On 1 August 2017, the United Arab Emirates (UAE) Federal Tax Authority (FTA) issued the Federal Law No. (7) of 2017 on Tax Procedures (FLTP). This law applies to tax procedures related to the administration, collection and enforcement of Tax and the rights and obligations of the FTA, taxpayers and their agents.
The FLTP sets the foundation for the UAE tax system. Further laws are yet to be formulated to cover specific taxes such as the VAT and Excise Tax Laws. These laws are expected to be published in the near future with thE implementation date for VAT in the UAE still scheduled for 1 January 2018.
In brief, the FLTP:
Furthermore, the FLTP sets out the requirement for any person conducting any type of business, to keep accounting records and commercial books, as well as any tax-related information. Currently, the statute of limitation has been set at five years unless cases of tax evasion or non-registration have been proven.
Although the FLTP sets out common procedures for registration and filing of tax returns, the detailed requirements of what information is necessary along with the registration application or should be included in a tax return are subject to the relevant law imposing that tax.
The full (unofficial English) text of the FTPL is available on the Ministry of Finance website: www.mof.gov.ae
The release of the FTLP is a further confirmation of the UAE’s firm intention to proceed with the introduction of Excise Taxes and Value Added Tax. Businesses must act now to ensure that they are prepared for the introduction of these new taxes.
Our VAT page contains more information of how VAT will impact your business and what steps you should be taking to prepare
Alternatively, please contact one of our VAT specialists to discuss your needs.
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