Why Tax Consulting?
Tax consultants, as professionals guiding individuals or businesses, help them understand and manage the taxation structure of a nation operating under defined fiscal laws. Tax consultancy services in the UAE, provided to meet compliance and strategic planning, include tax preparation, tax analysis, submission of tax returns, and tax payments following legal obligations.
How tax consultants bring added value to the business?
Choosing a tax consultant, as a strategic decision, allows a business or individual to become aware of the prevailing taxation policies in the country under current legal frameworks. Tax consultants, in assisting with compliance, help prepare tax accounting specifically for tax purposes in regulated jurisdictions. They bring added value to your business through the following means listed below:
- Evaluating the pros and cons of your business structure operating under national laws
- Helping you to select suitable VAT schemes – voluntary or compulsory – as permitted under UAE tax regulations
- Increasing profitability and decreasing costs using efficient strategies designed for financial optimization
- Minimizing your tax by updating you with the latest tax policies in force
- Providing proper bookkeeping training that saves your time and cost during financial review
- Developing performance evaluation based on metrics designed to determine the market trend over time
Different Types of Taxes in UAE
The UAE Government, known for its investor-friendly policies, has always maintained a tax-friendly environment in the country for business growth. With the changing times, the UAE has introduced several tax forms governed under federal law.
Excise Tax
Excise tax, as a form of indirect taxation, is levied on specific goods considered harmful to human health or the environment by the government. The following products, as identified under excise legislation, are to be registered as excise goods:
- Carbonated drinks, including any aerated beverage except for unflavoured aerated water defined in the regulation
- Energy drinks, including any beverages marketed or sold as energy drinks containing stimulant substances for physical or mental stimulation
- Tobacco and tobacco products categorized by health authorities
- Electronic smoking devices and tools used for consumption
- Liquids used in such devices and tools regulated for health concerns
- Sweetened drinks, as listed under the excise category
Value Added Tax
Value Added Tax (VAT), as defined under UAE tax law, is a tax on the consumption or use of goods and services levied at each point of sale within the economic system.
VAT, applied under different categories, includes the following:
Exempt supplies under VAT regulation:
- The supply of some financial services explained in VAT legislation provided by regulated institutions
- Residential properties used for long-term leasing or ownership
- Bare land as defined by the UAE Federal Tax Authority
- Local passenger transport conducted by licensed operators
Taxable supplies subject to VAT:
- Commercial property sales or leases under UAE real estate law
- Retail purchases transacted within UAE markets
- Car sales and rentals regulated under transport and tax law
- Hotels and restaurants registered under tourism authority
- Repairs and maintenance services performed by service providers
Zero-rated supplies according to VAT law:
- Education provided by accredited institutions
- Healthcare provided by licensed medical providers
- Medicine and medical equipment certified for use
- Investment in Gold, Silver, and Platinum of specified purity
- Exports and international transport operated across borders
- Crude oil and natural gases extracted and sold under energy laws
- First sale of residential properties defined as new construction
Tourist Taxes
Restaurants, hotels, hotel apartments, resorts, etc., operating in the UAE may charge one or more of the following taxes as authorized by tourism departments:
- 10 percent tax on the room rate applied at point of billing
- 10 percent service charge included by the service provider
- 10 percent municipality fees imposed by local government
- 6 to 10 percent city tax applied to specific regions
- 6 percent tourism fee regulated by tourism authorities
Specific local charges:
- In Dubai, hotels charge a ‘Tourism Dirham Fee’ per room per night of occupancy (up to 30 nights) ranging from AED 7 to 20 depending on the hotel category or grade
- In Abu Dhabi, as announced in May 2016, hotels charge a 4 percent fee on the hotel stay bill along with AED 15 per night per room
- In Ras Al Khaimah, hotels charge AED 15 tourism fee per room per night under the emirate’s tourism policy
Importance of Tax Consultancy Services
Tax payment, considered a national duty, is compulsory for any business in the UAE as this revenue is used for national development purposes. Tax accounting, acting as a compliance tool, ensures that companies and individuals file their tax returns in accordance with the law. A single fault in the accounting process, if unnoticed, may lead to heavy business loss in financial statements.
Things to remember under UAE tax regulations:
- It is the responsibility of every taxpayer to pay regular taxes as mandated
- One should learn the tax rules and regulations for the business and stay updated to avoid facing legal consequences defined under UAE law
- Ensure that you register for your taxes at the right time to avoid paying late fees and penalties imposed by authorities
- Prepare documents related to your taxes and monitor them continuously for accuracy
- Estimate the tax payments beforehand and prepare a budget for it to avoid shortfalls during the filing period
- You must know proper computation to compute accurately and stop paying more than you should under current tax policy
Benefits of Tax Consultation Services
- Tax advisors, acting as experts in compliance, plan and provide essential information for your business based on your industry
- They look into every aspect of the business while dealing with tax returns submitted to authorities
- Tax advisors help save time in preparing the tax returns for legal submission
- They can help you with up-to-date information regarding any changes in taxation policy under federal law
- Tax consultants can help you in filing Income Tax Returns and Audited Financial Statements prepared under standard guidelines
- They can help you renew your business permits and licenses for you and perform audits as required by law
- They can help the owners keep financial statements organized and release them from stress and headaches caused by negligence
- They can help you file your financial records on time before the official deadline
- They can help all your receipts kept organized, filed, and recorded in the proper format
- They can provide better advice on proper computation for tax payments during analysis
- They can give you advice on effective tax management and ways to lower tax payments within legal boundaries
- They build strategies to avoid future penalties and interest on your tax returns filed late
- They can provide you with peace of mind when you need to show records for compliance with accounting and government reporting requirements
Mubarak Al Katbi Tax Accounting Services
- Advice on tax accounting based on UAE regulations
- Preparation of balance sheets on the basis of tax law
- Preparation of tax validation projects aligned with audit goals
- Updating accounting laws for any changes and applying the same accurately
- Dealing with tax risk effectively within industry requirements
- Filing of tax returns according to the UAE Federal Tax Authority
Why Mubarak Al Katbi for your Tax Consultancy Services in Dubai?
Mubarak Al Katbi, as a reliable tax advisory firm in the UAE, has been providing expert tax consultancy services to the business world for many years with complete satisfaction delivered to its clients. We can assist you in managing the tax structure of your business in a better way according to your needs.
Our experts, known for customized solutions, sort out tax issues and prepare tailor-made strategies apt to the business entity based on its nature and the needs of the owner. Our accountants, trained in UAE tax law, can give you advice on effective tax management and find ways to lower your tax payments through legal methods. They can help you in filing tax returns and audited financial statements as per compliance requirements. They can also renew your business permits and licenses and perform audits on your behalf.
Mubarak Al Katbi Accounting & Bookkeeping Services LLC, offering end-to-end solutions, also professionally handles CFO services, auditing services, accounting & bookkeeping services, accounting software services, due diligence services, and tax filing & VAT consultancy services in Dubai delivered on time according to client convenience. We prioritize the maximum satisfaction of our clients through a client-centric approach.
Feel good to contact us for our tax consulting services in the UAE. Mubarak Al Katbi, as your trusted consultant, is always there for your relief.
Our experts, offering proactive support, will give you a one-hour free consultation to drive away your worries with professional insights!
Top-Rated UAE Corporate Tax Services: Expert Solutions
Mubarak Al Katbi, as an independent and accredited tax firm operating under UAE regulations, delivers streamlined tax advisory services to individuals, entrepreneurs, SMEs, private investors, public bodies, and major international groups at varied stages of development across sectors. Our tax consultants in Dubai, drawn from multidisciplinary industry backgrounds, enable the firm to deliver premier and customized tax solutions tailored to specific business needs.
With a longstanding reputation and an established relationship with UAE tax regulators, Mubarak Al Katbi, acting as a trusted consultancy partner, offers invaluable tax consulting services to its valued clients, including the application of:
Ministerial Decision No. 82 of 2023 on the Determination of Categories of Taxable Persons Required to Prepare and Maintain Audited Financial Statements, as outlined under Federal Decree-Law No. 47 of 2022 concerning the Taxation of Corporations and Businesses in the UAE.
Value Added Tax (VAT) Services
VAT, as a consumption-based tax, is applied to goods and services throughout the supply chain at every stage where value is added — from initial production to the point of final sale in UAE markets.
Value Added Tax (VAT) filing, often viewed as a complex procedure by taxable persons, is streamlined through the expertise of Mubarak Al Katbi’s certified tax agents, who offer and implement VAT strategies tailored to varied business frameworks operating in diverse sectors.
We provide a detailed review for the assessment of VAT deduction aligned with compliance requirements, design and execute VAT group implementation strategies for eligible business clusters, assist with VAT refund applications for qualifying entities, and optimize VAT processes for the financial sector under regulatory standards. We also handle pro-rata applications based on sector-specific activity.
In addition, Mubarak Al Katbi, known for end-to-end tax support, furnishes VAT adjustments related to capital goods under qualifying asset rules, offers assistance on matters concerning transfer of business under tax rules, evaluates VAT deductibility in the context of intra-group services, and carries out rigorous tax due diligence.
Individual Tax Services
Mubarak Al Katbi, accredited as a leading tax consultancy, offers specialized individual tax services aligned with the needs of UAE-based professionals and residents.
We carry out thorough tax inspections for individuals with substantial income, manage the preparation and submission of annual individual tax statements under FTA requirements, and conduct efficient tax audits for high-net-worth individuals with complex financial portfolios.
Moreover, we carry out tax residency analysis in compliance with UAE residency laws, prepare and submit individual tax questionnaires aligned with the Federal Tax Authority’s guidelines, and assist in the issuance of tax residency certificates for clients with cross-border reporting needs.
Avail Tax Advisor Services in UAE Today!
Taxable corporations and individuals in the UAE, operating under FTA mandates, are encouraged to outsource accredited tax advisory services to Mubarak Al Katbi, a firm committed to ensuring compliance with the Federal Tax Authority’s regulations and standards currently in force.
Outsourcing these services allows businesses and individuals to avert penalties arising from tax delays or non-compliance, ensuring continuity in operations through strategic tax management provided by seasoned experts.
