The Gulf Cooperation Council (GCC) region has undergone significant tax reforms in recent years, with several member states introducing Value Added Tax (VAT), corporate taxes, and other fiscal measures. Whether you're a local business owner or a multinational corporation operating in the UAE, or other GCC countries, having the right tax accountant is crucial. However, finding the right professional means asking the right questions.

Here are 20 questions to help you evaluate and work effectively with tax accountants in the GCC region.

Questions to ask your tax accountants

When selecting a potential tax accountant, it is crucial to vet them, get an understanding of their knowledge, and expertise. Your tax accountant should also be capable to help your business navigate taxation as it scales and grows. Consider these questions.

1. What Is your track record with businesses of our size and industry?

Different business sizes and industries face unique tax challenges in the GCC. A tax accountant experienced with SMEs may not be equipped to handle the complexities of a multinational corporation, and vice versa. Similarly, the tax implications for a manufacturing company differ significantly from those of a financial services firm or eCommerce business.

Ask potential tax accountants about their client portfolio, including business sizes, industries, and the complexity of cases they've handled. Request case studies or examples that demonstrate their expertise with businesses similar to yours. This will help you assess whether they have the depth of experience needed to address your specific challenges.

2. How do you navigate the differences between GCC tax systems?

While the GCC countries share many economic characteristics, their tax systems vary considerably. The UAE has a 5% VAT rate and recently introduced 9% corporate tax, Saudi Arabia operates a 15% VAT system with corporate tax rates up to 20%, and other GCC states have their own unique frameworks.

Your tax accountant should demonstrate comprehensive knowledge of these differences and explain how they impact multi-jurisdictional business operations. They should understand filing requirements, compliance timelines, and regulatory nuances across the region, enabling them to provide consistent advice regardless of where your business operates.

3. What Is your understanding of our business model and revenue streams?

Modern businesses often have complex revenue structures, including subscription services, digital products, cross-border transactions, and mixed-use assets. Your tax accountant must understand these nuances to provide accurate advice on VAT treatment, corporate tax implications, and compliance requirements.

Ask how they would categorize your different revenue streams, identify potential tax risks, and structure operations for optimal compliance. Their ability to grasp your business model quickly and accurately is a strong indicator of their professional competence.

4. How do you handle VAT compliance for complex business operations?

VAT compliance goes far beyond simple invoicing. For instance, businesses face challenges with reverse charge mechanisms, import VAT procedures, exempt vs. zero-rated supplies, input tax recovery, and place of supply rules for services. Digital businesses must navigate e-services VAT requirements, while construction companies deal with specific VAT applications for their sector.

Your accountant should explain how they would handle your specific VAT challenges, including monthly/quarterly filing procedures, maintaining VAT-compliant accounting systems, and managing cash flow implications of VAT payments and refunds.

5. What corporate tax planning strategies do you recommend?

With corporate tax now a reality in the UAE and being considered in other GCC countries, businesses need proactive tax planning strategies. Your accountant should advise on legitimate tax optimization techniques, including the strategic use of free zones, group relief provisions, and international tax treaty benefits.

Ask about their approach to transfer pricing, thin capitalization rules, and controlled foreign company regulations. They should also explain how corporate tax interacts with existing VAT obligations and any potential double taxation issues. Moreover, they should be able to use AI-powered tax management tools to stay competitive in the market.

6. How do you ensure compliance with economic substance requirements?

Economic substance regulations require businesses to demonstrate real economic activity in their jurisdiction of incorporation. These rules particularly affect holding companies, intellectual property entities, and businesses claiming treaty benefits.

Your tax accountant should understand these requirements thoroughly and advice on maintaining adequate economic substance through local employees, offices, and decision-making processes. Non-compliance can result in significant penalties and potential tax adjustments.

7. What Is your experience with tax authority audits and investigations?

Tax audits are becoming increasingly common in the GCC as tax authorities enhance their compliance monitoring capabilities. Your accountant should have proven experience in handling tax authority inquiries, from routine compliance checks to comprehensive audits.

Ask about their audit defense procedures, typical timelines for resolution, and success rates in minimizing additional tax assessments. They should also explain how they prepare businesses for potential audits through proper documentation and record-keeping practices.

8. How do you handle transfer pricing documentation and compliance?

Transfer pricing rules ensure that intercompany transactions are conducted at arm's length prices. As GCC countries strengthen their tax frameworks, transfer pricing compliance is becoming increasingly important for multinational businesses.

Your accountant should understand local transfer pricing requirements, documentation standards, and advance pricing agreement procedures. They should also advise on maintaining defensible transfer pricing policies that comply with both local requirements and international standards.

9. What technology solutions do you use for tax management?

Modern tax compliance requires sophisticated technology solutions for data management, reporting, and communication with tax authorities. Your accountant should use professional-grade tax software that integrates with your business systems and provides real-time compliance monitoring.

Ask about their technology stack, data security measures, and ability to provide online access to your tax information. They should also be proficient with official government portals and electronic filing systems across relevant GCC jurisdictions.

10. How do you structure fee arrangements for ongoing services?

Tax compliance is an ongoing requirement, not a one-time service. Understanding fee structures for regular compliance work versus project-based advisory services is crucial for budgeting and relationship management.

Ask for detailed fee schedules that include regular filing fees, advisory time rates, and charges for additional services like audit support or regulatory inquiries. Clarify what services are included in base fees and what would trigger additional charges.

11. What Is your approach to tax risk management?

Effective tax risk management involves identifying potential compliance issues before they become problems. Your accountant should have systematic procedures for monitoring regulatory changes, assessing their impact on your business, and implementing necessary compliance updates.

Ask about their risk assessment methodologies, how they prioritize different types of tax risks, and their process for communicating risk issues to management. They should also explain how they help businesses balance tax optimization with compliance requirements.

12. How do you manage cross-border tax issues?

Many GCC businesses have international operations or dealings with foreign suppliers and customers. Cross-border transactions create complex tax issues including double taxation treaty applications, foreign tax credit mechanisms, and withholding tax obligations.

Your accountant should understand international tax principles and how they apply in the GCC context. They should advise on structuring international transactions to minimize tax costs while maintaining compliance in all relevant jurisdictions.

13. What advisory services do you provide beyond compliance?

While compliance is essential, businesses also need strategic tax advice for major decisions like acquisitions, restructuring, new market entry, and capital raising. Your accountant should be able to provide proactive advisory services that help optimize your tax position.

Ask about their experience with transaction structuring, due diligence support, and post-acquisition integration. They should also advise on the tax implications of business strategy decisions and help structure operations for optimal tax efficiency.

14. How do you handle urgent tax issues and deadlines?

Tax authorities don't always provide generous timelines for responding to inquiries or meeting new compliance requirements. Your accountant should have procedures for handling urgent tax matters and meeting tight deadlines.

Ask about their response times for urgent issues, staffing arrangements for handling peak compliance periods, and escalation procedures for critical matters. They should also explain how they help businesses prepare for known compliance deadlines to avoid last-minute pressures.

15. What is your understanding of free zone tax benefits?

Many GCC businesses operate in free zones to take advantage of various benefits including potential tax exemptions. However, free zone benefits often come with specific requirements and limitations that must be carefully managed.

Your accountant should understand the tax implications of free zone operations, including any restrictions on the types of business activities, geographic scope of operations, and compliance requirements for maintaining benefits. They should also advise on the interaction between free zone benefits and general tax obligations.

16. How do you ensure accuracy in multi-currency tax reporting?

Businesses operating across multiple GCC countries often deal with various currencies, creating challenges for accurate tax reporting. Exchange rate fluctuations can significantly impact VAT liabilities, corporate tax calculations, and transfer pricing determinations.

Your accountant should have robust procedures for handling multi-currency transactions, including appropriate exchange rate selection, timing of currency conversions, and managing exchange rate risks for tax purposes.

17. What is your process for handling tax refund claims?

VAT refund claims are common for businesses with significant export activities or zero-rated supplies. However, refund processes can be complex and time-consuming, requiring careful documentation and follow-up with tax authorities.

Ask about their experience with refund claims, typical processing times, and procedures for tracking claim status. They should also advise on optimizing cash flow during refund processing periods and handling any queries from tax authorities.

18. How do you support business expansion and new ventures?

Growing businesses need tax advice that supports their expansion plans rather than constraining them. Your accountant should understand how tax considerations impact business development decisions and provide advice that enables growth.

Ask about their experience supporting business expansion, including advice on optimal entity structures, tax-efficient funding arrangements, and compliance requirements in new jurisdictions. They should also understand the tax implications of different business models and help structure operations for scalability.

19. What disaster recovery and business continuity plans do you have?

Tax compliance cannot be interrupted by technical failures, natural disasters, or other business disruptions. Your accountant should have robust business continuity plans that ensure ongoing service delivery regardless of circumstances.

Ask about their backup systems, alternative working arrangements, and procedures for maintaining client service during disruptions. This is particularly important given the strict compliance deadlines imposed by GCC tax authorities.

20. How do you measure and report on your service performance?

Professional service providers should have objective measures for evaluating their performance and client satisfaction. Your accountant should be able to demonstrate their track record through measurable metrics and client feedback.

Ask about their quality control procedures, client satisfaction surveys, and performance metrics such as filing accuracy rates, refund processing times, and audit success rates. They should also explain how they use performance data to continuously improve their services.

Choosing the right tax accountant for your business

Selecting the right tax accountant is one of the most important decisions a business can make. The rapidly evolving tax landscape, combined with the complexity of modern business operations, requires professional expertise that goes far beyond basic compliance services.

The questions outlined above will help you evaluate potential tax advisors comprehensively, ensuring you choose a partner who can support your business objectives while maintaining full compliance with all relevant tax obligations. Remember that the cheapest option is rarely the best when it comes to professional tax services – the cost of poor advice or non-compliance far exceeds the investment in quality professional support.

Partner with Timber for tax management

Timber offers AI-powered accounting and taxation solutions for businesses based in the GCC region. Timber is not just an AI software, it combines AI with human intelligence. How? Timber pairs its tool with dedicated accountants who bring human intelligence and understanding.

With this hybrid approach, businesses can easily chat, call, or schedule meetings with their dedicated tax accountants through the platform and get support and guidance on tax filing, planning, or compliance.

Timber features and benefits:

• Seamless integrations with existing tools: Timber easily integrates with third-party tools such as Zoho, QuickBooks, and Xero, enhancing your existing finance and tax systems.

• Professional tax management at affordable prices: With Timber, businesses can avoid paying huge salaries and fees to in-house accountants. Rather, Timber’s hybrid model provides both AI and human intelligence at competitive costs.

• Navigate complicated tax and financial management: Timber’s unique human and AI combination helps businesses with complicated tax management that requires a strategic approach. While AI lends data analytics and accuracy, our human tax accountants provide the strategic approach.

• Collaborative tax management processes: With Timber, businesses get the best of both AI and human strategic intelligence. Timber builds trustworthy long-term client-advisor relationships, crucial in the tax environment. The brand works on the principles of mutual understanding, clear communication, and shared commitment to tax compliance excellence. 

Explore Timber for your tax management requirements.