If you’re a U.S.-based business that pays foreign vendors, you may have considered using a U.S. bank to wire the payments. After all, it’s convenient and seemingly easy to do. However, there are some major drawbacks to using a U.S. bank for these types of transactions. In this blog post, we’ll outline some of the reasons why you should avoid U.S. banks when making payments to foreign vendors.

Reasons to Avoid US Banks

1. Hidden Fees: When you use a U.S. bank to make a payment to a foreign vendor, you may be charged hidden fees that you’re not aware of. These fees can include things like currency conversion fees, international wire transfer fees, and more. As a result, the total cost of the transaction can be much higher than you anticipated.

2. Poor Exchange Rates: Another downside to using a U.S. bank for these types of payments is that the exchange rate is often not as favourable as it would be if you went through a specialized international payments provider like MTFX. This means that your vendor will receive less money than they would have if you had used a different method of payment.

3. Slow Payments: When you use a U.S. bank to make an international payment, the process can take several days to complete. This is because the payment has to go through multiple steps and intermediaries before it finally reaches your vendor’s account. If you need to make fast payments, using a U.S .bank is not the best option. 

How Much Tax is Owed?

The amount of tax you must withhold from payments made to foreign vendors depends on two factors: the type of income involved and whether the vendor has provided you with a valid tax identification number (TIN).

If the income is considered “fixed or determinable,” such as interest, rent, royalties, or most annuities, you must withhold at a rate of 30%. For all other types of income—including wages, commissions, and certain types of fees—you must withhold at a rate of 14%. 

However, if the foreign vendor can provide you with a valid TIN, you may be able to reduce or eliminate the withholding by claiming an applicable treaty benefit. For example, under the U.S.-Canada Income Tax Treaty, withholding on royalties paid to a Canadian resident is generally reduced to 5% if the recipient has provided a valid TIN. 

Conclusion

All in all, it’s usually best to avoid using a U.S. bank when making payments to foreign vendors. There are hidden fees, poor exchange rates, and slow payments that can end up costing you more money and causing headaches down the road. Instead, consider using a specialized international payments provider that can help you save money and make fast, efficient payments.

The automotive industry in UAE is one of the biggest sources of the country’s economic growth. It is currently the second largest automotive aftermarket in the Gulf Cooperation Council (GCC), and the sector plays a critical part in the economy as the country looks ahead. In fact, according to some reports, the GCC automotive market is expected to grow at a Compound Annual Growth Rate (CAGR) of almost 4.5% between 2019 and 2024, driven by strong macroeconomic factors such as rising disposable incomes, population increase, and urbanization.

The UAE government has prioritized developing the country’s automotive industry to tap into this regional growth. As Dubai enters a new development phase, it is also anticipated to become the region’s main automotive hub, expanding through exports and re-exports of vehicles in the Middle East.

In addition to supporting the country’s economic growth, this expansion of the automotive sector is also expected to create new jobs and opportunities for UAE residents. With its strong fundamentals and government support, the UAE’s automotive industry is well-positioned for continued growth in the years ahead.

Let’s look at the current UAE automotive aftermarket and the opportunities available for businesses looking to enter this industry

The Recovery Of The Automotive Aftermarket In The UAE

The automotive market in the UAE is one of the most vibrant and rapidly growing in the world. In recent years, car sales have been on the rise, with a significant increase in both the sum of vehicles sold and the profits generated by car sales. The current statistics are indicative of the sector’s massive market potential.

After dipping in 2020 during the COVID pandemic, the automotive market has shown signs of recovery with profitable sales across the board. Passenger car sales revenue is recorded upto $5.8 billion from August to September 2021. During that period, buyer interest even exceeded pre-COVID-19 numbers. The current statistics are evidence of the immense potential of the automotive market in the UAE and underscore the need for continued investment in this sector.

Automotive aftermarket distributors and manufacturers found it difficult to keep up with the demand, which will benefit the automotive market growth in UAE this year as they try to address the backlog. Luxury car brands became highly desirable, with prospective buyers paying premiums to ensure they get their units early.

The Demand For Cars In UAE Market

Large SUVs have long been the favored choice for families, thanks to their spacious interiors and rugged exterior design. However, there has been a shift in recent years from gas-guzzling SUVs in favor of more fuel-efficient options.

This is especially true in the United Arab Emirates, where hybrid and electric vehicles are becoming increasingly popular. New car sales are anticipated to increase by up to 30% in upcoming years as more auto brands are introduced to the market and production and shipments get up to speed with consumer demands.

The Used Car Market In Dubai

The Used Car Market also saw unprecedented growth, with many buyers opting for pre-owned models to save money. As a result of the strong demand, prices for both new and used cars are expected to continue to rise in upcoming years. This is good news for dealerships and manufacturers, but it may put some buyers on the sidelines. Those looking to purchase a car this year should act quickly to get the best selection and pricing.

Opportunities For Businesses In UAE Automotive Aftermarket

The automotive industry is booming in the UAE, and there are plenty of opportunities for both petroleum-powered and electric vehicles. The market for cars and components is large enough for everyone, and the city of Dubai is the perfect hub for the automotive trade. Global interest in Dubai will only increase, and companies looking to set up shop in the city will find the market ripe with opportunity.

Why Dubai?

Dubai’s location makes it a strategic choice for businesses in the automotive industry. It is situated near the Jebel Ali Port and Al Maktoum International Airport. It also benefits from recent infrastructure updates, which make it easy to get to and from the city.

The Dubai Industrial City is home to several businesses in the automotive industry, and the government provides support that helps them connect with the world’s biggest markets. This support includes initiatives such as providing training and development opportunities for employees, as well as access to the latest technology. As a result, Dubai is an increasingly attractive option for businesses in the automotive aftermarket.

The Role Of Digitalization

The country’s population is becoming more connected than ever, and this is having an impact on the way businesses operate. Automotive suppliers and industry players increasingly rely on digital platforms to reach consumers and conduct business. This trend is set to linger for a long time, and the outlook for the automotive industry in the UAE remains positive.

In A Nutshell

UAE automotive aftermarket offers wealthy opportunities to those willing to embrace and seize change.

If you are looking for Automotive aftermarket distributors in UAE, you may contact CTC – a member of Al Rostamani Company. 

Study MBA in UK

Top organizations greatly respect the Master of Business Administration (MBA), a distinguished postgraduate degree that offers an overview of important business techniques. While MBA in UK are at the same academic level as other Masters programmes, they are typically pursued after a few years of work experience rather than immediately following an undergraduate degree.

MBA in UK from India

All of the most important international league tables acknowledge that the UK is home to some of the greatest MBA Programs in the world. The United Kingdom, a well-known global leader in high-quality educational initiatives, is the second most popular study destination after the United States. Four of the top ten colleges in the world are in the top 100 colleges in the United Kingdom, which gives the nation’s educational system a positive international reputation.

IELTS Requirement for MBA in UK

Candidates from abroad must have an IELTS score of 6.5. (With no less than 5.5 in component). We’ll take into account any additional English language needs. The most well-known exam is IELTS, though, and you have a wide range of teaching options at your disposal, including IELTS coaching in Noida from Meridean Overseas Education Consultants.

Why Study MBA in UK?

According to study in UK consultants, a business degree from a UK university gives students insight into the organization, management, and operations of an organization. It is one of the most well-liked degrees in the entire world. Students are exposed to a variety of business-related topics, including marketing, finances, human resources, and administration.

Advantages of Study MBA in UK

• You can earn a degree that is respected worldwide.
• Business-related undergraduate, graduate, postgraduate, and research programmes are available in UK universities.
• The MBA is one of the most sought-after business degrees or MBA in UK for Indian students and is offered by several of the leading colleges there.
• In addition to academic studies, business courses at UK universities emphasise case studies and practical experience because they help students comprehend the concepts much more thoroughly.
• A business degree from a UK university broadens the students’ alternatives for employment and raises their likelihood of financial success.
• Many educational institutions require an internship programme as a component of the school curriculum.

Conclusion

The MBAs are studied after a few years of professional experience rather than immediately after earning your undergraduate degree because they are at the same educational level as other Masters programmes. Therefore, select your MBA in UK courses to earn a master’s degree situated in the UK this year.