Tax Updates April 2022 - United Arab Emirates

Blog Article

The Ministry of Finance, UAE has released a Public Consultation Document on Corporate Tax

On April 28, 2022, the Ministry of Finance (MoF) of the United Arab Emirates (UAE) release a Public Consultation Document on the proposed UAE Corporate Tax regime to obtain input from stakeholders.

Recognizing the importance of consultation with the business community and other interested stakeholders the MoF has requested the stakeholders to send in their clear and concise comments by 19 May 2022, focusing on aspects of the proposed Corporate Tax regime that may help to reduce compliance cost and complexity, and improve certainty for both the tax administration and taxpayers alike. Ministry also invited comments on areas that are otherwise not covered in this document.

UAE Tax authority announces whistleblower program

The Federal Tax Authority (FTA) has launched its ‘whistleblower’ programme for tax violations and evasion The new program, named ‘Raqeeb’ is a reporting mechanism that aims enhance transparency and competitiveness in the field of doing business, raise tax compliance rates, and boost tax awareness and society’s confidence in the tax system.

Effective from April 15, the programme allows FTA to receive reports from individuals on tax evasion cases, tax-related fraud and violations of tax legislation. It also enables the authority to verify the reports and grant monetary rewards to informants if the report leads the authority to collect tax amounts worth more than Dhs50, 000.

The FTA’s whistleblowing program applies to excise and valued-added taxes at present. The program could take on more significance in 2023 when the UAE introduces a corporate tax for the first time.

UAE Cabinet approves establishment of UAE Council for Digital Economy

The UAE Cabinet met in second week of April 2022 and approved a new Digital Economy Strategy that aims to increase the contribution of this sector to the GDP to 20 percent over the next 10 years.

The meeting was chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai and was held at Qasr Al Watan Abu Dhabi.

The UAE Digital Economy Strategy aims to double the contribution of the digital economy to the GDP from 9.7 per cent to 19.4 per cent within the next ten years, according to state news agency WAM.

The strategy includes more than 30 initiatives and programmes targeting six sectors and five new areas of growth. It will define the digital economy, with a unified mechanism for measuring its growth while measuring its indicators periodically.

The Cabinet also approved the establishment of the UAE Council for Digital Economy chaired by Omar bin Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Teleworking Applications.

The UAE Council for Digital Economy will support the aim to double the contribution of the digital economy to the UAE’s GDP in the year 2031 and enhances the implementation of the Digital Economy Strategy initiatives in all economic sectors.

Among the several resolutions adopted during the meeting was the decision in the form of cabinets approval to adopt an agreement to link the payment systems of the Gulf Cooperation Council (GCC) countries.

Article Topic

Corporate Tax