Dubai
The Federal Tax Authority (FTA) said on Wednesday that its board has approved plans to exempt penalties for businesses who’ve missed registration deadline until April 30.
“This takes into consideration the lack of readiness of some businesses during the first phase of VAT implementation, and reflects FTA’s commitment to assisting businesses and encouraging them to be compliant with the tax procedures and to avoid administrative penalties,” the FTA said in a statement.
The decision was made at a fourth meeting, which was held under the chairmanship of Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, the Board of Directors of the Federal Tax Authority (FTA) to review the achievement and implementation of the new tax, which was levied from January 1.
“The FTA is actively contributing to achieving the long-term strategic objectives of the tax system. The foremost goal is to promote economic diversification by providing sustainable sources of income for future generations to finance strategic projects such as infrastructure development and deliver more public services for citizens and residents,” Shaikh Hamdan said in a statement.
“The results of the periodic follow-up show that the response levels to the tax system by the business sectors and all segments of society are very satisfactory. There is a steady increase in the tax compliance ratios, which confirms the success of the model adopted by the FTA which is based on encouraging self-compliance by businesses through easy electronic registration and electronic compliance with tax obligations according to the tax legislation designed to the highest international standards,” he added.
