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
The UAE's introduction of corporate tax in 2023 created immediate, sustained demand for qualified tax consultants across every sector of the economy. Every registered business now faces filing obligations, compliance deadlines, and structural questions that most cannot handle internally.
This guide covers what a tax consultancy licence in Dubai involves, who the market serves, and how to set one up through Meydan Free Zone.
The Tax Consultancy Market in Dubai
The Federal Tax Authority (FTA) introduced corporate tax at 9% on business profits exceeding AED 375,000, effective for financial years beginning on or after 1 June 2023. Every UAE-incorporated entity — mainland and free zone — now has registration and filing obligations, regardless of size.
VAT, introduced in 2018 at 5%, continues to generate recurring compliance work. Businesses require quarterly return filings, reconsideration requests, and audit support on an ongoing basis. That demand has not diminished; it has compounded with the corporate tax layer on top.
The UAE's SME base is large and growing. Most of these businesses have no in-house tax function. Outsourcing to a specialist consultant is not a luxury — it is the default operating model.
Key Stats at a Glance
- UAE corporate tax rate: 9% on taxable profits above AED 375,000
- UAE VAT rate: 5%, in force since January 2018
- Over 350,000 businesses registered with the FTA for VAT as of recent estimates
- The Middle East accounting and tax advisory market is projected to grow at a CAGR of over 6% through 2028, according to Mordor Intelligence
- Dubai hosts more than 40 free zones, each with distinct compliance profiles under the new corporate tax regime
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A tax consultancy operating under activity code 6920.95 can offer a broad range of professional services without requiring a separate audit or accounting licence.
Core service lines typically include corporate tax registration, annual return preparation, and ongoing compliance advisory. VAT services — return filing, error corrections, reconsideration requests, and FTA audit support — remain a high-volume, recurring revenue stream.
More sophisticated mandates involve transfer pricing documentation, substance requirements for free zone entities seeking qualifying income status, and international tax structuring for multinationals with UAE operations.
The revenue model suits both retainer and project structures. Retainer contracts for monthly or quarterly compliance work provide predictable income. One-off engagements — initial corporate tax registration, restructuring projects, or FTA dispute resolution — command higher project fees. A well-run practice builds both streams simultaneously.
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Explore Over 2,500+Target Clients and Market Opportunity
The primary client base is UAE-registered SMEs and startups that became subject to corporate tax in 2023 with no internal finance capability. These businesses need registration, filing, and basic structuring advice — and they need it reliably, year after year.
Multinationals with UAE subsidiaries or branches represent a second tier. They require UAE-specific compliance work that integrates with their global tax strategy, often including transfer pricing and pillar two considerations as the OECD global minimum tax framework reaches the region.
Free zone entities are a distinct and growing segment. Navigating qualifying income rules — the mechanism that allows free zone companies to retain a 0% rate on eligible income — requires specialist knowledge that most businesses do not have internally.
The broader GCC opportunity is also real. As Saudi Arabia, Bahrain, and other Gulf states develop their own tax frameworks, a UAE-based consultancy with regional reach is well-positioned to serve cross-border clients.
Regulatory Considerations for Tax Consultants in the UAE
Activity code 6920.95 sits within the professional services classification. The appropriate licence category is a professional services licence, which Meydan Free Zone issues directly.
The consultancy entity itself must register with the FTA for corporate tax and, if annual turnover exceeds AED 375,000, for VAT. Separately, consultants who wish to file tax returns on behalf of clients must meet the FTA's registered tax agent requirements — a distinct qualification and approval process administered by the FTA.
There is no single mandatory UAE professional body for tax consultants, but internationally recognised qualifications — ACCA, CPA, CTA — carry significant commercial weight with corporate clients and multinationals. Holding these credentials is a practical differentiator, not a regulatory requirement.
Client data handling falls under UAE data protection obligations. Maintaining confidentiality protocols and secure document management is both a legal requirement and a commercial necessity when advising on sensitive financial matters. The Official UAE Government Portal provides current guidance on applicable federal legislation.
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Let's ConnectSetting Up via Meydan Free Zone: Step-by-Step
Meydan Free Zone issues professional services licences covering activity 6920.95 (Tax Consultant). The process is straightforward and can be completed remotely.
- Step 1 — Select your activity and licence type. Confirm Tax Consultant (6920.95) as your primary activity. Meydan Free Zone issues a professional services licence for this classification.
- Step 2 — Reserve your trade name. Submit two or three name options for approval. Names must comply with UAE naming conventions — no offensive terms, no references to government bodies without approval.
- Step 3 — Submit shareholder documents and obtain initial approval. Provide passport copies, proof of address, and a basic business plan if required. Initial approval is typically issued within a few working days.
- Step 4 — Sign the licence agreement and pay fees. Once documents are approved, sign the free zone licence agreement and pay the applicable licence fee. No physical office is required at entry level — a flexi-desk arrangement satisfies the address requirement.
- Step 5 — Receive your digital licence. Meydan Free Zone issues a digital trade licence upon completion. This is your operative document for all subsequent registrations.
- Step 6 — Open a UAE corporate bank account. Use your licence and incorporation documents to approach UAE banks. Having a clear business plan and demonstrating the nature of your advisory services will assist the onboarding process.
- Step 7 — Register with the FTA. Register your entity for corporate tax. Assess VAT registration obligations based on projected turnover. If you intend to act as a registered tax agent, initiate the FTA's separate agent approval process.
Meydan Free Zone permits 100% foreign ownership, remote setup, and visa allocation from the point of licence issuance. Visa quotas depend on the licence package selected.
Conclusion
Dubai's evolving tax landscape — corporate tax, VAT, and incoming global minimum tax pressures — makes tax consultancy one of the more defensible professional services businesses to establish in the UAE right now. The regulatory environment is creating demand faster than the supply of qualified advisors can absorb it.
Use the cost calculator below to estimate your licence fees, then speak to the Meydan Free Zone team to confirm activity eligibility and get your application moving.
References
- Federal Tax Authority (FTA) (tax.gov.ae)
- Mordor Intelligence (mordorintelligence.com)
- Official UAE Government Portal (u.ae)
