The United Arab Emirates has long been recognized as a global business hub thanks to its strategic location, investor-friendly regulations, and robust infrastructure. With the introduction of corporate tax in UAE (effective June 2023), businesses are now required to comply with new taxation policies under the Federal Tax Authority (FTA).
This shift has raised an important question for entrepreneurs and companies alike: Can a tax consultant in UAE prepare corporate tax returns?
The answer is a clear yes, but let’s dive deeper into why tax consultants are vital, how they assist with compliance, and what role they play in the bigger picture of business setup, including how to start a company in Dubai.
Understanding Corporate Tax in UAE
Corporate tax in the UAE is a federal tax on the profits of businesses, introduced to strengthen transparency and align with global tax standards. Here are some key highlights:
- Standard corporate tax rate: 9% on taxable income exceeding AED 375,000.
- Income below AED 375,000: 0% tax (to support startups and SMEs).
- Free zone businesses: Eligible for 0% tax incentives if they meet certain conditions.
- Regulated by the Federal Tax Authority (FTA).
This means businesses now need to maintain accurate financial records, calculate taxable profits, and submit timely corporate tax returns to remain compliant.
Role of a Tax Consultant in UAE
A tax consultant is a licensed professional who helps businesses navigate the complexities of tax compliance. In the UAE, their responsibilities include:
- Assessing tax liability under new corporate tax laws.
- Preparing and filing corporate tax returns with the FTA.
- Advising on tax planning and optimization.
- Assisting with audits and FTA queries.
- Ensuring compliance to avoid fines and penalties.
For businesses, especially those unfamiliar with UAE’s evolving regulations, working with a tax consultant ensures smooth compliance and reduces financial risks.
Can a Tax Consultant Prepare Corporate Tax Returns in UAE?
The Legal Framework
Yes, tax consultants in UAE are authorized to prepare and file corporate tax returns on behalf of businesses, provided they are registered with the FTA as Tax Agents or working under licensed advisory firms like BPO Consult.
The Process
A tax consultant typically follows this process for preparing corporate tax returns:
- Collecting Financial Data: Reviewing audited accounts, invoices, and bank statements.
- Assessing Deductibles: Identifying eligible expenses, exemptions, and reliefs.
- Calculating Taxable Income: Applying the 9% corporate tax rate where applicable.
- Filing Corporate Tax Returns: Submitting the return through the FTA portal before deadlines.
- Advising on Compliance: Guiding businesses on record-keeping and future obligations.
Benefits of Hiring a Tax Consultant for Corporate Tax Returns
1. Expert Knowledge of UAE Tax Laws
Corporate tax is new in the UAE, and regulations may evolve. Tax consultants stay updated with FTA guidelines, ensuring businesses remain compliant.
2. Time and Cost Efficiency
Instead of dedicating internal resources to tax preparation, businesses can outsource to experts, saving time and minimizing errors.
3. Avoiding Penalties
The FTA imposes penalties for late or incorrect filing. A tax consultant ensures deadlines are met and reports are accurate.
4. Strategic Tax Planning
Tax consultants don’t just file returns, they also advise on tax optimization strategies, maximizing savings within legal frameworks.
5. Seamless Business Setup Integration
If you’re exploring how to start a company in Dubai, hiring a consultant from day one ensures your business structure is tax-efficient and compliant.
The Connection Between Business Setup and Corporate Tax
When planning how to start a company in Dubai, corporate tax should be factored into your strategy. For example:
- Choosing the right jurisdiction (mainland vs. free zone) impacts tax obligations.
- Selecting a business structure determines tax liability.
- Setting up proper accounting systems from the start simplifies tax filing later.
A tax consultant not only handles ongoing compliance but also advises on the most tax-friendly setup for your company in Dubai.
Common Challenges Businesses Face with Corporate Tax
- Misunderstanding tax exemptions for free zones.
- Failing to maintain proper records for 5+ years.
- Incorrect calculation of taxable profits.
- Late filing of returns leading to penalties.
- Overlooking cross-border transactions subject to tax rules.
Working with a professional consultancy like BPO Consult helps businesses overcome these challenges with ease.
How BPO Consult Can Help
At BPO Consult, we go beyond preparing corporate tax returns. Our services include:
- Full corporate tax registration and compliance support.
- Preparation and submission of accurate corporate tax returns.
- Tailored tax planning aligned with your business model.
- Advisory on VAT, auditing, and accounting solutions.
- Long-term strategies for companies exploring how to start a company in Dubai.
We combine technical knowledge with practical business insights, ensuring your financial management is seamless and future-ready.
Final Thoughts
So, can a tax consultant in UAE prepare corporate tax returns? Absolutely. In fact, partnering with a tax consultant is one of the smartest moves for businesses in today’s evolving UAE tax landscape.
With corporate tax now a legal requirement, expert guidance ensures compliance, efficiency, and strategic growth. Whether you’re already operating or just exploring how to start a company in Dubai, the right consultant makes all the difference.
At BPO Consult, we’re dedicated to simplifying tax, accounting, and financial management so you can focus on what truly matters, growing your business in the UAE.