone 7 has released here in UAE today (September 17, 2016). Here are some fresh shots of the new iPhone 7 which is displayed at Mall of the Emirates.

Hands-on: iPhone 7 32GB Black

Hands-on: iPhone 7 32GB Black

Hands-on: iPhone 7 32GB Black

Team BeingDubai also got a few units

Crowd in front of the Apple Store, Mall of the Emirates

Crowd inside the Apple Store, Mall of the Emirates

비트코인 카지노

The post Getting an iPhone 7 in Dubai appeared first on Being Dubai.