FTA board okays VAT, selective tax systems

dubai — The board of the Federal Tax Authority (FTA) has approved planned future changes to the UAE tax system, including new procedures to adopt a selective tax system next month and value added tax (VAT) at the start of the new year.

The board approved these changes during its second meeting, which was chaired by Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, with the attendance of its members from the Ministry of Finance in Dubai.

The FTA board reviewed developments related to the issuance of laws that will regulate federal taxes in the country, such as Federal Law No. 7 2017 on selective taxes, and Federal Law No. 8 of 2017 on VAT.

Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs, said they are working on issuing executive regulations for these laws to provide specific details about their implementation.

We are moving forward confidently with our preparations to implement the new tax system in the uae Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance

“We are moving forward with our preparations to implement the new tax system in the UAE, which was developed to support the country’s social and economic development process, by diversifying proceeds and providing sustainable income that will allow the UAE government to develop an efficient future tax infrastructure,” Sheikh Hamdan said.

“We are starting a new phase in implementing the new tax system as we are preparing to begin the registration of relevant companies after completing the required legislative and regulatory procedures and preparing the new infrastructure and systems through the electronic services on the FTA website that was created according to the best technical standards, with the aim of facilitating registration procedures for those subject to taxes, and for other services provided by the authority,” he added. — Wam