UAE corporate tax: Board reviews plans to implement scheme – News

BRA launches 4 ‘transformation’ projects to boost national competitiveness

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

The Muwafaq package aims to improve the ease of doing business and tax compliance in the Small and Medium Enterprise (SME) sector.

The Professional Tax Agents Program aims to develop and facilitate the process of selecting a suitable tax agent for taxpayers in the UAE. According to the FTA website, this is done by creating a database to classify tax agents registered in specific sectors such as contracting, medical, finance, transportation and other sectors.

Other projects include an electronic invoicing system and a corporate tax system.

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

The Board was briefed on the implementation of the Corporations Tax Act, effective from the first financial year beginning on or after 1 June 2023. The tax rate has been fixed at 9% for the above taxable income of AED 375,000. The law aims to strengthen the UAE’s position as a leading global business and investment hub, maintaining the highest international standards of tax transparency.

During the meeting, the FTA board reviewed the results of the agency’s advanced integrated digital tax services platform called EmaraTax. Launched in December 2022, the platform provides all online services to taxpayers.

Value Added Tax (VAT) registrations reached 351,514. There are 1,549 consumption tax registrants and 467 tax agents.

The FTA has approved new applications from citizens for a refund of the taxes they incurred in constructing new homes worth more than AED131 million in February and March 2023. This is an increase of 13.92% over last year.