What is a Tax Agent in the UAE?

With the introduction of Value Added Tax (VAT) and Corporate Tax in the UAE, compliance with the Federal Tax Authority (FTA) has become a top priority for businesses. While some companies manage their tax affairs independently, many choose to appoint a Tax Agent — a qualified, FTA-approved professional who represents and assists them in all tax-related matters.

A Tax Agent is more than just a consultant. They are officially registered with the FTA and legally authorised to act on behalf of businesses or individuals, ensuring accurate filing, compliance, and communication with tax authorities.

Definition of a Tax Agent

According to the UAE Tax Procedures Law (Federal Law No. 7 of 2017), a Tax Agent is an individual:

“Registered with the Federal Tax Authority and authorised to act on behalf of another person in respect of their tax affairs.”

This includes VAT, Corporate Tax, Excise Tax, and other tax obligations applicable in the UAE.

Essentially, a Tax Agent bridges the gap between the FTA and taxable persons, ensuring that all obligations are fulfilled correctly and efficiently.

Roles and Responsibilities of a Tax Agent

A Tax Agent’s responsibilities extend beyond filing returns — they cover the full spectrum of compliance and advisory support.

Key duties include:

Tax Registration and Deregistration

• Assisting businesses in registering for VAT or Corporate Tax.

• Managing amendments or deregistration when required.

Preparation and Filing of Returns

• Preparing and submitting accurate VAT and Corporate Tax returns.

• Ensuring timely filing to prevent fines and penalties.

Tax Calculations

• Calculating taxable income under Corporate Tax by adjusting accounting profits.

• Applying exemptions, deductions, and reliefs where eligible.

Advisory Services

• Advising businesses on Free Zone benefits, Small Business Relief, and other exemptions.

• Providing tax planning guidance to optimize compliance and efficiency.

Record Keeping

• Ensuring all accounting records, invoices, and supporting documents are properly maintained for the FTA’s required duration (usually 5 years).

Representation Before the FTA

• Acting on behalf of businesses during FTA audits, assessments, or inquiries.

• Communicating directly with the FTA to resolve disputes or clarifications.

Compliance and Risk Management

• Reviewing a company’s tax processes to minimize the risk of non-compliance.

• Recommending best practices to avoid penalties.

How to Become a Tax Agent in the UAE

Not everyone can become a Tax Agent. The FTA has established strict eligibility requirements to ensure only qualified and trustworthy professionals represent taxpayers.

Minimum Requirements:

Education

A bachelor’s degree in taxation, accounting, or law, or an equivalent professional qualification.

Experience

At least three years of practical experience in tax, accounting, or law.

Language Skills

Fluency in Arabic and English, both spoken and written.

Examination

Successful completion of the FTA Tax Agent Exam.

Good Conduct

A clean criminal record and no history of misconduct.

Professional Indemnity Insurance

Valid insurance to protect clients and ensure accountability.

Once approved, the FTA issues a Tax Agent Approval Number (TAAN), and the agent is added to the official FTA Tax Agent Register. Registration must be renewed every three years.

Tax Agents and VAT in the UAE

Tax Agents play a critical role in helping businesses comply with VAT regulations. Their VAT-related responsibilities include:

• Registering and amending VAT records.

• Preparing and filing quarterly VAT returns.

• Managing VAT refund applications.

• Representing clients during VAT audits or inquiries.

• Advising on input VAT recovery, zero-rated, and exempt supplies.

Example:
A small retail business receives a request from the FTA to clarify discrepancies in its VAT filings. By appointing a Tax Agent, the business ensures that a qualified professional handles communication with the FTA, reducing risk and avoiding penalties.

Tax Agents and Corporate Tax in the UAE

With Corporate Tax effective from June 2023, the role of Tax Agents has expanded significantly. They now assist with:

• Registering for Corporate Tax and obtaining the Corporate Tax Registration Number (CTR).

• Calculating taxable income after adjustments to accounting profits.

• Filing annual corporate tax returns within 9 months of year-end.

• Advising on Small Business Relief, Free Zone incentives, and group relief.

• Representing clients during corporate tax audits or reviews.

Example:
A company in Dubai earning AED 2.5 million annually is unsure which expenses qualify as deductions and whether it meets Small Business Relief criteria. A Tax Agent ensures accurate calculations, correct filing, and full compliance with FTA guidelines.

Why Businesses Appoint Tax Agents

Although businesses can manage tax affairs independently, appointing an FTA-registered Tax Agent offers multiple advantages:

• Expert Guidance: Deep knowledge of UAE tax laws and FTA procedures.

• Time Savings: Focus on operations while professionals manage compliance.

• Reduced Errors: Accurate filings minimize the risk of costly penalties.

• Representation: The agent communicates directly with the FTA on the client’s behalf.

• Peace of Mind: Assurance that tax matters are handled by certified experts.