UAE’s Federal Tax Authority (FTA) has finalised plans for the upcoming period – including procedures for the introduction of excise tax next month and value-added tax (VAT) early next year – at its second meeting held in Dubai.

Chaired by Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, and attended by members of the board, the meeting saw the board explore the latest developments around the planned nation-wide federal tax laws, namely: Federal Law No. (7) of 2017 for Tax Procedures, Federal Decree-Law No. (7) of 2017 on Excise Tax and Federal Decree-Law No. (8) of 2017 on Value Added Tax.

Moreover, the authority is working to issue the executive regulations for each respective law to educate taxable persons on their rights and responsibilities, explained Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs, deputy chairman of the FTA board of directors.

“We continue to steadily move forward in our preparations for the nation-wide tax laws in the UAE,” said Sheikh Hamdan.

“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,” he noted, “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 Federal Tax Authority’s website has been designed to meet the highest international standards, facilitate registration and offer a bundle of tax-related services,” he added.

The board of directors adopted the proposed fees and fines, in accordance with the authority’s responsibilities stipulated in Federal Decree-Law No. (13) of 2016 on the Establishment of the Federal Tax Authority. Also adopted were the violations outlined in Federal Law No. (7) of 2017 for Tax Procedures, Federal Decree-Law No. (7) of 2017 for Excise Taxes and Federal Decree Law No. (8) of 2017 on Value Added Tax.

The board additionally went through the proposed designs for the FTA’s new logo, and looked back on what’s been achieved in the workshops and programmes carried out across all emirates. The first series of awareness sessions on the tax system took place from March to May 2017, whereby 25 awareness workshops were conducted, attracting more than 15,000 attendees from different business sectors.

The Authority has put in motion the second series of workshops in August 2017 –in cooperation with the Chambers of Commerce in the local governments across all emirates – targeting such sectors as real estate, retail and exports, in addition to companies that are subject to Excise Tax.

There have so far been 10 workshops, attended by more than 5,000 professionals representing companies from various sectors. The FTA will also be organising workshops for the financial services and insurance sectors, as well as education, health, government, and international organisations and diplomatic missions in the UAE. Phase two of the session will continue until the end of October 2017, with a total of 18 workshops for the business sector and 9 for the government sector (local and federal).

FTA recently launched its websitetax.gov.ae, with information about the Authority itself, as well as the different types of indirect taxes in the UAE, the legislations regulating them, and the objectives and benefits to the UAE economy. For businesses, the website provides advice and guides to help them determine if they are eligible to register, as well as guidance on the registration process. – TradeArabia News Service