The country’s first federal tax office has been established ahead of the planned introduction of VAT in early 2018.
The Federal Tax Authority (FTA) is intended to be officially opened before the end of the year, according to a senior official at the Ministry of Finance, who asked not to be named.
The FTA was established by Sheikh Khalifa via law decree 13 of 2016, with the law published in the legal gazette on September 29.
The new legislation is scheduled to come into effect 90 days after its publication in the gazette.
The decree contains provisions related to the authority’s structure and responsibilities but does not contain reference to specific tax provisions.
Such provisions are at an advanced drafting stage, with the government hoping to finalise them before the end of the year, according to the Ministry of Finance official.
The new authority will have responsibility for maintaining tax records, and will liaise with other jurisdictions regarding taxation treaties, a second senior legal source told The National.
The establishment of the new tax authority comes as the six members of the GCC prepare to introduce VAT by early 2018, as member states look to diversify their economies and generate additional revenues.
The UAE’s Ministry of Finance has already begun the hiring process for the new tax authority, advertising for positions including auditors, analysts, accountants and a compliance and enforcement director on its website.
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