Most individuals and/or businesses think that hiring or consulting with a tax expert will be expensive for their business. Therefore, they try to do everything by themselves. However, this poses the risk of non-compliance with the tax laws. Furthermore, there is also a risk that they spend so much time on tax matters that their actual business suffers. The rationale behind hiring a tax consultant is to save time and money and also avoid penalties for non-compliance. Furthermore, it keeps overall tax matters smooth and optimized. Consulting a tax expert might seem expensive, but it saves time, money, and hassle for an entity. In this blog, we will discuss the role of tax consultants concerning UAE businesses.
Who is a Tax Consultant?
A tax consultant, or tax advisor, is a qualified tax expert with advanced knowledge and training in tax law. The primary aim of the service of a tax consultant is to minimize taxation while remaining compliant. Typical duties of a tax advisor include, but are not limited to, preparing tax returns, calculating tax liability, proposing tax planning strategies, preparing reports, responding to tax assessments, and so on. These are some of the duties that a tax consultant might perform. However, it ultimately depends on the agreement reached between the tax advisor and the entity.
The Role of Tax Consultants for UAE Businesses
A tax consultant typically can do anything relating to taxation. However, it is always recommended to agree beforehand about the cost and timing of every element. In the UAE, the role of tax consultants is very important. This is mainly because of the high demand for tax services in recent times as the UAE imposes corporate tax. Let’s discuss some of the key roles of a tax advisor for a UAE business.
Tax Planning:
One of the key tax matters for an organization is tax planning and formulating tax strategies. This requires advanced knowledge and training in the relevant tax laws. The primary aim of a tax consultant is to ensure the formulation of tax-efficient strategies for the business. The planning should align with the organization’s goals and objectives. Furthermore, the tax advisor also takes into account the business structure, industry, and transactions to look for opportunities to optimize tax liabilities. However, compliance with the UAE tax laws is the key.
Compliance:
One of the key roles of tax advisors is to assist businesses in fulfilling their obligations under UAE laws. They should ensure the timely and error-free filing of tax returns, including VAT returns and corporate tax returns. Furthermore, they also make sure that other tax requirements are fulfilled of the State.
Tax Audits and Assessments:
Tax consultants play a vital role in tax audits and tax assessments by the UAE authorities by directly representing businesses. If they are not representing, they can prepare businesses for audits, respond to queries, and resolve disputes related to tax assessments. This can take a lot of time and thus create a hassle for a business. Therefore, hiring a tax consultant keeps the business running smoothly, apart from any legal tax matters.
VAT Advisory:
Value-added tax (VAT) has been in place since 2018 in the UAE. Tax advisors play a critical role in helping businesses comply with VAT regulations. From VAT registration to filing and other matters, including refunds, a tax consultant can assist in various matters.
Tax Optimization:
Tax consultants identify opportunities for tax optimization and cost savings through various tax planning strategies, deductions, credits, and incentives available under UAE tax laws. They help businesses maximize their tax efficiency while remaining compliant with legal requirements.
Conclusion:
The role of tax consultants is very important for the overall business community in the UAE. Not only in the UAE, tax advisors play an important role in the global business world. They primarily support the business by keeping them compliant with the tax laws. Furthermore, they play a vital role in the overall tax matters of an organization. From filing tax returns (VAT and corporate tax), optimizing tax systems and processes, and giving support in tax planning, tax advisors keep the overall business free from legal panic. Therefore, businesses should consider consulting a tax advisor.
Creative Zone Tax & Accounting (CZTA):
Tax planning and optimization are the needs of the hour in the UAE. This is successfully achievable through a qualified and experienced tax consultant. We have a team of tax experts who have years of experience and education in the taxation field. If you are anywhere in your business cycle, we can assist you with any of your tax matters. Contact us and book a consultation now.
