UAE Offers Corporate Tax Relief for Small Businesses
The UAE Ministry of Finance has issued a landmark decision on Small Business Relief allowing small businesses with revenues of AED 3,000,000 ($ 816,880) or less to claim tax relief in a tax period when their revenue does not exceed a certain threshold. This tax relief scheme aims to support startups and other small businesses by reducing their corporate tax burden and compliance costs.
EmaraTax Enhances Tax Management Experience for Taxpayers
The launch of the EmaraTax platform represents a significant milestone in the landscape of tax compliance in the UAE. The new digital platform facilitates hassle-free access to a wide range of tax services in the UAE including tax registration, return filing, refunds, payment and more. Its added secured UAE PASS login feature aligns with the UAE’s national digital agenda to leverage emerging technologies and build a robust digital infrastructure for its people.
A List of UAE VAT Law Changes You Must be Aware
January 1, 2023 marks the completion of five years of Value Added Tax (VAT) in the UAE (first introduced in UAE on January 1, 2018). Over the years a lot of amendments were made to the VAT law with new additions of decrees and articles. Staying on top of the new changes is essential to being a tax-compliant resident as well as avoiding fines and getting into trouble with the law of the land. In this article, we run you through a list of UAE VAT law changes you must be aware of this year.
FTA releases Key Amendments to the UAE VAT Law
We wish to inform you that the United Arab Emirates (UAE) Federal Tax Authority (FTA) has published notable amendments to the Federal VAT Decree-Law No. 8 of 2017 (UAE VAT Law). This is the first update to the UAE VAT Law ever since its introduction in 2017. The amendments will go into effect from January 1, 2023. In this piece, we have outlined an overview of the key changes to the UAE VAT Law.
Digital Tagging to Prevent the Sale of Counterfeit Tobacco Products in Oman
Many governments have lost revenues in millions each year due to illicit trade of tobacco, cigarettes and alcohol. To prevent lost tax revenue, it’s essential to plug loopholes in the supply chain as the chances of tax evasion are ample once products cross international borders for sale. In order to combat such illegal trade, DTS was introduced to tighten control over the suppliers’ commitment to pay excise tax and monitor movement of goods.
FTA’s Cabinet decision No 105 : Penalty Waiver and Installments
FTA introduced Cabinet Decree No 105 outlining the procedures for administrative penalty installments and waivers. This new cabinet decision went into effect on 1st March 2022. The scheme allows taxpayers to settle administrative penalties through installments under defined conditions and eligibility criteria. Here are the highlights of the decision
Key Aspects of Tax Group Formation under UAE’s Corporate Tax Regime
The UAE Corporate Tax Regime, effective from June 2023, permits companies to form tax groups. The Public Consultation Document for the Corporate Tax Law released by UAE Ministry of Finance (MoF) prescribes rules for forming a tax group by a group of companies. The prime objective behind introducing separate rules for group of companies is to reduce the overall tax compliance cost.
Be Thankful you do Business in the UAE
The UAE has taken significant steps to enhance tax transparency and facilitate the exchange of tax information by bringing its domestic tax rules in line with international standards. One such major move is the introduction of Corporate Tax (CT) which will be levied on business profits on or after June 1, 2023. Here are some interesting aspects you should know about the UAE CT regime, that will assure you that corporate tax is the way forward and be thankful you do business in the UAE.
UAE Corporate Tax Application
The Ministry of Finance (MoF) announced that federal Corporate Tax (CT) will be levied on business profits at the rate of 9%, effective from 1 June 2023. The aim of introducing CT in the UAE is to cement its position as a leading global business hub and be in line with international standards for tax transparency.
In this article, we brief you on the key features of the UAE CT Regime and its applicability to natural and legal entities in the UAE.
VAT Deregistration in the UAE
Since the introduction of VAT in the UAE every business in the UAE has been oriented towards the importance of VAT registration with The Federal Tax Authority (FTA). However, companies also need to have an in-depth understanding of when and under what situations they must deregister their businesses from VAT.
All about Excise Tax in the UAE
The purpose of levying excise tax was to reduce the consumption of unhealthy and harmful commodities while also raising the revenue for the government to spend on beneficial public services. Any business which produces, imports, or stockpiles excise goods, or releases them from a designated zone in the UAE, should register for excise tax.
The VAT Marathon – Qatar-The Fifth State to Introduce VAT
The buzz in the region is Qatar is expected to introduce VAT in late 2021 or early 2022 depending on the stability of their economy, trade and other factors. In this article we brief you on the possible impact of this move on consumers and businesses in Qatar.
UAE’s New Weekend: Implication for Taxpayers
Insync with the World–
In 2022 public sector weekends have officially switched to Saturday and Sunday in the United Arab Emirates (UAE), as the country aligned its working week with global markets. The good news is the government also announced a four-and-a-half day working week for federal government departments.
Guide for EXPO 2020 participants to benefit from the VAT Refund Scheme
Foreign businesses visiting the country for business purposes and exhibitors in EXPO 2020 are entitled to request a refund on the VAT expenses incurred on the goods and services related to the exhibition. The FTA has called on official participants to benefit from the special refund scheme on goods and services in connection with the EXPO.
In this article, we discuss the methods applicants can claim VAT refund, the categories of claimable VAT expenses and the supporting documents to be submitted.
Digital Tax Stamps to Track and Trace Excisable Products
In enhancing the excise tax regime in the UAE, the Federal Tax Authority (FTA) has announced the adoption of new design for ‘Digital Tax Stamps’ to be placed on the packaging of cigarettes, electrically heated cigarettes, and waterpipe tobacco (known in Arabic as ‘Mu’assel’) circulated in local markets.
Important Terms used in Anti-money Laundering Policies
Not many businesses are aware of important Anti-Money Laundering policies and their allied implications. Every business owner ought to be aware of the important terms related to AML during these current times, where a business could fall prey to money-laundering. Having clarity on the meaning of AML policies and their frequently used terms will help you better understand the rules.
UAE Nationals can claim VAT Refund on Newly Built Residence
Any UAE National building a new residence in the UAE is likely to incur VAT on the construction costs. For this purpose, FTA has released VATGRH1 guide on ‘VAT Refund for UAE Nationals Building New Residence’ to facilitate UAE nationals to obtain refund of VAT incurred by them on building a new residence.
Challenge FTA’s Decision: Submit VAT Reconsideration Form
Businesses that function in the UAE must have thorough knowledge about the Tax Laws in the region. A failure to comply with the VAT/Tax regulations will attract heavy penalties. The Federal Tax Authority (FTA) is the Governing Authority that regulates tax laws, tax collections and penalties for non-compliance.
UAE Federal Tax Authority launches smart app to help consumers detect non-compliant tobacco products
As part of its ongoing efforts to protect consumers from commercial fraud and combat tax evasion with various mechanisms, the Federal Tax Authority (FTA) of the UAE has launched an innovative smart application for consumer’s use. This latest technology allows consumers to scan the digital tobacco products and detect illegal products so that they can be reported to the FTA through the application.
The top 8 list of VAT fines and penalties levied by FTA
Ever since the introduction of Value Added Tax (VAT) on 1 January 2018 in UAE, companies need to mandatorily comply with stipulated guidelines and regulations to abide by the VAT law. The mandates are related to VAT registration, erroneous submissions, returns filing and other compliances.
Businesses must be aware of all the scope of violations of UAE VAT Law in order to avoid non-compliance issues and hefty fines.
We give you a brief orientation on the types of violations possible under the VAT law and the associated penalties imposed by FTA for non-adherence.
Designated Non-financial Businesses and Professionals (DNFBP) role in anti-money laundering (AML)
The UAE has the most attractive trade regimes in the Middle East region, making it a global hub. As a committed member of the International Financial Action Task Force (FATF), the UAE has displayed readiness for anti-money laundering (AML) and counter financing of terrorism (CFT). The UAE taken proactive steps in an effort to monitor the illegal funds and align with international best practices.
Strict Compliance to ESR requirements in UAE
The UAE adopted new Economic Substance Regulations in Cabinet Resolution No. 31 of 2019. These regulations iterate that a company engaged in relevant activities must have sufficient economic substance in the territory to access the territory’s tax regime. Companies in UAE need to comply with the Economic Substance regulations (ESR) in UAE, if not they have to bear heavy fines for their failure to do so.
A New Step in Excise Tax System: Digital Tax Stamp Scheme
FTA to ban the sale (supply), transport, storage or possession of water pipe tobacco products and electrically heated cigarettes that are not marked with Digital Tax Stamps with effect from 1st January 2021.
Know more about the Digital Tax Stamp Scheme.
VATP023 relating to Zero-rating of Certain Medical Equipment
UAE’s Federal Tax Authority (FTA) had published a new public clarification (VAT P023) confirming the zero-rating of VAT on personal protective equipment, PPE, relating to COVID-19. The zero-rating is only for qualifying supplies between 1 September 2020 and 28 February 2021.
Published by : Federal Tax Authority
Firms offering VAT compliance solutions have bright future
The VAT landscape is evolving within the GCC, and therefore, there is a need for a solution that offers agility to respond to these changing regulatory requirements.
Published by : Khaleej Times
How VAT works in Free Zones (UAE)?
Aurifer and Thomson Reuters have partnered on this whitepaper to discuss about Free Zones in the UAE, the impact of VAT on companies working within these zones, and how you should better navigate these complexities and challenges.
Published by : Aurifer and Thomson Reuters
VAT Returns Guide by FTA
The FTA Released a series of E-learning guides for filing VAT returns. Download here and view the PDF version of the Powerpoint.
Published by : Federal Tax Authority
Cabinet Resolution No. (40) of 2017 on Administrative Penalties for Violations of Tax Law in the UAE
This Resolution outlines the scope of the resolution, general provision of the Administrative Penalty, methods of amending Administrative Penalties, the objections framework and responsibility of issuing Executive Decisions.
Published by : Ministry of Finance, UAE
Federal Tax Authority Opens Registration for Tax Agents and Tax Accounting Software Vendors
Abu Dhabi, November 25, 2017– The Federal Tax Authority (FTA) has officially opened registration for individuals interested in working as Tax Agents and for Tax Accounting Software Vendors, in addition to providing the necessary technical support to help these vendors as they assist UAE-based businesses comply with tax regulations.
Published by : Federal Tax Authority (FTA)
Impact of VAT on the GCC Construction Industry
LEarn about the impact of VAT on the construction industry’s complex supply chains and on roll-over contracts, competitiveness of local firms, how to raise VAT invoices without impacting cash-flows, timelines for claiming back VAT and preferred IT software for VAT filings
Published by : Thomson Reuters
Cloud ERP to Ease Compliance for Business
Oracle and HBR present a white paper on the benefits of deploying VAT applications on the Cloud and rolling out new features much faster than an on-premises implementation.
Published by : HBR with Oracle
Getting up to speed with VAT in emerging markets
Make sure your business is up to speed with the new requirements and the strategic implications.
Published by : Grant Thorton
GCC VAT – The Intra Gulf Trade Problem
Richard T. Ainsworth, Boston University School of Law and Musaad Alwohaibi, University of Florida, Fredric G. Levin College of Law, discuss the ramifications of Intra-Gulf Trade under the VAT regime.
Published by : Boston University - School of Law
The Status of VAT in the UAE – March 2017
The representatives of the Member States of the GCC have now all signed the Unified VAT Agreement for the GCC.
Published by : Deloitte
VAT in the Gulf – An Introduction by BDO
VAT systems currently exist in more than 150 countries worldwide and are being introduced in the Gulf countries for the first time.
Published by : BDO
Preparing for VAT and Excise Taxes in the U.A.E.: An Update
The reason for implementing VAT, its structure and what it means for business.
Published by : The US-UAE Business Council
Grant Thornton’s updates on VAT in the UAE – May 2016
Following the announcement earlier this year confirming that the UAE will implement VAT at a rate of 5% from 1 January 2018, the Ministry of Finance(MoF) has just released additional details on the impending introduction.
Published by : Grant Thornton