Sheikh Maktoum Chairs FTA Board Meeting to Enhance Tax Systems
His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the First Deputy Ruler of Dubai and the UAE’s Deputy Prime Minister and Minister of Finance, recently chaired an important meeting of the Federal Tax Authority (FTA) Board of Directors. This gathering was pivotal in reviewing recent advancements in the UAE’s tax framework and operational strategies.
Strategic Enhancements in Tax Operations
During the meeting, Sheikh Maktoum delved into the FTA’s ongoing efforts to refine its operational systems and services. One of the core focuses has been expanding digital transformation initiatives and adopting innovative business models designed to deliver proactive services. These enhancements are part of a broader vision aimed at enriching the quality of life within the UAE while reinforcing the tax system’s role in financial sustainability and global competitiveness.
Embracing Artificial Intelligence
Furthermore, the meeting spotlighted the FTA’s strategy for integrating Artificial Intelligence (AI) into its operations. Sheikh Maktoum emphasized the necessity of utilizing AI technologies to increase efficiency and streamline procedures, particularly concerning AI-driven tax services. This move aligns with the UAE’s commitment to modernizing its tax system, making it more responsive to the needs of citizens and businesses alike.
Performance Updates and Ongoing Initiatives
Sheikh Maktoum was also briefed on the FTA’s performance metrics and operational plans for the near future. He praised the Authority’s continued high performance and effective contributions to national economic diversification policies, specifically through the management and collection of federal taxes in accordance with global best practices.
A detailed report on the FTA’s accomplishments and the status of active projects was presented. Notably, the number of Corporate Tax registrants has surged to approximately 710,000, while about 573,000 businesses have registered for Value Added Tax (VAT). Additionally, there are now 1,767 Excise Tax registrants and 899 registered tax agents.
Supporting UAE Nationals with VAT Refunds
In a significant development, the report highlighted that the FTA has approved applications from UAE nationals for VAT refunds related to the construction of newly built homes, amounting to AED 94.44 million. This initiative is expected to provide substantial financial relief to homeowners while boosting the construction sector.
Reducing Bureaucracy and Enhancing Tax Compliance
The FTA also showcased impressive results in reducing bureaucratic impediments, having implemented 75 initiatives during the second phase of the Digital Zero Bureaucracy Programme. This is a marked improvement from the 29 initiatives introduced during the first phase. All efforts are documented on the Zero Bureaucracy platform, including over 1,500 supporting documents for completed projects.
Integrated Tax System Development: EmaraTax
One of the focal points of the meeting was the progress on the integrated tax system, known as EmaraTax. This system facilitates the electronic linking of the FTA’s systems with relevant entities, thus promoting voluntary tax compliance. Updates included the implementation status of the Domestic Minimum Top-Up Tax Law (Pillar Two project) and the ongoing e-Invoicing project.
Revolutionizing Invoicing Procedures
The e-Invoicing initiative aims to bolster voluntary tax compliance through secure, efficient electronic mechanisms. By standardizing, simplifying, and automating invoicing processes, this system aligns with international best practices. It promises to enable real-time invoice exchanges and streamline tax reporting to the FTA, ultimately enhancing the customer experience.
This commitment to modernizing tax systems and embracing technology positions the UAE as a leader in fiscal efficiency and governance, ensuring it remains competitive on a global scale.
