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Tag: Ministry of Finance

Federal Tax Authority board reviews corporate tax implementation progress

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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.

 

Why is Alliance Prime the best Tax Consultancy in Dubai?

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

 

UAE Corporate Tax: Conditions for Change in Tax Period

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Conditions for Change in Tax Period for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.

For the purposes of Article 58 of Federal Decree-Law No. 47 of 2022 referred to above, the Taxable Person can make an application to the Authority to change the start and end date of the Tax Period, or use a different Tax Period, where the following conditions are met:

  1. The change is for one of the following reasons:
    • The Taxable Person’s liquidation
    • Aligning the Resident Taxable Person’s Financial Year with the Financial Year of another Resident Person for the purpose of forming a Tax Group or joining an existing Tax Group, or aligning the Taxable Person’s Financial Year with the Financial Year of its domestic or foreign head office, subsidiary, parent, or ultimate parent company, for the purpose of financial reporting, or to benefit from a tax relief available under the Federal Decree-Law No. 47 of 2022 referred to above or under the legislation of a foreign jurisdiction (or)
    • There is valid commercial, economic, or legal reason to change the Tax Period.
  2. The Taxable Person has not yet filed the Tax Return for the Tax Period he is applying to change.
  3. The application for change in Tax Period is in respect of any of following:
    • Extend the current Tax Period to be a maximum of 18 months; or
    • Shorten the next Tax Period to be between 6 and 12 months.
  4. The application shall be made before the lapse of 6 months from the end of the original Tax Period.
  5. Where the Taxable Person filed an application to shorten a Tax Period, the application shall not be in respect of a prior or current Tax Period.

Any provisions contrary to or inconsistent with the provisions of this Decision shall be abrogated. Implementation of the Decision shall be published in the Official Gazette and shall come into effect as of 1 June 2023. All Cabinet Decisions and Ministerial Decisions issued relating to the Corporate Tax Law are available on the Ministry of Finance’s website: www.mof.gov.ae.

 

Why is Alliance Prime the best Tax Consultancy in Dubai?

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 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

UAE CT Update: Corporate Tax Exemption for Public and Community Welfare Entities

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Entities eligible for exemption are those that prioritize philanthropy, community services, and corporate social responsibility initiatives

The UAE Ministry of Finance (MoF) said public benefit entities that contribute to the welfare of society are eligible for tax exemptions under the country’s corporate tax law.

“The MoF unveiled a UAE Cabinet new implementing decision relating to qualifying public benefit entities for the purposes of the corporate tax law, which is designed to ensure that entities existing and operating for the wider public benefit are eligible for tax exemption,” the ministry of finance said in a tweet.

The tax exemption is designed to reflect these entities’ important role in the country, which often includes religious, charitable, scientific, educational or cultural value. The UAE said to qualify for the exemption, eligible entities must meet the conditions specified in Article 9 of the corporate tax law and must maintain compliance with all relevant federal and local laws.

The ministry called on all qualifying public benefit entities to register with the UAE Federal Tax Authority and obtain a tax registration number for corporate tax purposes.

 

The entities must also inform the ministry of any changes that may affect their status as qualifying public benefit entity.

In addition, various reporting obligations apply to Qualifying Public Benefit Entities, principally to check that they continue to meet the criteria for approval.

This Cabinet Decision also provides further certainty and transparency for taxpayers in relation to their deductible expenditure under Article 33 of the Corporate Tax Law, as donations and gifts will be allowed as deductible expenditure for Corporate Tax purposes if they are made to a Qualifying Public Benefit Entity listed in the Cabinet Decision.

Earlier, the Ministry announced corporate tax exemptions for non-resident persons, government entities, government-controlled entities, as well as extractive businesses and non-extractive natural resource businesses.

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

Source: https://mof.gov.ae/