Federal Tax Authority in Dubai, UAE – Information, and Location

Useful Facts on Dubai and UAE federal Tax Authority

All issues related to the implications of the UAE tax system are resolved by the UAE Federal tax authority – the government entity responsible for regulating the taxation system of the country. It is also in charge of collecting taxes and managing cases of tax evasion as well as cases of double taxation avoidance. The UAE tax authority was introduced in 2016 by the decree issued by Sheikh Khalifa Bin Zayed Al Nahyan, the President of the UAE.

The UAE Federal Tax Authority was introduced within the preparations of the UAE government for the introduction of the VAT tax. The decision on introducing the VAT tax has been taken by all countries of the Gulf Cooperation as the way to diversify the economy of the GCC states. The UAE is the reputable country known all over the world for the absence of the majority of taxes. In particular, residents and non-residents of the UAE are exempt from income and corporate tax, as well as taxes on import and export. The VAT tax - the only tax applicable in the UAE - is introduced from 1 January 2018.

The UAE Federal tax authority is governed by the board of directors. Its head is the Minister of Finance – at present, Hamdan bin Rashid Al Maktoum, the chairman of the Ministry. The office of the UAE tax authority is located in Abu Dhabi. The main tasks of the UAE tax authority are to issue regulations, and applicable praxis rules concerning the VAT tax levied on the residents and non-residents of the state since 1 January 2018 and other taxes that might be imposed in the future.

The UAE Federal authority also takes part in global meetings related to the subject of taxes. Dubai tax authority is represented by the Dubai Department of Finance. It is situated in H.H. Ruler’s Court, Bur Dubai. The tasks performed by the Dubai tax authority include collecting taxes, providing the state’s general revenue and resolving other issue related to taxpaying.

The UAE Federal tax authority has the power to get access to the personal data of the subjects of the tax audit. It is also responsible for tax registration, storing data and keeping records of all taxpayers. There are no other major taxes in the UAE apart from the VAT tax. The VAT tax rate comprises 5%. It is added to the price of the product or service and is paid by the end consumer.

The UAE Federal tax authority is treated as the part of the bigger structural unit – the Ministry of Finance of UAE.