What is FTA in UAE?
FTA stands for Federal Tax Authority. This government institution is responsible for collecting federal taxes and fines in the UAE. They are also responsible for the distribution of these taxes for the economic growth of the UAE. This authority was established under Federal Law by Decree No.13 of 2016. It was established by the President of the UAE, His Highness Sheikh Khalifa Bin Zayed Al Nahyan. This authority also instills a culture of voluntary compliance to support financial stability in the country. They are on a mission to increase compliance and tax awareness.
Why were taxes introduced in the UAE?
The federal taxing authorities were introduced in the UAE as a part of the GCC initiative to boost economic growth and diversify the economies. In recent years GCC countries experienced a reduction in prices of oil. To enhance the sources of revenue for the economy federal taxes as well as VAT were introduced in the UAE. The federal taxing authorities taxes were introduced in the domestic legislation by member states.
Major Taxes Administered by the FTA
The Federal Tax Authority has several major taxes implemented throughout the UAE, including:
Value Added Tax (VAT)- Unveiled in 2018, the VAT is among the major taxes under the FTA’s management mantle. A uniform rate of 5% applies, with only a few goods and services exempted. VAT offers the government a regular source of income, while business administration and compliance are easy.
Excise Tax- The FTA also supervises excise tax, which targets products harmful to health or the environment. Included in these categories are sugary beverages, energy drinks, and tobacco products. Excise tax rates differ depending on the product category and range between 50% and 100%.
Corporate Tax- In June 2023, the UAE introduced a federal corporate tax at a standard rate of 9%, which would be applied to businesses operating in the country. The introduction of corporate tax forms part of the government’s efforts towards broadening revenue streams to support long-term economic stability.
How to pay FTA taxes online in UAE?
First of all, it’s necessary to register your business or organization with the Federal Tax Authority login through their online portal. You can make the payment on the portal itself through several payment options available. It is recommended to pay the tax timely to avoid any penalties and legal complications.
Here are the payment options to pay federal tax in the UAE:
- Bank transfer through any of the local banks
- Bank transfer through any of the international banks
- Through electronic dirham or any credit card
How to contact the Federal Tax Authority?
There are several communication channels available to contact FTA to solve the queries and requests of individuals. You can reach out to them using the following channels:
- They have a dedicated customer service telephone number 600599994 where an agent will help you solve your query or request
- You can mail them to their official email-id info@tax.gov.ae They usually reply within a maximum of 2 days
- You can also contact them through the contact form available on the official portal of FTA and you get a reply within a maximum of 2 days
- You can visit their office during business days at the Emirates Property Investment Company Building, P.O. Box 2440, Abu Dhabi, UAE.
FAQs (Frequently Asked Questions)
FTA stands for Federal Tax Authority. This government institution is responsible for collecting federal taxes and fines in the UAE.
You can pay VAT to Federal Tax Authority FTA using number of payment methods including credit card, e-dirham, bank transfer etc. Overall this simplifies federal tax authority vat registration.
Federal tax authority login include Administering, collecting and enforcing federal taxes, applying tax procedures efficiently and effectively, and increasing voluntary compliance and tax awareness.