A New Authority to Supervise Taxation in UAE

Updated on Thursday 02nd March 2017

A New Authority to Supervise Taxation in UAE Image
The UAE will implement the VAT starting with January 2018, according to the requests and suggestions of the IMF (International Monetary Fund). It is true, the tax will not be enforced for all goods and services, which is why a suitable authority was necessary to supervise the old and also the new taxation system in the country. The FTA (Federal Tax Authority) in the UAE will control the existing tax methods in the state. It is recommended to ask for information and guidance from our accountants in Dubai in taxation matters for your company.

The purpose of the FTA in the UAE

The Federal Tax Authority (FTA) in the UAE controls all the taxes, including the ones that are designated for overseas citizens who live and work in the country. It is good to know that the FTA will strongly collaborate with the government and will be in charge of collecting data and all sorts of tax statistics in the UAE. Such measure was necessary due to the applicable VAT of 5% tax rate starting with the next year. The IMF considers the implementation of VAT a suitable taxation method in the UAE, where the revenues can be reinvested.

If you want more details about the taxation system in the country, we recommend soliciting info and guidance from our accounting firm in Dubai. You can also ask for audit services in Dubai, which can be suitable for a small or for a large company in the city.

What you need to know about the VAT in the UAE

The new taxation system in the UAE will enforce a VAT of 5% tax rate for all kinds of goods and services. The foods, the education, the social services and the health system will not be subject to VAT, according to the authorities in the country. The new tax methods need to be completely understood and verified, besides the minimization strategies which can be adopted starting with January 2018, under the strict supervision of the FTA.

You are invited to contact our team of accountants in Dubai for extra details about the taxation system in the UAE and about the accounting services necessary for your company.

There are no comments

Please note that URLs are not allowed in the message.