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Inspire Ms Tax Consultancy's ICV Approved Auditors help you in issuing an ICV (in country value) Certificate with the respective authorities in UAE.
What is In Country Value Program (ICV) ?
The In-Country-Value Program (ICV) pioneered by ADNOC in 2018 is an initiative designed to attain the optimum value from our nation’s oil and gas resources to stimulate the UAE’s economic process and diversification.
Recently, the Abu Dhabi Department of Economic Development (ADDED), Abu Dhabi National oil company, Abu Dhabi Ports Company PJSC, Aldar Properties PJSC, Emirates nuclear energy Corporation, and Mubadala investment trust (Participating entities) even have collaborated during this program by implementing a unified In-Country Value (ICV) Program, Rev. 3.0.
The primary objectives of ICV:
- Emiratization: Generating more employment opportunities for Emiratis within the private sector
- GDP Diversification: More goods and services are sourced within the country, during a move to support diversification
- Strategic considerations: Critical parts of the worth chain are localized for certain categories of companies
Why you need ICV Certification ?
- ICV score is an integral a part of bid evaluation of the participating entities and it'll give added weightage for the suppliers and vendors within the award process.
- Entities who are indirectly connected with the tenders also enjoy the ICV certification program; as ICV certified supplier “spend” that is still within the UAE or contributes to the UAE economy, is taken into account for ICV calculation purpose.
Key considerations in ICV Certification
- ICV certification is predicated on the last audited IFRS financial statements of the entities and shall not be older than 2 years from the certification year.
- For newly established companies (less than 10 months old), who don't have audited financial statements, the management accounts for a period of up to 10 months are often considered for ICV calculations.
- The ICV certificate shall be valid for a period of 14 months from the date of issuance of audited financial statements.
- ICV Scores are calculated using pre-defined methodology by assessing the value added within the country for the products or services provided by the entity.
How Inspire Ms Tax Consultancy can help
- Inspire Ms Tax Consultancy assist you to issue an ICV Certificate with the respective authorities. along side issuing the certificate, we work with clients to know their requirements, help them with ICV calculation and recommend the specified improvements within the business also as operational activities. We also make it some extent to constantly update our clients on the newest information regarding ICV program and suggest policy changes, if required.
Frequently Asked Questions – ICV
What is the National in-country value program?
The National In-Country Value Program (ICV) is a UAE government program that aims to boost economic performance and support local industries by redirecting higher portion of public spending into the national economy. The National ICV is a certificate issued to suppliers in which their contribution to the local economy is evaluated. The certified suppliers are then given an advantage during the award of contracts and purchases based on their ICV score.
Who are the Participating entities of the ICV programme in UAE?
All the entities who have implemented the In-Country Value (ICV) program jointly are mentioned as “Participating Entities” and includes Abudhabi Department of Economic Development (ADDED), ADNOC, ALDAR, MUBADALA, Etisalat, Emirates nuclear energy Corporation, Etihad Rail,Shurooq, EDGE. ICV Certificates are employed by the Participating entities in evaluating their tenders for procurement
What are the economic benefits of the ICV certificate in UAE?
As a section of ICV program, more goods and services are sourced within the country, during a move to support UAE’s GDP diversification. Also the Program will generate more employment opportunities for Emiratis within the private sector and important parts of the worth chain are going to be localized surely categories of companies
How can suppliers join the ICV Program in UAE?
To join the ICV Program, suppliers got to follow few simple steps:
- Issue audited financial statement supported International Financial Reporting Standards (IFRS) (management accounts for new established entities but 10 months.)
- Fill within the ICV template as per the rules .
- Approach one among the authorized certifying bodies for evaluation.
- Once the ICV certificate is received, a supplier can submit it to participating entities.
Who issues the ICV certificate?
Ministry of Industry and Advanced Technology (MOIAT) has authorized certain professional firms called “Certifying Bodies” to verify and issue the ICV certificate.
What is a Certifying body as per ICV program?
A Company who has been authorized by the MOIAT for verification of Suppliers’ ICV certificate application and issues the ICV certificate.
What does an ICV score represent?
ICV Scores are calculated using pre-defined methodology by assessing the value added within the country for the products or services provided by the entity . The score is decided 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
Is the ICV certificate limited to small and medium-sized companies only or large as well?
No, the ICV certificate isn't limited to company size.
What are the wants for issuing an ICV certificate?
The entity must have audited IFRS financial statements which shall not be older than 2 years from the certification year and other requirements requested by the certifying bodies.
What is the duration/validity of the ICV certificate in UAE?
The certificate’s validity is 14 months from the date of issuance of the company’s audited financial statements. The supplier can get recertified during the validity of the ICV certificate if he chooses to, using an equivalent audited financial statements, but the validity of 14 months from the primary issue will remain.
Is ICV certificate a compulsory requirement in UAE?
ICV certification is required for all companies that wish to use to governmental and semi-governmental procurements. The ICV factor accounts for a particular weightage in tender evaluation.However, this is often not a compulsory requirement.
Can companies located in UAE free zones obtain an ICV certificate?
Yes, free zone companies can obtain an ICV certificate
If the corporate has four branches in 4 emirates, is it possible to issue one ICV certificate?
Branches are often combined if they exist in one emirate and their activities are similar. For the branches in several emirates, a certificate for every license must be obtained.
What are the critical considerations for obtaining an ICV certificate in UAE?
Below are the critical considerations for the national ICV program:
- Audited financial statements, prepared under IFRS and not older than two years from the certifying year and signed by a licensed auditor.
- ICV certificate shall be obtained for every company’s license (legal entity). However, if a corporation has different branches within the same emirate with identical activities and ownership, then a combined ICV certificate are going to be issued.
- For companies with manufacturing and commercial licenses, all the accounting records must be split between manufacturing and commercial activities; ICV are going to be issued for every license separately.
- For companies that are but 10 months old and don't have audited financial statements, management accounts for a period of 9 months are often used for ICV certification purposes.
How much does it cost to get an ICV certificate in UAE?
The fee for an ICV certificate varies counting on the size of the corporate and therefore the procedures required to be performed.
Is ICV a national program?
ICV may be a national program implemented of Ministry of Industry and Advanced Technology because it aims to support the national industry and redirect amounts spent in procuring goods and services towards the economy.
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