UAE: Compliance on tax regulations rises in Q1

The businesses across the UAE have adopted the new tax structure and increasing their compliance on regulations by posting 2.42 per cent growth in registration for value-added tax (VAT) during the first quarter of 2022, latest data shows.

The Federal Tax Authority (FTA) on Wednesday said the number of VAT registrants increased to 367,157 in January-March quarter compared to 358,468 in the same quarter last year.

The FTA board of directors, who met under the chairmanship of Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance, and Chairman of the FTA board of directors, adopted the authority’s financial statements for 2021.

The meting, which was held at the authority’s headquarters in Dubai on Wednesday, reviewed a report on the FTA’s plans to develop and enhance the tax system’s procedures and bring them in line with best international practices. It also discussed ways to upgrade services offered to customers through fast, accurate, and easy-to-use digital platforms. The FTA board of directors also examined the progress made on developing the draft corporate tax law.

FTA services upgrade

Sheikh Maktoum issued directives to maintain the pace of upgrades made to the FTA’s services, in line with international best practices and digital transformation plans, which were developed to boost the UAE’s competitive edge in terms of services provided. It will support the country’s vision to become the world’s highest-ranking government on trust and performance indicators.

“The directives aim at focusing on the customer and enhancing competencies to become a world leader in government services, drawing on the UAE’s ‘Principles of the 50’ and the terms of the new methodology for government action,” according to Dubai Media Office statement.

Customers satisfaction

The reports, presented during the meeting, demonstrate the FTA’s efforts to maintain high performance scores across all activities. Sheikh Maktoum noted the authority’s plans to elevate its services to ensure satisfaction for all clients from all segments of society.

“The Federal Tax Authority is committed to strengthening its relations with all entities involved in implementing the tax system in the government and private sectors, and to fulfilling its role in driving nationwide economic diversification policies through the administration and collection of federal taxes, in line with best practices,” he said.

“The authority is constantly reviewing the executive regulations it issues for each tax legislation in order to ensure top-level performance and streamlined procedures. The stages ahead will witness sweeping developments and upgrades to tax systems and procedures in order to enhance the quality of the FTA’s services,” Sheikh Maktoum said.

– muzaffarrizvi@khaleejtimes.com