Federal Tax Authority Conducts Workshop To Educate SMEs On Corporate Tax Compliance Requirements

The Federal Tax Authority (FTA) recently conducted its third awareness workshop in Sharjah, focusing on small and medium-sized enterprises (SMEs). This initiative is part of a broader campaign to enhance understanding of Corporate Tax among various business sectors. The workshop aims to support taxpayers by facilitating the smooth implementation of the Corporate Tax Law, effective for financial years starting on or after 1st June 2023.

The FTA's campaign, which began in February and will continue until the year's end, includes numerous events and workshops across all emirates. These sessions, available both in-person and virtually, cover diverse tax-related topics. They are designed to educate taxpayers about legislation, requirements, and procedures for Corporate Tax compliance. The goal is to ensure easy access to information for taxpayers while encouraging efficient implementation of the Corporate Tax Law.

During the workshop, FTA representatives provided detailed explanations of Corporate Tax principles and facilities available to SMEs. Approximately 550 representatives from various SMEs participated actively. The session covered tax obligations and facilities granted to SMEs, offering a comprehensive overview of the Corporate Tax Law and related decisions.

The workshop also addressed compliance requirements, registration processes via the EmaraTax digital platform, criteria for determining taxable persons and income, applicable rates and tax periods. Additionally, it discussed the Small Business Relief programme aimed at supporting startups and MSMEs by reducing tax burdens and compliance costs.

FTA representatives highlighted revenue thresholds and conditions necessary for opting into Small Business Relief. They explained provisions for carrying forward tax losses and non-deductible net interest expenses under this programme. This information is crucial for facilitating accurate Corporate Tax compliance.

The FTA has urged resident juridical persons with licences issued in August and September to register for Corporate Tax by 31st October 2024. This step is essential to avoid administrative penalties. The FTA emphasised adherence to its Decision on registration timelines for taxable persons.

Ensuring Compliance with Registration Deadlines

The importance of following specified registration deadlines was stressed during the workshop. The FTA advised taxpayers to consult available resources on its official website and social media platforms for further guidance on Corporate Tax registration.

Participants had their questions answered by FTA representatives during the workshop. This interaction ensured clarity on various aspects of Corporate Tax compliance, helping businesses understand their obligations better.

With inputs from WAM