FTA Organises 40 Events To Enhance Corporate Tax Compliance Awareness

The Federal Tax Authority (FTA) has ramped up its awareness initiatives this year, focusing on the Corporate Tax Law that took effect last year. This law applies to financial years starting on or after 1st June 2023. The FTA reported a rise in participation in Corporate Tax awareness activities, with 8,220 attendees in the first half of 2024, compared to 7,520 in the same period of 2023, marking a 9.23 percent increase.

Key events introduced in 2024 include launching the second phase of the FTA’s comprehensive Corporate Tax awareness campaign for business sectors. These events cover various tax-related topics and offer tailored awareness programmes for different categories. They also employ the latest technologies to ensure easy access to information for taxpayers and support the business community in implementing the Corporate Tax Law efficiently and accurately.

The FTA highlighted several key topics covered during these events. These included Corporate Tax registration, timelines for submitting tax registration applications as per the Federal Decree-Law on Corporate and Business Tax and its amendments, creating tax groups, general principles of Corporate Tax, registering free zone companies, and services available through the EmaraTax digital tax services platform.

The FTA confirmed a notable rise in demand for and engagement with Corporate Tax awareness activities. Surveys indicated an increase in participant satisfaction rates to 97.5 percent in the first half of 2024, up from 93 percent last year. The number of awareness events organised by the FTA also saw substantial growth, with 40 in-person and virtual events held in H1 2024 compared to just 17 in the same period of 2023, indicating a strong growth of 135.29 percent.

Khalid Ali Al Bustani, Director-General of the FTA, stated, "This expansion and diversification in Corporate Tax awareness activities reflect our commitment at the Federal Tax Authority to promoting a tax culture, in general – and focusing on Corporate Tax, in particular – across all business sectors using all available means and channels while enabling businesses to save time and effort when engaging with the Authority."

Workshops and Educational Programmes

Six workshops were held in H1 2024 targeting Corporate Tax service focus groups. Additionally, workshops were conducted for focus groups centred around the Zero Government Bureaucracy Programme as it relates to Corporate Tax. A series of virtual workshops were also organised to clarify updates on Corporate Tax.

The FTA emphasised that these events provided comprehensive explanations of Corporate Tax Law and all relevant decisions. They outlined compliance requirements; criteria for determining persons subject to Corporate Tax; designating taxable income; applicable rates and tax periods; Small Business Relief programme details; and provisions related to taxpayers eligible for this relief programme aimed at supporting startups and MSMEs by reducing their tax burden.

Encouraging Compliance

The Director-General urged all relevant parties to participate in these awareness events. He encouraged taxpayers subject to Corporate Tax to submit registration requests within specified timelines as per FTA Decision No. (3) of 2024 effective from March 1st.

The Authority attributed the increase in awareness events and participants to new initiatives launched this year alongside expanding main awareness activities. The FTA continues its efforts initiated when Corporate Tax was announced in 2022 by collaborating with relevant authorities for efficient implementation.

The FTA prioritises helping business sectors comply with tax systems by offering flexible processes aligned with international best practices. The Authority will continue expanding its scope of beneficiaries through nationwide workshops while providing virtual sessions via its website which hosts guides explaining legislation related procedures.

Other aspects covered included revenue thresholds and conditions that taxable persons must meet to opt for Small Business Relief along with other information facilitating compliance ensuring accuracy.

With inputs from WAM