Small and medium enterprises (SMEs) are a key pillar of the UAE's national economy. They play a pivotal role in driving economic development, diversifying income sources, and strengthening the entrepreneurial ecosystem. Since the implementation of Corporate Tax, it was natural for this segment to have questions and face challenges, particularly regarding how to comply with the tax without negatively affecting their business continuity, growth potential, or competitiveness

The implementation of Corporate Tax is a strategic step aimed at establishing a more sustainable economic environment, based on principles of governance and transparency, and aligned with international best practices. However, this step necessitates the provision of a comprehensive support system that considers the specific nature of SMEs and enables them to comply with tax requirements smoothly and without additional burdens that could impact their performance

By their nature, SMEs operate with limited financial and human resources and may not possess the necessary accounting or legal infrastructure to fully understand the technical aspects of Corporate Tax. This calls for tailored support to help them achieve tax compliance and enhance their competitiveness

In line with our commitment to supporting SMEs, we have adopted a comprehensive strategy focused on providing innoVATive solutions and facilitating tax compliance procedures in line with the "Zero Government Bureaucracy" initiative. This is done by simplifying processes, improving service efficiency, dedicating a specialized division for SME services, and forming a specialized team to provide guidance and respond to inquiries. In addition, a variety of initiatives and mechanisms have been launched to empower entrepreneurs and promote a culture of innoVATion, thereby enhancing SMEs' contribution to the national economy

As part of the Authority's dedication to supporting all business sectors, especially SMEs, a number of initiatives and mechanisms have been implemented to facilitate tax compliance. Among these is the "Muwafaq Package" initiative, which offers a range of services and incentives, helps accelerate tax registration for entrepreneurs, assigns specialists to deal with SMEs, provides tax agent service packages, introduces affordable tax accounting programs and systems to ease financial burdens on this segment, and gives priority to processing their applications

The Federal Tax Authority places significant emphasis on raising awareness among SME owners, as part of its continuous efforts to promote tax culture. With the Corporate Tax Law coming into effect in June 2023, we launched a comprehensive awareness campaign targeting various sectors, with a special focus on SMEs as one of the Authority's key priorities. The campaign included workshops and informative sessions that highlighted the law's facilitations for small businesses, including explanations of the eligibility criteria and application of specific provisions, with the aim of reducing financial burdens and simplifying compliance procedures-ultimately supporting business continuity and boosting competitiveness

Enabling SMEs to comply with tax regulations flexibly and efficiently, and enhancing their competitiveness both locally and globally, is not merely a regulatory task-it is a strategic partnership through which the Federal Tax Authority aims to build an advanced economic system based on knowledge, competitiveness, and sustainability

Khalid Ali Al Bustani

Director General of the Federal Tax Authority