FAQs

General FAQs

What are your primary areas of specialization?

Our core focus is audit and assurance services. In addition to statutory and external audits, we offer a broad range of advisory services across multiple disciplines, including internal audit, tax and transfer pricing advisory, due diligence, IFRS and technical accounting advisory, business valuation, digital transformation, ESG and sustainability advisory, and financial advisory. 

We serve a diverse portfolio of clients across various industries, with particularly deep expertise in the financial services sector. This includes clients such as financial advisors, asset managers, banks, insurance and reinsurance companies, virtual asset service providers, and family offices. Our specialized industry knowledge enables us to deliver tailored solutions that address the unique challenges of each client segment.

Is your firm registered or approved by the relevant UAE authorities?

Yes, our firm is duly approved and recognized by key regulatory bodies in the UAE, including the Ministry of Economy, Dubai Financial Services Authority (DFSA), and Abu Dhabi Financial Market (ADGM), as well as other major free zones such as DMCC, JAFZA and DAFZA. These approvals authorize us to provide audit and related professional services within these jurisdictions. 

Several of our partners are individually registered and authorised by the relevant authorities, ensuring that our audit opinions are signed by qualified professionals in full compliance with local regulations and standards. All our audit partners undergo a minimum of 50 hours of structured training annually. 

What criteria do you use for client acceptance, and how are your fees determined?

Our client acceptance process is comprehensive and designed to ensure a thorough risk assessment prior to engagement. This process is fundamental to our commitment to maintaining high standards of professional integrity and quality. 

When determining our fees, we adopt a case-by-case approach that considers several factors, such as the nature and complexity of the engagement, the client’s industry, the robustness of governance and internal controls, anti-money laundering (AML) risk, the integrity of those charged with governance, overall risk profile, and estimated time and resources required to complete the assignment. This ensures that our fee structure is transparent and appropriately reflects the scope of work while delivering value to our clients.

What methodology do you follow in delivering your services?

While our methodology is tailored to the nature of services and requirements of each individual engagement, our work typically begins with a rigorous client and engagement risk assessment. This is followed by meticulous planning, a detailed risk assessment, and thorough fieldwork. Each engagement undergoes a multi-layer review before a final conclusion is reached. Our structured approach ensures that each assignment is conducted with the highest level of diligence, accuracy, and professional oversight.

What Quality Standards do you follow? 

We operate under ISQM 1 and maintain a comprehensive system of quality management that governs every aspect of our practice. We are monitored independently by our Quality Team, with oversight from relevant governance committees and independent board members. 

How do you ensure confidentiality and data protection, especially for sensitive financial information?

We place utmost importance on confidentiality and the protection of sensitive client data. Our firm has secure IT systems and well-defined policies designed to safeguard information from cyber threats and unauthorized access. Regular staff training on data protection and cybersecurity is mandatory for all employees. 

Additionally, all employees are required to confirm annually their adherence to our ethical standards by signing an annual declaration. They are also bound by our Code of Ethics, confidentially requirements under HR policies, and the explicit terms of their employment contracts, all of which emphasize the importance of confidentiality and ethical conduct.

How do you stay updated with changes in UAE laws and regulations?

We are accredited as a Platinum Approved Employer by ACCA and as an Approved Employer by ICAEW. These accreditations attest to the quality and rigor of our training programs and internal systems, which are independently vetted by these leading professional bodies. 

To ensure our team remains current with the latest legal and regulatory developments in the UAE, we provide a range of training formats, including face-to-face sessions, recorded sessions, online courses, and a comprehensive induction program. This commitment to continuous professional development ensures that our staff remain equipped with up-to-date knowledge and best practices to serve our clients effectively.

Are you part of the Baker Tilly International network?

Yes, we are the one and only member firm in UAE  representing Baker Tilly International. We are one of the world’s leading advisory, tax, and assurance networks. The network comprises more than 50,000 professionals across 140+ jurisdictions, enabling us to serve clients with both local expertise and global reach. As an independent member firm, we adhere to Baker Tilly International’s methodologies and professional expectations while maintaining full legal and operational autonomy within our firm. This affiliation allows us to support clients with international operations, multi-jurisdictional structures, and cross-border transactions with consistency and confidence.

How do you ensure independence and manage conflicts of interest?

Independence is a fundamental element of our professional responsibilities. We maintain strict independence policies aligned with the IESBA Code of Ethics, UAE regulatory requirements, and Baker Tilly International guidelines. All team members complete annual independence and conflict-of-interest declarations, and our systems include automated checks during client onboarding and acceptance. For every new engagement, we evaluate potential conflicts both locally and globally and document safeguards where necessary. Matters requiring further consideration are escalated to the Ethics Partner or Quality Team. This structured approach ensures that we maintain objectivity, integrity, and independence in all assurance engagements.

What technology platforms do you use in your audit and advisory work?

We use modern, secure, and globally recognised technology platforms to enhance the quality, efficiency, and consistency of our work. Our audit teams utilise cloud-based audit software, data analytics tool, and secure portals to streamline documentation, testing, and communication. For advisory and consulting assignments, we employ specialised tools in areas such as financial modelling, valuations, process automation, and digital transformation. Our technology environment includes robust cybersecurity controls, access management, and encrypted data storage, ensuring that client information is always protected. Together, these tools support a more insightful, efficient, and risk-focused approach across all our services.

Tax FAQs

Which federal taxes are currently imposed under the UAE tax framework?

The UAE imposes several federal taxes relevant to business activities. They are:

• Corporate Tax (CT)
• Valued Added Tax (VAT)
• Excise Tax (ET)

What is Corporate Tax (CT) in the UAE?

CT is a direct tax imposed on the taxable income of a taxable person. In many jurisdictions, this type of tax is commonly referred to as “Corporate Income Tax” or “Business Profits Tax”. CT applies to most juridical persons established in the UAE. It also applies to foreign juridical persons that carry out certain activities in the UAE which give rise to a taxable presence. Although CT primarily targets juridical persons, it may also apply to natural persons. A natural person conducting a business or business activity in the UAE may be subject to CT.

What is Value Added Tax (VAT) in the UAE?

Like in many other jurisdictions, VAT in the UAE is designed to tax consumption throughout the supply chain, where businesses collect and remit the VAT but can reclaim VAT on their purchases, which results in the final customer to bear the ultimate tax burden. Both legal and natural persons conducting business in the UAE must register, collect, and remit VAT to the government. 

What is the definition of “business” under UAE tax laws?

The definition of “business” under both the CT and VAT laws is broadly aligned. It refers to any activity conducted regularly and on an ongoing basis. The activity must also be carried out independently. It can take place in any location. The type of activity may include industrial, commercial, agricultural, vocational, professional, service-based, or excavation-related operations. It may also be the other activities related to the use of tangible or intangible assets.

What is Excise Tax (ET) in the UAE?

ET is a form of indirect tax that aims to tax specific products that are deemed harmful to human health or the environment. As with VAT, the intended taxpayers are final consumers. It applies to specific categories of excise goods. These include:

• Tobacco and tobacco products
• Electronic smoking devices, including the devices and the liquids used in them
• Sweetened beverages, carbonated drinks, and energy drinks

Legal and natural persons engaged in excise related activities must register, collect, and remit ET to the government. These activities include:

• Production or stockpiling of excise goods in the UAE, where such activities are carried out in the course of business.
• Import or release of excise goods from a designated zone. The ET Law provides its own definition for a “designated zone.”

If a foreign company is active in the UAE but has no local presence yet, what UAE tax risks should it consider?

When a foreign company is active in the UAE but does not yet have a local presence, it may still be subject to UAE tax obligations depending on the nature of its activities and connections to the UAE.

Under the UAE Corporate Tax regime, a foreign juridical person may be considered a taxable person if it has a permanent establishment (PE), a nexus, or derives UAE state-sourced income (SSI). A foreign entity that maintains a PE or has a nexus in the UAE is required to register for Corporate Tax and comply with all obligations applicable to taxable persons under the UAE CT Law. If the foreign entity only derives SSI, it is not required to register for Corporate Tax. However, it may still be subject to withholding tax (WHT). Currently, the applicable WHT rate in the UAE is 0%, and there is no reporting obligation associated with it under the present framework.

If the foreign juridical person is effectively managed and controlled in the UAE, it will be treated as a resident juridical person under the UAE CT regime. As a result, the entity will be subject to corporate tax on its worldwide income and must comply with all obligations imposed on UAE-incorporated companies.

In assessing whether a foreign company has a permanent establishment, nexus, or is effectively managed and controlled in the UAE, reference must be made to the relevant provisions of the UAE CT Law, related implementing decisions, and, where applicable, international tax agreements such as double tax treaties.

For VAT purposes, a foreign company may be required to register in the UAE even without a physical presence. This obligation may arise under two distinct conditions. 

The first condition applies when the foreign company has a fixed establishment (FE) in the UAE. This refers to a place with sufficient human and technical resources to carry out business activities on a regular basis. In this case, the foreign company must assess whether the FE exceeds the mandatory VAT registration threshold. If not, it may still opt for voluntary registration. These thresholds mirror those applicable to UAE resident businesses.

The second condition applies when the place of supply is in the UAE and there is no other person in the UAE obligated to account for the VAT. In such cases, the foreign company must register for VAT regardless of the value of supplies made. No registration threshold applies in this scenario.

How are UAE federal taxes administered?

The administration of UAE federal taxes is the responsibility of the Federal Tax Authority (FTA). The FTA is mandated to administer, collect, and enforce federal taxes and related penalties. It also supervises the distribution of tax revenues and ensures the consistent application of tax procedures across the UAE. In addition, the FTA is responsible for implementing cooperation frameworks between the UAE and other countries or international organisations. 

The UAE’s federal tax system operates within a unified procedural framework, established by the principal legislation governing tax administration—commonly referred to as the Federal Tax Procedures Law (FTPL). This law applies across all federal taxes, including VAT, ET, and CT.

At its core, the FTPL defines the legal rights and obligations of both taxpayers and the FTA. It establishes the fundamental compliance framework that taxpayers must follow and the procedural guarantees to which they are entitled. These include tax registration and deregistration, filing of returns, assessment of liabilities, payment obligations, mechanisms for appealing decisions, and the conduct of UAE tax audits. This framework ensures legal certainty, transparency, and consistency in the relationship between the taxpayer and the FTA. The FTPL must be read in conjunction with each respective federal tax law. The specific rules governing VAT, ET, and CT take precedence in areas where the procedural law defers to the relevant tax legislation.

From an operational standpoint, the FTA administers UAE federal taxes through a fully digital infrastructure. The EmaraTax platform is the central system used to manage tax obligations. It allows taxpayers to complete registration, file returns, make payments, and submit various UAE tax related service requests online.

The platform also strengthens the FTA’s administrative capacity. It enables integration with other government systems and supports automated processing. This “digital by default” model reflects the FTA’s commitment to efficiency, accessibility, and alignment with the UAE’s broader e-government strategy.

To what extent has the UAE adopted electronic invoicing (e-invoicing) in line with global developments?

 The UAE has evolved from permitting electronic invoicing under its VAT rules to mandating a structured, law-based e-invoicing system. The VAT Executive Regulation permits the issuance of tax invoices electronically, provided the origin, content integrity, and legibility are ensured, and records are stored securely and remain accessible. This earlier flexible approach has now been formalised through the FTPL, which introduced the concept of an official “Electronic Invoicing System.” This system is intended for the structured issuance, transmission, and storage of tax invoices and credit notes.

 Implementation is driven by Ministerial Decision No. 243 of 2025, which establishes core technical obligations such as using machine-readable XML formats, digital signing, timestamping, QR code generation, and routing invoices through an Accredited Service Provider (ASP). Unstructured invoice formats such as PDFs are no longer compliant under the new model. Ministerial Decision No. 244 of 2025 defines the phased rollout schedule:

• By 31 July 2026: Persons subject to e-invoicing and whose revenue is equal to AED 50 million or more must appoint an ASP.
• By 1 January 2027: These persons must fully implement the e-invoicing system.
• By 31 March 2027: Persons subject to e-invoicing and whose revenue is less than AED 50 million must appoint an ASP. This also applies to government entities.
• By 1 July 2027: Persons whose revenue is less than AED 50 million must fully implement the e-invoicing system.
• By 1 October 2027: Government entities must implement the e-invoicing system..

The mandate does not apply to business-to-consumer (B2C) transactions.

The UAE e-invoicing regime is closely aligned with the OECD’s Tax Administration 3.0 vision, which promotes real-time data reporting and digital integration to enhance compliance. It also reflects regional alignment, notably with Saudi Arabia, which has implemented a two-phase structured e-invoicing system, and the European Union, where e-invoicing is being rolled out through a unified framework.

Administrative penalties apply to non-compliance, including failures to onboard an ASP, transmit structured invoices, or notify system malfunctions. These are governed by a dedicated cabinet decision on e-invoicing violations.