Table of Contents
Frequently Asked Questions
What is the UAE corporate tax rate and who does it apply to
The UAE introduced a corporate tax rate of 9% on taxable business profits exceeding AED 375,000, effective for financial years beginning on or after 1 June 2023. Every UAE-incorporated entity — both mainland and free zone companies — now has registration and filing obligations under this regime.
Businesses with taxable profits at or below AED 375,000 fall within the zero-rate threshold, but registration and compliance obligations still apply regardless of profit level or company size.
What services can a tax consultancy in Dubai legally offer
A tax consultancy licensed under activity code 6920.95 can offer a broad range of professional services, including corporate tax registration, annual return preparation, and ongoing compliance advisory — without requiring a separate audit or accounting licence.
Additional service lines include VAT return filing, error corrections, reconsideration requests, and FTA audit support. More advanced work covers transfer pricing documentation, substance requirements for free zone entities, and international tax structuring for multinationals operating in the UAE.
Why is demand for tax consultants in Dubai growing
The UAE's introduction of corporate tax in 2023 created immediate and sustained demand across every sector. Most UAE businesses — particularly SMEs — have no in-house tax function, making outsourcing to a specialist consultant the default operating model rather than an optional expense.
VAT, in force since January 2018 at 5%, continues to generate recurring compliance work through quarterly filings, audits, and dispute resolution. The addition of corporate tax has compounded that demand significantly. The Middle East accounting and tax advisory market is projected to grow at a CAGR of over 6% through 2028, according to Mordor Intelligence.
Who are the main target clients for a Dubai tax consultancy
The primary client base is UAE-registered SMEs and startups that became subject to corporate tax in 2023 without any internal finance capability. These businesses require registration, annual filing, and basic structuring advice on a recurring basis.
A second tier consists of multinationals with UAE subsidiaries or branches, which need UAE-specific compliance integrated with their global tax strategy, including transfer pricing and OECD Pillar Two considerations. Free zone entities form a third distinct segment, requiring specialist guidance on qualifying income rules to retain eligibility for a 0% rate on eligible income.
What revenue models work best for a tax consultancy business
A tax consultancy can operate effectively under both retainer and project-based structures. Retainer contracts for monthly or quarterly compliance work — such as VAT return filing or corporate tax advisory — provide predictable, recurring income and support long-term client relationships.
One-off project engagements, such as initial corporate tax registration, business restructuring, or FTA dispute resolution, typically command higher project fees. A well-run practice builds both revenue streams simultaneously to balance stability with higher-margin mandates.
What is the VAT situation in the UAE and does it still generate consulting work
The UAE introduced VAT at 5% in January 2018. As of recent estimates, over 350,000 businesses are registered with the Federal Tax Authority (FTA) for VAT purposes, each with ongoing quarterly filing obligations.
VAT compliance work has not diminished with the arrival of corporate tax — it has compounded. Businesses continue to require return filing, error corrections, reconsideration requests, and support during FTA audits, making VAT services a high-volume, recurring revenue stream for any tax consultancy.
What is the significance of free zone entities for tax consultants in Dubai
Dubai hosts more than 40 free zones, each with distinct compliance profiles under the corporate tax regime. Free zone companies can potentially retain a 0% tax rate on qualifying income, but only if they meet specific substance and activity requirements set by the FTA.
Navigating these qualifying income rules requires specialist knowledge that most free zone businesses do not possess internally. This creates a growing and technically demanding segment for tax consultants who understand the interplay between free zone status, substance requirements, and the broader corporate tax framework.
What is the broader regional opportunity for a UAE-based tax consultancy
Beyond the UAE, the wider GCC region presents a significant growth opportunity. Saudi Arabia, Bahrain, and other Gulf states are developing their own tax frameworks, increasing demand for cross-border advisory services from consultants with regional expertise.
A UAE-based consultancy — particularly one operating from a well-connected hub like Dubai — is well-positioned to serve cross-border clients requiring advice that spans multiple Gulf jurisdictions. As the OECD global minimum tax framework extends its reach into the region, demand for sophisticated international tax structuring is expected to grow further.
How to Start a Tax Consultant Business in Dubai
Corporate tax landed in the UAE in 2023 and every registered company suddenly had filing duties it had never had before. VAT had been running since 2018. Most businesses here have no finance team able to handle either properly, which is why outsourcing became the default rather than a luxury.
This guide covers what activity code 6920.95 lets you advise on, who the clients are, how to set up your license through Meydan Free Zone, and where the FTA's tax agent rules sit relative to your license. Demand is currently outrunning the supply of qualified advisers.
Key Stats at a Glance
What This License Covers
A consultancy licensed under activity code 6920.95 can offer a broad range of professional services without needing a separate audit or accounting license. That breadth is the commercial point of this code.
Core service lines are corporate tax registration, annual return preparation and compliance advisory. VAT work sits alongside: return filing, error corrections, reconsideration requests and FTA audit support, all of which recur rather than resolve.
The more sophisticated mandates are where the fees climb. Transfer pricing documentation, substance conditions for free zone entities seeking qualifying income status, and international tax structuring all sit inside this scope.
Who Your Clients Will Be
Three tiers, with very different needs and price points.
- UAE-registered SMEs and startups that became subject to corporate tax in 2023 with no internal finance capability
- Multinationals with UAE subsidiaries or branches needing UAE compliance that fits their global tax strategy
- Free zone entities needing guidance on qualifying income rules to keep a 0% rate on eligible income
The SME tier is your volume: registration, annual filing and basic structuring advice, year after year. The multinational tier brings transfer pricing and OECD Pillar Two work as the global minimum tax framework reaches the region, and those engagements are technical and well paid.
Free zone entities are the most interesting segment. Dubai hosts more than 40 free zones, each with a distinct compliance profile, and qualifying income rules are what let a free zone company keep 0% on eligible income. Navigating them needs specialist knowledge those businesses rarely hold internally.
Both retainer and project structures work. Retainers for monthly or quarterly compliance give predictable income. One-off engagements such as corporate tax registration, restructuring or FTA dispute resolution command higher fees. Build both, so the stable base funds the pursuit of bigger mandates.
Mainland or Free Zone
Activity 6920.95 sits within professional services, and the right license category is a professional services license, which Meydan Free Zone issues directly. No physical office is needed at entry level, since a flexi-desk satisfies the address condition. For an advisory practice where the asset is the people, that keeps fixed costs low while you build a client list. A mainland license from the Department of Economy and Tourism is worth weighing against where your clients sit. Let your clients decide it, not the price.
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Step by Step Setup Guide
- Step 1, select your activity and license type: Confirm Tax Consultant, 6920.95, as your primary activity. Meydan Free Zone issues a professional services license for it.
- Step 2, book your trade name: Submit two or three options. Names must follow UAE naming conventions, with no offensive terms and no references to government bodies without approval.
- Step 3, send in shareholder documents and get initial approval: Passport copies, proof of address and a basic business plan if asked. Initial approval usually comes within a few working days.
- Step 4, sign the license agreement and pay: Once documents are approved, sign and pay the license fee. A flexi-desk arrangement covers the address condition.
- Step 5, take your digital license: This is your operative document for everything that follows.
- Step 6, open a UAE corporate bank account: Use your license and setup documents. A clear business plan explaining the nature of your advisory work helps onboarding.
- Step 7, register with the FTA: Register the entity for corporate tax and assess your VAT position against projected turnover. If you intend to act as a registered tax agent, start that separate FTA approval process now.
Meydan Free Zone permits 100% foreign ownership, remote setup and visa allocation from the point of license issuance, with quotas set by your package.
Compliance and What You Need in Place
Your own registrations
The consultancy is a UAE business like any other. Register with the FTA for corporate tax, and for VAT if turnover passes AED 375,000. Advising on compliance while late with your own filings is not a position you recover from.
Tax agent status
This is the boundary worth being precise about. Filing tax returns on behalf of clients means meeting the FTA's registered tax agent conditions, which is a distinct qualification and approval process run by the FTA. Your 6920.95 license lets you advise. Acting as an agent is a separate step, so decide early whether you are pursuing it and be accurate with clients in the meantime.
Qualifications
There is no single mandatory UAE professional body for tax consultants. Internationally recognised qualifications such as ACCA, CPA and CTA carry real weight with corporate clients and multinationals. They are optional in law and close to essential in practice.
Client data
You will hold sensitive financial information. UAE data protection duties apply, and confidentiality protocols and secure document management are both a legal condition and a commercial necessity. The Official UAE Government Portal carries current guidance on the applicable federal legislation.
Market Opportunity
The regulatory change did the marketing for this sector. Corporate tax at 9% on profits above AED 375,000 became effective for financial years beginning on or after 1 June 2023, and every UAE-incorporated entity, mainland and free zone alike, now has registration and filing duties whatever its size.
VAT has not gone quiet either. Introduced at 5% in January 2018, it keeps generating work through quarterly filings, audits and disputes, with over 350,000 businesses registered with the FTA on recent estimates. Corporate tax sits on top rather than replacing it, so the workload compounded.
Mordor Intelligence projects the Middle East accounting and tax advisory market to grow above 6% a year through 2028. The wider GCC adds another leg: Saudi Arabia, Bahrain and other Gulf states are building their own tax frameworks, which raises demand for cross-border advice. A Dubai-based practice can serve clients across several Gulf jurisdictions from one base.
Conclusion
Dubai's tax landscape, meaning corporate tax, VAT and incoming global minimum tax pressure, makes consultancy one of the more defensible professional services to build here right now. The regulation is creating demand faster than the supply of qualified advisers can absorb it.
What decides your practice is depth. Handle routine filings well enough to keep the SME base, then build the transfer pricing and qualifying income capability that lets you charge properly for work almost nobody else can do.
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