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Tax Filings in UAE

The United Arab Emirates, renowned for its tax-friendly environment, recently implemented a set of new taxes, including Value Added Tax (VAT) and Excise Tax. Navigating this evolving tax landscape can be a challenge for businesses and individuals. This is where AMY Consulting comes into play. With our extensive knowledge of UAE’s tax regulations and a commitment to client-centered service, we can make the process of tax filing and preparation straightforward. Here’s how we can assist you in the UAE.

Understanding UAE’s Tax System

Despite being generally viewed as a tax-free zone, the UAE has introduced VAT and Excise Tax to diversify its economy. Understanding these taxes and their impact on your financial affairs is essential. AMY Consulting provides the insights you need to effectively manage your tax obligations in the UAE.

Guidance with Value Added Tax (VAT) Filing

In 2018, the UAE implemented a 5% VAT, which applies to most goods and services. Businesses with a revenue exceeding the mandatory registration threshold must register for VAT, maintain specific records, and file regular VAT returns.

At AMY Consulting, we assist with every aspect of VAT management. We guide businesses through the VAT registration process, ensure they understand what transactions are subject to VAT, and help with the preparation and filing of VAT returns. We also offer advice on VAT planning and administration to help businesses optimise their tax positions.

Support with Excise Tax Filing

The UAE levies an Excise Tax on specific goods harmful to human health or the environment, often termed ‘sin goods,’ such as tobacco products, energy drinks, and carbonated drinks.

AMY Consulting can help businesses navigate the complexities of Excise Tax. We provide guidance on what goods are subject to Excise Tax, assist in registering for Excise Tax, and help with the timely filing of Excise Tax returns.

Assisting with Tax Residency Certificate Applications

The UAE’s Double Taxation Treaties with various countries can allow residents to avoid paying tax on foreign income in their home country. To avail of these benefits, residents must obtain a Tax Residency Certificate (TRC).

AMY Consulting assists individuals and companies with the TRC application process. We ensure clients understand the requirements, guide them through the process, and help gather the necessary documents for a successful application.

Keeping Up with Deadlines

Filing tax returns late can lead to penalties in the UAE. AMY Consulting helps clients avoid such situations by tracking all key deadlines, ensuring timely tax return filing and payments.

Navigating the UAE’s tax system can be complex, but it doesn’t have to be. With AMY Consulting, you have a partner who understands the intricacies of UAE tax laws and is committed to providing excellent service tailored to your needs. Whether you’re an individual aiming to optimise your tax position or a business with multiple tax obligations, AMY Consulting is here to help. Contact us today to learn how we can assist you with your tax filings and preparations in the UAE.


Further adjustments have been made by the FBR to the regulations related to temporary vehicle imports through customs.

In its latest statement regarding tax policy reforms, the FBR updated the definition of a tourist. A computerized system will be employed by Pakistan Customs for monitoring information pertaining to the temporary importation of motor vehicles.

According to a recent notification by authorities both FIA and Customs have been instructed to intensify their monitoring of temporary vehicle imports through a new computerized surveillance system.

The import of vehicles should not be exploited by foreigners and migrants as per the FBR.
When tourists import vehicles on a temporary basis their passports will be connected to the accompanying car documents.

The issuance of an official statement by the FBR seems intended to curb misuse of temporary vehicle imports.


A recent report by a top ratings’ agency suggests that the availability of funds for Pakistan beyond June is highly uncertain.

As per Moody’s Investors Service warning reported by Bloomberg today, Pakistan could face the risk of a default without an International Monetary Fund (IMF) bail out as it has uncertain financial options beyond June.

According to Grace LIM from Singapore’s ratings company who responded via email; Pakistan will be able to make all its external payments until the current fiscal year ending on June as reported by Bloomberg.

Although it is uncertain, Pakistan may have to explore other financing options beyond June as having very weak reserves means it might end up defaulting if there isn’t any support from the IMF program.

Pakistan’s discussions with the Washington-based lender continue as it seeks to restart its bailout program which has been held up at the ninth review since November of last year.

The IMF remains unconvinced about resuming its bailout efforts despite trying measures like establishing a floating exchange rate or increasing tax rates alongside tariff hikes.

Working alongside Pakistani officials towards obtaining sufficient funds and reaching an agreement on all fronts should enable finalization of outstanding ninth review, says IMF.

After an announcement from Pakistani officials revealing Saudi Arabia and UAE were willing to provide a combined total of $3 billion in financing—nearly 50% of Pakistan’s necessary finances have been secured.

That being said, the amounts have not yet been transferred to Pakistan’s central bank and their official foreign exchange reserves are still standing on a precarious ground.

The recent months have not been easy for this nation’s economy as it is facing risks of defaulting along with downgrading from international ratings agencies, and to add to this mix, there is continuous change in key leadership position and political instability.

Engagement with IMF beyond June

If we decide to continue working with the IMF beyond June we may be able to access additional funding from other multilateral and bilateral partners which would decrease our risk of default.

The trend shows that according to the latest S&P Global Ratings’ analysis cited by Bloomberg Report Pakistan will require more financing compared with its existing resources as the ratio between gross foreign funding requirements and its total available resources (current account receipts and secure reserves) may rise from roughly 133 percent this year-end approximately up to around 139.5 % at end-fiscal-year twenty-four.

Bloomberg cited Andrew Wood of S&P in Singapore who stated that the IMF program serves as a foundation for essential fiscal policy changes, and agreement on the present evaluation period has the potential to strengthen trust amongst various bilateral and multilateral loan providers in regard to lending money to Pakistan.

It was reported back in March by Bloomberg economists that under a bailout scheme, it was possible for funding from the IMF to be made available to Pakistan by June; but highlighted concern over possible default should no funds be forthcoming.

Pakistan can expect IMF to deliver the remaining $2.6 billion in aid from its ongoing bailout program by June since they have met most of their conditions for it, according to Bloomberg economists Anger Shula and Abhishek Gupta who wrote this some time ago.

Pakistan is not included in the agenda for any of the upcoming meetings of IMF Executive Board till May 17 as per Business Recorder’s report on Tuesday.

Pakistan is absent from any discussion in the upcoming meetings of IMF Executive Board which are slated for May 11, and 15 with another meeting on May 17 in 2023 unless they achieve success in their ninth review.


A newspaper carried ‘Economic Projections’, which is apropos. It is a fact that Dr. Hafiz A. Pasha, a renowned economist, requires no introduction due to his profound knowledge of economics and finance. Not only is his insightful interpretation of the World Bank report informative, but it also serves as an eye-opener for all of us.

He says, for instance, that the financial sustainability of Pakistan’s economy is a matter of serious concern to the World Bank.

A detailed breakdown of the potential sources and financing needs has not been provided, however. How can Pakistan achieve a positive GDP growth rate of 2 percent in 2023-24 despite being neck deep in a financial crisis? The country, in my opinion, is experiencing an economic crisis unlike any other in its history.

Amid rising price hike, inflation, and unemployment, there is a woeful lack of economic activity in the situation. It is no longer news that industrial units are shutting down on a daily basis. A 2 percent GDP growth alone cannot provide a solution. No one has control or vigilance over things.

Despite Pasha sahib’s highly valuable stipulations and noble exhortations, the economy is in shambles or irreparable, so to speak. He’s understandably perturbed by the current state of the economy.


Despite interest rates in Pakistan being almost at historic highs, the country is still experiencing negative real rates for both current and future inflation. While some argue that keeping interest rates in positive territory is necessary to control inflation, others believe that rising interest rates may not be effective in curbing cost-push inflation.

Let’s assess whether increasing interest rates further would effectively control inflation and have merit. Lowering the pressure of borrowing is one of the main reasons for raising interest rates, along with providing real returns for savers that are adjusted for inflation. I aim to analyze both perspectives and assess the effectiveness of tightening monetary policy.

The government of Pakistan is the dominant borrower, which is a positive aspect. To be precise, three-fourths (76 percent) of total banking deposits and exactly half (48 percent) of the banking assets are borrowed by the government from commercial banks. The government borrowing represents 72 percent of the share in broad money (M2) stock, while public sector entities receive 6 percent.

Whether the change in interest rates can impact the government’s spending behavior is the question. Historically, including more recent times, it has been suggested that government borrowing and spending are largely insulated from interest rates. Conventional monetary tightening’s efficacy in controlling overall credit behavior and money creation was seriously limited.

The private sector accounts for 32 percent of the broad money and 28 percent of the net domestic assets (NDA) held by banks. Concessionary finance accounts for 15 percent within private credit. Rs9.2 trillion worth of private credit has been disbursed, including Rs1.6 trillion in concessionary finance through schemes such as TERF, ERF, LTTF, and others, with liquidity provided by the State Bank of Pakistan and risk assumed by banks and other financial institutions.

Compared to both developed and other developing economies, Pakistan has a much lower share of private credit. In the US, domestic private credit to GDP is over 200 percent and in many other developed countries it is over 100 percent, while in India it is over 50 percent and approaching 50 percent in Bangladesh. Private credit to GDP in Pakistan is under 20 percent, whereas its peak was 27 percent in 2007.

In Pakistan, almost two-thirds of the total private credit pie is skewed towards manufacturing composition. Due to import restrictions and overall demand destruction, LSM growth has already taken a nosedive. Due to the increasing finance cost, some players may default on repayment as they sell assets to pay off bank loans.

Consumer finance only accounts for 10 percent of private credit, 3 percent of broad money, and an even smaller share of total domestic credit. This fiscal year, it’s already down by 3 percent, and there isn’t much space left for further decline.

The growth of broad money supply has reached 15 percent this fiscal year. However, the recorded inflation number of 36 percent indicates that real money growth is significantly negative. This reflects a sharp decline in the real money supply.

There isn’t much to curtail by further increasing the rates, and that’s the story of the credit. From Pakistan’s perspective, curbing the current account deficit is another way to approach the situation. Despite lifting import restrictions, the surplus remains, indicating that the balance is likely to remain under control.

Looking at the composition of the inflation basket provides an alternative perspective on how curbing demand can affect inflation efficacy. Food items make up over 30 percent of urban baskets and 40 percent of rural baskets. The government exercises control over prices in the food value chain in many ways. Provincial governments set the support price for both wheat and sugar, for example.

Attempts are made by district management to regulate the retail prices of various food items. Not much can be done to control food prices by raising interest rates, without debating the distortions created due to such practices.

Hawks argue that savers are at a disadvantage due to negative real rates. They are, indeed. While bank deposits are offering at best 20 percent, inflation is anticipated to be around 30 percent.

Nonetheless, a significant portion of the economy operates informally and remains outside the purview of the banking system. The fact that currency in circulation is extraordinarily high, accounting for 44 percent of bank deposits and 30 percent of broad money supply, is evident.

It is likely one of the highest in the world. Despite high interest rates and the depreciation of the Pak Rupee, the informality or weakness in the economy has been increasing in recent years (and quarters). Informal actors opt to stay outside the system for various reasons, primarily to avoid being taxed, and are not enticed by higher returns offered by bank deposits or other formal savings options that are linked to interest rates.

Financial exclusion affects the poor, with only around 67 million bank accounts for a population of approximately 230 million. Due to religious reasons, many individuals with bank accounts are unable to access conventional interest-bearing deposits.



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