The Federal Tax Authority (FTA) has announced a significant update to its EmaraTax digital tax services platform, set to take effect from Tuesday, August 1, 2023.
In a recent press statement, the FTA detailed the introduction of an online feature to facilitate requests for clarifications related to Corporate Tax registration.
According to the FTA’s explanation, taxpayers can now access this service by simply filling out and submitting a clarification request through the EmaraTax platform. As part of the process, individuals are required to provide the necessary supporting documents and pay the designated service fees.
This strategic decision by the FTA aims to foster a culture of compliance among businesses subject to Corporate Tax. By proactively seeking clarifications and understanding their obligations under the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (commonly referred to as the “Corporate Tax Law”), companies can ensure smooth adherence to the regulations applicable to financial years commencing on or after 1st June 2023.
The FTA’s press statement further elaborated on the individuals eligible to submit Private Clarification requests related to Corporate Tax registration on behalf of taxpayers. Specifically, the requests can be made by appointed Tax Agents or authorized legal representatives. However, it was clarified that tax consultants who are not registered with the FTA as Tax Agents will not have the authority to submit clarification requests on behalf of others.
To make this service accessible to taxpayers, Cabinet Decision No. 7 of 2023 has been introduced, which brings amendments to specific provisions of Cabinet Decision No. 65 of 2020 on Fees for the Services Provided by the FTA. These changes took effect on 1st June 2023 and determined the fees for obtaining a Private Clarification request related to a single tax and a Private Clarification request encompassing multiple taxes.
As per the Cabinet Decision, a Private Clarification is a formal document, stamped and signed by the Authority, addressing specific tax technical matters for a particular taxpayer. To initiate this process, taxpayers must utilize the designated form on the FTA website and ensure submission of the requisite documents.
Moreover, the new Cabinet Decision also accommodates instances where the FTA fails to issue the requested clarification. In such cases, the Authority has the provision to refund the fees paid for Private Clarification requests.
With the FTA’s EmaraTax digital tax services platform now bolstered with this online clarification feature, businesses can confidently navigate the complexities of Corporate Tax registration and ensure their adherence to regulatory standards. The move is expected to encourage voluntary compliance among taxpayers, fostering a more streamlined and transparent tax environment in the UAE.
