In an era where economic sustainability and self-sufficiency are paramount, countries are adopting innovative strategies to ensure that the benefits of economic activities remain within their borders. One such strategy is the implementation of In-Country Value (ICV) initiatives. In this blog post, we will focus on understanding the ICV Support Service Template, its role in compliance, and how businesses can navigate the filing process.
ICV Support Service Template Overview:
The ICV Support Service Template is a crucial document that businesses need to complete as part of the ICV certification process. This template serves as a comprehensive record of the various aspects of a company's financial and operational activities, ensuring compliance with the guidelines set by the Ministry of Industry and Advanced Technology (MOIAT) or relevant governing bodies.
Key Components of the ICV Support Service Template:
- Legal Entity Certification: The template emphasizes that each legal entity of the supplier seeking ICV certification must obtain a separate ICV certificate. However, for companies with multiple branches in the same Emirate with identical activities and ownership, a consolidated ICV certificate may be issued.
- Financial Statements Alignment: The figures entered in the ICV certificate template must align with the supplier's latest audited financial statements. These financial statements should adhere to International Financial Reporting Standards (IFRS) and be no older than two years from the certification year.
- Validity and Recertification: The ICV certificate is valid for 14 months from the date of issuance of audited financial statements. Suppliers have the option to get recertified during the validity period, using the same audited financial statements.
- Certifying Body Appointment: Once a certifying body is appointed, the supplier should not change it for that year's ICV certificate without proper justifications.
- Documentation and Scrutiny: Suppliers must have all documentation supporting the reported cost figures. The numbers should withstand scrutiny by the certifying body, and designated personnel reserve the right to conduct quality reviews.
- ICV Calculation Formula: The ICV Support Service Template includes a detailed calculation formula, including considerations for different types of companies such as LLCs, free zone companies, goods manufacturers, service providers, and offshore companies.
- Currency Conversions: The cost figures in the ICV Certificate Template should be in AED unless specified otherwise. Currency conversions are specified, including the prevailing rate on the Purchase Order for goods/services.
Filing the ICV Support Service Template:
- Registration: Suppliers are encouraged to register in the Tawteen Club portal, a platform for Emirati job seekers and companies offering jobs.
- Submission and Classification: Suppliers need to follow the ICV Certificate Template available on the MOIAT website. The template includes sections for general company information, in-country value details, and a summary section.
- Goods/Services Description: Suppliers must list all goods/services procured in the previous financial year, providing details such as the supplier name, cost of goods purchased, and vendor ICV%.
- Third-Party Spend Applicability: For service providers, the template includes considerations for third-party spending, specifying that certain costs should not be included.
- ICV Calculation Formula: The formula for calculating the ICV score, along with weightage for each attribute, is detailed in the template.
- E-Signature and Certification: The ICV Certificate Template concludes with an e-signature section for both the supplier and the empaneled certifying body representative.
Challenges in ICV Support Service Template Filing:
As clients navigate the ICV Support Service Template filing process, they may confront various hurdles, including:
- ICV Calculation Complexity: Grasping and applying the intricate ICV calculation formula.
- Documentation Management: Ensuring extensive documentation aligns seamlessly with reported cost figures.
- Currency Conversion Challenges: Managing multiple currencies and avoiding errors during conversion.
- Third-Party Spend Determination: Precisely identifying and incorporating relevant third-party costs.
- Tawteen Club Portal Navigation: Overcoming technical challenges when registering on the Tawteen Club portal.
- Timely Recertification Awareness: Understanding and adhering to ICV certificate validity and recertification timelines.
- Certifying Body Alignment: Selecting and maintaining a certifying body by regulatory standards.
- Legal Entity Certification Understanding: Navigating intricacies for companies with multiple branches obtaining ICV certificates.
BMS: Addressing ICV Filing Challenges with Expertise and Precision
BMS plays a crucial role in overcoming challenges in the ICV Support Service Template filing process. From navigating the complexity of the ICV calculation formula to meticulous documentation management, BMS provides expert guidance. We assist in managing multiple currencies, ensuring precision in conversion and accurate reporting. BMS's expertise extends to the precise identification of third-party costs, aiding clients in alignment with ICV requirements. Navigating technical challenges on the Tawteen Club portal and ensuring awareness of recertification timelines are additional areas where BMS offers valuable support. With assistance in certifying body alignment and clear guidance on legal entity certification for companies with multiple branches, BMS facilitates a consistent and compliant approach throughout the filing process.
BMS Auditing in UAE: Enhancing ICV Support Service Template Filing for Economic Sustainability
In conclusion, effective navigation of the ICV Support Service Template filing process is essential for businesses demonstrating a commitment to in-country value and economic sustainability. Adherence to the template's guidelines not only ensures compliance but also contributes significantly to the overall economic development of the host country. The emphasis on transparency and accuracy throughout the filing process is key to fostering a robust and self-sufficient business environment.
BMS Auditing plays a crucial role in this procedure by simplifying the filing process through its proficiency in financial analysis. Our thorough method of documentation and scrutiny aids businesses in fulfilling certifying body standards consistently, emphasizing the significance of regular certifying body appointments for every certification year. Opting for BMS Auditing is an investment in a smooth, clear-cut filing process, reinforcing businesses' commitment to in-country value and economic sustainability.
