It might be beneficial for small firms in the United Arab Emirates to enrol in the Federal Tax Authority's "Muwafaq" programme if they are still unclear about how to handle corporate tax compliance. Market sources claim that a large number of SMEs are still figuring out how to comply with corporation tax laws. They have, of course, had procedures and compliance with VAT in place for years, but according to industry insiders, becoming corporate tax compliant is a significant improvement. Despite the several months of preparatory time that the UAE government had granted (the new tax registration period began on June 1)
The Muwafaq programme was introduced by the tax office in March, and enrollment has skyrocketed in the last few weeks. Connecting with a tax agent is a crucial step in the process for the SME. The tax agent can: Represent the firm in filing its taxes with the Federal Tax Authority; act as the business's representative in this respect.
A tax agent helps the taxpayer "exercise his associated tax rights" and fulfil his tax responsibilities. However, business owners should always designate auditors who have been formally certified and accredited by the FTA.
The FTA is pushing the Muwafaq package to the current Gitex. Additionally, access to specialised accounting software that has been approved by the FTA is provided by the package.
'MUWAFAQ' serves as an intermediary service provider, matching SMEs with appropriate tax authorities to give guidance on matters pertaining to compliance.
The Federal Tax Authority determines all of the eligibility requirements, and SMEs that meet the requirements can view the link on the dashboards while logging into EmaraTax.
To make it easier for taxpayers to comply, the UAE has categorised tax agents according to economic sectors.As a consequence, businesses are spared from enduring protracted wait times or depending on outside support.
The first glance at the new mobile app for the 'Maskan' service, which is available to UAE citizens, was shown by the UAE Federal Tax Authority. November will see the app's launch.
VAT costs incurred by UAE residents building new residences are refunded by the FTA through the 'Maskan' programme, which facilitates tax returns. The software streamlines the application process with fewer stages and eliminates paperwork in an effort to lessen the workload for candidates.
