UAE corporate tax: Board reviews plans to implement scheme

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

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Published: Sun 30 Apr 2023, 7:50 PM

The Federal Tax Authority (FTA) will launch four transformative projects aimed at enhancing the UAE’s competitiveness and realising its vision for the future.

A Muwafaq package is designed to boost ease of doing business and tax compliance of small and medium-sized enterprises (SMEs) sector.

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The Specialised Tax Agent scheme aims to develop and facilitate the process of selecting the appropriate tax agent for taxpayers in the UAE. According to the FTA website, this is done by creating a database to classify the tax agents registered within specific fields such as contracting, medical, financial, transportation, and other sectors.

Other projects include the Electronic Invoicing System and the Corporate Tax System.

This came as Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE, chaired the second meeting of the FTA Board of Directors for 2023.

The board was briefed about developments related to the implementation of the Corporate Tax Law, which is effective as of the first fiscal year beginning on or after June 1, 2023. The rate has been set at 9 per cent and is applicable to taxable income above Dh375,000. The law aims to strengthen the UAE’s position as a leading global hub for business and investment that maintains the highest international standards of tax transparency.

Integrated Tax System

During its meeting, the FTA Board of Directors reviewed the results of the authority’s advanced integrated digital tax services platform called EmaraTax. The platform was activated in December 2022, with all services available online for taxpayers.

VAT registrants

The number of registrants for Value Added Tax (VAT) has reached 351,514. There are 1,549 registrants for Excise Tax, and 467 tax agents.

The FTA approved new applications from citizens requesting refunds on the tax they incurred for building new homes worth a total of over Dh131 million in February and March 2023. This is a growth of 13.92 per cent from last year.

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Published: Sun 30 Apr 2023, 7:50 PM

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