The Federal Tax Authority (FTA) has launched the ‘Tax Support’ initiative to raise tax awareness among business sectors in the UAE through direct and sustained contact, as a means to enhance compliance with tax laws and regulations.

The first workshop for 2023 under the initiative was held on Jan.24 and 25 as a collaboration between the FTA and On Time Business Solutions Centre, which is located in Oud Metha, Dubai.

The Authority stated that the activities of the ‘Tax Support’ initiative will continue throughout the year and cover all seven emirates, in collaboration with relevant centres and entities in the government and private sectors, where experts from the FTA will go on several tours in accordance with a comprehensive timeline. The initiative targets taxpayers and aims to facilitate the process of paying taxes for them, in an effort to raise the rate of tax compliance and awareness around the UAE, in addition to responding to taxpayer enquiries and observations, directing them to the available tax guidelines, and guiding them along the correct procedures.

The Federal Tax Authority indicated that during the workshop held at the On Time Business Solutions Centre in Oud Metha, Dubai, the FTA team answered business owners’ questions and provided them with knowledge and support to overcome any obstacles they face during the online registration procedures, submitting tax returns, paying due taxes, and recovering the amounts that are eligible for a refund.

The Authority explained that these sessions are organised in coordination with relevant authorities and strategic partners, who invite business sectors to attend and participate in the activities of the ‘Tax Support’ initiative. Moreover, the FTA broadcasts many of these workshops via social networking sites, in an effort to allow more people and business to benefit from the seminars.

The Federal Tax Authority invited business sectors to attend the sessions of the ‘Tax Support’ initiative to benefit from expert advice and raise their observations or enquiries for the FTA team to respond to and clarify. The Authority stressed its commitment to coordinating with relevant federal and local authorities to further develop cooperation mechanisms; raise awareness among various stakeholder groups; ensure utmost transparency, clarity, and accuracy of information; and answer queries efficiently to enhance compliance with tax laws and avoid violations.

The FTA is intensifying its coordination meetings and awareness programmes, in an effort to enhance awareness of tax legislation and the associated executive and oversight mechanisms, as well as the facilities that the Authority provides to help taxpayers comply with regulations with little to no impact on their activities.

The Federal Tax Authority was established by Federal Decree-Law No. (13) of 2016 to help diversify the national economy and increase non-oil revenues in the UAE through the management and collection of federal taxes based on international best practices and standards, as well as to provide all means of support to enable taxpayers to comply with the tax laws and procedures. Since its inception in 2017, the FTA has been committed to cooperate with the competent authorities to establish a comprehensive and balanced system to make the UAE one of the first countries in the world to implement a fully electronic tax system that encourages voluntary compliance, with simple procedures based on the highest standards of transparency and accuracy.

Meanwhile the Federal Tax Authority (FTA) has launched early registration for corporate tax through EmaraTax, the UAE’s digital tax services platform.

The step comes in line with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (the Corporate Tax Law), which stipulates that Taxable Persons will become subject to Corporate Tax from the beginning of their first financial year that starts on or after 1st June, 2023.

The Authority explained that early registration is open from January 2023 to May 2023 for certain categories of companies operating in the UAE. These selected companies will be receiving invitations from the FTA by email and SMS, allowing them to register via the EmaraTax platform.

Following this phase, the FTA will announce at a later date when registration will be open for other companies and businesses. The FTA will make sure to give ample time for companies and businesses to apply for registration and meet their legal obligations. When registration opens, priority will be given to companies and businesses that have a financial year starting on 1st June, 2023.

FTA Director-General Khalid Ali Al Bustani said, “Since the announcement of corporate tax in the UAE, the Federal Tax Authority has intensified its efforts, in collaboration with the competent authorities, to develop procedures to implement it in accordance with the highest standards, and to ensure the efficiency, accuracy, and seamlessness of administrative procedures, in a way that will not impact business operations and flow.”