Economic Growth: FTA’s Latest Corporate Tax Campaign Targets Business Awareness
Mokshita P.
10x Industry

Economic Growth: FTA’s Latest Corporate Tax Campaign Targets Business Awareness

In Abu Dhabi, FTA inaugurates workshops tailored for SMEs, focusing on obligations and relief under Corporate Tax Law. 265 SMEs attend, emphasizing support for startups and small businesses. Measures aim for seamless compliance.

The Federal Tax Authority has initiated the second phase of its comprehensive awareness campaign aimed at educating businesses on Corporate Tax and providing continuous support to taxpayers. This campaign is part of the collaborative efforts between the FTA and relevant stakeholders to ensure the smooth implementation of the Corporate Tax Law, which came into effect in June and is applicable to financial years starting on or after June 1, 2023.

Recently, the FTA outlined the details of the campaign, scheduled to run until the end of the year. The initiative will encompass a series of events and workshops, both virtual and in-person, across all seven emirates of the UAE. The program is designed to raise awareness on specific topics such as legislation, Corporate Tax compliance requirements, and procedures tailored to the needs of individual taxpayers. The use of advanced technologies aims to facilitate easy access to information and encourage accurate implementation of the Corporate Tax Law within the business community.

H.E. Khalid Ali Al Bustani, Director General of the FTA, inaugurated the first workshop of the second phase in Abu Dhabi. This workshop, dedicated to SMEs, focused on "Small Business Obligations and Relief Under the Corporate Tax Law." Attended by officials from the Abu Dhabi Department of Finance, the Abu Dhabi Department of Economic Development, and key stakeholders, the workshop witnessed active participation from over 265 SMEs.

H.E. Al Bustani emphasised that the second phase of the awareness campaign is part of the FTA's integrated strategy to ensure precise compliance with the UAE Corporate Tax, known for its competitiveness, with a basic rate of 9 percent and a 0 percent rate on taxable profits up to AED 375,000 to support startups and small businesses.

The FTA Director General stated, “The FTA is committed to supporting taxpayers in fulfilling their tax obligations. The FTA seeks to encourage voluntary self-compliance among taxpayers by creating a clear procedural and legislative framework that follows global best practices.”

The awareness campaign's first phase, launched last year, resulted in positive outcomes, enhancing direct engagement between the FTA and taxpayers. H.E. Al Bustani anticipates even better results from the current phase, providing continuous knowledge support to relevant taxpayers and stakeholders. Specialised workshops for SMEs, as a priority sector, aim to enhance awareness and promote compliance.

H.E. Al Bustani further explained, “These measures to promote awareness complement the FTA’s efforts to support this vital sector. Accordingly, the FTA launched the Muwafaq Package initiative to ensure ease of doing business and tax compliance in the SMEs sector, offering them a set of customised services, incentives, and privileges.”

During the workshop, FTA representatives highlighted Corporate Tax Law obligations and facilities for small businesses, providing a comprehensive explanation of legal requirements, criteria for taxable persons, applicable tax rates, and relief options. The FTA's Muwafaq Package initiative, offering tailored services for SMEs, was also discussed, aiming to empower the sector as a driving force for the national economy, promoting entrepreneurship and innovation.

The FTA's commitment to transparency and collaboration is evident in this second phase of the Corporate Tax awareness campaign, reinforcing the organisation's efforts to ensure effective and accurate compliance with the UAE Corporate Tax Law.