Professional Standards for Tax Agents: FTA Launches Black Point System
Choosing the right tax agents in the UAE has become critical for businesses in the wake of the new corporate tax regime. Tax agents are natural or juridical persons registered with the Federal Tax Authority (FTA) who will represent the taxable persons before the FTA and assist them to fulfill their tax obligations and exercise tax rights.
However, businesses need to hire tax agents who meet the FTA’s professional standards to get the desired outcome. To ensure this, the FTA has introduced a black point system on agents who provide wrong tax advice to their clients. The new system will come into effect from July 1st 2024 and is expected to enhance the regime of taxation in the UAE.
Let us dive in to learn more about this:
Application of Black Points to Tax Agents
If the UAE tax agents violate professional standards, the black points will apply in the following manner:
- When a natural person tax agent, who doesn’t work for a juridical tax agent, violates the professional standard, black points will be applied to the natural person agent and not to the juridical person agent
- When a natural person tax agent (who works for a juridical person Tax Agent) commits the violation, both the natural person Tax Agent and the juridical person Tax Agent will be penalized with the black points
- In some cases, a representative (a natural person) of a juridical person Tax Agent may commit the violation. If the violation affects the client represented by the juridical person Tax Agent, black points will be applied to both the natural person Tax Agent appointed to represent the client and the juridical person Tax Agent
- If the representative working for a juridical person Tax Agent violates professional ethics in such a manner that the violation does not relate to or affect the client represented by the juridical person Tax Agent, black points will be applied only to the juridical person Tax Agent
FTA’s Procedure for Applying the Black Points
FTA has outlined the standard procedure for applying the black points on tax agents. The procedure is listed below:
| Accumulated Points | Procedure |
| If a Tax Agent is: – A natural person – up to 75 points – A juridical person – up to 75 x (the number of natural person Tax Agents working for the juridical person) points | Tax Agent will be notified of the violations, black points applied to them, and the need to take precautionary measures |
| If a Tax Agent is: – A natural person – up to 149 points – A juridical person – up to 149 x (the number of natural person Tax Agents working for the juridical person) points | A first warning shall be sent. |
| If a Tax Agent is: – A natural person – up to 199 points – A juridical person – up to 199 x (the number of natural person Tax Agents working for the juridical person) points | A second warning shall be sent. |
| If a Tax Agent is: – A natural person – 200 points – A juridical person – 200 x (the number of natural person Tax Agents working for the juridical person) points | Deregistration of the Tax Agent from the register, and inform all registrants associated with this Tax Agent on the Authority’s system of such deregistration. |
Hire the Best Tax Agents in the UAE
FTA’s move to implement the black points will enhance the transparency and integrity of tax agents in the UAE. Jitendra Tax Consultants (JTC) is an FTA-registered tax agent offering professional tax advisory to various companies. We strictly follow the professional standards implemented by the FTA and this explains our presence in the UAE for more than two decades.
JTC and its brand Tax Gian offer reliable tax services in the UAE such as corporate tax, excise tax and Value Added Tax (VAT). Hire our tax advisor services in the UAE today to ensure seamless tax compliance.
