Tax Consultants’ Role in UAE Corporate Tax Filings

The UAE is a prominent destination for international business because it provides world-class infrastructure, favorable tax laws for investors, and a prime geographic location. With the introduction of UAE corporate tax, laws, and regulations, it is mandated for businesses to adhere to strict regulations such as timely registration and tax filing and accurate tax filing and record keeping. Here is where tax consultants come into play, especially an FTA approved Tax Agent in UAE such as Jaxa. They play a role in helping to navigate the complex business landscape while ensuring seamless compliance and zero-free error tax submission.

From understanding UAE Corporate tax law to filing and submitting corporate tax returns in the UAE, tax consultants offer strategic advice and guidance in offering expert tax planning and compliance support while minimizing risks and enhancing the company’s financial efficiency and growth prospects.

In this article, we walk you through the importance of working with a tax consultant to help businesses remain compliant with UAE Corporate Tax law and ensure accurate corporate tax filing while minimizing the risk of penalties.

Overview of Corporate Tax Obligations in the UAE

The businesses in the UAE generating profits exceeding AED 375,000 are subject to 9% UAE Corporate Tax Law. Businesses must ensure UAE corporate tax compliance and avail the benefits and exemptions of corporate tax. The UAE offers tax relief such as Small business relief and individual earnings from wages, real estate, and personal investment are exempt from UAE corporate tax.

Main Steps for corporate tax filing in the UAE:-

Corporate tax filing in the UAE involves key steps to ensure compliance with the UAE Federal Tax Authority.

• As per FTA Decision No. 3 of 2024, businesses must register for FTA and obtain a Tax Registration Number by the stipulated deadline.
• Businesses must follow IFRS standards to ensure accurate financial records. The UAE corporate tax liability is computed from accounting profit, making adjustments to calculate taxable income and the resulting tax amount payable.
• As per Article 48 of Corporate Tax Law, corporate tax returns in the UAE must be filed and tax dues settled within 9 months after the tax period concludes. Businesses in the UAE must meet deadlines to avoid penalties.
• As per Article 56 of Corporate Tax Law, businesses must keep financial records for at least 7 years, following the end of each period.

Handling multiple steps of the UAE corporate tax compliance process demands expert guidance. Partnering with certified tax agencies like Jaxa allows businesses to meet corporate tax obligations ensuring compliance without adding a compliance burden.

The Benefit of Partnering with a Corporate Tax Consultant in the UAE

Businesses in the UAE depend on tax consultants for professional advice in handling tax responsibilities, lowering corporate tax liabilities, and guaranteeing compliance to thrive in the tax environment. Here’s how they make a difference:

• Expertise in UAE’s Evolving Tax Regulations: Tax consultants guide businesses in navigating the complex business landscape. They keep clients well informed of the UAE tax updates, helping businesses to align with UAE corporate tax law and VAT laws, and help to avoid penalties through timely filing and documentation.
• Maintaining Tax Compliance Risk: With a thorough understanding of UAE tax regulations, trained tax consultants assess and mitigate business tax compliance risks, reducing penalties and legal issues.
• Precise financial reporting: Accurate financial reporting reduces corporate tax liability. A professional UAE tax consultant helps to ensure financial records are accurate, apply proper deductions, and tax credits are applied while complying with UAE corporate tax law.
• Timely Corporate tax filing and compliance: A UAE tax consultant helps to ensure business compliance while helping with corporate tax registration to timely corporate tax return filing and keeping updated with FTA of the necessary information. A qualified tax agent in the UAE helps to ensure timely submission, keep track of deadlines, and ensure all obligations are met beforehand.
• Streamlining business operation: It is the best option to outsource tax-related matters to tax consultants so that businesses can improve tax liabilities, and enhance operational efficiency allowing business owners to focus on growth.

Key Advantages of Engaging with a Tax Consultant Beyond Compliance

The role of a tax consultant goes beyond compliance and the true value of tax agencies lies in enhancing your business’s financial health. The key benefits of partnering with a tax consultant in the UAE are:-

1. Comprehensive Tax Strategies & Consultation: A Tax consultant like Jaxa provides strategic tax planning to ensure businesses reduce tax liabilities and optimize financial performance. A tax consultant in the UAE offers services such as:-

• Identifying tax-saving opportunities
• Leveraging tax deductions and credits
• Provide expert guidance on corporate tax obligations.

2. Tax Optimized decision making: Partnering with tax agencies in Dubai., UAE helps businesses make informed decisions by evaluating like:-

• Potential tax consequences of strategic changes
• Potential tax loss benefits like carryforward
• Compliance requirements affecting business plan

Professional Tax experts like Jaxa provide valuable insight, assisting firms in making better decisions while minimizing financial risks.

3. Effective document management for corporate tax: Accurate record-keeping is a cornerstone of corporate tax compliance. UAE Tax Agencies help in:-

• Maintaining systematic documentation of financial records.
• Retrieve records easily for audits or tax assessments.
• Mandatorily comply with the UAE FTA’s seven-year retention requirement.

Partnering with the UAE FTA registered tax agency like Jaxa can help businesses stay compliant with UAE tax laws, manage documentation, and ensure compliance and a smooth audit process.

How to Choose the Right Tax Agencies in the UAE

For seamless corporate tax management, choosing the right tax agency is vital. Keep these key factors in mind when making your choice:

• Proven Expertise in UAE Corporate Tax: Ensure the agency has qualified tax professionals with hands-on experience in corporate tax regulations and compliance.
• Sector-Specific Expertise: Each industry has distinct tax requirements. Selecting a tax firm with expertise in your industry guarantees tailored tax solutions.
• Regulatory Clarity & Ongoing Compliance Support: Reputable tax firms notify companies of tax developments, guarantee compliance with UAE laws, and offer ongoing advice.

Conclusion

Jaxa Chartered Accountants is a trusted FTA-registered tax agency in the UAE, offering complete corporate tax services. Our team of qualified UAE tax agents helps clients meet corporate tax compliance, corporate tax filing deadlines, documentation, and audit assistance. Our certified UAE tax consultant provides tailored corporate tax consulting services.

Partnering with a seasoned tax professional is the best decision a business can make who can well understand the challenges and opportunities needed for the UAE market. Reach out to our certified tax consultants today, and discover how we can navigate corporate tax in the UAE.