The Federal Tax Authority collaborates with the Mohammed bin Rashid Housing Establishment to further promote tax culture

DUBAI, 11th August 2024 (WAM) — The Federal Tax Authority (FTA) has signed a Memorandum of Understanding (MoU) with Mohammed bin Rashid Housing Establishment to strengthen the strategic partnership between the two entities and promote a tax culture on a wider scale.

The agreement also provides for the organisation of joint events to continuously discuss the latest developments in tax regulations and procedures, with a special focus on the processes by which UAE citizens will be able to claim a refund of Value Added Tax (VAT) paid on the construction of new homes, in line with the vision of the wise leadership, which aims to create a modern housing system that ensures the happiness and prosperity of its citizens.

The cooperation agreement was signed by Khalid Ali Al Bustani, Director General of FTA and Omar Hamad Bu Shehab, Director General of Mohammed bin Rashid Housing Establishment in Dubai.

The aim of the agreement is to develop the relationship between the FTA and the Establishment, to create a solid basis for cooperation in various areas, to coordinate the organisation of events and initiatives aimed at raising awareness of the importance of compliance with tax regulations and procedures.

“The signing of this Memorandum of Understanding with the Mohammed bin Rashid Housing Establishment contributes to the establishment of an effective framework for joint cooperation between our two entities,” said Al Bustani. “This in turn supports our plans at the Federal Tax Authority to establish a tax environment that encourages compliance, in line with the highest standards of governance and transparency.”

“Through ongoing awareness plans, we aim to reach out to all segments of the community, especially the UAE citizens,” he continued. “The organisation implements tax laws that reflect the directives of the UAE government to ensure the well-being of its citizens. With this in mind, we continue to intensify our efforts to provide proactive and sustainable services, using innovative methods to meet the aspirations of all customers.”

The FTA Director General pointed to the Maskan smart app, which the FTA recently launched, as a significant step in this direction. It offers UAE citizens additional opportunities to recover VAT paid on the construction of a new home through 100% digital and paperless procedures.

“The Federal Tax Authority is committed to strengthening its strategic partnerships with public and private sector entities, in line with the UAE’s principles for the next 50 years,” Al Bustani stated. “This is rooted in our understanding of the critical role these partnerships play in the successful implementation of the tax system and in efforts to promote voluntary self-regulation. The signing of the MoU with Mohammed bin Rashid Housing Establishment opens up new prospects for close cooperation to raise awareness among stakeholders in the tax system and all sectors involved, shedding light on the rights and obligations of the relevant parties and addressing any obstacles they may encounter by providing the necessary knowledge and information.”

Omar Hamad Bu Shehab said, “We at Mohammed Bin Rashid Housing Establishment are pleased to partner with the Federal Tax Authority on this important initiative. Raising tax awareness among citizens, especially in relation to housing construction, is crucial. This collaboration contributes positively to our goal of enabling citizens to build homes easily and conveniently, and aligns perfectly with the vision of our wise management to provide a dignified and stable life to all citizens. Through this partnership, we aim to provide the necessary information and guidance to simplify the procedures, and we look forward to offering the necessary facilities related to VAT recovery on housing construction.”

The agreement aims to enhance cooperation between the Federal Tax Authority and the Mohammed bin Rashid Housing Establishment in various areas, such as organizing a series of workshops to spread tax awareness among business sectors and keep them updated with the latest tax regulations and procedures. It also aims to coordinate participation in business events and meetings with trade delegations in areas related to the tax sector, in addition to facilitating cooperation in organizing conferences, seminars and specialized workshops in the scope of work of both parties.

In addition, the agreement aims to organise joint activities to emphasise the importance of tax compliance, emphasizing the crucial role of the tax system in supporting the UAE’s efforts to diversify the national economy, increase sustainable resources and ensure greater prosperity for all citizens, residents and guests of the UAE.

The MOU also supports the FTA’s strategic plan to promote tax awareness and education, which aims to enhance cooperation in educating all stakeholders on taxes applicable in the UAE, including VAT, excise and corporate income tax, as well as the categories of taxpayers subject to these taxes and tax compliance standards, requirements and mechanisms.