Wed 06-09-2017 17:04 PM
DUBAI, 6th September, 2017 (WAM) -- The board of the 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.
The board approved these changes during its second meeting, which was chaired by H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, with the attendance of its members from the Ministry of Finance in Dubai. The FTA board reviewed developments related to the issuance of laws that will regulate federal taxes in the country, such as 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.
Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs and Deputy Chairman of the FTA Board of Directors, said that they are working on issuing executive regulations for these laws, to provide specific details about their implementation.
“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 Federal Tax Authority’s website has been designed to meet the highest international standards, facilitate registration and offer a bundle of tax-related services.”
During the meeting, 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. 07 of 2017 for Tax Procedures, Federal Decree-Law No. 07 of 2017 for Excise Tax and Federal Decree Law No. 08 of 2017 on Value Added Tax.
They also discussed the proposed options for the FTA’s new logo and reviewed the work of the completed workshops and awareness programmes about the tax system, in co-operation with local chambers of commerce and industry. The first series of the awareness workshops on the principles of implementing a selective tax system and on VAT took place between March and May 2017, with 25 workshops being conducted with the participation of over 15,000 participants from various national business sectors.
The FTA started the second series of workshops in August 2017, in coordination 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 workshops were already held, which saw the attendance of over 5,000 participants.