The United Arab Emirates is a country with a unique fiscal system that traditionally attracts entrepreneurs and investors with its low tax rates and a favorable business environment. However, in recent years, new tax regulations have been introduced, including a corporate tax and obligations related to the international exchange of financial information.
In such a dynamic environment, tax consulting becomes an essential part of successful business management. Companies need experts who can help them adapt to the changes, avoid risks, and use the advantages of the UAE legislation in full.
Let’s take a look at the key aspects of taxation in the UAE and then discuss the available consulting services and their importance for effective tax planning.
What tax consulting in the UAE includes
Tax consulting in the UAE is a service that provides fiscal support for companies.
Consultation on corporate tax
A significant step in transforming the UAE’s tax system was the introduction of a corporate tax in 2023. This new regulation applies to residents, foreign companies, and individuals engaged in business activities in the country. The tax rate is 9% for income that exceeds 375,000 AED, while income below this threshold is taxed at 0%.
Taxpayers in the UAE include:
- Companies registered in the UAE, including those registered in the country’s free economic zones;
- Foreign companies if control and management is performed from the UAE territory;
- Foreign organizations with permanent establishments or earning income from sources in the UAE;
- Individuals who conduct business in the country.
Registration with tax authorities is mandatory for all taxpayers. Deadlines depend on the company’s registration date and the month the license was issued. For instance, companies registered before March 1, 2024, have different deadlines than those registered later.
It’s vitally important to register your company on time to avoid financial and legal risks. Missing registration deadlines can lead to a fine of around 2,725 USD.
Consultation on VAT
Companies involved in taxable supplies have to pay VAT in the UAE. Registration for VAT is necessary if taxable turnover exceeds 102,000 USD in the past 12 months or if this amount is expected to be exceeded within the next 30 days. Voluntary registration is also available for businesses with turnover from 51,000 USD per year.
After registration, companies receive a tax number and a registration certificate. Taxpayers have to submit declarations regularly and pay VAT on time. It’s also possible to claim a refund on the VAT, which helps optimize financial flows.
Late registration, untimely filing of declarations, or failure to pay the taxes can result in penalties:
- 2,700 USD for missing registration deadlines;
- Starting from 270 USD for late filing of declarations;
- Up to 200% of the unpaid VAT amount.
Obtaining a tax residency certificate
A tax residency certificate confirms the person/ company’s status in the UAE. It make it possible for companies and individuals to benefit from international agreements aimed at avoiding double taxation.
Applications for the certificate can be submitted by:
- Companies registered in the UAE that conduct business in the country and comply with tax requirements;
- Individuals holding residency visas (they should be able to prove their residence in the country).
For companies, the certificate opens doors to reduced tax liabilities on an international scale. For individuals, it confirms their tax status, which may help lower taxes in their home countries or avoid double taxation.
Communication with tax authorities is essential for doing business in the UAE. Timely registration on the EmaraTax platform, updating information, and accurate reporting help avoid penalties and additional audits.
We can handle:
- Registration and data updates on EmaraTax, including annual license renewals;
- Preparation and submission of tax returns for corporate tax and VAT;
- Resolution of tax disputes, interaction with inspectors, and assistance in VAT refunds.
Consulting a tax advisor will save you from mistakes and penalties, economizing your time and preserving your reputation as a diligent taxpayer.
Discuss the details with an expert
Check the list of required documents, and get the details of the process, terms, and costs.
Contact a consultantLet’s talk via messenger
Benefits of tax consulting
Tax consulting is a tool for successfully managing your business’s fiscal obligations. Its advantages include:
- Time and resource savings. Specialists take care of all the routine tasks related to registration, reporting, and liaising with tax authorities.
- Risk reduction. A professional approach helps avoid penalties for errors in documentation or missed deadlines.
- Tax optimization. Consultants offer legitimate ways to reduce the tax burden.
- Compliance guarantee. Full compliance with current legislation strengthens your reputation as a reliable taxpayer.
- Personalized approach. Consultants develop strategies tailored to your specific needs and long-term goals.
Working with tax experts gives you confidence in business stability and allows you to focus on growth.
Stages in the process of providing tax consultations
Efficient tax consulting starts with a clear action plan. Each stage should receive special attention. This approach allows not only to address current tasks but also to build a strategy that provides for business stability and growth while keeping within the legal framework.
Initial consultation
Experts analyze the client’s current situation. The consultation can be verbal or written but it is aimed at identifying your needs and issues in the area of taxation.
Preparing documentation
Collecting and analyzing necessary data is the next step. Documents are prepared for registration with tax authorities or for submitting declarations in accordance with legal norms.
Developing a tax optimization strategy
Personalized solutions are developed for each client that focus on reducing his/ her tax burden.
Long-term support
Regular audits, data updates with tax authorities, and informing clients about changes in the legislation are included in the support package. Professional assistance allows timely responses to new requirements and helps avoid penalties.
Cost of tax consulting services
We offer solutions for various tax-related tasks. Here are the main services and their approximate costs:
| Service | Cost (USD) |
| Oral consulting (individual) | from 200/ hour |
| Written tax consulting | from 600 |
| Registration for corporate tax | from 400 |
| Preparation and submission of tax returns | from 500 |
| VAT registration | from 500 |
| Preparation and submission of VAT refunds | from 500 (monthly or quarterly) |
| VAT refund | 15% of the refund amount |
| UAE tax residency certificate (individuals) | from 900 |
| UAE tax residency certificate (legal entities) | from 1300 |
In addition, we provide auditing services, data updates with tax authorities, and dispute support. Our approach guarantees high quality and timely execution of all tasks.
Conclusion
Tax consulting helps businesses in the UAE reduce associated financial risks, optimize taxation, and make sure that they are in full compliance with legal norms. Timely consultations and professional support from experts allow you to focus on your company’s growth without being distracted by complex tax issues. Trust us with your tax accounting: contact us to find a solution that works for your business’s success!
