Tax Agency Registration in UAE

Tax agency refers to the legal entities approved by the Federal Tax Authority (FTA) to represent business entities and other entities in tax related issues. Tax agencies are the key responsibility holders in UAE for the proper implementation of tax laws such as corporate tax, Value Added Tax (VAT) and Excise Tax. They are allowed to advise on tax issues, complete tax returns and offer audit assistance while adhering to the FTA’s professional guidelines.

Requirements To Get Registration as A Tax Agency

To operate as a tax agency in the UAE, certain conditions must be met: 

• Business or Trade License: –The applicant must be holding an adequate business or trade license from the Department of Economic Development (DED) that allows the applicant to practice like a tax agency.

• Professional Indemnity Insurance: –The applicant is then obliged to have professional indemnity insurance, which is to cater for the tax agency business most importantly. This safeguards the agency most importantly from professional negligence liability in a certain case or negligence in practice.

Steps Involved in Tax Agency Registrations

These conditions assist in the preservation of the standing and credibility of tax agencies which intend to offer their services in the UAE while making sure that the agency in question is properly accredited and sufficiently insured. Looking at the process of registering for tax agency license, the following information will be useful:

• Submit Application to the FTA:- The applicant shall apply for the tax agency registration through an online platform of the FTA, with the relevant document, like the trade license and proof of the professional indemnity insurance.

• FTA Review and Approval: – The FTA will then examine the submitted application to check that all the requirements have been fulfilled. This entails having the trade license checked for legitimacy, and having the professional indemnity insurance determined to be sufficient.

• Tax Agency Number (TAN): – If the registration and the documents are approved, then FTA will provide the registered tax agency a unique identification number known as Tax Agency Number (TAN). This TAN is essential for the agency to function and superintend the VAT taxable persons under the UAE VAT law.

Importance of Registering as a Tax Agency

Tax agents to help the businesses to ensure tax compliance in line with the UAE VAT laws, it is a requirement that the tax agency be registered with the FTA. Besides establishing the legal identity, registration serves as evidence to the clients of the legal compliance of the agency thus legalizing its ability to offer tax related services. Once registered, the tax agency is eligible to:

• Advise the taxable persons in regard to the provisions of the FTA
• Submit VAT returns on behalf of businesses
• Provide VAT-related advisory services
• Support FTA Tax audits and Tax inquiries

It is obligatory for a firm with an intention to deliver professional tax services to have the registration as a tax agency in UAE. As a result of adhering to the FTA’s requirements as to the licenses and having the professional indemnity insurance, the tax agencies can represent clients in all affairs of tax concern in UAE law comprehensively.

Frequently Asked Questions (FAQ)

1. What is a Tax Agency?

This consists of giving advice on tax issues, filing tax returns and assisting clients to sort issues with the FTA..

2. What are the Registration requirements for a UAE tax agency?

The primary requirements include:

• Having a valid business or trade license under which tax agency is to be operated.
• Having professional indemnity insurance which targets the tax agency business.

3.What is the process time for the tax agency registration?

The time it takes for registration as a tax agency varies depending on the time taken by the applicant to submit the documents that are required as well as the time taken by the FTA to approve the given application. Ordinarily, it takes the FTA a few weeks to consider applications that are submitted to it.

4.How To Define TAN (Tax Agency Number)?

FTA gives a Tax Agency Number (TAN) as a reference number to a registered tax agency or a member. This number is mandatory for the tax agencies to legally fulfill the requirement of representing businesses and individuals involved in some or the other tax issue in the UAE.

5. Can an individual register as a tax agency?

Only legal persons (i.e. Firms) are allowed to enjoy the status of a tax agency. Any person who wants to engage in providing services which are related to taxes should be a registered tax agent, and practice under the licensure of a tax agency.

6. How to differentiate a tax agency from a tax agent?

A tax agent is an independent person that is legally authorized to handle any matter relating to taxation on behalf of another person. A tax agency on the other hand is the legal body that hires or recruits tax agents to perform these tasks. It is mandatory to the tax agents to work under a registered agency only.

7. Why is professional indemnity insurance required for tax agencies?

It covers the tax agency from any claims that may be as a result of mistakes that the agency makes while offering their services. This insurance is very crucial to help the agency to operate with free cash flows during the occurrence of such things as disputes or claims.

8. Do tax agencies have to renew their registration?

Yes, tax agencies do have to re-register themselves with the FTA over and over again. The plans of renewal also involve making any changes to the business formation or insurance as well as filling payment for renewal fees.