Maktoum bin Mohammed approves FTA's financial statements, plans for corporate tax implementation

Maktoum bin Mohammed chairs meeting of Federal Tax Authority’s Board of Directors, approves FTA’s financial statements for 2022

His Highness briefed about the Authority’s development projects designed to continuously enhance system efficiency

Board reviews plans for implementing Corporate Tax aimed at raising the UAE’s status as a leading global destination for business and investment

FTA is launching four transformative projects as part of its contributions to implementing the UAE’s new approach for government operations

Board members review the results of the launch of the EmaraTax platform for digital tax services.

Refunds of tax incurred by citizens on building their new homes, worth AED131.06 million, made in Feb and March 2023, an increase of 13.9% from last year

His Highness 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 Directors of the Federal Tax Authority (FTA), chaired the second meeting of the FTA Board of Directors for the year 2023.

During the meeting, the Board approved the Authority’s financial statements for 2022, and reviewed its performance indicators and development plans for the next stage, which aim to continuously raise the operational efficiency of tax systems and improve the quality of services provided to customers.

The FTA Board of Directors was briefed about developments related to the implementation of the Federal Decree-Law on the Taxation of Corporations and Businesses (the “Corporate Tax Law”), as well as the Authority’s plans, preparations, and procedures in this regard. The meeting also covered the policies and decisions to be implemented in collaboration with the Ministry of Finance to ensure the smooth execution of the Corporate Tax Law, which is effective as of the first fiscal year beginning on or after 1 June 2023. The Law aims to strengthen the UAE’s position as a leading global hub for business and investment that maintains the highest international standards of tax transparency.

The FTA’s transformational projects

The Board of Directors of the Federal Tax Authority was also briefed about the progress of the FTA’s transformational projects, which form part of its contribution to implementing the new approach to government work, in line with national priorities and FTA’s key objectives. The Authority is launching specific projects aimed at enhancing the country’s competitiveness and realising its vision for the future. Key projects include the Muwafaq package, designed to boost ease of doing business and tax compliance of small and medium-sized enterprises (SMEs) sector, the Specialised Tax Agent, the Electronic Invoicing System, and the Corporate Tax System. These rapid transformational projects aim to have a positive impact across all sectors in a short period of time.

Integrated Tax System

During its meeting, chaired by His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the FTA Board of Directors reviewed the progress made in implementing the integrated tax system, as well as the results of the successful launch of the FTA’s advanced integrated digital tax services platform, EmaraTax. The platform was activated in December 2022, with all services now available for taxpayers.

The FTA’s achievements

A comprehensive report reviewed by the FTA Board of Directors on the achievements, results, and developments of the Authority’s existing projects reveals that the number of registrants for Value Added Tax (VAT) has reached 351,514, while there are 1,549 registrants for Excise Tax, and 467 Tax Agents. The report also outlines key statistics regarding VAT and Excise Tax, periodic returns, the payment of taxes, and refund requests that have been processed.

According to the report, the Federal Tax Authority has approved new applications from citizens requesting refunds on the tax they incurred for building their new homes, worth a total of AED131,056,249 in February and March 2023, a growth of 13.92% from last year. This is a direct result of the seamless procedures implemented by the FTA to enable citizens to recover the tax incurred on building their new homes.

News Source: Dubai Media Office