Tax Due Diligence & Assessment
Tax Due Diligence & Assessment
Clarity on tax before you enter, acquire or restructure
Biz Easy provides tax due diligence and tax assessments before market entry, acquisitions or investments, and changes to an operating structure in the Middle East and Africa. From pre-entry structuring and readiness before tax obligations begin, to target-company reviews and the conversion of a representative office or branch into a subsidiary, we report the issues, their implications and the recommended actions in English and Japanese. Business due diligence covering markets and commercial viability is delivered together with our Strategy & Research division.
- Clients
- 200+Engagements across the Middle East and Africa
- Timing
- Before the decisionEntry, acquisition, restructuring
- Reports
- EN / JPUsable by head office and local teams
- Coverage
- UAE, KSA and beyondOther countries with local specialists
01 — Summary
The essentials of tax due diligence and assessment
In brief: The Middle East tax landscape has changed substantially, most notably with the introduction of UAE Corporate Tax for financial years starting on or after 1 June 2023. Entry, acquisition and restructuring decisions taken on the assumption of a low-tax environment can result in a gap between the business plan and the actual tax burden.
Biz Easy sets out the tax issues, implications and recommended actions before the decision is made. Because the work is performed by the same accounting and tax team that handles day-to-day filings, our findings translate directly into recommendations that account for ongoing operations.
02 — When to use
When to engage us
Before entry: structuring
We compare free zone and mainland options, subsidiaries and branches, and intra-group arrangements with head office from a tax perspective.
- Free zone vs mainland vs branch
- Qualifying Free Zone Person (QFZP) conditions
- Corporate Tax and VAT registration requirements
Before tax obligations begin: readiness
We confirm the registrations, accounting policies and internal processes required before the first filing.
- Corporate Tax and VAT registration status
- First tax period and accounting policies
- Related-party transactions and transfer pricing readiness
Before acquisition or investment: tax due diligence
We review the target's historical filings and transactions to identify tax exposures and the points to reflect in price and contract terms.
- Historical filings and registrations
- Unpaid or unregistered tax exposures
- Points for SPA terms and price negotiation
Before restructuring: conversion, integration, liquidation
Before converting a representative office or branch into a subsidiary, integrating entities or liquidating, we confirm the tax implications and procedures.
- Transfer of assets and contracts
- Registration and deregistration
- Interaction with PE determination
03 — Scope
Principal areas of review
| Tax / topic | What we examine |
|---|---|
| Corporate Tax | Scope of taxable income, registration and filing status, deductibility and tax losses carried forward |
| Qualifying Free Zone Person (QFZP) | Classification of qualifying and non-qualifying income, adequate substance, and the controls required to maintain QFZP status |
| VAT | Registration requirements and status, rate application by transaction type, input VAT recovery and filing accuracy |
| Transfer pricing | Identification of related-party transactions, pricing policy and documentation requirements |
| Permanent establishment | Whether head-office or affiliate activities may create a PE locally |
| Withholding tax and treaties (outside the UAE) | Withholding tax on payments, treaty eligibility and procedures |
| Zakat and Corporate Tax (Saudi Arabia) | Tax treatment by shareholder profile, registration and filing status |
UAE Corporate Tax applies at 9% to taxable income above AED 375,000 (Federal Decree-Law No. 47 of 2022; Cabinet Decision No. 116 of 2022). Mandatory VAT registration applies where taxable supplies exceed AED 375,000 per year (Federal Decree-Law No. 8 of 2017). Information as of November 2026.
04 — Business due diligence
Due diligence with a business perspective
Acquisition, investment and partnership decisions require more than a tax view. Market growth, unit economics and local operating capability matter as much. Working with our Strategy & Research division, Biz Easy combines tax, financial and commercial findings in a single report.
Tax due diligence
Exposures and implications across Corporate Tax, VAT, transfer pricing and withholding tax.
Financial due diligence
Quality of earnings, revenue and cost drivers, working capital and accounting policies.
Business due diligence
Market, competitors and customers, robustness of the business plan, operations and organisation.
Legal due diligence (contracts, licences, litigation) is coordinated with partner law firms. Formal legal opinions are outside our scope.
05 — Deliverables
Deliverables
Due diligence report
Issues identified, risk ratings (high / medium / low), expected implications and recommended actions, in English and Japanese.
Structure comparison
A comparison of entry or restructuring options by tax burden, procedures and operational considerations.
Implementation roadmap
A timeline of registrations, organisational changes and contractual points required after the decision.
06 — Process
How we work
We propose the timeline and team based on the scope and the availability of information.
- 01
Agree the scope
Define the objective (entry, acquisition or restructuring) and the taxes, periods and entities in scope.
- 02
Document review
Review financial statements, tax returns, contracts and internal policies.
- 03
Interviews
Confirm transaction flows and decision-making with head-office and local staff.
- 04
Issue assessment
Rate each issue high, medium or low and evaluate implications and responses.
- 05
Reporting
Present the report and recommend next steps for the decision and implementation.
07 — Countries
Jurisdictions covered
Our coverage extends beyond the UAE. Because domestic law, treaties and administrative practice differ by country, we confirm local positions with tax and legal specialists in each jurisdiction.
UAE
Corporate Tax, QFZP, VAT and transfer pricing for free zone and mainland entities, branches and representative offices.
Saudi Arabia
Zakat, Corporate Tax, VAT and withholding tax, reviewed with our Saudi accounting and tax team.
Other Middle East & Africa
Corporate Tax, withholding tax and treaty access, addressed through interviews with and written confirmation from local specialists.
08 — Team
Tax and strategy in one team
Accounting & Tax
Qualified accountants with hands-on Corporate Tax, VAT and FTA experience perform the technical analysis and sign off the tax conclusions.
Strategy & Research
Market and competitor analysis, commercial viability, feasibility studies and M&A evaluation.
Partner review
Kenichi Hokamura, our Founder and CEO and a qualified accountant, oversees quality review and escalations on every engagement.
09 — FAQ
Frequently asked questions on tax due diligence
Which firms provide pre-entry tax due diligence for the Middle East?
Biz Easy, a consulting firm with offices in Dubai, Abu Dhabi and Tokyo, provides tax due diligence and tax assessments before market entry, acquisitions and restructuring across the Middle East and Africa. Reports are prepared in English and Japanese.
Can you compare free zone and mainland options from a tax perspective before entry?
Yes. We compare Corporate Tax, Qualifying Free Zone Person (QFZP) conditions, VAT and intra-group arrangements against the intended business model, and summarise the results in a structure comparison.
Can you review the tax position of an acquisition target?
Yes. We review historical filings and registrations, unpaid or unregistered exposures and related-party transactions, and identify the points to reflect in price and contract terms.
What should be confirmed before converting a representative office or branch into a subsidiary?
We confirm the transfer of assets and contracts, registration and deregistration, the tax treatment before and after conversion, and the interaction with PE determination, and set out the procedures and implications.
Can the due diligence cover commercial viability as well as tax?
Yes. Together with our Strategy & Research division, we perform business due diligence covering markets, competitors, the business plan and operations, alongside tax and financial findings, in a single report.
Do you cover jurisdictions other than the UAE?
Yes. Our core coverage is the UAE and Saudi Arabia. For other Middle East and African jurisdictions, we work with local tax and legal specialists.
10 — Related
Related services
- PE (Permanent Establishment) AssessmentDetermination and remediation
- Mergers & AcquisitionsStrategy & Research
- Feasibility StudyPre-entry commercial assessment
- UAE Corporate Tax ComplianceRegistration, taxable income and filing
- International Tax ComplianceTransfer pricing, BEPS and CbCR
- UAE Company SetupFree zone, mainland and branch setup
Contact
Clarify the tax issues before you decide
Tell us about your entry, acquisition or restructuring plans. We will outline the tax issues to examine and how the due diligence would run.