Team of Professional Chartered Accountants
Pioneer ICV & ADV Consultants
Approved Tax Agency by FTA
As PIONEER ICV certification Consultants, we have set up a specialized sub-service line for ICV to help our clients for acquiring ICV certificate, ICV improvement plan and meeting their required level of ICV score.
ADNOC introduced an ICV program implemented from 1st April 2018 which requires that all suppliers of goods or services to acquire ICV certification from the ADNOC ICV Certification Agency and calculate and declare their certified ICV score for the previous financial year, to demonstrate how they are helping to deliver ICV. Suppliers who do not possess the ICV Certificate shall be allowed to participate in the ADNOC Group tenders, however, their ICV score will be considered as “Zero” in the bid evaluation and hence may be at a disadvantage to those with a higher ICV score.
UNIFIED ICV CERTIFICATION PROGRAM
In 2019 and 2020, the Department of Economic Development, Abu Dhabi Ports and Aldar Properties have joined hands with ADNOC Group to broaden the ICV certification process across various sectors in Abu Dhabi and the UAE. It is likely that more entities will join the ICV certification platform.
AREAS CONSIDERED FOR UNIFIED ICV CALCULATIONS
(a) Goods Manufactured (only for Suppliers holding Industrial License)
(b) Third-Party Spend (only for Suppliers holding non-Industrial License)
(c) Investment
(d) Emiratization
(e) Expatriate Contribution
(f) Bonus – i) Revenue from outside UAE. ii) Emirati Headcount
An In-Country Value (ICV) program was announced for Abu Dhabi National Oil Company (ADNOC) Group Companies with the following objectives:
(a) Emiratization: Creating additional employment opportunities for Emiratis in the private sector
(b) GDP Diversification: Supporting UAE GDP diversification by sourcing additional goods and services within the UAE; and
(c) Strategic Considerations: localizing strategically critical parts of the value chain for selected categories.
WHO NEEDS A UNIFIED ICV CERTIFICATE?
Companies working directly as suppliers or indirectly as sub-supplier with the following Govt. and Semi Govt. Departments are required to acquire the unified ICV certificate.
ICV Certification for Group Companies
Each license of a Company is considered as an independent legal entity even if the ownership is the same. However, if a Company has different branches in the same Emirate with identical activities and ownership listed on the licenses, then one combined ICV certificate is allowed for the Company in that Emirate.
Management Accounts for Newly Established Companies
For newly established Companies (less than 10 months old) that do not have audited financial statements, the Management Accounts for a period of up to 9 months can be used for ICV calculations. Any management accounts greater than 9 months will be required to be audited.
IFRS based Audited Financial Statements
ICV certification is based entirely on audited financial statements of the company. The audited financial statements shall be as per the International Financial Reporting Standards (IFRS) and shall not be older than 2 years from the certification year i.e. for ICV certification in 2020, the audited financial statements to be considered shall not be older than 2018.
Unified ICV Certification Validity
The ICV certificate shall be valid for a period of 14 months from the date of issuance of Audited Financial Statements. The supplier can get recertified during the validity of the ICV certificate if he chooses to, using the same audited financial statements, but the validity of 14 months from the first issue will remain same.
When the terms of the tender are required, the Supplier shall submit an ICV Improvement Plan along with the commercial bid.
The ICV Improvement Plan will be a contractual commitment linked to payment against the achievement of actual ICV achieved vis-à-vis the ICV committed as per the ICV Improvement plan.
Types of ICV improvement plan
The weighted average of the Planned ICV% as per ICV Improvement plan along with the ICV certificate score shall be considered to arrive at the ICV ranking of the Bidder during commercial evaluation. For monitoring the ICV actually achieved vis-à-vis the ICV planned as per the ICV Improvement plan, the Supplier shall provide the latest ICV certificate from the Supplier upon completion of each Agreement year.
A Milestone towards the achievement of ICV for an amount of 5% of the Agreement value shall be included in the Contract and this payment will be released after completion of each year from the commencement date of the Agreement in proportion to the actual ICV achieved as per the latest ICV certificate.
We offer following services:
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We have set up a specialized sub-service line for ICV to help and arrange ICV certification for our clients in order to meet their required level of ICV score in the following ways.
ADEPTS CHARTERED ACCOUNTANTS LLC
Office No. C 4-6 1803 Three Sails Tower Corniche Road Abu Dhabi United Arab Emirates
https://taxadepts.com
