How can a Tax Consultant in UAE help your Business
Why companies require tax consultants in the UAE? A tax consultant can help the individuals as well as business concerns to advise on the taxability of transactions and to ensure that the business is complying with the UAE VAT Laws. The tax regimes vary from country to country along with the complexities. As every business dream of making a profit, tax planning must be considered as a business strategy to achieve the goals. Tax consultant exudes a higher level of skills and professionalism in tax planning. Better planning helps in tax savings and gets added as a profit to the company. The UAE was basically known to be a tax-free country until the VAT was introduced on 1st January 2018 at a standard rate of 5 percent. Hiring a tax consultant is imperative to avoid errors and penalties. For the navigation through the VAT system prevailing in the UAE, it is necessary to hire VAT experts as they provide relevant updates and advice on the tax laws introduced by FTA.
Also read, Importance of Tax Audit And Its Effect On Business
The various taxes prevailing in the UAE are:
Property tax: On purchasing a property there is a land registry fee of 4% (one-time cost)and on renting a property 5% fee on the tenancy contract value.
Excise tax: Excise tax is an indirect tax levied on excisable goods that are harmful to human health. Excise tax in UAE was introduced in 2017 to improve the standard of healthy living.
Value-added tax: Value Added Tax or VAT is a form of indirect tax imposed on the use or consumption of goods and services at each point of sale.
Qualifications for Tax consultants
FTA endeavour the following conditions for a qualified individual to act as Tax agents to advise businesses in the UAE.
- A minimum of three years of practical experience in taxation, accountancy or Law
- Educational qualification in Bachelor’s or Master’s degree in tax, law, or accounting from an accredited educational institution.
- Pass the FTA examination with a passing grade.
- Professional indemnity insurance coverage must be there.
- Maintain a clean record of conduct
Duties of a Tax consultant
Here are some duties of Tax consultants:
- Prepare monthly and yearly tax returns and other compliance documents
- Record maintenance and documentation of files
- Frequent updates on any developments relating to tax, regulations and practice
- Conducts research on tax and customs related issues exclusively on behalf of the firm and to clients of the firm
- Communication with the federal tax authority and customs officials
- Active participation in knowledge management, professional development, and firm administrative activities as requested
- Budget planning and long-term tax optimisation
Benefits of Hiring Tax Consultant
- Professional consultants give expert guidance and services that are flawless.
- Professional tax consultants with exhaustive training can easily communicate with the clients and they can lead the company on the correct path.
- A well-experienced tax consultant is well versed on government policies and the government works which helps to deal with the tax issue of the client.
- Optimised use of available resources of the client in an effective way without breaking any law.
- Tax Consultants are well updated with the changes made by the tax authority in rules and regulations.
- Provides accurate and professional legal advice to their clients.
- Clients can be relieved from the stress about tax and tax-paying processes if tax experts are there.
- Tax consultants navigate the tax process and work saving the money of the client.
- Prevents error and misconduct in transactions.
Why choose CDA?
CDA provides highly qualified and experienced chartered accountants as tax advisers who have relevant industry-specific experience in taxation complying with UAE Laws to prepare books of accounts and to meet the VAT filing requirements for your business. We provide the best VAT Accounting Services in the UAE to the clients in compliance with the rules and regulations of the FTA.
You may also read, How to organize your bookkeeping at Tax time in Dubai?
CDA experts can provide you with ample advice on the closing of books of accounts timely and properly in anticipation of any future tax audit by the authority, and file the tax return on time. CDA also offers a wide range of business services that include CFO Services, Auditing Services, Accounting & Bookkeeping Services, Accounting Software services, Due Diligence Services, and Tax Filing & VAT Consultancy Services
Feel free to contact us if you have any enquiries regarding your firm’s VAT related issues or about your current business.