Starting from August 1, 2023, the Federal Tax Authority (FTA) of the UAE is set to introduce a new feature on its EmaraTax digital tax services platform, allowing individuals and entities to seek clarifications regarding Corporate Tax registration.
The FTA’s move to provide this online clarifications service aims to simplify and streamline the process for taxpayers to address queries related to Corporate Tax registration. To utilize this service, individuals or entities can submit clarification requests via the EmaraTax platform. The submission should be accompanied by necessary supporting documents and the prescribed service fees.
The underlying objective of this initiative is to encourage voluntary compliance with the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. This law is applicable to financial years starting from June 1, 2023, and its compliance impacts a range of companies within the UAE.
Previously, the FTA had initiated Corporate Tax registration for public joint-stock companies and resident private companies. This was complemented by an awareness campaign outlining the essential procedures and requirements for Corporate Tax compliance.
The statement by the FTA also delineated who is eligible to submit Private Clarification requests associated with Corporate Tax registration on behalf of taxpayers. It noted that appointed Tax Agents or authorized legal representatives can make such requests. However, individuals functioning as tax consultants but not registered as Tax Agents with the FTA won’t have the authorization to submit clarification requests for others.
Moreover, the Cabinet Decision No. 7 of 2023 introduced specific provisions regarding fees for services provided by the FTA. These fees came into effect on June 1, 2023. The Cabinet Decision outlines the charges for requesting a Private Clarification related to a single tax matter and for requesting a Private Clarification related to multiple taxes. A Private Clarification essentially refers to a formal document provided by the Authority in response to specific tax-related technical queries submitted by taxpayers through the FTA’s designated form.
Importantly, the Cabinet Decision also stipulates the possibility of fee refunds for Private Clarification requests if the FTA does not issue the requested clarification. This provision further emphasizes transparency and accountability in the process.
