“Maktoum bin Mohammed Presides Over Federal Tax Authority’s Board Meeting, Approves FTA’s 2022 Financial Statements”

“Maktoum bin Mohammed Presides Over Federal Tax Authority’s Board Meeting, Approves FTA’s 2022 Financial Statements”

“Major Updates Regarding Corporate Tax Law Discussed in FTA Board of Directors Meeting”

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance, 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 1st 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 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.

During its meeting, chaired by 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.

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 Dh131,056,249 in February and March 2023, a growth of 13.92 percent 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.

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