UAE’s new FTA initiative designed to simplify tax compliance
The UAE’s Federal Tax Authority (FTA) has launched its ‘Tax Agents Classification’ initiative, to simplify tax compliance for taxpayers.
The online service will help taxpayers pick a specialist tax agent based on the sector they work in, choosing from a list of 10 sectors, the WAM news agency has reported.
Taxpayers can access the authorised tax agents register on the FTA website by using the ‘Filter Agents’ option, and select an agent from the relevant sector.
According to the tax authority, there are 319 approved tax agents listed by category, representing more than 70% of the total 454 agents registered with the FTA.
Khalid Ali Al Bustani, director-general of the FTA, said: “The Federal Tax Authority has launched the ‘Tax Agents Classification’ initiative as part of its strategy to contribute to the government efforts being made to advance the UAE’s position as a centre for the new economy, by creating the world’s most dynamic economy, in line with the ‘We the UAE 2031’ vision, which requires multiplying efforts to fulfill government aspirations, which will reflect positively on society and various sectors in the UAE.
“The authority is committed to continuously developing its services to meet customers’ aspirations, improving their experience, and expanding the range of innovative solutions to facilitate tax compliance.”
Al Bustan added: “These solutions are designed based on the results of an opinion poll and proposals fielded by the authority through its direct communication with customers. The FTA aims to engage taxpayers in the continuous development and modernisation plans, designed to align the services provided by the authority with the actual needs of customers, facilitate access to services that meet the highest quality standards, and reduce the time and effort needed to complete transactions.”
The authority conducted a comprehensive study to understand the needs of taxpayers seeking to engage with the FTA through tax agents, WAM reported.
The study revealed that many individuals and businesses find it hard to find the right agent due to the increasing number of authorised agents registered with the FTA.
Based on this research, the authority designed and implemented the initiative. The classification process involves adding the tax agent’s specialisation based on their prior experience in specific tax sectors or services.
Agents can select the sectors or services in which they wish to be classified, so long as they can provide supporting documents such as recommendation letters from taxpayers and certificates of prior experience.
The FTA outlined the new classification sectors for tax agents registered with the authority, encompassing VAT-registered businesses, corporate tax, small and medium-sized enterprises, excise tax registration, registration of warehouse keepers and designated areas, excise goods registration, tax refunds for citizens building new homes and for mosques, government and charitable entities, foreign businesses (non-residents), and real estate owners.
By implementing the tax agents classification initiative, the FTA aims to see improved compliance with tax returns submission, tax payment and tax registration deadlines.
It also enables easy access to accurate information related to tax procedures for all concerned parties.
Extension to length of work permits
UAE employees can now get work permits for three years in a new extension announced by the authorities. Previously, a worker in the UAE was only eligible for a two-year work visa. The new decision comes following approval from the Federal National Council (FNC).
In order to work in the UAE, an employee is legally required to have a work permit.
The new decision only applies on a mandate that the employee spend one-year minimum with their company following the probationary period. The extension is only applicable if the company and the employee agree to the extended period.
Aside from benefits for the employee, the company is also set to benefit from reduced costs of work visa applications.
Furthermore, the committee has put forward a suggestion to waive work permit fees in the instance of an employee changing jobs.
