Tax Consultants in Dubai UAE

Tax Consultancy Services in UAE

How do Tax consultants add benefits to a business in UAE?

Hiring a tax consultant is a preferable choice since it makes a corporate entity knowledgeable of the country’s tax rules. Tax professionals assist in the preparation of tax-related matters. They benefit your company by doing the following:

• Lower your tax liability by staying up to date on the latest tax amendments
• Assisting you in deciding whether the VAT system is best for you – voluntary or mandatory
• Analyzing the tax advantages and disadvantages of your company’s activities
• Implementing a metrics-based evaluation to assess industry trends and its tax implications

Different Categories of Tax in UAE

The United Arab Emirates (UAE) has been one of the foremost appealing destinations for budding firms, mid-sized firms, and major corporations because of its 0% personal income tax as well as a multitude of business permits and operations permitted in the free zones and cheap import tariffs. The UAE government has always made an effort to make the country’s tax environment as attractive and reasonable. The United Arab Emirates has produced different tax categories over period.

I. CORPORATE TAX

For the fiscal year beginning on or after June 1, 2023, the United Arab Emirates has decided to impose a corporate tax on business profits. The proposed UAE corporate tax rates are as follows:

•  There is no tax on taxable income up to AED375,000
•  Taxable income above AED375, 000 is subject to a 9% tax rate

Non Taxable Income & Exemptions

•  Businesses that engage in commercial activities and the exploitation of natural resources
•  On domestic and cross-border payments, there will be no withholding taxes.
•  Individuals who own shares or other assets in their own name and get dividends, capital gains, or other forms of income.
•  Individuals who have bank accounts or savings plans earn interest and other income.
•  An individual’s earnings are determined by their salary or employment income.
•  Dividends and capital gains are generated by qualifying shareholdings in a UAE firm.
•  Intra-group transfers and reorganizations that qualify
•  Individuals who do not require a company license or license to invest in real estate in the UAE can do so in their personal capacity.

II. VALUE ADDED TAX (VAT)

VAT (Value Added Tax) which was established on January 1, 2018 is a sort of indirect tax that is collected on the purchase and sale of goods and services. The UAE government’s decision to impose VAT is part of a larger approach to minimize the nation’s reliance on oil and petroleum products as a source of funding, and the VAT rate is 5% on a range of products.

Zero rated supplies include:

•  Medical Supplies and Equipment
•  Trading in gold, silver, and platinum
•  Natural Gases and Crude Oil
•  Residential sold for the first time.
•  Healthcare
•  Exports, as well as international transportation
•  Education

Exempt supplies include:

•  The provision of certain financial services as defined under VAT legislation
•  Residential real estate
•  Vacant land
•  Passenger service in the local area

III. EXCISE TAX

Excise tax is a type of indirect tax levied on things that are often damaging to people or the environment. The following items must be categorized as excise commodities: –

•  Tobacco-based items
•  Carbonated drinks excluding unflavored aerated water
•  Electronic smoking devices and equipment
•  Drinks that have been sweetened.
•  An energy drink is any beverage that is promoted or sold as such and includes stimulator ingredients that provide mental and physical stimulation.

The following items are free from excise tax in the UAE:

•  Standard 654 of the GCC Standardization Organization recognizes beverages for particular dietary requirements.
•  Standard 1366 of the GCC Standardization Organization recognize beverages consumed for medicinal purposes.
•  Beverages that are ready to drink (with at least 75 percent milk or milk substitutes)
•  Baby formula or baby food

In the UAE, the excise tax percentages for qualifying items are:

•  Tobacco items receive 100%
•  100% on e-cigarettes and e-cigarette accessories
•  For carbonated beverages, 50% is the tax
•  50% off items containing added sugar or other sweeteners
•  100% for energy drinks

IV. TOURIST TAX

Tourists must pay a tourist tax at eateries, hotels, hotel apartments, and resorts across the country. In the UAE, various facilities may levy one or more of the following taxes:

•  10% off the room rate
•  Municipal fees are 10%
•  The service charge is 10%
•  The Tourism Dirham Fee was implemented in Dubai in 2014, and it is levied by hotels, hotel flats, guest houses, and vacation homes in the emirate. The Tourism Dirham Fee is payable per room per night and varies from AED 7 to AED 20, depending on the hotel’s star rating.
•  The city tax (varies from 6% to 10%)
•  The tourism charge is 6%.

Tax Consultancy Services in the United Arab Emirates at a Reasonable Rate!

Get one-stop guidance with expert tax consultancy services in the UAE, which are as follows:

• VAT Consultation in UAE

  We deliver efficient VAT consultation services to help the business organization with the simple operation of a firm, based on our in-depth knowledge in interpreting and implementing VAT.

• VAT Checkup in UAE

  HLB HAMT – A tax consultant in Dubai uses a hands-on method for conducting a thorough VAT Health check of company transactions and evaluations of ongoing practices and methods from a VAT taxation perspective.

• VAT Registration in UAE

  Businesses must follow tight VAT requirements while applying for VAT in Dubai. According to VAT laws, if a company’s annual income reaches AED 375,000, it must register for VAT. If a company’s yearly revenue is between AED 187,500 and AED 375,000, it is optional to register under UAE VAT law. Furthermore, if the value is less than AED 187,500, the business is exempt from this regulation’s registration requirements. HLB HAMT provides VAT registration services in UAE

• Tax Advisors & Business formation

  For all forms of tax-related concerns, businesses must designate a qualified tax agent. In Dubai, HLB HAMT can provide you with an in-house tax adviser that is both dependable and faithful.

• VAT Return Filing in UAE

  VAT returns must be filed monthly or quarterly, depending on the size of the business. Customers can rely on HLB HAMT to assist them with submitting VAT returns in UAE on time and accurately, as well as walk them through the process of resolving outstanding tax liabilities.

• VAT Implementation in UAE

  For businesses, knowing the fundamentals of VAT is essential. Adherence to VAT regulations is never a simple task. HLB HAMT specializes in VAT implementation in UAE. We support the customer by providing businesses with VAT-related advice and training.

• Advisory on VAT Transactions

  VAT transaction advisory services are a type of service in which a VAT expert evaluates specific business transactions to see if VAT is applicable. This lets them look at how VAT impacts businesses and identify what changes they need to make to their accounting systems and business operations.

Importance of tax consultants in UAE

•  Assist you with tax returns and audited financial statements
•  Detailed instructions on how to properly calculate tax payments
•  Design strategies for avoiding fines and interest on your tax returns in the future
•  Assist you renew your company’s rights and permits as well as performing audits
•  Provides latest information on any updated tax policy matters
•  Assists in the creation of tax-adjusted balance sheets and the handling of tax concerns

Why choose HLB HAMT for your Tax Consultancy Services in Dubai?

Our skilled professionals will assess both your personal and business tax requirements. Then we’ll create a financial strategic plan that’s tailored to your company’s needs. Our personnel have the skills and knowledge they need to comprehend the taxation system. Furthermore, we provide services for our customers using sophisticated tools, and methodologies.

Frequently Asked Questions– Tax Consultant in Dubai

1. What does it mean to conduct a tax audit in UAE?

   The FTA conducts a tax audit in UAE to verify if the company is complying with UAE VAT laws and regulations, as well as to ensure that any tax bills are paid correctly.

2. Why should you engage a tax consultant in the UAE?

   Employing a tax consultant in the UAE can assist your company in examining tax transactions, strictly adhering with UAE VAT laws, and assisting in tax planning.

3. What role does HLB HAMT play as a tax consultant in tax matters?

   HLB HAMT, as a leading tax consultant in UAE helps with VAT registration, VAT advisory and assistance for filing VAT returns in the UAE, performing tax audits, submitting VAT voluntary disclosure Form 211, and VAT return filing.

4. What is the role of a tax agent?

   A Tax Agent is an individual who is enrolled with the FTA and who can be designated by a Taxable Person to advocate him or her before the FTA and assist in the fulfilment of his or her tax duties and tax entitlements.

5. What is the purpose of the Tax Agent Register?

   All issues relating to a Tax Agent’s professional behaviour shall be registered in a tax agent register, which is kept by the FTA.

6. What is the normal tax rate in the United Arab Emirates?

   Personal income tax is not levied in the UAE, and the standard value added tax rate is computed at 5%.

7. When was the UAE’s excise tax implemented?

   The Federal Decree-Law No. (7) of 2017 on Excise Tax entered into force on October 1, 2017.

8. What exactly is a tax?

   Governments use taxation to produce cash to pay for public services. There are two sorts of taxes:

   • Direct Tax
   • Indirect Tax

9. How is tax beneficial to a nation?

   Tax will offer a new stream of revenue that will help to ensure that significant public services are provided in the future. It will also assist the government in achieving its goal of lessening reliance on oil as a revenue generator.

10. What is the federal tax authority?

    In the United Arab Emirates, the Federal Tax Authority is in charge of managing, administering, and enforcing federal taxes.