Muwafaq Package:
The “Muwafaq” package is a project that offers a set of privileges to small and medium-sized enterprises (SMEs) in the UAE, along with training programmes and educational material on the basics of tax procedures to enhance compliance with tax laws and regulations in the sector.
The package provides innoVATive solutions that help businesses comply with taxation, organise accounting records and financial statements, and register for corporate tax through service-providing offices in the country, such as “Tasheel” and “Amer.”
Privileges included in the Muwafaq package
• Providing relationship managers for SMEs
• Access to tax accounting programmes at competitive prices
• Priority in completing certain services provided by the Federal Tax Authority
• Additional advantages will be offered to SMEs
Objectives of the project
• Increase SMEs’ compliance with tax laws and procedures
• Promote proactive service delivery
• Enhance compliance in the application of tax procedures (e.g. completing tax registration on time, submitting tax returns, settling payments within the set deadlines, providing audit requirements on time, etc.)
• Facilitate doing business for companies
EmaraTax:
The EmaraTax digital tax services platform was launched to ensure greater access to integrated and comprehensive services through smart mobile devices to facilitate compliance with tax obligations for its users.
The platform has been integrated with government and financial institutions, in line with the UAE’s digital strategy and the directives of the wise leadership to embrace modern technologies and set up an integrated digital infrastructure to serve customers and the business community across the country.
EmaraTax is easy, seamless, accessible from anywhere, and offers enhanced self-support options when needed.
Advanced features
The EmaraTax platform serves to:
• Greatly enhance the way taxpayers can access the FTA’s services, pay their taxes, and request refunds.
• Support the Authority in managing the tax system in the UAE
• Enable better decision-making
• Provide proactive services to taxpayers
Users can pay their taxes easily made on EmaraTax using their Generated International Bank Account Number (GIBAN) or with MagnatiPay, a payment solution from First Abu Dhabi Bank (FAB).
Specialized Tax Agent system :
The Specialized Tax Agent system aims to develop and facilitate the process of selecting the appropriate tax agent for taxpayers in the UAE, improve the tax system's efficiency, and provide a more effortless, faster, and more practical experience.
The system classifies Tax Agents according to a set of sectors based on their previous experience, by creating a database of registered Tax Agents within specific fields, such as contracting, medical, finance, and transportation, among others. Nevertheless, classifying a Tax Agent in a specific sector will not limit their work to that sector exclusively.
The Classification of Tax Agents project allows taxpayers in the UAE to choose the appropriate Tax Agent for their business sector, which will benefit both parties. The classification will also contribute to developing the tax system per international best practices. It helps ensure that Tax Agents follow professional standards and help business sectors to comply with their tax obligations.
The Federal Tax Authority updated its Tax Agent Register to allow registered users to easily filter Tax Agents by sector, find the agent best suited to their requirements, and communicate with them directly.
Tax Agents’ responsibilities
• Provide tax consultations
• Evaluate tax compliance rates at various establishments
• Address gaps that may expose a company to avoidable administrative penalties
• Follow up on the submission of value added tax (VAT) returns within the set deadlines
• Attend sessions to discuss Tax Returns with FTA auditors
• Study tax issues that businesses may face
• Follow up on tax refund cases of all kinds
Corporate Tax :
Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses (the “Corporate Tax Law”), was issued on 3 October 2022, stipulating that all UAE-based businesses will become subject to Corporate Tax from the beginning of their first financial year that starts on or after 1 June 2023.
The Federal Tax Authority (FTA) is tasked with administering and collecting the Tax, as well as enforcing the Law and all provisions relating to Corporate Tax.
The FTA began implementing a comprehensive plan to fulfil its role in the new tax system, encourage registration for corporate tax, and implement it with efficient and accurate procedures. The Authority launched early registration for corporate tax through the EmaraTax platform for digital tax services, starting from January 2023 for certain categories of companies operating in the UAE.
The FTA’s plan consists of rolling out a phased programme for corporate tax registration through the EmaraTax platform, inviting various categories of companies to register by turn according to a pre-planned timeline. The plan avoids opening registration for all companies operating in the country at once in order to ensure that any required improvements are made before opening largescale registration.