Sharjah Finance Department, FTA sign MoU to strengthen cooperation

The Sharjah Finance Department signed a memorandum of understanding (MoU) with the Federal Tax Authority (FTA) regarding the disclosure of information in the possession of the authority or its employees, determining the cases, in which it is permitted to disclose information and the associated procedures for monitoring, security, subsequent disclosure, and accuracy of information.

Walid Al Sayegh, Director-General of the Sharjah Finance Department, and Khaled Ali Al Bustani, Director-General of the Federal Tax Authority, signed the MoU at Sharjah Finance Department headquarters, in the presence of a number of top officials and employees of both parties.

In this context, Al Sayegh said that the memorandum establishes an effective and long-term strategic partnership between the two parties, and aims to provide a framework for the legal disclosure of information by the authority to the department within the limits permitted in the relevant legislation regarding disclosing information in the possession of the authority or its employees.

Al Bustani said the MoU strengthens the frameworks of joint cooperation, to provide an effective legal framework for exchanging information based on foundations characterised by clarity and accuracy.

The memorandum stipulates that the department shall be committed to storing data securely and informing the authority in the event of loss of data or incorrect disclosure. It is also committed to retaining data only if there is a business need that requires data to be kept, as well as submitting the data within the framework of the established guidelines when the business need is completed and providing assurances of the department’s compliance with these principles upon request.

Meanwhile the Federal Tax Authority (FTA) has achieved a significant milestone in its tourist tax refund programme, with the total number of electronic transactions surpassing 15.43 million since the system’s implementation nearly five years ago, said Director-General of the FTA.

During the first nine months of the current year alone, over 3.44 million transactions were processed, reflecting the growing popularity of the programme among tourists, Khalid Ali Al Bustani told the Emirates News Agency (WAM) in an interview.

He attributed the success of the programme to its efficiency and user-friendliness. He noted that the number of self-service tax refund kiosks available to tourists has increased to 87, up from 81 in September 2022. Additionally, the number of registered sales outlets connected to the digital system has reached 15,880, providing tourists with more options to claim their tax refunds.

Al Bustani also highlighted the FTA’s commitment to supporting newly constructed citizens’ homes by refunding the value-added tax (VAT) paid. Since the inception of the programme in 2018, the FTA has approved over 21,947 refund requests, amounting to approximately Dhs1.8 billion.

He detailed that since its launch, the electronic system for refunding value-added tax for tourists has undergone continuous development and updates. Recently, the advanced digital system for tourist tax refunds was launched, operating entirely paperless and digitally at a 100% rate. It stands as a global pioneer, continuing its role in reinforcing the sophisticated civilised features of the UAE, considering it one of the most significant destinations on the global tourism map.