Tax

UAE TAX UPDATE: EMARATAX TO GO LIVE ON DECEMBER 05, 2022

November 22, 2022 Comments Off on UAE TAX UPDATE: EMARATAX TO GO LIVE ON DECEMBER 05, 2022

The Federal Tax Authority (FTA) in UAE had previously announced that an integrated platform named “EmaraTax” would be launched soon. According to the FTA, the new platform is a modern tax administration ecosystem that integrates with other influential government entities, such as the UAE Central Bank, and national technology-based programs, including UAE PASS, to simplify user processes, from logging in to compiling tax returns. Furthermore, the FTA had proposed to launch a mobile app for EmaraTax soon after the new platform (website) goes live.

Now, FTA has officially announced that the EmaraTax will go live on December 05, 2022, and will be available for use from then onwards.

The below important points are to be noted:

1.      Post launch of EmaraTax, all tax (VAT, Excise, Corporate Tax) related compliances, submissions, etc. will only be through the new website;

2.      The tax information/data of the existing Tax Registrants will be automatically migrated into the new system by the FTA. The FTA has announced that this migration will take place from the end of November 30, 2022, and the new platform will be available for use from December 05, 2022;

3.      If you already have a registered account with the FTA, your account will be automatically transferred to the new system, and you do not need to sign up. You will need to reset your password the first time you log in to the new platform. A detailed set of instructions to guide you through this process will be sent by the FTA to you by email; and

4.      The FTA has proposed new enhancements to the way you will have to pay VAT (once EmaraTax is launched) as below:

a.      The UAE banks and other financial institutions are integrated with EmaraTax.

b.      You should always include the unique reference number when making payments using GIBAN. This unique number ensures that your payments are accurately allocated against your selected liabilities. A detailed explanation of how a unique reference number can be generated will be available on EmaraTax.

c.      This means that when making a GIBAN payment, the unique reference number will be used to validate the GIBAN and the amount payable to ensure that the correct sums are allocated properly.

Suggested actions to be taken:

a.      Ensure that the registered email ID with the FTA portal remains accessible at all times. All notifications and instructions from FTA on EmaraTax will be shared on this email id;

b.      Once you receive a formal mail notification from FTA (on or before December 05, 2022) confirming that the EmaraTax is live, follow the instructions shared by FTA to reset your password and access your portal. A cross-verification of the migrated data with your transaction history is recommended as a prudent measure.

c.      It is advisable to avoid submission of any requests, such as amendments, refund claims, etc., during the migration period, i. e., from November 30, 2022, to December 04, 2022, to not interfere with the migration process.