A tax advisor, also popularly known as a tax consultant, is an accounting professional who specializes in the tax code. A tax advisor leverages his/her knowledge to apt advise to the taxpayer organizations and helps them minimize their tax liabilities.
Studies suggest, taxpayers seldom ask for a tax consultant’s credentials and references, before hiring them. Since you share a lot of sensitive information with a tax consultant like minute details of your company’s income, bank accounts, investments and other sensitive information, you must hire a trustworthy professional only.
In UAE, the tax has been introduced just a year and a half back and many individuals and companies do not have a complete awareness of the same. Organizations in the region are coming to terms with the changes systems, and fine tune their internal processes to comply. Many need expert advice, from a tax consultant UAE to fully take advantage of the new tax regime.
Here are a few points that you must consider before availing tax services for your business:
Check the Credentials: Since the introduction of taxes is only a recent development, checking for credentials of the tax consultant may be a doting task. You might, unfortunately, come across inexperienced and incompetent fly by night tax agents claiming to be the best, hence it is important that you do thorough research before appointing a tax consultant. His/her credentials can be checked thoroughly with the help of the references. Even if there is slightest evident of misinformation or bad review you must drop the tax agent and look for a more ardent one with clean records.
A good experience goes a long way: You might come across smart, newly credentialed tax consultants across Dubai, but you must be cautious hiring them since experience counts. Every organization might have a different kind of tax need and it would be a great idea to appoint someone who has expertise in your particular business area. You must speak to different consultancies/agencies and opt for the one who is in business for a couple of years at least. Before you firm up your decision to hire a specific tax consultancy who can help with tax services, speak to at least some consultants. Speaking to the consultants shall give you a clear picture of what to expect.
Multitasker: Choosing a specialist is quite a task, but if you can appoint a consultant who can also help you in planning and advising your finances along with managing the tax concerns of the company then this could be a winning proposition. He/she can always give a balanced suggestion to approach the taxes, hence benefiting the overall financial health of the company. A long term relationship with an ardent tax consultant can prove a lot more valuable over years than you can imagine.
Services for round the year: You might want to opt for a tax consultant who can give you services round the year, instead of only at the time of filling returns. When it comes to taxes you never know when some tax-related issues could crop up, hence professional help round the year can come in handy. The consultant must be well versed with the international tax regime and accounting services. The services he/she offers must be prompt, and the personnel must be ready with your financials/tax computations at any point in time. While it is not possible to estimate or suggest tax savings only in your first few meetings, hire someone who can walk you through a detailed evaluation and can advise on tax-saving possibilities.
Compensation for the services: Since tax advisors in Dubai, are much in demand, most skilled professionals are likely to charge you on an upward sliding scale. The exact remuneration/fee depends on how much the tax consultant is needed to spend on you. Generally, most consultants charge a one time amount for the services rendered but some might ask by the hour or by the tax return completion. You must discuss the compensation aspects in detail before appointing a tax consultant.
Communication skills: A tax agent must be able to explain in detail his plan and expected outcomes. He/she must be willing to take you through all the rules and regulations.
Hire someone who you feel comfortable working with for a fruitful long term relationship.