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Cyber Security Tips for Small Businesses

Cyber security tips for small businesses
Cyber security tips for small businesses

With an increasing use of technology, cyber security risks are also increasing. It is extremely crucial for business owners to take necessary steps whilst they are setting up their new business. However, many small businesses are either unaware of the cyber threats or they just don’t take them seriously. Certainly, setting up a new business is a daunting process. You have to take care of many crucial factors and you might oversee a few things. The last thing any business wants is to have your data hacked.

Therefore, taking proactive steps to avoid any cyber threats is critical. Cyber security has to be an important part of your planning. Businesses need to come up with an important cybersecurity strategy in order to protect their own business, their clients and important data from cyber crimes.

5 tips for small businesses for cyber security

Here are five tips for small businesses for cyber security:

  1. Backup your files: Cloud storage and cloud accounting has increased the risks of cyber attacks. It is highly crucial to have a backup of your important data in case any files get corrupted. Make sure to automatically backup your data offsite or online on a regular basis.
  1. Limit data and information access: Do not provide all the sensitive information about the company to one person. Make sure to give access to employees of specific information and data that they need to work on. Softwares should not be installed without management’s permission.
  1. Train employees in security principles: It is important to train your staff about important security practices and principles that they need to adhere. These practices include requiring strong passwords, and establishing appropriate Internet use guidelines that detail penalties for violating company cybersecurity policies. Assign responsibilities to your staff who have a good comprehension of how computers work. 
  1. Use anti-virus software: In order to keep your data safe, make sure you use anti-virus software to fight against cybercrimes. ANti-virus programs are essential to  Use the best available software and run antivirus checks regularly to mitigate risks.
  1.  Use Two Or Multi-factor Authentication For Logins And Approvals: The best way to protect your business information is by using two or multi-factor authentication for logins and approvals. In this way you can protect your important accounts. You will add login and password and then will need management’s approval to access information from it. Small businesses should definitely consider opting for this authentication process. 
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Corporate Tax implementation in the UAE

Corporate tax
Corporate tax

UAE authorities have announced the implementation of corporate tax in the country from next year. The decision came out as a surprise to the business community as it was surprising news to them. Many businesses in the UAE have enjoyed zero income tax on their profits which will now change from June 2023. Previously, UAE has already introduced VAT, Economic Substance Regulation (ESR), Excise tax and Country by Country reporting. However, Corporate Tax (CT) will also play a significant role in the evolution of the UAE tax regime. 

The decision came into the consideration of UAE authorities to meet the international standards, by implementing similar decisions to their neighbouring Gulf countries. Also, the UAE wanted to modernise their business environment and boost their economy. Moreover, UAE aims at minimising the compliance burden for startups and small businesses in the country. 

Let’s look at some important points regarding implementation and process of corporate tax in the country;

  • – The corporate tax regime will be effective for fiscal years starting from or after June 1, 2023.
  • – UAE has implemented 9% CT on taxable income above AED 375,000. As for larger multinationals, different CT rates will be applied (will be announced by MoF) that generate consolidated global revenues above  EUR 750m in line with the Pillar Two of the OECD Base Erosion and Profit Shifting (BEPS) project.
  • – Ministry of Finance may announce any further relaxations related to Small, Medium and Micro Enterprises

Exemptions of CT:

  • – Natural resources are exempted from the corporate tax and will be taxed under Emirate level as before. 
  • – Foreign individuals and entities who don’t operate business in the UAE regularly will not be charged with CT.
  • – Income of foreign investors generated from dividends, capital gains, interest, royalties and other investment returns.
  • – There will be no withholding tax on domestic and international level

Businesses should in advance prepare for CT by conducting a review of their entity structure, accounting system and processes, financial model, and conduct audits. Certainly, the introduction of CT will have an impact on the tax compliance and costs of most UAE businesses.  Therefore, it is imperative for businesses to understand the tax implications and make any necessary changes in corporate structure, financial model , reporting system to ensure compliance with the new UAE CT regime.