The Federal Tax Authority (FTA) intensified its awareness activities and events this year, organised to highlight the importance, objectives, procedures, and requirements for complying with the Corporate Tax Law, which came into effect last year and applies to financial years beginning on or after 1 June 2023.

In a press release issued today, the Authority revealed that the number of participants joining Corporate Tax awareness activities increased to 8,220 in-person and virtual attendees across all emirates in the first six months of 2024, compared to 7,520 participants in the same period of 2023, marking a 9.23% increase.

Moreover, the FTA confirmed a notable rise in demand for and engagement with Corporate Tax awareness activities, revealing that it had run surveys that indicated a surge in participant satisfaction rates with these events to 97.5% in the first half of 2024, up from 93% in the same period last year.

The Authority went on to add that a significant number of new awareness programmes and activities have been introduced to educate business sectors about Corporate Tax and related topics, in line with their requirements. The FTA explained that the number of awareness events it has organised in H1 2024 increased substantially to 40 in-person and virtual events, compared to just 17 in the same period of 2023, indicating a strong growth of 135.29%.

Expansion and diversity

His Excellency Khalid Ali Al Bustani, Director General of the FTA, said: “This expansion and diversification in Corporate Tax awareness activities reflect our commitment at the Federal Tax Authority to promoting a tax culture, in general – and focusing on Corporate Tax, in particular – across all business sectors using all available means and channels, while enabling businesses to save time and effort when engaging with the Authority.”

“The FTA will continue with its efforts to expand the scope of beneficiaries from its Corporate Tax awareness activities, organising in-person workshops nationwide, while also offering a comprehensive set of virtual workshops through our website, which also provides a wide range of guides, videos, infographics, and materials explaining the legislation, decisions, and procedures related to Corporate Tax,” H.E. Al Bustani added.

“This is a continuation of the comprehensive plan the Authority had initiated when Corporate Tax was announced in 2022,” he continued. “Since then, the FTA has intensified its efforts on every level, in collaboration with relevant authorities, in order to ensure an efficient, accurate, and seamless implementation of the Federal Decree-Law on the Taxation of Corporations and Businesses. The Authority prioritises helping business sectors comply with tax systems and procedures, offering flexible processes that align with international best practices.”

The FTA Director General called on all relevant parties to take part in the Authority’s Corporate Tax awareness events, urging taxpayers who are subject to Corporate Tax to submit registration requests within the timelines specified in FTA Decision No. (3) of 2024, which came into effect on 1 March 2024.

New activities introduced

The Federal Tax Authority attributed the increase in Corporate Tax awareness events and the substantial rise in the number of participants to the launch of a series of new awareness initiatives and programmes this year, as well as the continued expansion of the Authority’s main Corporate Tax awareness activities.

Key events introduced in 2024 include launching the second phase of the FTA’s comprehensive Corporate Tax awareness campaign for business sectors, which covers various tax-related topics, offers awareness programmes that are tailored for each category, employs the latest technologies to ensure easy access to information for taxpayers, and supports the business community to implement the Corporate Tax Law efficiently and accurately.

Six workshops were held in the first half of 2024, targeting Corporate Tax service focus groups, along with workshops for focus groups centred around the Zero Government Bureaucracy Programme as it relates to Corporate Tax, and a series of virtual workshops to clarify Corporate Tax updates.

Key topics

The FTA highlighted a series of key topics covered in Corporate Tax awareness events during the first half of 2024, which included Corporate Tax registration; the FTA decision regarding timelines for submitting tax registration applications, as per the Federal Decree-Law on Corporate and Business Tax and its amendments; creating tax groups; general principles of Corporate Tax; registering free zone companies, and Corporate Tax services available through the EmaraTax digital tax services platform.

These events provided comprehensive explanations of Corporate Tax Law and all relevant decisions, outlining compliance requirements; criteria for determining persons subject to Corporate Tax and designating taxable income; applicable rates and tax periods; the Small Business Relief programme; and the process for implementing provisions of Corporate Tax Law related to taxpayers eligible for the Small Business Relief programme, which aims to support startups and other micro, small, and medium-sized enterprises (MSMEs) by reducing the Corporate Tax burden and compliance costs.

Other aspects covered included revenue thresholds and conditions that taxable persons must meet to opt for Small Business Relief, along with other information to help facilitate Corporate Tax compliance and ensure accuracy.