The United Arab Emirates is popular worldwide for its profitable tax regimes for businesses of all sizes and kinds. In fact, it is one of the many reasons why entrepreneurs and businessmen want to set up or expand their businesses in the UAE. Globally renowned for its oil business, the UAE has worked systematically to break the shackles and transform itself into a modern state that caters to businesses on a wide spectrum. And one of the ways it has managed to achieve the status of a business hub is by reforming its policies, including its tax regimes.
To strengthen and maintain its position, the UAE has several tax regimes in place. These regimes also ensure that businesses here maintain a highly professional environment and strive to meet international standards. Although the UAE does not levy any income tax on individuals, it levies taxes on companies under certain conditions. And while the tax system may look straightforward, it is always better to get some assistance from a reliable tax agency in UAE. But why? Read on.
This blog will walk you through all you need to know about a tax agency – what it is, why it is important to partner with a reliable agency, and more.
What Is a Tax Agency in the UAE?
Simply put, a Tax Agency is an entity that is registered with the Federal Tax Authority (FTA) and has a valid license to operate as a tax agency.
Furthermore, a company cannot register and work as a Tax Agency without having at least one FTA-accredited Tax Agent on staff. Likewise, a registered tax agent must be affiliated with a licensed tax agency before being permitted to work as a tax agent.
Who Is a Tax Agent?
The UAE Federal Decree-Law describes and defines a tax agent as —
Any natural person registered with the authority in the register of Tax Agent who is appointed on behalf of another person to represent him before the authority and assist him in the fulfilment of his tax obligations and the exercise of his associated tax rights.
Simply put, they are licensed and FTA approved specialists qualified to represent your company before the authorities. They are there to offer you comprehensive tax-related support, so your company is compliant from the start.
Why Should You Partner With a Reliable Tax Agency for your UAE business?
Given the strict laws and the penalties outlined by the UAE government for operating companies, it is important that you stay compliant with the laws at all times. Furthermore, you must register and file your tax returns within the stipulated time to avoid hefty penalties. And for this, you must have in-depth knowledge of the tax system since the UAE categories taxes as –
- Corporate Tax – For businesses or individuals operating with a commercial license in UAE Free Zones and Mainland.
- Excise Tax – Levied on businesses dealing in excise goods (goods harmful to human health and the environment).
- Value Added Tax – Levied at point of sale for the use of goods and services.
- Other Taxes – Levied on tourist facilities and hotel businesses. For instance, Municipality tax.
Within these taxes, especially for Corporate tax, UAE follows a slab structure. The question is: Do you, as an entrepreneur or businessman, have the in-depth knowledge to follow proper tax rules? Are you updated with the latest changes, and do you understand key terms? Do you have internal control mechanism to file VAT return complaint with Tax laws?
This is why choosing a reliable tax agency is important. A reliable tax agency is a tax agency that:
- Holds a valid license.
- Has a team of registered tax agents?
- Has a proven track record?
- Has in-depth knowledge of UAE tax regimes, processes, and penalties?
- Is up to date with the latest announcements.
But why do you need to partner with them? Because a reliable tax agency in UAE will –
- Always operate and represent the company lawfully and in compliance with the Federal Tax Authority
- Ensure that your business activities are compliant with the obligations.
- Assist with the timely filing of tax returns.
- Register your company with the FTA and lawfully represent you.
- Guide you.
- Assist you with formalities and advise you on how to stay out of trouble and minimise fines.
- Provide the FTA and its inspectors with essential legal and accounting information if the authorities ask you for records
- Forewarn you about changes to both the business and tax legislation
- Make communication easier and provide quick answers while following up with the Federal Tax Authority (FTA)
Besides this, partnering with a reliable tax agency will save you time and effort. A company’s tax concerns are varied, ranging from registering, planning, filing, and consulting. As a result, allocating resources and managing tax affairs becomes a time-consuming and expensive endeavour. By partnering with a tax agency, you can save time and money while benefiting from their in-depth understanding of and experience working with various clients.
Partner With Shuraa for Tax Compliances
Awareness of tax compliances differs greatly from ensuring that your company is tax compliant. The process can be overwhelming, especially when you have to wear multiple hats as an entrepreneur and businessman.
Furthermore, failing to meet the tax requirements can result in strict action against your company. Additionally, you must follow the procedure and apply for voluntary disclosures in the event of indifference. Under particular circumstances, you can also be required to submit an objection to the Tax Disputes Resolution Committee (TDRC).
A reliable tax agency like Shuraa Tax Consultants and Accountants can advise and assist you. We will ensure that your company follows all the tax obligations by filing your return on time, efficiently communicating with the FTA, and legally representing you wherever and whenever required.
Our cordial ties with the ministry enable us to stay current on the many commercial legislation and tax regulations applicable to the UAE. We also guarantee that your company is ready for potential economic repercussions. We will take care of everything for you. All you need to do is reach out to us on info@shuraatax.com or give us a call on +971 508912062.
