The Federal Tax Authority (FTA) have finalized plans for the next calendar year with reforms expected in excise and value added tax soon expected. These plans were approved by H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, who chaired the meet with the members of the Ministry of finance in attendance.
The board of the FTA also revisited laws of issuance that regulate taxes in the nation, including Federal Law No. 07 of 2017 for Tax Procedures, Federal Decree-Law No. 07 of 2017 on Excise Tax and Federal Decree-Law No. 08 of 2017 on Value Added Tax.
The Minister of State for Financial Affairs and Deputy Chairman of the FTA Board of Directors Obaid bin Humaid Al Tayer, added that work is being done with regard to issuing executive regulations for the proper implementation of these laws and the provision of details for the same. “We continue to steadily move forward in our preparations for the nation-wide tax laws in the UAE,” asserted H.H. Sheikh Hamdan bin Rashid.
“The system we are developing will provide ample support for the sustainable social and economic development of the UAE; it will diversify revenue streams and establish sustainable sources of income, allowing the Government to carry on with its ambitious plans to develop future-ready infrastructure, and to continue providing high-quality services for the people."
“We are entering a new phase in the implementation of the tax laws,” His Highness continued, adding, “as we gear up to inaugurate the registration process for taxable companies, as soon as all the necessary legislative, administrative and infrastructure requirements are met.
The FTA’s website has been optimized to match global standards, facilitate registrations and offer a useful set of tax-related services. The board also approved of the allocation of specific fees and fines to meet the federal decree laws. Violations outlined in federal laws with regard to tax procedures, excise tax and vat were also included.
Among the other topics of discussion was a proposed new logo for the FTA and the progress made with awareness programs and workshops in regard to the tax system in association with the chamber of commerce and industry. The first of these workshops on selective tax systems commenced in the monthsof March and May 2017. Over 15,000 people enrolled and over 25 workshops were conducted successfully.
A second series of workshops followed the first in August 2017 in association with chambers of commerce and industry from various emirates, targeting the various business sectors of the country. Separate workshops were conducted for each sector, including real estate, retail, import and export, as well as for companies that are subject to selective taxes. Ten worshops were conducted as a part of this series with over 5,000 participants in audience.