Federal Tax Authority And Dubai Land Department Collaborate To Improve Tax Compliance In Real Estate Sales

The Federal Tax Authority (FTA) and Dubai Land Department have enhanced their strategic partnership. They aim to provide digital solutions for real estate sales in Dubai, ensuring tax compliance. The first phase of this collaboration involved data sharing through electronic links, with more features to be announced soon.

The partnership was unveiled during "GITEX Global 2024" at the Dubai World Trade Centre. It aims to streamline VAT collection on real estate and commercial land sales by integrating VAT-related procedures, classifying services, categorising property types, and identifying transaction parties.

This initiative aligns real estate processes with the FTA's electronic systems. Khalid Ali Al Bustani, Director-General of FTA, stated that the collaboration enhances cooperation between the FTA and Dubai Land Department. He emphasised that it supports delivering seamless digital services through innovative models.

Al Bustani added that this partnership creates a regulatory tax environment encouraging self-compliance according to governance standards. It integrates advanced services with new offerings from other government entities, ensuring real estate transactions are linked to VAT collection.

Marwan Ahmed bin Ghalita, Director-General of the Land and Property Department in Dubai, highlighted the importance of strong collaboration among government entities due to Dubai's digital transformation. This partnership aims to improve tax compliance in real estate while providing innovative solutions.

Bin Ghalita noted that this strategic partnership is crucial for achieving Dubai's economic vision. It focuses on sustainable real estate investment by creating a digital infrastructure that enhances government operations' efficiency and provides seamless access to advanced services for investors and clients.

Joint Initiatives and Training

The initiative seeks to boost collaboration between the FTA and Dubai Land Department across various areas. This includes sharing essential data for joint initiatives, organising awareness campaigns to promote a tax culture within the community, especially in real estate.

Moreover, it involves introducing real estate procedures with corresponding tax processes and strengthening coordination for tax compliance related to real estate transactions. The collaboration also outlines plans for joint training sessions and activities.

The exchange of ideas and execution of supportive projects align with both parties' strategic goals, ensuring they remain aligned with government directions. This comprehensive approach aims to foster a robust framework for future developments in the sector.

With inputs from WAM