Roles and Duties of Tax Agents and a Guide to Find the Best One
Every company has a finance department taking care of all their expenses. Although the primary role of this department is to deal with finances, every expert plays a different role in the company. The most common people in a company are tax agents and accountants. People often mistake one for the other, but both of these professionals play different roles.
Hiring accountants or tax agents in Dubai is a critical decision. This is why you must pay attention to the process. Hiring experts for the financial department is not an easy task, you have to understand your requirements to choose the right candidate. Companies are required to pay taxes and with the help of trusted tax agents, you can ease this process.
These agents will help you calculate the right amount and pay taxes on time. Being clear about how an accountant differs from a tax agent will help you find the right agent for yourself. Through this guide, we will help you understand accountants and tax agent services in the UAE and help you find the right one for your company.
How an accountant differs from a tax consultant in Dubai
Here are some of the most notable distinctions between a tax agent and an accountant.
Tax agents focus on the past
The job of a tax agent begins after the work of an accountant is done. Since taxes are paid at the end of the financial year, the agents look over all the past returns before filing returns. Thus when you enlist to get tax agent services in Dubai, the agents will ask for all your previous records and returns to help you calculate the correct taxes.
These agents will mark all your accounts and classify them in relevant categories before calculating taxes. The agents are also well-versed in tax law and will use their years of knowledge and understanding of the legal system to ensure all the expenses are done legally.
A Reputable tax agency in the UAE houses several agents, and all of them work in harmony to cross-check your financial records. In addition to calculating the acerfcurate tax amount, they will also ensure every receipt and expense head is verified, and you possess the correct invoices. This prevents any misunderstanding and also prevents and trouble in case you are audited.
Accountants focus on future
Unlike tax agents in Dubai, accountants work in the present, but they focus on the future. Every accountant works as a business strategist as well. These accountants will help you get the best returns and minimize your tax amount. An accountant will also review past data, and use it to create a plan for the future.
You can enlist their help to ensure generate a financial plan for your company and achieve financial stability. Accountants focus on creating reports and tracking your firm’s expenses for maximum profits. An accountant also works with tax agents in Dubai to ensure all your available resources are used optimally and you get the best returns.
Not only will they help you maximize your revenue but they will also assist you in seizing investment opportunities to increase your overall wealth. Accountants also work closely with registered tax agents to help them make sense of all the financial records and help the company stay financially sound in the long run.
They have different qualifications
Both tax agents and tax accountants deal with the company’s accounts, but they perform different roles. A UAE tax agent is tasked with calculating the tax amount, whereas a tax accountant keeps track of all company’s accounts to make the process of filing taxes easier. Even though both these professionals work in the same field, they hold different qualifications. Tax agents in Dubai don’t need a degree to offer their services. They must have completed a taxation course and can work as licensed tax agents. However, a tax accountant will be required to have a relevant accounting degree and a master’s as well.
Duties performed by registered tax agents
Every agent or tax consultant in Dubai has a set of duties that they are expected to perform. Although tax agents can perform their responsibilities without a degree, most agents are also public accountants by nature. These agents specialize in tax accounting and are well-versed with the tax law in their country and different countries as well.
All registered tax agents have the authority to represent taxpayers. Thus, they can work on behalf of an individual or a full-fledged company. Most of these agents work with specialized authorities such as ATO. Tax agents are allowed to assist businesses in all matters related to tax. They help in everything from filing taxes to providing advice on tax returns and payments.
Here are some of the most notable duties performed by tax agents in Dubai:
Providing advice to senior stakeholders in a business or organization about liabilities, entitlements, and obligations of entities under the country’s tax law.
Helping companies calculate and pay corporate tax in the UAE on time.
Representing clients when they deal with the tax body of the country.
Assessing and formulating statements to assist an organization in tax calculations that reflect the liabilities of a business.
Reducing tax liabilities under the law to help businesses save more money
Ensuring that the company pays an accurate amount of corporate tax in Dubai to avoid any hefty fines.
Help new companies with the process of tax agent registration in the UAE.
Why should you hire a tax consultant in Dubai?
Hiring a tax agent for yourself or your company can be beneficial in more than one way. These agents possess experience and expertise in tax law. Hiring them will mean an expert partner on your side who will ensure all your taxes are paid on time.
Not only this, but tax agents in Dubai will also help new companies understand the law in the country and assist with registration as well. They will help them understand the difference between corporate tax and income tax and ensure they file both amounts accurately.
If you are wondering if hiring a tax agent is worth it, here are some top benefits of hiring registered tax agents.
One of the most important benefits of hiring a trusted UAE tax agent is saving time. Since companies have a lot of burden and workload to take care of delegating your tax return work will buy you a lot of time. The senior management will not have to spend a lot of time calculating the amount and will be able to focus on other aspects of the business. An experienced agent will take care of the taxes. This will not only reduce your burden, but it will also ensure your stakeholders are stress-free as the company is operating under the law.
Another way a tax consultant in Dubai helps you is by reducing stress. An agent or consultant will provide the best advice to your company, this means you will constantly have an expert looking out for you. Thus, you will not have to worry about paying corporate tax or missing the deadline. It will help you focus on your core business activities and help you take them further. Registered tax agents will also be a plus in the eyes of your stakeholders, as they will rest assured that the company's finances and taxes are being taken care of by an expert. So, if you want to reduce your burden, hiring a trusted tax agent will be the best step for you and your business.
Timely tax filing
Missing tax deadlines is not only a financial burden, but it also affects the credibility of your company. Thus, you should aim to file your taxes accurately and on time. Tax agents in Dubai will make this task easier for you. They will calculate the accurate tax amount after reviewing the company’s books and records. Plus, they will also be aware of all the deadlines and will ensure that your corporate tax is filed before the last date. It will not only prevent hefty fines but will also be a plus point for your investors and stakeholders. Timely tax filing will also help you maintain goodwill in the market and gain the trust of your customers and investors as a reliable company.
Hiring a UAE tax agent is far less complex than trying to do your taxes by yourself. Tax filing is not easy, you will have to calculate the accurate amount and ensure no bills or records are missed. Even the slightest error could mean wrong tax filing and it will attract a lot of problems. This is why relying on an expert is the best way to go. Both tax agencies and independent consultants offer expert tax agent services in the UAE, you can either hire them at the end of the year to do your taxes or get them in-house to ensure all your records are maintained and reviewed throughout the year. This will simplify things for you and your company allowing you to make decisions even in complex situations.
Accurate amount calculation
Paying the right taxes is of utmost importance. It is not only true for a company but for an individual as well. This is why you will need the best tax agent services in Dubai. Most individuals try to file their taxes by themselves and sometimes the amount calculation is incorrect. It could cause trouble for you in the future. This is why you should get your tax returns and amounts verified by registered tax agents. They have a deeper understanding of accounts and tax laws and will be able to help you with your taxes. A company must get an expert agent onboard to ensure the correct amount and proper tax filing.
What to look for when hiring a tax consultant in Dubai
Hiring an independent consultant or a full-fledged tax agency in Dubai will be your personal decision. However, before you decide to get someone onboard, here are a few things you should look out for.
If you are hiring a tax consultant in Dubai make sure they are registered with the tax practitioner board of the country.
In the case of a tax agency in Dubai, make sure all the agents are professionally accredited and registered with the board as well.
You should also ask the agents if they will help you with tax planning.
Make sure the UAE tax agent has extensive knowledge about tax calculation and is aware of the tax law in your country.
Ensure you get the best and most comprehensive tax agent services in Dubai.
Also, check if they are open to working in-house with you if you plan on bringing a tax agent to your firm full-time.
Ensure you can build a good working relationship with your tax agents in Dubai.
Verify that they have a thorough understanding of corporate tax in Dubai and they can help you with filing taxes on time.
Hire the best tax agent or tax agency in the UAE
A tax agent will help you in many ways. Not only do they help with filing taxes but also assist with proper planning to take your business to the next level. With the help of tax agency services in Dubai, you can reduce your workload and ensure the utmost accuracy in your business. Hiring a tax agent or an agency will be a great decision for you and your firm. Make sure you look in all directions and choose an agent who understands your business and will help you with your specific queries. You will find a lot of tax agents in Dubai and choose the best one will transform your business in the best manner.
What services do tax agents typically provide?
They work with you to make sure you get the best possible tax refund. They will also tell you about the fee that can be deducted from your taxes. Registered tax agents know how to file tax reports for both people and businesses.
How can a tax agent help with tax planning?
A tax agent in the UAE can help with tax planning by reviewing your financial situation and identifying opportunities to minimize your VAT liability. They can advise on VAT-efficient investments, deductions, and credits, and help you structure your finances in a way that maximizes VAT benefits.
How do tax agents charge for their services?
Tax agents in the UAE may charge a fixed fee, an hourly rate, or a percentage of the VAT refund or savings they generate for their clients. The fee structure may vary depending on the complexity of the VAT situation and the services required.
What are the benefits of using a tax agent?
They help with tax compliance, legal tasks, keeping track of records, and creating and filing VAT returns. They enable and direct taxable persons to execute VAT compliance activities. And yeah, don't forget how they help you deal with FTA after you've been penalized.
How do I choose a tax agent?
When choosing a tax agent in the UAE, it's important to consider their qualifications, experience, reputation, and fees. Look for a registered tax agent with a good track record of working with clients in the UAE and with knowledge of the UAE's tax laws and regulations. You can also go through our website we have a list of best tax agents and agencies.
How can a tax agent help me with my business taxes?
A tax agent in the UAE can help with your business taxes by ensuring compliance with VAT laws and regulations, identifying VAT-saving opportunities, advising on VAT-efficient business structures, and assisting with VAT planning and reporting. They can also represent your business in case of a VAT audit or dispute.