Health Industries
A healthcare operator's costs are fixed to a calendar — salaries transferred every month, equipment depreciating whether or not it is in use — while the income that funds them arrives on billing and payer cycles the practice does not control. A payroll run that misses its transfer is not a private matter.
MHBC Finance coordinates the accounting, payroll and tax work behind UAE clinics, medical centres, diagnostic labs and healthcare groups, so the payroll runs on the same calendar as the books, the income lands in the period it was earned, and the file the auditor asks for is ready when it is due.
VAT registration is mandatory once taxable supplies and imports exceed AED 375,000 over a twelve-month period, and Corporate Tax applies at 0% on taxable income up to AED 375,000 and 9% above it, with the return due within nine months of the end of the tax period.
Where this work lands
A multi-site clinic group on one payroll calendar
A diagnostic centre preparing its first audited accounts
The accounting, payroll and tax work behind the practice
The goal is simple: keep the payroll, the ledger and the tax computation describing the same month in the same terms. For a healthcare business, that work concentrates in five areas.
VAT treatment and the basis on record
MHBC registers the business for VAT once taxable supplies and imports exceed AED 375,000 over a twelve-month period, then documents the basis on which each supply is treated so every figure in the return can be traced back to it.
The standard rate is 5%, but some supplies are zero-rated or exempt depending on their nature, and that affects both what you charge and what you can recover on costs. Rather than assume one treatment across every service line, MHBC keeps the reasoning for each on file, where the Federal Tax Authority can follow it.
Patient billing, payer cycles and revenue recognition
MHBC recognises fee income as the work is performed under the applicable IFRS standards, so work delivered but not yet invoiced is carried as work in progress and reported in the period it belongs to.
A claim submitted and a claim paid are two different dates, and neither is necessarily the date the income was earned. Recognising the work when it is performed keeps the reported result — and the taxable profit drawn from it — aligned with what the practice actually did in the period.
Payroll, WPS transfers and end-of-service accruals
MHBC runs the monthly payroll and prepares the Wage Protection System salary file that employers registered with the Ministry of Human Resources and Emiratisation must use, posting the payroll journal into the books so the ledger and the transfers agree.
Several free zones operate their own equivalent salary-transfer requirement, so the regime that applies depends on where your entity is licensed. An employee who completes at least one year of continuous service is entitled under the Labour Law to end-of-service benefits calculated on basic wage, with the accrual rate improving after five years, so MHBC carries that accrual month by month rather than meeting it on a resignation.
Corporate Tax computation and filing
MHBC calculates taxable income from the accounts, applies the 0% band up to AED 375,000 and 9% above it, and files the Corporate Tax return within nine months of the end of the tax period.
The computation is drawn from the financial statements, so the decisions taken during the year — when fee income is recognised, how equipment is capitalised and depreciated, what the payroll accruals carry — are what set the taxable income at the end of it. MHBC prepares both, so nothing has to be reconstructed in the ninth month.
Audited financial statements and audit coordination
MHBC prepares the financial statements, schedules and supporting records the audit runs on, and keeps the timetable aligned to the deadline that applies to your licence, coordinating the audit with a Ministry of Economy-licensed auditor, who performs the audit.
Audited financial statements are required where revenue exceeds AED 50 million in the tax period and for every Qualifying Free Zone Person regardless of revenue, mainland companies must maintain them under the Commercial Companies Law, and most free zones require audited accounts for licence renewal in any case. Which of those tests catches a healthcare business depends on where it is licensed and what it bills, so the obligation is confirmed well before the year-end.
Related service
Payroll & WPS
In a healthcare business the largest number in the ledger is usually the one paid to people. MHBC runs the monthly payroll, prepares the WPS salary transfers and carries the leave and end-of-service accruals in the books as they build — so the cost of the clinical roster is visible every month, not reconstructed at the year-end.