Enhancing Corporate Tax Awareness: FTA Launches Second Phase of Campaign
The Federal Tax Authority (FTA) has taken a significant stride forward by initiating the second phase of its comprehensive corporate tax awareness campaign. This commendable initiative aims to bolster awareness among business sectors regarding Corporate Tax and provide continuous knowledge support to taxpayers. By collaborating with relevant stakeholders, the FTA is committed to ensuring the seamless implementation of the Corporate Tax Law, which officially came into effect in June, applicable to financial years starting on or after June 1, 2023.
Objective: The primary objective of the campaign is to improve direct communication with taxpayers by offering specialized awareness events and tailored programs for different categories involved in Corporate Tax implementation.
Duration: The second phase of the campaign is scheduled to run until the end of this year, allowing ample time for businesses to engage and benefit from the initiatives.
Events and Workshops: The campaign encompasses a series of both virtual and in-person workshops that will be conducted across all seven emirates of the UAE. These workshops serve as a platform to educate and equip businesses with comprehensive knowledge about General Corporate Tax Principles, enabling a thorough understanding of the key aspects of the UAE’s Corporate Tax regime.
Positive Impact: By fostering awareness and knowledge, the FTA aims to facilitate compliance and ensure the smooth implementation of Corporate Tax regulations. Through this campaign, the FTA endeavors to create an environment that supports businesses in meeting their tax obligations accurately and efficiently.
Recent launch
The recent launch of the second phase of the Corporate Tax awareness campaign in Abu Dhabi marks a significant milestone. During the workshop for small and medium-sized enterprises (SMEs), the FTA Director General expressed satisfaction with the campaign’s positive results, particularly in terms of enhancing direct communication with taxpayers. This campaign comprises specialized awareness events and programs tailored to each key category involved in the implementation of Corporate Tax.
FTA
The FTA, in a press release, highlighted that the Corporate Tax awareness campaign’s new phase will feature a range of events and workshops, both virtual and in-person, spanning all seven emirates of the UAE. These initiatives will focus on raising awareness about specific topics such as legislation, requirements, and procedures for Corporate Tax compliance. Moreover, the campaign aims to provide a tailored approach, catering to the needs of each concerned taxpayer, ensuring maximum engagement and understanding.
Additionally, the campaign will leverage the latest technologies to facilitate easy access to information for taxable persons. By supporting and encouraging the business community, the FTA aims to ensure efficient and accurate implementation of the Corporate Tax Law.
In conclusion,
The FTA’s second phase of the Corporate Tax awareness campaign signifies a crucial step towards promoting awareness and understanding of Corporate Tax among business sectors in the UAE. By offering specialized events, tailored programs, and utilizing advanced technologies, the FTA strives to empower taxpayers and facilitate compliance with Corporate Tax regulations. Stay tuned for updates on this impactful campaign, and visit the FTA’s official website for further information.
Enhancing Corporate Tax Awareness: FTA Launches Second Phase with Abu Dhabi Workshop
The first workshop of the second phase of the Federal Tax Authority’s (FTA) awareness campaign was inaugurated by the FTA Director General, H.E. Khalid Ali Al Bustani, in Abu Dhabi. The workshop was specifically designed for small and medium-sized enterprises (SMEs) and focused on “Small Business Obligations and Relief Under the Corporate Tax Law.” The event saw a significant turnout, with over 265 SMEs in attendance, and was attended by officials from various organizations, including the Abu Dhabi Department of Finance, the Abu Dhabi Department of Economic Development, Khalifa Fund for Enterprise Development, the Emirates Entrepreneurship Association, the Abu Dhabi Chamber of Commerce and Industry, and representatives of the FTA’s key stakeholders in the emirate.
Al Bustani emphasized that the launch of the second phase of the awareness campaign is part of the FTA’s integrated strategy to ensure seamless and precise compliance with the UAE Corporate Tax. The UAE’s Corporate Tax is recognized as one of the most competitive in the world, with a basic rate of 9% and a 0% rate on taxable profits up to AED 375,000, aimed at supporting and encouraging startups and small businesses.
In his opening speech, H.E. Al Bustani expressed the FTA’s commitment to supporting taxpayers in fulfilling their tax obligations. He highlighted the FTA’s efforts to encourage voluntary self-compliance among taxpayers by providing a clear procedural and legislative framework based on global best practices. He also mentioned that Corporate Tax registration is now available through the EmaraTax platform for digital tax services, offering clear, simple, and fast transactions and procedures.
Al Bustani further stated that the FTA has released various guides, programs, and explanatory videos on its website to provide in-depth information about the legislative and regulatory aspects related to Corporate Tax. These resources cover topics such as criteria for determining taxpayers subject to Corporate Tax, compliance mechanisms, tax calculation, executive procedures, and legal obligations associated with Corporate Tax. The aim is to empower taxpayers with knowledge of their rights and duties.
The first phase of the FTA
The first phase of the FTA’s comprehensive awareness campaign, launched last year to introduce Corporate Tax, yielded positive results by improving the direct connection and engagement between the FTA and taxpayers. H.E. Al Bustani expressed confidence that the second phase of the campaign would yield even better outcomes by providing continuous knowledge support to relevant taxpayers and stakeholders. The FTA will conduct workshops for stakeholders in the SME sector, which is a vital part of the country’s economy. The FTA considers the SME sector a priority and will allocate induction sessions and maintain continuous communication with other sectors.
To further support the SME sector, the FTA launched the Muwafaq Package initiative, offering customized services, incentives, and privileges to facilitate tax compliance and ease of doing business. This initiative is part of the FTA’s transformational projects aimed at building a dynamic economy. The Muwafaq Package provides innovative tax solutions for SMEs, educational materials tailored to the sector, and aims to promote entrepreneurship and innovation.
During the workshop, the obligations and facilities granted to small businesses under the Corporate Tax Law were highlighted. FTA representatives provided a comprehensive explanation of the Corporate Tax Law, legal requirements for compliance, criteria to determine taxable persons and taxable income, applicable tax rates, and tax periods. They also explained the relief offered to small businesses and the provisions of the Corporate Tax Law for those eligible for Small Business Relief, including the treatment of carried forward Tax Losses and disallowed Net Interest Expenditure.
Participants had the opportunity to ask questions and receive answers from FTA representatives to ensure seamless and accurate Corporate Tax compliance.
The FTA encourages persons subject to Corporate Tax to access the information and data available through its official website and social media accounts for further guidance and support.
FTA Launches Nationwide Campaign to Raise Corporate Tax Awareness
The Federal Tax Authority (FTA) has initiated a comprehensive public awareness campaign aimed at educating taxpayers about their responsibilities under the Corporate Tax Law. This campaign is a crucial step by the FTA to ensure the smooth implementation of Federal Decree-Law No.47 of 2022 on the Taxation of Corporations and Businesses, which becomes effective for financial years starting on or after 1st June 2023. Building on the Corporate Tax Public Awareness Program conducted by the UAE Ministry of Finance from December 2022 to June 2023, the FTA’s campaign will include various activities such as physical and virtual workshops to reach a wide audience of taxpayers across the UAE.
Raising Taxpayer Awareness:
The FTA’s campaign aims to provide taxpayers with a comprehensive understanding of their obligations under the Corporate Tax Law. The workshops, which will be conducted both in-person and online, will commence on 12th July 2023. By utilizing these workshops, the FTA intends to leverage its position as the competent authority responsible for the administration, collection, and enforcement of federal taxes.
Khalid Ali Al Bustani, the Director General of the FTA, emphasized the importance of ensuring taxpayer compliance with the Corporate Tax Law. He stated that the campaign represents a new chapter in preparing the business community to effectively implement and adhere to the Corporate Tax Law, fostering confidence in the UAE’s tax system and aligning the FTA’s tax administration with international best practices.
Guidance for Taxable Persons:
Recognizing that Corporate Tax may be a new concept for some taxable persons, particularly small businesses without VAT registration, the FTA aims to provide assistance and guidance to facilitate a smooth transition. H.E. Al Bustani highlighted the FTA’s commitment to encouraging voluntary compliance by implementing flexible, efficient, and transparent policies and procedures.
Collaboration for Success:
The FTA, in collaboration with relevant authorities, has been actively developing flexible and accurate mechanisms to implement the Corporate Tax regime in line with global standards. This collaborative effort ensures an environment conducive to business growth, attracts investments, and strengthens the UAE economy.
Registration and Webinars:
Corporate Tax registration initially opened for Public Joint Stock Companies, Private Shareholding Companies, and other private companies on 15th May 2023. The FTA plans to make registration available for other taxable persons at a later stage. To guide businesses through the registration process, the FTA has conducted a series of webinars and will continue to offer them, providing step-by-step instructions on registering for Corporate Tax on the Emara Tax platform.
Workshop Highlights:
As part of the awareness campaign, the FTA has organized special workshops on “General Principles on Taxation of Corporations and Businesses.” These workshops serve as an overview of the Corporate Tax regime in the UAE and its application across different categories of taxable persons.
Conclusion: The FTA’s nationwide campaign to enhance corporate tax awareness is a significant step towards ensuring compliance and fostering a thorough understanding of the Corporate Tax Law among taxpayers. By providing comprehensive guidance, conducting workshops, and offering registration support, the FTA aims to create a seamless transition and a favorable business environment in the UAE.
FTA Launches 'Corporate Tax Registration Virtual Workshops' Platform
The Federal Tax Authority (FTA) has introduced a new platform called ‘Corporate Tax Registration Virtual Workshops’ as part of its efforts to ensure the smooth implementation of the Corporate Tax Law in the UAE. This initiative aims to strengthen the country’s position as a global center for business and investment while ensuring compliance with international tax transparency standards. The platform provides educational materials and offers virtual workshops in both Arabic and English, focusing on the registration process for corporate tax. The FTA is committed to enhancing communication and providing clear procedures to facilitate self-compliance with tax regulations.
Benefits of the Platform:
The ‘Corporate Tax Registration Virtual Workshops’ platform offers several benefits for taxpayers and stakeholders. The workshops provide detailed guidance on creating a user profile, registering for corporate tax, the required documents, and the stages involved in processing the registration application. By participating in these workshops, companies can gain a comprehensive understanding of the registration process, ensuring they meet all their legal obligations in a timely manner. Early registration is highly encouraged to allow sufficient time for compliance.
Understanding Corporate Tax:
Corporate Tax, also known as Corporate Income Tax (CIT) or Business Profits Tax, is a direct tax imposed on corporations and other legal entities. Its primary purpose is to generate revenue for the government by taxing the profits earned by these entities. Corporate Tax applies to both domestic and foreign companies operating within a country’s jurisdiction. The tax is calculated based on the net profits of the corporation after deductions for allowable expenses, depreciation, and other relevant costs. Rates of Corporate Tax vary from country to country and can be either a flat rate or a progressive rate based on the company’s income.
Who Needs to Pay Corporate Tax in the UAE?
In the UAE, Corporate Tax applies to the following “Taxable Persons”:
- Businesses and legal entities conducting activities within the UAE.
- Individuals engaged in business or business activities in the UAE (specific criteria for qualification are yet to be issued).
- Non-resident legal entities (foreign companies) with a permanent establishment in the UAE.
The Importance of Corporate Tax in the UAE:
The introduction of Corporate Tax in the UAE is aimed at attracting more foreign investment while ensuring transparency and compliance with international standards. This tax reform creates a favorable environment for businesses and contributes to the country’s economic development. Corporate tax helps maintain a level playing field by ensuring that the UAE follows the same rules as other countries. It also aids the government in tracking tax evasion and promotes a healthy business environment.
Conclusion:
The launch of the ‘Corporate Tax Registration Virtual Workshops’ platform by the FTA is a significant step towards educating taxpayers and stakeholders about the registration process for corporate tax in the UAE. By providing comprehensive guidance and transparent procedures, the FTA aims to facilitate self-compliance with tax regulations and ensure a smooth transition for businesses. Understanding corporate tax is crucial for companies operating in the UAE, as it directly impacts profitability, investment decisions, and overall financial health. By actively participating in the virtual workshops, businesses can gain valuable insights and meet their tax obligations effectively.
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