The UAE Federal Tax Authority (FTA) has signed a Memorandum of Understanding (MoU) with the Mohammed bin Rashid Housing Establishment (MRHE) aimed at promoting tax culture on a wider scale.
Under the agreement, the two will organise joint events to continuously highlight the latest updates regarding tax legislation and procedures, focusing particularly on processes for UAE nationals to request Value Added Tax (VAT) refunds for taxes incurred on building new residences.
“Signing this Memorandum of Understanding with the Mohammed bin Rashid Housing Establishment contributes to establishing an effective framework for joint collaboration between our two entities,” said His Excellency Khalid Ali Al Bustani, FTA Director General. “This, in turn, supports our plans at the Federal Tax Authority to institute a tax environment that encourages compliance, in line with the highest standards of governance and transparency.”
According to HE Al Bustani, the authority aims to reach “all segments of the community,” especially UAE citizens, through ongoing awareness plans.
“The Authority implements tax legislation that reflect the UAE Government’s directives to ensure citizens’ wellbeing. With that in mind, we continue to intensify our efforts to provide proactive and sustainable services using innovative methods to meet all customers’ aspirations,” said HE Al Bustani.
The FTA Director General cited the Maskan smart application, which the Authority recently launched, as a step in that direction, offering additional facilities for UAE citizens to reclaim VAT they paid on building their new homes through 100 per cent digital and paperless procedures.
He noted the FTA’s focus on strengthening its strategic partnerships with public and private sector entities, critical role these partnerships play in the successful implementation of the tax system and in efforts to promote voluntary self-compliance.
His Excellency Omar Hamad Bu Shehab, CEO of the Mohammed Bin Rashid Housing Establishment, said: “Raising tax awareness among citizens, particularly regarding housing construction, is crucial.” He added: “Through this partnership, we aim at providing the necessary information and guidance to simplify the procedures involved and we look forward to offering the essential facilities associated with reclaiming VAT on housing construction.”
Alongside organising a series of workshops to spread tax awareness among business sectors, the MoU also aims to coordinate participation in economic events and meetings with trade delegations in areas related to the tax sector, it was shared, in addition to facilitating collaboration towards organising conferences, seminars, and specialised workshops within the scope of both parties’ work.
According to the FTA, the MoU also supports the its strategic plan for promoting tax awareness and education, driving closer cooperation towards educating all stakeholders about taxes implemented in the UAE, including VAT, Excise Tax, and Corporate Tax, as well as the categories of taxpayers who are subject to them and the standards, requirements, and mechanisms for tax compliance.