VAT’s UP
VAT’s UP
FTA Collaborates with Umm Al Quwain Chamber to promote Tax Culture among Business Sectors
Date: 27 Sep, 2023
External URL: https://bit.ly/3Pz1xMr
Dubai September 27 2023:
The Federal Tax Authority (FTA) has signed a memorandum of understanding (MoU) with the Umm Al Quwain Chamber of Commerce and Industry to cooperate on promoting a tax culture among business sectors and contribute to the UAE’s strategy and vision to support the private sector, entrepreneurs and investors.
The agreement was signed by His Excellency Khalid Ali Al Bustani, Director-General of the FTA, and His Excellency Ammar Rashid Al Aleeli, Director-General of the Umm Al Quwain Chamber. Signed at the FTA’s headquarters in Dubai, the MoU forms part of the efforts to intensify tax awareness activities, and establishes a framework for collaboration between the Authority and the Chamber to organise more workshops and awareness sessions for business sectors, entrepreneurs, and investors, particularly in the Emirate of Umm Al Quwain, familiarising them with the objectives of the tax system and its implementation procedures.
H.E. Al Bustani said “The memorandum of understanding that the Federal Tax Authority has signed with the Umm Al Quwain Chamber of Commerce and Industry serves to establish effective frameworks for bilateral cooperation to continuously upgrade the services we provide to support and assist business sectors. This aligns with the Authority’s plans to create a tax environment that encourages compliance, in accordance with the highest governance and transparency standards, by implementing continuous awareness plans that target all business categories and familiarise them with tax legislation and procedures using diverse methods and providing clear information.”
FTA Release General Guide on Corporate Tax
Date: 15 Sep, 2023
External URL: http://www.allaboutvat.com/wp-content/uploads/CT-General-Guide-EN-10-09-2023.pdf
Dubai September 15 2023:
FTA releases a General Guide on Corporate Tax.
The guide is designed to provide general guidance on Corporate Tax in the UAE with a view to making the provisions of the Tax Law as understandable as possible to readers. It provides readers with:
- An overview of the main Corporate Tax rules and procedures, including the determination of the Corporate Tax base.
- The calculation of Corporate Tax, the filing of Corporate Tax Returns, and other related compliance requirements.
- Assistance with the most common questions businesses might have.
The guide should be read by those who want to know more about the Corporate Tax regime in the UAE. It is intended to be read in conjunction with the Corporate Tax Law, the implementing decisions and other relevant guidance published by the FTA.
FTA launches Tax Awareness Event Series among School and University Students
Date: 13 Sep, 2023
External URL: https://bit.ly/3PxVQPT
Dubai September 13 2023:
The Federal Tax Authority (FTA) has launched a new series of events, including a set of specialized educational workshops, to promote tax awareness among school and university students as part of its comprehensive awareness campaign for this key sector.
The events are scheduled to coincide with the start of the 2023/2024 academic year and aim to enhance student awareness about the basics and importance of the tax system.
The Authority explained that the campaign’s activities are organized in collaboration with the relevant educational institutions in the government, semi-government, and private sectors. It aims to enhance awareness among students – the future leaders and entrepreneurs – about the importance of the tax system and its role in maintaining prosperity, which has become a fundamental part of the UAE community’s everyday life.
FTA Renews Call for PJSCs and PSCs to Register for Corporate Tax
Date: 04 Sep, 2023
External URL: https://bit.ly/47ZfGe8
Dubai September 04 2023:
The Federal Tax Authority (FTA) has renewed its invitation for Public Joint Stock Companies (PJSCs), Private Shareholding Companies (PSCs), limited liabilities companies and private companies resident in the UAE to register for Corporate Tax, in accordance with Federal Decree Law, which applies to financial years beginning on or after 1 June 2023.
The FTA emphasized the importance of prompt registration for corporate tax especially for the above companies and juridical persons with taxable income whose financial year started on 1 June 2023.
In January 2023, the FTA announced registration for Corporate Tax through the EmaraTax portal and invited specific categories of Taxable Persons to register. In May 2023, the FTA opened Corporate Tax registration for Public Joint Stock Companies and Private Shareholding Companies resident in the UAE. The FTA affirmed that it would provide taxpayers with sufficient time to complete registration and meet their legal obligations while giving priority to Taxable Persons whose financial year started on 1 June 2023, as part of the FTA’s strategy to ease the registration process.
FTA releases Guide on Small Business Relief
Date: 02 Sep, 2023
External URL: http://www.allaboutvat.com/wp-content/uploads/Small-Business-Relief-Guide-EN-29-08-2023.pdf
Dubai September 2 2023:
FTA releases Guide on Small Business Relief.
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The guide is designed to provide general guidance on the Small Business Relief for Corporate Tax in the UAE. It provides you with and overview of:
- What the Small Business Relief is;
- Who is eligible for it;
- How it works;
- How long it is available for; and
- Related compliance requirements.
Any person carrying on a business in the UAE should review the relevant sections of this guide and consider if the Small Business Relief is applicable to them.
FTA Issues Public Clarifications on Final VAT return and more for e-Commerce reporting
Date: 14 Aug, 2023
External URL: https://tax.gov.ae/en/taxes/Vat/guides.references.aspx
Dubai August 14 2023:
This is to update you that the FTA of UAE has recently issued certain user manuals on
- Process Final VAT return – VAT 201 (for e-Commerce reporting)
- VAT 201 – VAT Returns (for e-Commerce reporting)
- Submission of VAT Voluntary Disclosure (applicable for e-Commerce reporting)
- Resubmission of VAT Voluntary Disclosure for e-Commerce reporting (applicable for e-Commerce reporting)
FTA Releases Recording of Awareness Workshop on Taxation of Corporations and Businesses’
Date: 11 Aug, 2023
External URL: https://www.youtube.com/watch?v=agqWUYSH28c
Dubai August 11 2023:
FTA Releases Recording of the Workshop on ‘The General Principles of Taxation of Corporations and Businesses’ on their YouTube channel.
You can now watch the recording of its awareness workshop through this link.
FTA stresses the Need for Accurate Emirate-specific VAT Reporting in Relation to e-Commerce
Date: 08 Aug, 2023
External URL: https://bit.ly/3rSubQg
Dubai August 08 2023:
The Federal Tax Authority (FTA) has stressed the need for taxpayers to abide by accurate, emirate-specific Value Added Tax (VAT) reporting requirements in relation to e-Commerce.
The Authority noted that recent updates to the VAT legislation in the UAE, specifically around the reporting of e-Commerce supplies result in additional obligations for a number of persons when preparing their VAT returns.
The FTA emphasized that businesses must carefully assess whether they fall under the new reporting obligations, noting that failure to comply or compliance with the updated reporting when not required may result in mistakes and expose companies to potential penalties.
Starting from 1 July 2023 and in the VAT return for the first tax period starting on or after that date, “qualifying registrants” are required to report supplies made through e-commerce in box 1 of their VAT Return, based on the Emirate in which the supply of goods or services is received by the customer. They are also required to retain the relevant supporting evidence. If a taxpayer is not a qualifying registrant or if a supply is not an e-commerce supply, then the taxable business must report its supplies in the Emirate where its fixed establishment related to the supplies made is located.
FTA's Corporate Tax Awareness Campaign records Remarkable Turnout from Business Sectors
Date: 07 Aug, 2023
External URL: https://bit.ly/47gqeoZ
Dubai August 07 2023:
The Federal Tax Authority (FTA) records a notable increase in the number of participants participating in its Corporate Tax Awareness workshops. The campaigns are organized to create awareness among tax payers since May 2023, and that is set to continue until the end of the year across the emirates.
The campaign aims to introduce business sectors to Corporate Tax and enable them to comply with the Federal Decree-Law on Taxation of Corporations and Businesses, which came into effect in June 2023 and applies to financial years starting on or after 1 June 2023.
More than 8,270 stakeholders involved in implementing Corporate Tax attended 22 in-person and virtual workshops organised by FTA over the past three months (May, June, and July). Around 19 virtual workshops (in Arabic and English) focused on Registering for Corporate Tax, and were attended by 6,927 representatives of public joint-stock companies and resident private companies across the UAE.
The virtual workshops were delivered via the dedicated awareness platform that FTA launched to provide information and support to all businesses subject to Corporate Tax. Additionally, FTA organised three in-person workshops in July on the General Principles of Taxation of Corporations and Businesses, held in Abu Dhabi, Dubai and Ajman, respectively, with 1,343 participants from various business sectors and entities involved in the tax sector.
FTA and Abu Dhabi Police Collaborate to Seize Contraband Goods in Market
Date: 12 Jul, 2023
External URL: https://bit.ly/3Q2YePg
Dubai July 12 2023:
The Federal Tax Authority (FTA) held a meeting with the Abu Dhabi Police’s Special Patrol Department at FTA’s headquarters in Abu Dhabi to strengthen the strategic partnership between the two entities for the seizure of contraband goods that have not paid the taxes due.
The meeting was chaired by the Director of the Special Patrol Department, Lt Colonel Staff Pilot Zayed bin Hamad bin Hamdan Al Nahyan with H.E. Khalid Ali Al Bustani, Director-General of the Federal Tax Authority, and was attended by members of the FTA’s Compliance and Tax Enforcement Department and the Special Patrol and Department.
The meeting discussed the mechanisms to control contraband goods through campaigns by the FTA and Al Mirsad team overseeing Abu Dhabi, Al Ain and the Dhafra area. This is part of the FTA’s plans to contribute to strengthening market control by ensuring compliance with tax legislation, protecting legitimate trade and preventing sale of smuggled products and tax evasion.
The two entities will cooperate to control all goods that have not paid taxes due in Abu Dhabi, including tobacco and tobacco products, liquids used in electronic smoking devices and tools, electronic smoking devices and tools, soft drinks, energy drinks and sweetened beverages.
UAE FTA Rolls Out Corporate Tax Public Awareness Campaigns
Date: 06 Jul, 2023
External URL: https://bit.ly/3rkJsJC
Dubai July 06 2023:
The Federal Tax Authority (FTA) has announced the launch of a public awareness campaign to help taxpayers understand and meet their obligations under the Corporate Tax Law.
The public awareness campaign includes a range of activities, with a series of physical and virtual workshops, to be held across the UAE and online starting from 12 July 2023. The sessions aim to maximise tax awareness and reach as many taxpayers as possible. The workshops reflect FTA’s key role as the competent authority responsible for the administration, collection and enforcement of federal taxes.
FTA Director General, Khalid Ali Al Bustani, said, “FTA has a central role and vested interest in ensuring that taxpayers and other parties understand their obligations under the Corporate Tax Law. This awareness campaign marks the beginning of a new era of preparing the business community to implement and comply with the Corporate Tax Law in such a manner that will sustain confidence in the UAE’s tax system as well as the FTA’s tax administration in line with international best practices.”
FTA invites all taxable persons and representatives of corporate legal, accounting, and financial departments to join the upcoming workshops on General Corporate Tax Principles.
View the workshops’ schedule and details here I View the schedule of tax webinars
Read More.
UAE: FTA becomes world’s first government tax authority to achieve Corporate Ethical Procurement and Supply Certificate
Date: 22 Jun, 2023
External URL: https://bit.ly/3rFssh1
Dubai June 22, 2023:
The Federal Tax Authority (FTA) has become the world’s first government tax authority to receive the Corporate Ethical Procurement and Supply Certificate – a new international accreditation for the Authority, underlining its commitment to best practices and efficiency standards in its procurement and supply systems.
His Excellency Khalid Ali Al Bustani, Director General of the FTA, received the certificate from Sam Achampong Regional Head of the Middle East & North Africa (MENA) in a ceremony held at the Museum of Union in Dubai, and attended by FTA officials and representatives of the Chartered Institute of Procurement and Supply.
The Institute issued a statement on this occasion confirming that “The Federal Tax Authority is the first government tax agency in the world to obtain the Corporate Ethical Certificate in Procurement and Supply since the establishment of the Chartered Institute of Procurement and Supply about 90 years ago. Given the importance of this achievement, the Authority was added to the corporate ethical register that follow the best professional standards in procurement and supply.”
FTA Launches Corporate Tax Workshop Platform
Date: 05 Jun, 2023
External URL: https://gulfbusiness.com/fta-unveils-corporate-tax-workshop-platform/
Dubai June 05 2023:
UAE’s Federal Tax Authority (FTA) has unveiled a dedicated ‘Corporate Tax Virtual Workshops’ awareness platform, which seeks to provide knowledge and support for taxpayers who are subject to corporate tax. The new feature forms part of the steps the FTA has taken to ensure a smooth implementation of the corporate tax law that came into effect at the beginning of this month and aims to strengthen the country’s position as a leading global centre for business and investment.
On this new platform, the FTA offers educational materials, currently including 13 virtual awareness workshops in both Arabic and English about registration for corporate tax. The workshop series is set to continue throughout June with two workshops weekly. The workshops are targeted at participants who are subject to corporate tax as well as other stakeholders.
UAE: Free zone Businesses to Satisfy De Minimis Requirements '5% of Total Revenue or AED 5 Million' To Benefit from Zero percent Corporate Tax
Date: 03 Jun, 2023
Dubai June 03 2023:
Ministry of Finance clarifies that companies operating in free zones can pay zero per cent tax on income from certain qualifying activities and transactions,.
UAE’s Ministry of Finance issued Ministerial Decision No. 139 regarding qualifying activities and excluded activities. A qualifying company can benefit from zero per cent corporate tax rate on qualifying income provided it is incorporated, established or registered in a free zone. It can also benefit from a tax exemption on income earned from transactions with mainland UAE businesses or those in a foreign jurisdiction. For your understanding:
- Qualifying income is defined as income from transactions with other free zone entities, as well as domestic and foreign-sourced income derived from conducting any of the qualifying activities. This is except for income from excluded activities.
- Excluded activities are transactions with natural persons; regulated banking, insurance, financing and certain leasing activities; ownership or use of intellectual property assets and ownership or use of UAE immovable property.
Earning income from excluded activities or earning any other income that is not a qualifying income will result in the free zone company being disqualified from the corporate tax regime, subject to de minimis requirements. This requirements allows a qualifying free zone person to earn a small or incidental amount of non-qualifying income without being disqualified from the free zone CT regime.
Now that free zone businesses are clear on what their ‘qualifying income’ should be, they must through any future tax period satisfy the de minimis requirements i.e ‘non-qualifying’ revenues must not exceed the lower of 5 percent of their total revenue or AED 5 million.
If these numbers are breached, the free zone business will no longer benefit from 0 percent corporate tax for a minimum period of five years. During this period they’ll be treated as an ordinary taxable person subject to corporate tax of nine percent on their taxable income above AED 375,000.
UAE Ministry of Finance Introduces Three Ministerial Decisions for Taxation of Corporations and Businesses
Date: 01 Jun, 2023
June 01 2023:
Ministry of Finance, UAE Introduces a series of Three Ministerial Decisions for Taxation of Corporations and Businesses.
- Ministerial Decision No. 134 of 2023 on the on the General Rules for Determining Taxable Income for Corporate Tax Purposes
- Ministerial Decision No. 133 of 2023 on Business Restructuring Relief for Corporate Tax Purposes
- Ministerial Decision No. 132 of 2023 on Transfers Within a Qualifying Group for Corporate Tax Purposes
Click here to view details on other issued Minister Decisions.
UAE Ministry of Finance Issues Ministerial Decision on Tax Grouping for Corporate Tax
Date: 31 May, 2023
Dubai May 31, 2023:
The Ministry of Finance has issued Ministerial Decision No (125) of 2023 on Tax Grouping for Corporate Tax.
The decision clarifies the conditions under which UAE resident entities that are 95% or more commonly owned can form or join a Tax Group and be treated as a single entity for Corporate Tax purposes.
Click here to view the document.
Click here to view details on other issued Minister Decisions.
UAE Ministry of Finance Issues Ministerial Decision on Unincorporated Partnerships for Corporate Tax
Date: 30 May, 2023
Dubai May 30, 2023:
The Ministry of Finance has issued Ministerial Decision No (127) of 2023 on Unincorporated Partnerships for Corporate Tax. The decision clarifies when family foundations and foreign partnerships can be treated as Unincorporated Partnerships.
View the document to know more.
Click here to view the list of Ministerial Decisions.
Federal Tax Authority launches Tax Agents Classification Initiative
Date: 27 May, 2023
External URL: https://bit.ly/3IKj8OI
Dubai May 27, 2023:
The Federal Tax Authority (FTA) has launched the Tax Agents Classification initiative to facilitate tax compliance for taxpayers, providing a clear, and accurate online procedure for them to select a specialised Tax Agent suitable to the sector their taxable economic activity falls under, out of a list of 10 diverse sectors that categorise the cumulative real-life experiences of accredited Tax Agents registered with the Authority.
The Authority explained that the initiative aims to increase customer satisfaction among taxpayers regarding the services of Tax Agents, noting that the new Tax Agent Classification service can be availed by accessing the Authorised Tax Agents Register through the FTA website, then clicking on the ‘Filter Agents’ option to classify them according to specialisation or sector, and choose one of the agents listed in the required sector.
The FTA went on to reveal that the number of approved Tax Agents participating in the new initiative amounted to 319, accounting for more than 70% of the total of 454 agents registered with the Authority.
UAE MoF issues Ministerial Decision on Transitional Rules for Corporate Tax
Date: 26 May, 2023
External URL: http://bit.ly/42epqNj
Dubai May 26, 2023:
The Ministry of Finance has issued Ministerial Decision No (120) of 2023 on Transitional Rules for Corporate Tax.
The decision introduces adjustments for the opening balance sheet under the Corporate Tax Law and provides important clarifications for businesses to transition smoothly before and after the implementation of the Law.
For more details on Tax Legislation click here.
UAE: Public to Rely only on Official Publications issued by MoF and FTA on the Corporate Tax Law
Date: 23 May, 2023
Dubai May 23, 2023:
The Ministry of Finance has called on the public to rely only on official publications and posts issued by MoF and the Federal Tax Authority regarding the Federal Decree Law 47 of 2022 on the Corporate Tax Law and the associated Cabinet and Ministerial Decisions.
As a number of posts circulating on social media and other platforms are being published by independent parties, it may contain inaccurate and unreliable interpretations and analysis of Corporate Tax.
UAE issues Ministerial Cabinet Decision Clarifying who Needs to Pay Corporate Tax
Date: 20 May, 2023
External URL: https://www.arabianbusiness.com/culture-society/uae-announces-major-tax-rule-update-for-residents
Dubai May 20, 2023:
UAE Ministry of Finance issues a new ministerial cabinet decision to clarify who needs to pay Corporate Tax in the country. It outlines rules on who should and should not pay Corporate Tax in the country. The new rules, announced on May, 17 2023 confirms that business owners in the UAE will only be liable to pay Corporate Tax if the turnover from the business activity is more than AED 1 m ($272,000) per year.
UAE’s Ministry of Finance issued Cabinet Decision No. (49) of 2023 on the treatment of resident and non-resident individuals undertaking a business or business activity, for Corporate Tax purposes. The decision clarifies the application of the Corporate Tax regime for individuals and ensure that only business or business-related activity income is taxed. Furthermore, any individual’s personal income notably from employment, real estate and investments will not subject to Corporate tax.
FTA Opens Corporate Tax Registration for Public Joint Stock Companies and Private Companies
Date: 16 May, 2023
External URL: https://bit.ly/453azIe
Dubai May 16, 2023:
The Federal Tax Authority (FTA) has launched registration for Corporate Tax (CT) through the EmaraTax digital tax services platform for Public Joint Stock Companies and Private Companies from 15 May 2023, in line with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, which stipulates that Taxable Persons will become subject to Corporate Tax from the beginning of their first financial year that starts on or after 1 June 2023. Therefore, Taxable Persons must register and obtain a Tax Registration Number for Corporate Tax purposes.
The FTA invited all Taxable Persons that are Public Joint Stock Companies and Private Companies resident in the UAE for CT purposes to register with the FTA. Kindly note that this will not cover Free Zone Persons for whom CT Registration will be made available at a later stage. Similarly, CT registration for other categories of Taxable Persons, such as natural persons conducting Business or Business Activity as to be specified by a Cabinet Decision, will open at a later date.
The Authority explained that early CT registration will allow ample time for companies and businesses to comply with their legal obligations.
UAE Issues Detailed Guide on Exempt Persons for Corporate Tax
Date: 15 May, 2023
External URL: https://www.khaleejtimes.com/uae/uae-issues-explanatory-guide-including-exemptions-clarifications-for-corporate-tax
Dubai May 15, 2023:
The UAE’s Ministry of Finance has issued an Explanatory Guide for Federal Decree-Law No 47 of 2022 on Taxation of Corporations and Businesses, which provides the legislative basis for imposing a federal tax on corporations’ and business profits effective for financial years starting on or after June 1, 2023. It comprises 20 Chapters and 70 Articles, covering, inter alia, the scope of Corporate Tax, its application and rules pertaining to compliance and the administration of the Corporate Tax regime.
The guide provides an article-by-article explanation of the meaning and intended effect of the provisions of the Corporate Tax Law and its implementing decisions. It may be used in interpreting the Corporate Tax Law and how particular provisions may need to be applied.
Younis Haji Al Khouri, undersecretary of the Ministry of Finance, said: “The Ministry is working to provide clarity and guidance to those who are or may be subject to UAE’s Corporate Tax, so they can understand the provisions of the law and why it is enacted. The Explanatory Guide reflects our continued commitment to ensuring taxable persons are supported and provided with information ahead of the law’s entry into effect.”
The guide includes explanations of the various features of the UAE’s Corporate Tax regime which would encourage business activity and minimize the compliance burden for taxable persons. Further the guide also provides clause by clause clarifications and highlights targeted exemptions for certain entities from corporate taxation, especially those considered important to the social fabric of the UAE. These include government entities, investment funds, pension and social security funds, public benefit organisations and natural resource businesses.
UAE's MOF issues Decision on Transfer Pricing Documentation for CT Purposes
Date: 11 May, 2023
Dubai May 11, 2023:
The Ministry of Finance has issued the Ministerial Decision No (97) of 2023 on the Requirements for Maintaining Transfer Pricing Documentation under the Corporate Tax Law, which aims to promote transparency and fairness in the UAE’s tax system.
Taxpayers with revenues of at least Dh 200 million or part of a multinational group with consolidated revenue of at least Dh 3.15 billion in the relevant period must maintain transfer pricing documentation.
UAE Issues Ministerial Decision on Exempt Persons for Corporate Tax purposes
Date: 10 May, 2023
Dubai May 10, 2023:
The UAE Ministry of Finance has issued Ministerial Decision No. 105 of 2023 on Determination of Conditions under which a Person may Continue or Cease to be Deemed an Exempt Person, which helps to clarify the application of the Corporate Tax Law, ensuring a transparent and efficient tax system that promotes business growth in the UAE.
The Decision clarifies rules to ensure that businesses remain eligible for a Corporate Tax exemption if they fail to meet the relevant exemption conditions under certain circumstances.
These include a business undergoing liquidation or termination provided that a notification has been submitted to the Federal Tax Authority (FTA) within twenty business days from the date of the beginning of the liquidation or termination procedure.
FTA begins Accepting Requests for Refunding Input Tax incurred on Operating Mosques
Date: 06 May, 2023
Dubai May 06, 2023:
The Federal Tax Authority (FTA) has begun accepting refund requests for Value Added Tax (VAT) incurred on operating mosques via its EmaraTax digital tax services platform. This is in line with its Cabinet Decision on the Refund of Input Tax Incurred on the Construction and Operation of Mosques and the Ministerial Decision which has gone into effect and applies to all mosques around the UAE.
Refund requests must be submitted within the set deadlines, in accordance with the date when the mosque in question started being operated by the applicant who submitted said request.
In a press statement, the FTA indicated that with regards to requests to refund VAT collected on building and operating mosques, the Decision specified the period from April to September 2023 where the FTA will receive tax refund requests on the operation of mosques that began operating before 1 January 2022, covering the years 2018 to 2022. Meanwhile, between October and December 2023, the Authority will be receiving tax refund requests on the operation of mosques that began operating on or after 1 January 2022, covering the year 2022.
The Authority went on to explain that all mosques must submit tax refund requests on their operation for any given year after 2022 between January and April of the following year.
Dubai Customs Extends Grace Period to 30 Days for Customs Declaration Submission
Date: 05 May, 2023
External URL: http://www.allaboutvat.com/wp-content/uploads/CN4_2023-1.pdf
Dubai May 05, 2023:
On 14 April 2023, Dubai Customs issued Customs Notice No. (04/2023), extending the timeline for physically submitting a hardcopy of the Customs declaration and supporting documents after the import and export clearance. The new grace period and associated details in the notice came into force on 24 April 2023.
Customs declarations and associated documents must be submitted within 30 days after filing the initial Customs declaration online. Supporting documents include any transport documents e.g. bill of lading, airway bill, commercial invoices, packing lists, certificate of origin, exit certificate (exports) and any import/export permits if required. Late filings beyond 30 days will be charged AED 5 per day and up to a maximum of AED 300 for each declaration.
UAE Corporate Tax: FTA to Launch Specialised Tax Agent Scheme
Date: 01 May, 2023
External URL: https://www.khaleejtimes.com/business/corporate/uae-corporate-tax-board-reviews-plans-to-implement-scheme
Dubai May 01, 2023:
The Federal Tax Authority (FTA) will launch four transformative projects aimed at enhancing the UAE’s competitiveness and realising its vision for the future.
The Specialised Tax Agent scheme aims to develop and facilitate the process of selecting the appropriate tax agent for taxpayers in the UAE. According to the FTA website, this is done by creating a database to classify the tax agents registered within specific fields such as contracting, medical, financial, transportation, and other sectors.
This came as Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE, chaired the second meeting of the FTA Board of Directors for 2023.
UAE Corporate Tax: Ministry Issues Decision Specifying Requirement For Firms Earning Over Dh 50 Million
Date: 30 Apr, 2023
Dubai April 30, 2023:
The UAE’s Ministry of Finance has issued two decisions that seek to bring transparency and clarity to the country’s corporate tax regime — which will come into effect from June 1, 2023.
Ministerial Decision No. 82 of 2023 specifies that taxable entities— including qualifying free zone companies — that derive revenues of over Dh 50 million are required to prepare and maintain audited financial statements.
In another decision (No. 83 of 2023), the ministry clarified the situations where the presence of natural persons in the UAE could/could not give rise to a permanent establishment for the non-resident person (foreign company), including if their presence is due to unforeseen temporary exceptional circumstances and where they have no intention of staying in the UAE once these circumstances cease
The decision further specifies what constitutes a temporary and exceptional presence in the UAE. It aims to provide clarity and prevent tax avoidance and double non-taxation in alignment with global best practices.
FTA Accepts Requests for Refunding Input Tax incurred on Operating Mosques
Date: 27 Apr, 2023
External URL: https://bit.ly/3VlD0N5
Abu Dhabi April 27, 2023:
The Federal Tax Authority (FTA) has begun accepting refund requests for Value Added Tax (VAT) incurred on operating mosques via its EmaraTax digital tax services platform, in line with the Cabinet Decision on Refund of Input Tax Incurred on the Construction and Operation of Mosques and the Ministerial Decision in that regard, which has gone into effect and applies to all mosques around the UAE.
Refund requests must be submitted within the set deadlines, in accordance with the date when the mosque in question started being operated by the applicant who submitted said request.
In a press statement, the FTA indicated that with regards to requests to refund VAT collected on building and operating mosques, the Decision specified the period from April to September 2023 where the FTA will receive tax refund requests on the operation of mosques that began operating before 1 January 2022, covering the years 2018 to 2022. Meanwhile, between October and December 2023, the Authority will be receiving tax refund requests on the operation of mosques that began operating on or after 1 January 2022, covering the year 2022.
The Authority went on to explain that all mosques must submit tax refund requests on their operation for any given year after 2022 between January and April of the following year.
UAE announces Corporate Tax Exemption for Public Welfare Entities
Date: 25 Apr, 2023
External URL: https://www.khaleejtimes.com/business/uae-announces-corporate-tax-exemption-for-public-and-community-welfare-entities
Dubai April 25, 2023:
The Ministry of Finance (MoF) has announced that entities contributing to public and community welfare are exempt from Corporate Tax (CT), which is set to come into effect this year. The exemption is designed to reflect the significant role played by these entities in the UAE, which often includes organisations with a focus on areas of religion, charity, science, education and culture.
A statement issued by the Ministry said companies involved and focused on public welfare, philanthropy, community services or CSR will be exempt from corporate tax. These entities must continue to comply with all pertinent local, state and federal laws and notify the MoF of any changes that may affect their status as qualifying public benefit entities in order to be eligible for UAE corporate tax exemption. These entities must also meet the requirements under Article 9 of the corporate tax law.
The qualifying public entities must also register with the FTA and obtain a tax registration number for CT purposes. On the Finance Minister’s recommendation, the Cabinet may change, add, or remove entities from the list of qualifying entities.
Earlier, the Ministry has also announced corporate tax exemptions for non-resident persons, government entities, government-controlled entities, as well as extractive businesses and non-extractive natural resource businesses.
UAE Announces Corporate Tax Relief for Small Businesses and Startups
Date: 06 Apr, 2023
External URL: https://www.khaleejtimes.com/business/uae-announces-corporate-tax-relief-for-small-businesses-startups
Dubai April 06, 2023:
The UAE’s Ministry of Finance on April 6, 2023 announced relief for small and micro businesses, startups and freelancers under the corporate tax, which will come into effect from June 1, 2023.
The Ministerial Decision No. 73 of 2023 specifies that businesses and individuals with revenues of Dh 3 million or less can benefit from Small Business Relief initiative as it intends to support start-ups and other small businesses by reducing their corporate tax burden and compliance costs.
The UAE government last year announced that it would levy a nine percent tax on the profits of companies exceeding Dh 375,000. The Ministry said the Dh 3 million revenue threshold will apply to tax periods starting on or after June 1, 2023 and will only continue to apply to subsequent tax periods that end before or on December 31, 2026.
View the Ministerial Decision No. 73 of 2023 “Small Business Relief for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses”