CA. Ramkumar R

Dubai based Stake raises $14 million to bring fractional properties investment platform to Saudi Arabia Dubai-based property investment platform #Stake has successfully raised $14 million in a Series A funding round. This significant investment was led by Middle East Venture Partners (MEVP), with participation from aramco’s Wa'ed Ventures, private investment platform Republic, and the sovereign wealth fund Mubadala Investment Company. The funds will be utilized to expand Stake’s operations to Saudi Arabia in the coming months and to Abu Dhabi next year. Additionally, Stake plans to offer more investment options in Dubai, including commercial real estate. Stake was founded in 2020 by Manar Mahmassani, Rami Tabbara, and Ricardo Brízido. With this latest round, the company has raised a total of $26 million to date. The UAE real estate market is booming, with Dubai seeing a 23% year-on-year rent increase and an 18% rise in sales, according to Deloitte. This growth is spilling over to neighboring Abu Dhabi, making it an opportune moment for Stake to expand. The platform’s entry into Saudi Arabia also positions it to tap into a market with billions worth of recently completed and under-development properties. Stake’s innovative platform allows users to buy shares in managed properties, earning rental income and a share of the profits if the property is sold. The platform currently manages over 200 properties with a diverse investor base, primarily from the UAE, Saudi Arabia, Kuwait, and a notable 12% from the U.S., Canada, and the U.K. In partnership with the Dubai International Financial Centre (DIFC), Stake offers international investors committing at least AED 2 million (~$545,000) a golden visa, a 10-year renewable residency visa in Dubai. This initiative has significantly boosted foreign investment in the region. Stake’s expansion into Saudi Arabia and Abu Dhabi marks a pivotal growth phase, potentially positioning it as a leading fractional property investment platform in the Middle East. The company aims to break even in Dubai by the end of this year and achieve profitability next year. Furthermore, Stake is exploring partnerships to allow Middle Eastern investors to invest in properties in the U.S., diversifying their portfolio and mitigating regional economic volatility. The entry into Saudi Arabia comes with its challenges, as the market is dominated by local platforms like Awaed and Aseel. However, Stake’s experience and established model in Dubai could provide a competitive edge. The article on TechCrunch in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW

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Planning to buy a property in Dubai: Here's a list of 9 key tax obligations for Indians https://lnkd.in/dW4bX7Yr

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Qatar, Dubai & Saudi Arabia Real Estate Trends: Insights from Jeffrey Asselstine's 4th Quarter Update 2024 Jeffrey Asselstine, Founder and Managing Director, offers a comprehensive review of the 4th Quarter in an exclusive interview, shedding light on the dynamic real estate markets across Qatar, Dubai, and Saudi Arabia. Gain valuable insights into the opportunities, challenges, and market trends shaping the industry as Jeffrey explores the evolving landscape of these thriving regions. Exciting announcements from NelsonPark Property! Discover innovative initiatives designed to empower individuals and businesses in their real estate journey. Stay informed and inspired with NelsonPark Property—your trusted partner in navigating the real estate market. #marketupdate #RealEstateExcellence #InvestSmart #qatar #doha #dreamhome #realestate #forrent #forsale #apartment #villa #commercialspace #offices #nelsonpark #nelsonparkproperty #wheredoyouwanttolive

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UAE Tax Update FTA has released clarification on timelines for UAE CT Registration. They key highlight of the public clarification document are as follows: 1. Registration is required for juridical person whose tax year has begun even if they are intending to liquidate/cease the business. 2. Offshore companies are also required to register. Given that they do not hold a license, they were required to register within 3 months from the date of decision no 3 of 2024 (i.e. 31st May 2024). 3. In case of companies having POEM in UAE prior to issuance of the decision, would be required to be registered within 3 months from the date of decision (i.e. 31st May 2024) 4. Companies where license is expired and not renewed. They would also be required to take registration based on the due date as per their expired license. 5. For Branches/PE's it is provided that registration would have to be taken from 6 months of existence of a PE after the commencement of tax period. While these are welcome clarifications, it would have been helpful if the same were released earlier. It would have been useful if it was clarified on registration of multiple branches in UAE and also POEM registration interpretation may pose challenges for companies as sometimes POEM may change on a year on year basis. #uae #corporatetax #registration

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The recent update to Dubai's Real Estate Regulatory Authority (RERA) rent calculator is expected to increase rental prices, impacting deal-seeking tenants. The recalibration that took place on the 1st of March aims to reflect current market rates more accurately, potentially leading to higher rents for some tenants during renewals. While this adjustment may prompt tenants to consider purchasing property instead, it could also stimulate demand for communities offering better value for money. Consequently, this shift may lead to increased market stability in the long term.   #uae #dubai #uaelawyer #dubailawyer #legal #rera #rent

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High level meeting takeaways from property developers in Dubai: - Robust demand & stable price growth for ultra-luxury & best location, with good performance in mid-market segment. - Owner occupation is high at ca.86%, even higher in affordable communities. - Off-plan supply to be delivered in 2026/27, with only 3% of properties being flipped mostly as distressed cases. - Contractors' availability & construction costs bite, resulting in 6-12 months delays affecting developers' payments/cash collections. - Regional geopolitical escalation a concern, but Dubai historically benefits from capital flight to a perceived regional 'safe heaven' UAE. - Customer mix changing with Russian contribution falling (7% in FY23 vs 15% in FY22), offset by increased contribution from Indian & Chinese customers.

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Gulf News latest article analyses the Corporate Tax impact on short stay properties. Manoj Nair has highlighted the need for individuals to evaluate whether their short term stay properties would expose them to UAE Corporate Tax. Glad to have provided insights for the article🙏

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Natural Persons Real Estate Investment : UAE CT The UAE Federal Tax Authority recently released guidance clarifying the Corporate Tax treatment of real estate investments by natural persons. Here's what you need to know: Key Takeaway: Real Estate Investment income earned by natural persons is excluded from Corporate Tax, provided specific conditions are met. What Qualifies? Real Estate Investment is defined as investment activities related to: * Sale, leasing, sub-leasing, and renting of land/property in UAE * Not conducted through (or requiring) a License from a Licensing Authority Critical Distinctions: ✅ Activities without License requirement: Income excluded from Corporate Tax ❌ Activities requiring/using License: Potentially subject to Corporate Tax Practical Considerations: * Administrative registrations (like Ejari) are not considered Licenses * Using licensed property managers doesn't affect the exclusion * Must clearly separate investment from business activities * Expenses must be fairly apportioned * Related party transactions must be at arm's length Important Note: The FTA maintains anti-abuse provisions to counter arrangements lacking commercial substance if designed primarily for tax advantage. 💡 Expert Tip: Natural persons should carefully evaluate their real estate activities against these criteria to determine their Corporate Tax obligations. Salman Rafique Aliasgar Poonawalla Muneeb Jalgaonkar Elvita Dsouza Saabith Uwaim JRB Chartered Accountants Rayhan Aleem Tax Star #UAETax #CorporateTax #RealEstate #UAE #TaxAdvisory

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Fresh Financing, Refinancing , Restructuring , Loan Relaxation, Hedging with Banks for Diversified #Businesses in UAE : Having been in this region for long and having dealt with #Banks in UAE, I have seen  the whole gamut of  financing function evolved .   Following key pointers can #adversely impact the #funding Proposal with banks in UAE , for a #Corporate ( Borrower ) , regardless the Business Model : 1)  Balance Sheet with no  bank borrowing.  This leads to First time relationship with banks for funding, and which banks take time and are far more cautious and do more due diligence before lending. 2)  Delivery of Projects for a Real estate developer / Construction . Banks generally look at some projects being delivered. 3)  Stand  on  providing personal guarantee and security cheques.  If these cannot be provided, the case weakens. 4) UBO clarity- Banks need total clarity on this matter. 5)  Audited results  , Strong Balance sheet and the audited results from a Renowned auditor are a must . This is non negotiable.  I have seen the days of name lending in my initial days but not any more. 6)  Collaterals- Banks  need  adequate tangible collaterals. Units under construction  generally do not find favour with Banks as portfolio mortgage for a Real estate developer, , unless the project is 90 % and more completed. Similarly for a Manufacturing business, banks look at completed finished goods inventory rather than Work in progress at factory ( WIP ) 7)  LTV -  This is a balancing act and  what is a good LTV for a borrower, may not be for banks. 8)  AECB credit rating for  the borrower company and other  related entities -Adverse  AECB  credit rating is an impediment in bank’s due diligence. 9) Banks generally have #aversion to lending , if there is an existing dispute attached with any other bank . This becomes critical in structuring the facilities and for their internal approvals. 10) Borrowers need to be flexible , and may not get the best terms always . 11) Bank #covenants on Minimum Net worth , Debt Equity ratio, Maintaining Loan from Shareholders in Balance sheet, are key pointers, and any Breach on the same is Red flag unless there are valid business reasons . 12) Getting a financing proposal #successful with a bank requires many skills- #Technical skills to relate Business with accounting technicalities , Effective Balance sheet management , Adequate understanding of structuring the financing facilities as per business - Having invoice discounting and LTR facility for supplier payment , for Manufacturing and Retail business can work, it may not find support for Real Estate/ Contracting . Finally, Ability to convince the bankers is equally critical. Strong negotiating skills an extra bonus. Arranging bank facilities and finance is both an art and a science. #Funding #from #Banks #Challenges and #Solutions #Redflag #BalanceSheet Restructuring

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The EVER-DYNAMIC UAE GOVT makes compliance less burdensome! Decision No. 57 of 2020 on the Economic Substance Regulations require ESR notification & reporting to be done by Companies whose business came under the following categories: - Banking Business Insurance Business Investment Fund Management Business Lease-Finance Business Shipping Business Holding Company Business Intellectual Property Business Headquarter Business Distribution and Service Centre Business This was to prove that these businesses operating in UAE were not just Shell companies but were businesses with Economic Substance in UAE. Now The Ministry of Finance (MoF) announced the cancellation of economic substance reporting requirements for companies for financial years ending after December 31 2022, following Cabinet Decision No. (98) of 2024 This amends certain provisions of Cabinet Decision No. (57) of 2020 on economic substance requirements. The revised ESR rules now apply only to the financial years from January 1, 2019, to December 31, 2022. No reporting obligations after 2022 is required. Corporate Tax introduced under Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses will require the companies to prove their Economic Substance especially for Companies established in the Free Zones to claim 0% Corporate Tax. (Designated Free Zone in case of Distribution activities) ESR reporting under ESR & CT would be dual reporting & the ever-dynamic UAE Govt understood this duality and announced the cancellation of economic substance reporting requirements for companies #cancellationESRUAE# #ESRUAE# #reducedUAEcompliance# #CTUAE#

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IFRS 15 - REVENUE FROM CONTRACT WITH CUSTOMETS (PART 2/10) Part 2: The Magic of Payment Plans: Decoding Revenue and Financing in Real Estate Deals In the bustling city of Dubai, XYZ Developers launched an exclusive luxury tower, promising breathtaking views and state-of-the-art amenities. To attract more buyers, they introduced a unique payment plan: 60% of the apartment price paid during construction and the remaining 40% in easy installments over several years after handover. Buyers were thrilled, but XYZ Developers faced a challenge—how to accurately recognize revenue with such a complex payment structure. Here’s where the magic of IFRS 15 stepped in, turning confusion into clarity. Cracking the Code of Payment Plans: XYZ Developers set the price of each luxury apartment at AED 2 million. Buyers could pay 1.2 million AED (60%) during the construction phase and the remaining 800,000 AED (40%) in installments after receiving their keys. The Trick: The Significant Financing Component Since the final 40% was paid over time, this created a financing element. IFRS 15 requires recognizing this financing benefit separately because money received in the future is worth less than money received today. This is known as the **Significant Financing Component**. Unraveling the Revenue Mystery 1. Before Handover - Building Revenue Step by Step: During construction, XYZ Developers recognized the initial 60% (AED 1.2 million) of the sale price progressively, using the Percentage of Completion (POC) method. This meant they recorded revenue in line with the construction progress, ensuring their books reflected the ongoing value creation. 2. After Handover - Discounting Future Payments: For the remaining AED 800,000 payable after handover, XYZ Developers needed to calculate its present value using a 5% discount rate, reflecting the time value of money. Instead of recording the full AED 800,000 immediately, they recognized it as AED 709,191. The difference of AED 90,809 wasn’t just a discount—it represented interest income for offering the buyers the flexibility of delayed payments. 3. Recognising Revenue and Interest: Over the next four years, as the installments rolled in, XYZ Developers recorded both the revenue for the apartment and the interest income. This ensured that each payment was properly divided between the actual price of the property and the financing component. Why This Matters: This method allowed XYZ Developers to present a clear and accurate picture of their financial performance, distinguishing between revenue from property sales and earnings from financing. Such transparency is crucial in Dubai’s competitive real estate market, helping to build trust with investors and stakeholders. So, the next time you see a stunning new tower rising in Dubai, remember the smart financial wizardry of IFRS 15, turning complex deals into clear, trustworthy numbers! **Stay tuned for Part 3** #IFRS15 #REALESTATE

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#HIRING for Qatar "Salaries run homes, Incentives/Bonuses fund lifestyle but there are only 2 ways to build generational wealth - either rob a bank, or play Equity story in a fast growing hyperscaler !!!" 💰 🔥 We imbibe, and believe in this ethos and the whole construct of Square Yards build up has been based on wealth distribution & implementing a very robust, aggressive and inclusive ESOP policy to help our peers build a long term ownership plan. ESOPs not just help as a great motivation and retention tool, but they also inspire our leaders, performers to step up the next ladder of Founder mindset. Few Staggering Stats about FY23 ESOP cycle at Square Yards & FY24 ESOP still to be alloted 🔊 - • Almost 15% of Employees (769) were granted ESOPs worth INR 62cr • Lifetime ESOP value of 21 senior leaders has crossed INR 10cr, and has crossed INR 1cr for 59 leaders • This now sits at an inflection point where holistic growth of Square Yards would provide hockey stick to not just current value, but would also be instrumental for future disproportionate grants All in all, working hard and being part of most disruptive and scalable proptech story in India sounds a bit easier (and safer) than robbing a bank !!! With Square Yards targeting 100x growth over the next couple of decades, we are sure to contribute a fair pie to India's USD millionaire club 😍 With a 25% contribution to the Indian economy, real estate is one of the fastest growing, ever expanding and untapped industries of India. If you believe you move growth charts at your current organisation but are not being steered to build long term wealth, tap us and participate in one of the largest wealth build up stories in India. Come join us as we work everyday in revolutionising the Indian Real Estate one day at a time. 💰 Explore a plethora of opportunities with benefits like: Employment Visa from Day 1 in Middle East markets🔥 Fixed Salaries 🔥 ESOP’s on Every Sale 🔥 Self Driven Promotions and Increments 🔥 Upto 25% assured incentives on every revenue generated by you 🔥 Come steal this opportunity to become a millionaire while it’s still available. 💯 ✉️ Drop on your beefed up resumes at: [email protected] Sahil Abbas Ashish Rana Deepanshu Chhabra Anupam Rastogi Nancy Manchanda Vidhu Oberoi Manik Malhotra Irfan Naqvi #sales #hiring #Qatar #Doha #Realestate #Esop #incentives #bonus #growth #squareyards #promotion #increment #middleeast #opportunity #fixedsalaries

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Inheritance planning is crucial in the UAE for several reasons: 1. Sharia Law: In the UAE, Sharia law applies to matters of inheritance for Muslims. Sharia principles dictate how assets are distributed among heirs, which may differ from the default laws of other countries. Without proper planning, assets may not be distributed according to your wishes. 2. Asset Protection: Inheritance planning allows you to protect your assets and ensure they are passed on to your chosen beneficiaries. This can include creating trusts, establishing wills, or using other legal instruments to safeguard your wealth. 3. Avoiding Disputes: Clear inheritance planning can help prevent family disputes and legal battles over assets after your passing. By outlining your wishes in advance, you reduce the chances of conflicts among heirs. 4. Tax Efficiency: Proper planning can also help minimize tax liabilities for your heirs. Understanding the tax implications of inheritance and structuring your assets accordingly can save your beneficiaries from unnecessary financial burdens. 5. Non-Muslim Expatriates: For non-Muslim expatriates living in the UAE, inheritance planning is essential to ensure that their assets are distributed according to their preferences rather than Sharia law. This often involves creating a will that complies with UAE regulations. 6. Business Succession: If you own a business in the UAE, inheritance planning is vital for ensuring a smooth transition of ownership and management after your passing. This can help maintain the continuity and stability of the business. 7. Guardianship for Minors: Inheritance planning allows you to appoint guardians for minor children or dependents, ensuring their care and financial well-being in the event of your death. Overall, inheritance planning in the UAE offers peace of mind, protects your assets, and ensures that your wishes are carried out effectively, regardless of your religious or cultural background. 📞 +971 581436259⠀ 📧 [email protected] #UAEinteritancelaw #UAEbusiness

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MOU Signing between IOV and NAM Chartered Valuers at 55th IVC to enhance the valuation profession globally. This partnership aims to combine expertise in asset valuation and feasibility studies, extending services in both the UAE and Indian markets NAM CHARTERED VALUERS LLC | Jatin Parab, CEO,NAM Chartered Valuers #IOV #IOVRVF #MOU #NAMCharteredValuers #IndianValuersCongress #IVC #IVC2024 #ValuationProfession #Valuation #EmpoweringValuers #Valuationmatters #Valuationevent #India #dubai #MemorandumOfUnderstanding #signing

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UAE Market Entry & Local Tax Regime As discussed in my recent blogs that the foreign companies may enter into the UAE thriving market through popular channels of Strategic Alliances, Joint Ventures with local companies , licensing or franchisee agreements and creating the subsidiaries of foreign companies in UAE . Let's consider local taxation for market entry , Corporate Tax: As of June 1, 2023, the UAE has introduced a federal corporate tax at a standard rate of 9% on business profits exceeding AED 375,000. Profits below this threshold are taxed at 0%. Value Added Tax (VAT): The UAE levies a 5% VAT on most goods and services. Foreign companies need to ensure compliance with VAT registration, filing, and payment requirements. Free Zones: Companies established in free zones may benefit from tax exemptions, including a 0% corporate tax for a specified period, and exemptions from import and export taxes. However, free zone companies must adhere to specific economic substance regulations. Economic Substance Regulations (ESR): Entities carrying out "relevant activities" must meet economic substance requirements in the UAE, including maintaining adequate staff, premises, and spending appropriate to their activities. Double Taxation Agreements (DTAs): The UAE has an extensive network of DTAs with almost 100 countries, which can provide tax relief on income sourced from other jurisdictions and prevent double taxation. Withholding Tax: The UAE currently does not impose withholding taxes on dividends, interest, or royalties paid to non-residents, which is advantageous for foreign investors subject to certain conditions . Excise Tax: Certain goods deemed harmful to health, such as tobacco products, energy drinks, and carbonated drinks, are subject to excise tax. Companies dealing in these goods must comply with the registration, filing, and payment requirements. Transfer Pricing: With the introduction of corporate tax, transfer pricing regulations are being implemented to ensure transactions between related parties are conducted at arm's length. Documentation and reporting requirements must be observed carefully by local professionals to avoid financial and legal risks . Customs Duties: Goods imported into the UAE are generally subject to a 5% customs duty. However, imports into free zones are typically exempt from customs duties, provided the goods are not moved into the UAE mainland. Local Compliance and Reporting: Foreign companies must adhere to local compliance requirements, including regular filing of tax returns, maintaining proper accounting records, and complying with UAE’s anti-money laundering (AML) and counter-terrorist financing (CFT) regulations from a risk and liability perspectives . Understanding these factors will help foreign companies navigate the UAE's tax landscape in a better way. This blog is written for general information only, please feel free to write on [email protected] for more assistance.

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A #MideastMoney weekend read on #Dubai real estate. The city’s transformation into one of the world’s hottest property markets is increasingly pricing out buyers, leading to a revival of interest in real estate investment trusts and prompting many to turn to fractional ownership apps. Buying property remains the most straightforward route to gain exposure to the market, but 17 consecutive quarters of price appreciation has put that option out of reach for many. Against that background, firms like Stake are gaining traction. Its online platform allows investors to buy fractions of properties for as little as 500 dirhams. Meantime, real estate investment trusts that give investors exposure to a pool of income-generating properties without having to directly own them are also emerging as attractive alternatives. Read it here: https://lnkd.in/dR75_Muq

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There has been enough debate about taxability of “High Sea Sales” under the UAE CT law.   Good NEWS !!! Fortunately this has been clarified in detailed by the Guide published by FTA recently on the free zones.   Following are the take aways / scenarios:   Scenario 1 - Designated Free Zone Entity (DZFZE) importing goods in UAE via DZFZ and selling to Mainland Entity – Qualifying Activity Scenario 2 - DZFZ Entity buying from Foreign Country A and Selling to Foreign Country B (Goods do not enter UAE) - Qualifying Activity Scenario 3 -  DZFZ entity buying good from UAE and Exporting to Foreign Countries – Still Qualifying Activity Scenario 4 -  DZFZ Entity buying goods from UAE entity and selling back in UAE – also Qualifying activity   However, there are certain key conditions: a. Substance – DZFZ entity should have substance in DZFZ b. Declaration - from the customer that the goods sold are not for “end use” of the buying entity MICS International ICAI UAE Dubai ICAI ABU DHABI CHAPTER ICAI RAK Chapter ICAI Fujairah Taxation Society CA Karishma Suwarnakar Kinjal Sampat CA Kushal Verma CA Ashish Kapadia Prateek Tosniwal Dafza Jafza Ras Al Khaimah Economic Zone (RAKEZ) KEZAD Group

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