What is the Federal Tax Authority?
The Federal Tax Authority (FTA) is the UAE’s dedicated government body for managing and collecting federal taxes. Established under Federal Law by Decree No. 13 of 2016, the FTA plays a vital role in supporting the nation’s economic goals and ensuring compliance with tax regulations.
The Role of the FTA
The FTA oversees the administration, collection, and enforcement of federal taxes. Its primary objectives include:
- Economic Diversification: Supporting the UAE’s transition to a post-oil economy by increasing non-oil revenues.
- Fiscal Sustainability: Enhancing the UAE’s economic stability through effective tax collection and management.
- Taxpayer Guidance: Educating businesses and consumers about their tax responsibilities and guiding them towards full compliance.
- International Best Practices: Aligning the UAE’s tax system with global standards to boost economic competitiveness.
Leadership and Vision
The FTA is led by its Chairman, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Minister of Finance. Its Director General, His Excellency Khalid Al Bustani, brings over 37 years of experience in international financial affairs.
Under this leadership, the FTA focuses on fostering fiscal best practices, ensuring transparency, and supporting the UAE’s vision for long-term economic sustainability.
Key Contributions of the FTA
Since its establishment, the FTA has introduced measures to make taxation in the UAE efficient and accessible. Its contributions include:
- Launching the world’s first tax refund system for e-commerce purchases made by tourists.
- Hosting nationwide campaigns to raise awareness about corporate and value-added taxes (VAT).
- Ensuring that UAE citizens and residents continue to benefit from an affordable tax environment.
- Maintaining the UAE’s position as a hub for international businesses and investments.
How the FTA Supports Taxpayers
The FTA provides resources and tools to make tax compliance straightforward for businesses and individuals. Services include:
- Online portals for VAT registration, filing, and payment.
- Educational materials and guides on corporate tax and VAT compliance.
- Accessible support through call centers and online chat services.
The Path Forward
The FTA’s establishment marked a pivotal step in the UAE’s economic evolution. By implementing efficient tax systems and fostering transparency, the FTA ensures that the UAE remains a competitive global player while securing long-term prosperity for future generations.
For more information, visit the official FTA website.
