Sheikh Maktoum reviews progress of FTA's development projects

Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE, and Chairman of the Board of the Federal Tax Authority (FTA), chaired the latest Board meeting of the FTA, during which he reviewed the Authority’s development projects aimed at continuously enhancing the legislative and procedural framework of the national tax system in line with international best practices and improving the quality of services provided to taxpayers.

Sheikh Maktoum said that the UAE’s tax system has achieved major milestones in recent years, further consolidating its role in supporting financial sustainability and enhancing the country’s global competitiveness.

Sheikh Maktoum Bin Mohammed directed the FTA team to continue implementing its development and modernisation plans, intensifying efforts to sustain achievements and further strengthen the Authority’s key role in advancing the UAE’s sustainable development. He emphasised the need to continuously enhance FTA services in line with the government’s digital transformation strategies, with a focus on customer experience and operational efficiency, to achieve global benchmarks in service excellence.

During the meeting, Sheikh Maktoum reviewed a report on the outcomes of the corporate tax implementation, which recorded compliance rates among the highest globally. The number of corporate tax registrants surpassed 651,000 by the end of September, accompanied by significant growth in compliance related to the filing of tax returns, submission of annual declarations and timely payment of due taxes.

These results were attributed to the ease and efficiency of procedures offered through the ‘EmaraTax’ digital tax services platform, which handles thousands of requests each day with exceptional effectiveness. The call centre also continues to provide prompt support to taxpayers, particularly during peak periods.

Corporate tax return submissions and payment processing were completed seamlessly even during peak periods, underscoring the effectiveness of the legislative and procedural framework, which aligns with international best practices and features some of the most advanced digital compliance systems globally.

The FTA also carried out extensive awareness campaigns across all emirates and through digital communication channels, providing businesses with clear information and guidance to enhance tax awareness and facilitate accurate voluntary compliance. The Authority continues to implement enhancements under the ‘Zero Digital Bureaucracy’ programme aimed at further streamlining procedures.

The FTA Board approved the Authority’s proposed budget for 2026 and endorsed a series of executive resolutions related to its administrative and operational policies, as well as its core activities.

The meeting also reviewed the latest updates on the implementation of the E-Invoicing Project, jointly executed by the Ministry of Finance and the FTA, including legislative and digital system requirements completed to date.

The Board also approved the operational policies for the new mechanism to calculate excise tax on sweetened drinks, based on the tiered volumetric model that links the tax rate to the sugar content of each beverage. It reviewed the steps taken by the FTA to ensure early preparedness for the mechanism’s implementation, including the development of electronic systems and proactive awareness initiatives to guarantee a smooth transition.

During the meeting, the Board also reviewed a report outlining the FTA’s recent achievements and operational results, which showed that the Authority approved new refund applications submitted by UAE citizens for the VAT paid on the construction of their newly built residences, amounting to Dhs115.4 million during August and September.

The report further indicated that the number of VAT registrants reached 547,000, while excise tax registrants totalled 1,777, and the number of registered tax agents stood at 806.

Last month, the Federal Tax Authority has expressed its appreciation to the large number of corporate taxpayers who achieved high compliance rates exceeding international benchmarks in registering with the Authority within the legal time-frames set for each category.

The Authority commended taxpayers who filed returns, submitted annual declarations, and paid dues on time, noting that processing this large volume of returns demonstrates the efficiency of the UAE’s legislative and procedural tax framework, which aligns with global best practices and leverages advanced digital compliance systems.

Khalid Ali Al Bustani, Director-General of the FTA, said the number of corporate tax registrants has surpassed 640,000, reflecting strong responsiveness from businesses ahead of the 30th September 2025 deadline for the financial year ending 31st December 2024. He highlighted that compliance levels had risen significantly as a result of enhanced awareness and the growing tax culture, supported by the FTA’s regular communication with stakeholders to foster collaboration and continuous development.

Al Bustani explained that hundreds of thousands of corporate tax returns and declarations had been processed through the EmaraTax digital platform, which provides round-the-clock tax services with speed and transparency. He added that thousands of requests were efficiently handled daily, while the Call Centre offered immediate assistance during peak periods.

He noted that the UAE’s flexible tax environment encourages voluntary compliance, supported by a series of government initiatives, including a Cabinet decision exempting certain corporate taxpayers and entities from administrative penalties for late registration, provided that their first tax return is filed within seven months of their initial tax period.

The FTA also issued a decision extending the filing and payment deadline to 31st December 2024 for companies established on or after 1st June 2023 whose first tax period ended on or before 29th February 2024. Additionally, a grace period was granted for registrants who delayed updating tax records between 1st January 2024 and 31st March 2025, allowing amendments without penalties.

WAM