Value of tax returns in UAE up 21%

LAW ABIDING: The 100 per cent digital tax system that was implemented in the UAE has played a tremendous role in encouraging taxable persons to self-comply with the transparent and accurate procedures.

Tax compliance rates in the UAE have shown a remarkable increase with the total value of tax returns submitted to the Federal Tax Authority (FTA) growing by 21 per cent over the past year, compared with 2018.
The number of businesses registered with the FTA increased by seven per cent, with the number of businesses registered for VAT - as individuals or tax groups - reaching 320,440, while the number of registrants for excise tax totalled 1,100, and the number of tax agents growing to 355, the FTA said on Monday.
The FTA released the data after its board meeting on Monday chaired by Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance, and Chairman of the FTA's Board of Directors.
The board explored a series of progress reports on ongoing projects; the FTA's accomplishments; the results of phases one and two of the 'Marking Tobacco and Tobacco Products Scheme' and future steps; the outcomes of the authority's activities regarding VAT and excise tax, such as receiving periodic tax returns, settling due taxes, and processing tax refund requests.
The e-Services Portal for VAT refund on the construction of new residences for UAE nationals, which was launched this year to further facilitate tax recovery procedures for UAE nationals, has processed Dh97.06 million worth of applications up until March 2020 - a 15.48 per cent growth in less than three months, up from Dh84.07 million until December 2019, according to the data reviewed by the board.
Sheikh Hamdan said the reports and results prove that the tax system "has succeeded, over the course of the past two years and this year, in accomplishing many of its objectives, most notable of which being the diversification of national sources of income, offer top-quality public services, and maintain a sustainable environment and integrated infrastructure."
Sheikh Hamdan said the results assert that the 100 per cent digital tax system that was implemented in the UAE in accordance with international best practices "has played a tremendous role in encouraging taxable persons to self-comply with the transparent and accurate procedures."
"The Federal Tax Authority has successfully achieved great success in all of the sectors it operates in and across all of its programmes," he said.
"The FTA established a host of effective strategic partnerships with relevant entities in the public and private sectors; meanwhile, the number of users for the tax system grew exponentially as the number of registrants with the authority grew, in parallel with the number of authorised clearance companies and tax Agents."
Sheikh Hamdan praised FTA's success across various important projects, including the e-services portal for recovering VAT on the construction of new homes for UAE citizens, which offers facilities and streamlined procedures for refunding taxes, as well as the electronic system of the Tax Refunds for Tourists Scheme, which was expanded. He observed that the VAT Refunds for Business Visitors programme and the Marking Tobacco and Tobacco Products Scheme, which seek to combat tax evasion, protect consumers from commercial fraud, and preserve the environment and public health.
- issacjohn@khaleejtimes.com