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Federal Tax Authority board reviews corporate tax implementation progress

Federal Tax Authority to launch 4 ‘transformative’ projects to boost country’s competitiveness.

As the UAE’s Federal Tax Authority gears up to introduce corporate tax this year, the board has given approval to the 2022 financial statement, while also reviewing the development plans and performance indicators. As per Dubai Government Media Office, during the second meeting this year, the board was also informed about updates regarding the Federal Decree Law on the Taxation of Corporations and Businesses, as well as the FTA’s readiness and procedures leading up to its implementation.

During the meeting, which was presided over by Sheikh Maktoum bin Mohammed, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance, and FTA board chairman, the attendees were also updated on the collaboration between the Ministry of Finance and the FTA to ensure the smooth implementation of policies and decisions related to the new corporate tax law, according to the statement.

The introduction of this law aims to enhance the UAE’s global position as a prime destination for business and investment that complies with the highest international standards of tax transparency.

Last year, the UAE implemented a federal corporate tax law with a standard statutory rate of 9% that will become applicable for businesses commencing their financial year from June 1st onwards.

In December, the country passed the federal corporate tax law, which included companies earning more than Dh375,000 in the scope of the corporate tax category.

The board was also briefed about the progress the FTA has made in terms of its “transformational projects”, aimed at enhancing the country’s competitiveness.

According to the Media Office, the Federal Tax Authority is currently executing several significant projects, including the Muwafaq initiative aimed at enhancing ease of doing business and tax compliance within the small and medium-sized enterprises sector, the introduction of a Specialised Tax Agent, implementation of the Electronic Invoicing System, and the corporate tax system.

During its meeting, chaired by Sheikh Maktoum, the FTA Board of Directors reviewed the progress made in implementing the integrated tax system, as well as the results of the successful launch of the FTA’s advanced integrated digital tax services platform, EmaraTax.

The platform was activated in December 2022, with all services now available for taxpayers.

A comprehensive report reviewed by the FTA Board of Directors on the achievements, results, and developments of the Authority’s existing projects reveals that the number of registrants for Value Added Tax (VAT) has reached 351,514, while there are 1,549 registrants for Excise Tax, and 467 Tax Agents.

The report also outlines key statistics regarding VAT and Excise Tax, periodic returns, the payment of taxes, and refund requests that have been processed.

According to the report, the Federal Tax Authority has approved new applications from citizens requesting refunds on the tax they incurred for building their new homes, worth more than AED131m in February and March 2023, a growth of 13.92 per cent from last year.

This is a direct result of the seamless procedures implemented by the FTA to enable citizens to recover the tax incurred on building their new homes.

 

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Alliance Prime is a leading provider of auditing, accounting, taxation, and advisory services in the UAE. Our expert team will guide you through the complex laws and regulations of UAE, including Corporate Tax, VAT, Excise Tax, Accounting and Bookkeeping, ESR, Financial Advisory, ERP, etc. We stay up-to-date with the latest changes in laws and regulations in the UAE. If you’re looking for reliable and professional auditing, accounting, taxation, and advisory services in the UAE, look no further than Alliance Prime. 

For any Corporate Tax, enquiry contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com

 

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