ICV Certificate UAE
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The ICV certificate UAE evaluates a company’s contribution to the local economy and helps Mainland & Free zone Companies gain an advantage during the tendering process of program’s partners and local federal authorities.
In Country Value (ICV) Certificate in UAE
The National In-Country Value (ICV) Program aims to boost economic performance and support local industries by redirecting higher portions of public spending into the national economy.
The ICV Programme is implemented under the supervision of Ministry of Industry and Advanced Technology (MoIAT).
Objectives
The program aims to achieve the following goals:
- strategic localisation of supply chain
- development of new local industries and services
- stimulating and attracting foreign investments
- diversifying the economy
- creating valuable job opportunities in the private sector
- contributing to the growth of the national GDP
- enhancing spending on research and development (R&D) and advanced technology
- increasing the private sector’s contribution to national GDP.
Below are the critical considerations for the national ICV program:
- Audited financial statements, prepared under IFRS signed by a licensed auditor.
- ICV certificate shall be obtained for each company’s license (legal entity). However, if a company has different branches in the same emirate with identical activities and ownership, then a combined ICV certificate will be issued.
- For companies with manufacturing and commercial licenses, all the accounting records must be split between manufacturing and commercial activities; ICV will be issued for each license separately.
- For companies that are less than 10 months old and do not have audited financial statements, management accounts for a period of 9 months can be used for ICV certification purposes.
Steps to take care for ICV Certification
ICV Scores are calculated using a pre-defined methodology by assessing the economic value added within the country for the goods or services provided by the entity. The score is determined after taking the below into consideration and is described as a percentage:
- Goods manufactured/ Third party spend
- Investments
- Emiratization
- Expatriate contribution
- Bonus- Exports, Emirati headcount and investment growth
Frequently Asked Questions (FAQ)
Who is responsible for issuing ICV certificate?
Who requires ICV Certification?
Under ICV rules, any organization, whether it is located within the UAE or outside can obtain an ICV Certificate. Since the ICV Score is a crucial component for contract review and award process, Tier 1 suppliers, i.e. the suppliers that directly provide products or services to the Program Partners, may be compelled to disclose it as part of the National ICV Program. To guarantee that they are competitive in their tender with Tier 1 suppliers, Tier 2 and below providers may also be asked to present their ICV Certificates.
How often should a company renew its ICV certification?
Each ICV certificate is valid for 14 months, commencing from the day the audited financial statements were issued, the date on which the financial statements were signed, or on the earlier issuing of new financial statements.
What are the key requirements to obtain an ICV Certificate?
Companies applying for an ICV certificate in the UAE are required to follow a series of conditions and requirements set out by the MoIAT. Suppliers who are in doubt about the certification process can consult with providers of bespoke ICV certification services in Dubai. Stated below is a list of requirements suppliers must follow to obtain an ICV certificate in the UAE:
- Audited Financial Statements, prepared as per International Financial Reporting Standards (IFRS), should be submitted by the suppliers seeking ICV certification in the UAE. The audit report should be signed by a licensed auditor and should not be more than two years older than the certifying year.
- Corporate groups with multiple legal entities must obtain separate ICV certificates for each entity. If a company has various branches in the same emirate, a combined certificate can be obtained provided that the branches perform the same activity under the same ownership
- A company with manufacturing and commercial licenses is required to have a separate accounting record for manufacturing and commercial activities. The ICV certifying bodies approved by the MoIAT will issue the separate ICV certificate for each license
- companies that are only ten months old and entities possessing no audited financial statements are allowed to use Management Accounts for up to nine months for the ICV certification process
- The suppliers are required to ensure that the figures entered in the ICV certificate tally with their latest audited financial statement
- The ICV certificate shall be valid for 14 months from the date of issuance of audited financial statements.
How can Pioneer Hedge Auditing & Tax Consultants can help you?
The suppliers are required to fill a supplier submission template (ICV Certificate Sample) prescribed by the MoIAT for the submission to Certifying bodies. The ICV Certificate template must be filled in as per the latest financial audit statements. This is where ICV certification service providers in Abudhabi, Dubai such as Pioneer Hedge Auditing & Tax Consultancy come in handy for the companies. Pioneer Hedge is a leading provider of ICV certification services in Abu Dhabi, Dubai, UAE.
Pioneer Hedge can simplify the Template submission guidelines for the companies that require ICV certification. We can help business owners to understand the factors that determine their company’s ICV score. Pioneer Hedge can also help the companies with preparing the audited financial statements as per the IFRS.
