The UAE’s Federal Tax Authority (FTA) has introduced the ‘Tax Agents Classification’ initiative, to simplify tax compliance for taxpayers.
The initiative provides an online procedure for taxpayers to select a specialised tax agent based on the sector their taxable economic activity belongs to, choosing from a list of 10 diverse sectors that reflect the real-life experiences of accredited tax agents registered with the authority, reported the state news agency WAM.
Taxpayers can access the authorised tax agents register on the FTA website, use the ‘Filter Agents’ option to classify them based on specialisation or sector, and select an agent from the relevant sector.
According to the authority, there are 319 approved tax agents, accounting for over 70 percent of the total 454 agents registered with the FTA, who have been classified according to their sectors as part of this initiative.
Khalid Ali Al Bustani, director-general of the FTA, said, “The Federal Tax Authority has launched the ‘Tax Agents Classification’ initiative as part of its strategy to contribute to the government efforts being made to advance the UAE’s position as a centre for the new economy, by creating the world’s most dynamic economy, in line with the ‘We the UAE 2031’ vision, which requires multiplying efforts to fulfill government aspirations, which will reflect positively on society and various sectors in the UAE.
“The authority is committed to continuously developing its services to meet customers’ aspirations, improving their experience, and expanding the range of innovative solutions to facilitate tax compliance.”
FTA initiative based on feedback
Al Bustan added: “These solutions are designed based on the results of an opinion poll and proposals fielded by the authority through its direct communication with customers. The FTA aims to engage taxpayers in the continuous development and modernisation plans, designed to align the services provided by the authority with the actual needs of customers, facilitate access to services that meet the highest quality standards, and reduce the time and effort needed to complete transactions.”
The authority conducted a comprehensive study to understand the needs of taxpayers seeking to engage with the FTA through tax agents, WAM reported.
The study revealed that many customers face challenges in choosing the right agent due to the increasing number of authorised agents registered with the FTA.
Based on this research, the authority implemented the initiative. The classification process involves adding the tax agent’s specialisation based on their prior experience in specific tax sectors or services.
Agents can select the sectors or services they wish to be classified in by providing supporting documents such as recommendation letters from taxpayers and certificates of prior experience.
New classification sectors
The FTA outlined the new classification sectors for tax agents registered with the authority, encompassing VAT-registered businesses, corporate tax, small and medium-sized enterprises (Muwafaq package), excise tax registration, registration of warehouse keepers and designated areas, excise goods registration, tax refunds for citizens building new homes and for mosques, government, and charitable entities, foreign businesses (non-residents), and real estate owners.
By implementing the tax agents classification initiative, the FTA aims to see improved compliance with tax returns submission, tax payment, and tax registration deadlines.
It also enables easy access to accurate information related to tax procedures for all concerned parties.
In other news, FTA opened registration for corporate tax (CT) through the EmaraTax digital tax services platform for public joint stock companies and private companies on May 15.