Introduction to Tax Consultancy in UAE
Tax consultant in UAE plays a vital role in helping businesses and individuals comply with VAT laws and other tax regulations. In the United Arab Emirates, taxation is relatively new compared to other regions, but it’s equally important. A tax consultant helps companies plan taxes, reduce liabilities, and avoid penalties. Since every business aims for profit, tax planning should always be part of the overall business strategy.
The UAE was once seen as a tax-free country, but things changed on 1st January 2018, when Value Added Tax (VAT) was introduced at a standard rate of 5%. Hiring skilled consultants, like Mubarak Al Ketbi (MAK) Auditing, ensures businesses navigate VAT smoothly. They also provide timely updates and guidance on new tax rules set by the Federal Tax Authority (FTA).
Types of Taxes in UAE
Although VAT is the most recognized, UAE has other forms of taxation that businesses must understand.
- Property Tax: A 4% land registry fee on property purchase and 5% fee on rental contracts.
- Excise Tax: Introduced in 2017, this applies to goods harmful to health, such as tobacco, sugary drinks, and energy drinks.
- Value Added Tax (VAT): A consumption tax applied on goods and services at each stage of the supply chain.
Understanding these taxes helps businesses remain compliant and plan financial strategies effectively.
Qualifications of a Tax Consultant
Not everyone can work as a tax consultant in UAE. The Federal Tax Authority (FTA) requires professionals to meet specific qualifications before advising clients.
- At least 3 years of practical experience in taxation, law, or accountancy.
- A Bachelor’s or Master’s degree in tax, accounting, or law from an accredited institution.
- Must pass the FTA examination with an acceptable grade.
- Maintain professional indemnity insurance coverage.
- Have a clean professional record with no misconduct.
These strict qualifications ensure that businesses receive reliable and professional tax advice.
Duties of a Tax Consultant
A tax consultant’s responsibilities go beyond simple advice. They handle multiple tasks to ensure a business remains compliant.
- Prepare monthly and yearly tax returns.
- Maintain proper documentation of tax files.
- Provide updates on new tax regulations and rules.
- Conduct research on tax and customs issues.
- Communicate with the Federal Tax Authority (FTA) and customs officials.
- Assist in budget planning and tax optimization.
- Help in knowledge management and professional development for the business.
By handling these duties, consultants ensure businesses avoid tax risks and legal troubles.
Benefits of Hiring a Tax Consultant in UAE
Working with a professional tax consultant brings several advantages:
- Expert Guidance: Consultants give accurate advice based on laws.
- Stress Reduction: Clients don’t worry about errors in tax filing.
- Compliance with Laws: Consultants ensure businesses meet FTA standards.
- Tax Optimization: Proper planning leads to savings that add to company profit.
- Updated Knowledge: Consultants stay updated on changes in laws.
- Fraud Prevention: They prevent errors or misconduct in tax transactions.
- Time Savings: Businesses focus on operations while consultants manage taxes.
Hiring a consultant is an investment that saves both money and time for businesses.
🥇 What Can Help – Mubarak Al Ketbi (MAK) Auditing
Taxation in UAE is complex, but with expert consultants, it becomes manageable. Mubarak Al Ketbi (MAK) Auditing provides comprehensive tax consultancy, VAT filing, and financial advisory services for companies of all sizes. Remember, a stitch in time saves nine—early planning prevents future financial troubles.
For more information visit our office:
- 📍 Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- 📞 Contact/WhatsApp: +971 50 276 2132
