UAE finalises plans for start of new tax system

The board of directors of the Federal Tax Authority (FTA) said on Wednesday they have finalised plans for the upcoming period - including procedures for the introduction of Excise Tax next month and Value Added Tax (VAT) early next year. The authority said it is working to issue the executive regulations for each respective law to educate taxable persons on their rights and responsibilities following its second meeting held in the Ministry of Finance's Dubai headquarters. Related: Sage: VAT implementation requires training to raise awareness levels Chaired by Sheikh Hamdan bin Rashid Al Maktoum, deputy Ruler of Dubai and UAE Minister of Finance, the meeting saw the board explore the latest developments around the planned nationwide federal tax laws, a statement said. Sheikh Hamdan said: "We continue to steadily move forward in our preparations for the nationwide tax laws in the UAE. The system we are developing will provide ample support for the sustainable social and economic development of the UAE. "It will diversify revenue streams and establish sustainable sources of income, allowing the Government to carry on with its ambitious plans to develop future-ready infrastructure, and to continue providing high-quality services for the people."

He added: "We are entering a new phase in the implementation of the tax laws as we gear up to inaugurate the registration process for taxable companies, as soon as all the necessary legislative, administrative and infrastructure requirements are met." The board also adopted the proposed fees and fines related to the new taxes, the statement added.