Federal Tax Authority continues Corporate Tax Awareness Campaign with workshop for SMEs

The Federal Tax Authority (FTA) continues to implement educational events and programmes, targeting various groups and entities involved in the application of Corporate Tax, as part of the second phase of its comprehensive campaign to promote awareness of Corporate Tax among business sectors.

The FTA aims to provide continuous knowledge support to taxpayers, in collaboration with relevant entities, to promote a tax culture among business sectors and enable them to comply with the Corporate Tax Law, which came into effect in June 2023 and applies to financial years beginning on or after 1 June 2023.

In a press statement issued 23rd April, the FTA announced the successful implementation of the second workshop dedicated to small and medium-sized enterprises (SMEs) in Ras Al Khaimah, noting that the session forms part of phase two of the Corporate Tax awareness campaign it had launched in February 2023, building on the notable success and wide interest generated by the first workshop of this kind, which was held in Abu Dhabi.

The second workshop in Ras Al Khaimah recorded a significant turnout and interaction from participants, with a total of 200 representatives of SMEs attending. The session sought to clarify and discuss ‘Obligations and facilities for small businesses under the Corporate Tax Law’.

The FTA stressed that the launch of the second phase of the Corporate Tax awareness campaign is part of its integrated strategy to ensure compliance with Corporate Tax requirements, assist taxpayers and relevant entities to understand their obligations under the Corporate Tax Law, enhance tax awareness, and promote self-compliance.

Further Corporate Tax programmes

Furthermore, the FTA clarified that the comprehensive Corporate Tax awareness campaign, which will continue until the end of 2024, includes a range of specialised events, programmes, and workshops, tailored to suit each category of taxpayers and relevant sectors. By organising the campaign, the FTA has succeeded in providing informative, clear, and comprehensive content, covering all legislative and procedural issues related to Corporate Tax.

Zahra Al Dahmani, Director of Taxpayer Services at the FTA, said:
“The notable participation of thousands of companies and entities involved in the implementation of Corporate Tax, as well as the tax sector in general, in the in-person and virtual workshops organised by the FTA since last year reflects the great commitment among business sectors to fully comply with the Corporate Tax Law. It also highlights the Federal Tax Authority’s success in providing continuous knowledge support to taxpayers and stakeholders, promoting tax awareness, and enhancing direct and effective communication between the FTA, stakeholders, and taxpayers.”

The FTA underlined the outstanding support provided by the Corporate Tax regime in the UAE to ensure the growth of the SMEs sector, in recognition of the significant contributions these companies make to the national GDP and in a bid to ensure their continued contribution to economic growth. The FTA asserted that it prioritises this key segment in its awareness efforts, allocating a range of introductory sessions for SMEs, in addition to continuous communication with other sectors.

The FTA clarified that the awareness events organised as part of the Corporate Tax awareness campaign complement its ongoing efforts to support vital sectors, such as SMEs, noting that the Muwafaq Package was launched to facilitate business operations and tax compliance for that specific sector. The Package includes a range of services, incentives, and privileges provided by the FTA and tailored to the SMEs sector, as part of the Authority’s transformative projects designed to create the world’s most dynamic and competitive economy. The Muwafaq Package offers innoVATive solutions to facilitate tax compliance, as well as educational materials on tax procedures tailored to SMEs, in an effort to enable this sector to be a driving force for the national economy and encourage entrepreneurship and innoVATion.

The workshop in Ras Al Khaima shed light on the obligations and facilities for small businesses under the Corporate Tax Law. Representatives from the Authority provided comprehensive explanations regarding Corporate Tax Law, related decisions, and compliance requirements, as well as the criteria for determining taxpayers subject to Corporate Tax, taxable income, applicable rates, and tax periods. Moreover, the session highlighted the facilities afforded to small businesses, and the process for implementing provisions outlined in the Law regarding individuals eligible for small business facilities.

The FTA representatives emphasised that small business facilities aim to support startups and other small or micro-enterprises by reducing Corporate Tax burdens and compliance costs. They clarified a range of key issues, notably revenue thresholds, conditions taxpayers must meet in order to qualify for these facilities, provisions for carrying forward tax losses, non-deductible net interest expenses, and other information necessary to facilitate Corporate Tax compliance. The Authority’s team went on to answer participants’ enquiries during the workshop.

The FTA urged Corporate Taxpayers to submit their registration requests for Corporate Tax as soon as possible, as per the deadlines specified in the relevant decisions, particularly those holding licenses issued in January and February, regardless of the year of issuance, who are required to submit their Corporate Tax registration requests by 31 May 2024 at the latest in order to avoid administrative penalties.

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