UAE : discusses corporate tax system implementation
In order to increase the country's competitiveness, the Federal Tax Authority will implement four "transformative" programmes.
To make the United Arab Emirates (UAE) more competitive and bring about its future vision, the Federal Tax Authority (FTA) will launch four transformative projects.
The goal of the Muwafaq package is to make it easier for SMEs to do business and for them to pay their fair share of taxes.
The goal of the UAE's Specialised Tax Agent plan is to improve and streamline taxpayers' ability to choose the most qualified tax agent for their needs. The FTA website explains that this is accomplished by compiling a database that organises the registered tax agents into categories such as "contracting," "medical," "financial," "transport," and so on.
The Corporate Tax System and the Electronic Invoicing System are two further initiatives.
First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance of the United Arab Emirates Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum presided at the second meeting of the FTA Board of Directors for 2023.
The board was updated on the status of the Corporate Tax Law's implementation, which will take effect for the first fiscal year commencing on or after June 1, 2023. Incomes over Dh375,000 are subject to the new levy of nine percent. The purpose of the law is to cement the United Arab Emirates' (UAE) standing as a premier worldwide centre for trade and investment that adheres to the highest global standards of tax transparency.
Combined Taxation Methods
The FTA Board of Directors discussed the outcomes of EmaraTax, the FTA's cutting-edge integrated digital tax services platform, during their meeting. Since its launch in December 2022, the platform has provided taxpayers with access to a full suite of digital services.
Participants in the Value-Added-Tax System
Value-added tax (VAT) registrations have reached 351,514. There are now 1,549 Excise Tax filers and 467 tax representatives.
In February and March 2023, the FTA granted fresh claims from citizens seeking refunds of tax they incurred while constructing new homes worth a combined Dh131 million. A year-over-year increase of 13.92 percentage points.