DUBAI At its second meeting of the year, the Board of Directors of the Federal Revenue Authority (FTA) – chaired by His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Governor of Dubai, Deputy Prime Minister, Minister of Finance and Chairman of the AFC Board of Directors – adopted the AFC annual accounts for 2021.
During the meeting held today at the Authority’s headquarters in Dubai, the Board considered a report on the FTA’s plans to develop and improve tax system procedures and bring them into line with best practices, as well as to improve the services offered to clients through precise and easy-to-use digital platforms. The report called for the implementation of a set of procedures and initiatives to advance AFC’s performance through continuous monitoring and development to increase the efficiency of the tax system to meet aspirations. taxpayers.
On a separate note, the AFC Board of Directors reviewed the status of the preparation of the Corporate Tax Bill.
Sheikh Maktoum has issued guidelines to maintain the pace of upgrades to FTA services, in line with international best practices and digital transformation plans, which have been developed to enhance the UAE’s competitive advantage in terms of services provided , as well as to support the vision of the country. become the highest ranked government in the world in terms of trust and performance indicators. The guidelines aim to focus on the customer and build skills to become a global leader in government services, building on the UAE’s “50 Principles” and the terms of the New Government Action Methodology .
Reports presented at the meeting demonstrate the FTA’s efforts to maintain high performance scores in all activities, Sheikh Maktoum asserted, noting the Authority’s plans to elevate its services to ensure satisfaction for all. customers from all segments of society. “The Federal Tax Authority is committed to strengthening its relations with all entities involved in the implementation of the tax system in the public and private sectors, and to fulfilling its role in the conduct of national economic diversification policies through the administering and collecting federal taxes in accordance with best practices,” he said.
“The Authority is constantly revising the implementing regulations it issues for each tax legislation to ensure high-level performance and streamlined procedures,” Sheikh Maktoum explained. “The coming stages will see significant developments and upgrades to tax systems and procedures to improve the quality of FTA services.”
The Board reviewed a report that outlines the FTA’s accomplishments over the past year and first quarter of 2022, documents progress on existing projects, and lists statistics regarding Value Added Tax (VAT), excise tax, income tax returns, tax payments and refund claims already processed. Compliance with tax regulations continued to grow in the UAE and the number of VAT registrants increased to 367,157 at the end of the first quarter of 2022, compared to 358,468 in 2021, an increase of 2.42% in three months. Meanwhile, the number of excise tax registrants reached 1,398 from 1,357 last year with an increase of 3.02%. Also, the number of Tax Agents increased to 446 from 433 with an increase of 3%.
The report revealed that the Authority approved new requests from UAE citizens to reclaim the VAT they incurred while constructing their new residences; the value of refunds reached AED 185,038,134 during the first quarter of 2022, compared to AED 118,503,245 in the first quarter of 2021, representing a record growth of 56.15%. The significant increase reflects the FTA’s commitment to streamlining online procedures for UAE citizens seeking to reclaim the VAT they incurred while building their new residences, in line with the leaders’ vision to develop a modern housing system for citizens and to ensure their well-being, given that they are the main objective and beneficiaries of the initiatives and projects implemented by all state institutions.
In addition, the report noted the results of the implementation of two phases of the “tobacco and tobacco product branding program”, which aims to end the sale or possession of all types of cigarettes, of waterpipe tobacco (Mu’assel) and electrically heated cigarettes that do not carry digital tax stamps in local markets.