Federal Tax Authority board reviews corporate tax implementation progress

FTA board also approved last year's financial statement

The board has also reviewed the progress on several projects being implemented by the Federal Tax Authority. Silvia Razgova / The National
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The board of the UAE’s Federal Tax Authority has approved its 2022 financial statement and reviewed its performance indicators and development plans as the authority prepares to implement corporate tax in the country this year.

The FTA board, which met for its second meeting this year, was also briefed on developments related to the Federal Decree Law on the Taxation of Corporations and Businesses, as well as the FTA’s plans, preparations, and procedures ahead of its implementation, the Dubai Government Media Office said in a statement.

The meeting, chaired by Sheikh Maktoum bin Mohammed, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance and the chairman of the FTA board, was also briefed on the “policies and decisions to be implemented in collaboration with the Ministry of Finance to ensure the smooth execution” of the corporate tax law,” the statement said.

The law, will “strengthen the UAE’s position as a leading global hub for business and investment that maintains the highest international standards of tax transparency”, it added.

Last year, the UAE introduced the federal corporate tax with a standard statutory rate of 9 per cent, which will come into effect for businesses whose financial year starts on or after June 1.

In December, the country issued the federal corporate tax law, bringing the income of companies exceeding Dh375,000 into the corporate tax bracket.

The board was also briefed about the progress the FTA has made in terms of its “transformational projects”, aimed at enhancing the country’s competitiveness.

The Muwafaq package, designed to boost ease of doing business and tax compliance of the small and medium-sized enterprises sector, the Specialised Tax Agent, the Electronic Invoicing System, and the corporate tax system are among the Key projects FTA is implementing, the Media Office said.

The meeting also reviewed the progress made in implementing the integrated tax system, as well as the FTA’s advanced integrated digital tax services platform, EmaraTax, which was launched in December.

The board was also presented with a comprehensive FTA report, which said the number of VAT registrants has reached 351,514. There are 1,549 registrants for excise tax, and 467 tax agents in the country.

The FTA has also approved applications from citizens requesting refunds on the tax they incurred for building their homes, worth Dh131 million in February and March, a growth of almost 14 per cent from last year, according to the FTA report.

Updated: April 30, 2023, 5:09 PM