Do you have a business in the UAE and are unsure whether you need to hire a registered tax agent to assist you in compliance under VAT? Read the article to learn about the responsibilities of a tax agent in the UAE registered with the Federal Tax Authority (FTA).
What Is Tax Agent in UAE?
A tax agent in UAE is a person registered with the tax authorities who represents their clients in front of the tax authorities when they authorize a tax agent to do so. A tax agent takes care of the client’s tax obligations and performs various legal activities prescribed by the Law. A tax agent can help you smooth the VAT process and may act as a mediator between you and the Federal Tax Authority.
What Are the Roles and Responsibilities of a Tax Agent?
Tax agents in the UAE are responsible for assisting their clients in fulfilling their tax-related obligations and helping them to satisfy the provisions of the VAT Law.
So what can they do for you?
- They help achieve tax compliance, carry out legal activities, manage financial records related to tax transactions, and prepare and file a VAT return.
- Tax agents can provide proper advice and interpretation of the UAE VAT Law.
- They can play a key role during the tax audit conducted by the FTA.
- Tax agents in the UAE can provide all information, documents, records, and data regarding the Taxable Person they represent if the FTA requests it.
- Tax agents can inquire about tax-related matters with the FTA and submit requests for reconsideration of decisions issued by the FTA.
- They can also help their clients better plan their taxes and differentiate between the Dos and Don’ts.
Tax agents must maintain the confidentiality of any information obtained in the course of performing their duties. They should refuse to participate in any activity or work, which may result in a breach of any law established by the authority.
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Should You Hire a Tax Agent in Dubai?
Paying taxes is compulsory for any business in the UAE, as this revenue is used for the development of the country. Any taxable person in the UAE has the right to appoint a registered tax agent to handle their tax affairs with the authority. But the responsibility of the taxable person in relation to the authority will remain even after appointing a tax agent.
Generally, you may need to hire a tax agent in situations when there is a tax dispute or tax appeal with complexity. But for day to day tax compliance, tax agent services are not necessarily required. In fact, any taxpayer can directly interact with the tax authorities even for tax disputes and appeals without the need for a tax agent.
Still, you may find it challenging to manage tax obligations for your business in the UAE.
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How to Become a Registered Tax Agent
A person who is registered with the FTA, as well as obtained a license from the UAE Ministry of Economy or from any other relevant authority, can practice as a tax agent in the UAE. A person who wants to register as a tax agent in the UAE has to fulfill the following conditions according to the Law.
- They must be of good conduct and behaviour and, in addition to this, they should not have been involved in any criminal or illegal activity.
- They should be qualified to perform the functions and duties of the profession as specified in the Executive Regulations. That means a person should hold a certified bachelor or master’s degree in tax, accounting, or Law from a recognised educational institution. If the applicant holds a bachelor’s degree in any other field, they should submit a tax certification from an internationally recognised tax institute.
- They should hold a certificate providing evidence of recent relevant experience of at least three years in tax, accounting, or Law.
- A person must provide a certificate that proves their verbal and written communication skills in both Arabic and English.
- They are required to pass the FTA’s Tax Agent exam.
- They must be physically and medically fit to perform the duties required by profession.
- A tax agent working in the UAE must also hold professional indemnity insurance.
Any person who wants to be a tax agent and has met those requirements can submit an application and apply for registration. The FTA has the right to request more documents that they consider necessary that can help them to decide whether they should approve or reject the application. The FTA is expected to provide a decision within or after 15 working days from the date when the application is submitted.
Let Beaufort Associates Handle Your Taxation Duties
Beaufort Associates provides management consulting, business advisory, and VAT consultancy services for businesses in different industries in Dubai and the GCC region. We can also help you to establish an effective accounting system and processes.
We have an excellent reputation for delivering world-class services to the business community. With more than 20 years of experience, we can ensure you’ll always get the best guidance in any aspect of managing your business.
Our tax consultants know the intricacies of the UAE tax laws and regulations and can help you navigate an increasingly complex tax environment. They can provide you with professional advice to address your tax-related issues and guide you for better VAT compliance step-by-step.
Our experts will help you manage your taxes using the best strategic tools most cost-effectively. They will help you with up-to-date information regarding any taxation policy changes and ensure that your company meets all regulatory requirements. If you need additional information about our services, contact us today!