FTA Initiates Phase Two of Corporate Tax Enlightenment with SME Workshop in Abu Dhabi
As part of its ongoing mission to educate and support businesses in tax matters, the Federal Tax Authority (FTA) has unveiled the second stage of its Corporate Tax awareness drive, featuring a series of workshops dedicated to small and medium-sized enterprises (SMEs) in Abu Dhabi. This initiative is a cornerstone of the FTA’s strategy to ensure smooth and accurate adherence to the Corporate Tax Law, which has been in effect since June for financial years commencing on or after June 1, 2023.
A Commitment to Taxpayer Education
The FTA’s latest campaign phase is set to run through the end of the year, encompassing a variety of events and workshops—both virtual and in-person—across all seven emirates. The focus is on demystifying Corporate Tax legislation, compliance requirements, and procedures, with a tailored approach to meet the unique needs of different taxpayer groups. By leveraging the latest technology, the FTA aims to facilitate easy access to information, thereby empowering the business community to implement Corporate Tax Law with precision and efficiency.
Empowering SMEs with Knowledge and Tools
At the helm of the campaign’s inaugural workshop in Abu Dhabi was the FTA Director General, His Excellency Khalid Ali Al Bustani. The session, specifically designed for SMEs, delved into “Small Business Obligations and Relief Under the Corporate Tax Law.” The workshop witnessed a robust turnout, with over 265 SME representatives engaging actively in the discussions.
His Excellency Al Bustani highlighted the FTA’s integrated approach to fostering a tax environment that is not only compliant but also supports the growth of startups and small businesses. With a competitive tax rate of 9% and a 0% rate for taxable profits up to AED 375,000, the UAE Corporate Tax structure is designed to bolster the entrepreneurial spirit.
Streamlining Tax Compliance through Digital Platforms
In his keynote address, His Excellency Al Bustani reiterated the FTA’s dedication to facilitating taxpayer compliance through clear, simple, and swift procedures available on the EmaraTax digital platform. The FTA’s comprehensive suite of guides, programs, and explanatory materials aims to provide taxpayers with a thorough understanding of their rights, duties, and the intricacies of tax calculation and compliance.
Nurturing the SME Sector
The second phase of the awareness campaign is expected to build on the success of the initial phase, offering continuous knowledge support to SMEs—a sector that forms the backbone of the country’s economy. Recognizing the strategic importance of SMEs, the FTA has prioritized this sector by providing numerous induction sessions and maintaining open lines of communication.
In support of SMEs, the FTA has introduced the Muwafaq Package initiative, which offers a suite of customized services, incentives, and privileges to simplify business operations and tax compliance. This initiative is part of the FTA’s transformative projects aimed at constructing a dynamic economy, with innovative tax solutions and educational materials tailored to the needs of SMEs.
Clarifying Tax Obligations and Relief Measures
During the workshop, FTA experts provided a detailed overview of the Corporate Tax Law, including compliance requirements, taxable person criteria, and income determination. They also outlined the relief measures available to small businesses and the process for applying for Small Business Relief, emphasizing the FTA’s commitment to reducing the compliance burden for startups and micro businesses.
CPA Auditing: Your Partner in Navigating Corporate Tax
At CPA Auditing, we understand the complexities of tax compliance and are dedicated to providing our clients with the audit, tax, and advisory services they need to thrive. As the FTA continues its educational campaign, we stand ready to assist SMEs in understanding and applying these new tax regulations, ensuring a smooth transition into the Corporate Tax framework.
