Tax Agent Services in UAE: On the 11th of June 2017, the landmark Federal Law Number 7 of 2017 was released to the whole nation of the UAE by the President himself, His Highness Sheikh Khalifa bin Zayed Al Nahyan. This law was all about the value-added tax (VAT) procedures that are now being implemented in the country. This is considered to have laid the foundations of the said tax system that is now bringing good effects to the country. In addition, the Federal Tax Authority (FTA)’s role in this whole new era is explained in a detailed manner for people to know the new government department that handles the tax system in the UAE.
The tax system has brought with it new things that people in the business industry need to learn for them to keep up with the system. In knowing these things, it is easier for them to deal with and handle the things that need to be understood in this new era although it has been months since the VAT implementation in UAE. There are more to know other than VAT procedures and VAT registration in UAE that business people need to be aware of to continually survive. One of them is knowing the existence of Tax Agents. These people are defined in the law itself, and the information is laid down by the government themselves.
Tax Agent Services in UAE Definition and Role
Pursuant to Article 1, Chapter 1 of the referenced legislation, a Tax Agent is explicitly defined as “an individual or entity duly registered in the official register maintained by the Tax Authority, authorized to represent a third party in dealings with the Tax Authority and to assist in meeting their tax obligations and exercising their associated legal tax rights.”
In essence, the legal text designates tax agents as accredited professionals registered with the Federal Tax Authority (FTA). Their primary role is to facilitate the tax affairs of VAT-registered businesses. These businesses may engage a Tax Agent to act as their representative in communications and transactions with the FTA, particularly when facing challenges or complexities related to tax matters.
Scope of Responsibilities
Tax Agents are equipped to assist businesses in timely fulfilling their tax obligations, thereby mitigating the risk of incurring financial penalties. In addition, they provide essential guidance to taxable individuals about their respective rights within the tax framework.
In summary, Tax Agents serve a critical function by enabling taxable entities to comply with government-mandated regulations, thus ensuring the effective operation of the national tax system. Their expertise contributes to the prevention of tax-related discrepancies or violations, thereby maintaining the integrity of each client’s tax records.
Role and Responsibilities of a Tax Agent: A Comprehensive Overview
When appointed by Taxable Entities, Tax Agents are entrusted with a set of defined duties and responsibilities, aimed at ensuring compliance with legal obligations and safeguarding the confidentiality of sensitive information. Below is an elucidated list of these responsibilities:
- Regulatory Compliance: Ensure that Taxable Entities fulfill their tax obligations in accordance with relevant laws and the contractual agreement established between both parties. This encompasses proper tax filing, timely payments, and adherence to all other tax-related requirements.
- Confidentiality and Data Protection: Safeguard the privacy of Taxable Entities as well as the company’s proprietary information throughout the tenure of service as a Tax Agent. All handled information is to be treated as classified and confidential.
- Ethical Integrity and Legal Adherence: Vigilantly decline any proposals or plans that compromise the integrity of the national tax system or contravene any existing laws within the jurisdiction. The foremost duty is to uphold the rule of law and maintain ethical standards.
- Information Disclosure to Authorities: Submit information, documents, records, and data related to Taxable Entities to the Federal Tax Authority (FTA) exclusively when explicitly requested, as stipulated under Article 15, Part 2, Chapter 3 of the Value-Added Tax (VAT) Law.
It is imperative to note that the Federal Tax Authority is vested with the authority to utilize any documents or records related to a Taxable Entity for the purpose of conducting tax audits.
Designating a Certified Tax Representative in the United Arab Emirates
In accordance with Article 15, Section 2, Chapter 2 of the relevant legislation, individuals or entities subject to taxation are permitted to designate Registered Tax Agents for the purpose of direct liaison with the Federal Tax Authority (FTA). Should the tax-obligated party notify the FTA of the termination or cancellation of their agreement with a designated Tax Agent, the latter is subsequently stripped of the authorization to engage directly with the FTA on behalf of the former.
Engaging a Registered Tax Agent Services in UAE, who is regulated by the FTA and meets its stringent qualification criteria, significantly streamlines the process of addressing tax-related issues for businesses registered for Value Added Tax (VAT). If you are seeking expert VAT consultancy services in Dubai or any other city across the UAE, we invite you to reach out to MP Elites Consulting for a complimentary consultation. As an FTA-regulated and authorized agency, we are equipped to manage your tax responsibilities and act as your direct representative to the FTA when required.