The Federal Tax Authority (FTA) in the United Arab Emirates (UAE) has launched the Muwafaq Package, announced on 16th March 2023, the program designed to provide customized services, incentives, and privileges to SMEs, in order to encourage doing business and compliance with tax regulations.
The initiative is part of the FTA’s strategy to support the Government Accelerators Project of the UAE government and the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, Ruler of Dubai. The Muwafaq Package is accessible to SMEs registered in the UAE tax system through the digital tax services platform EmaraTax.
It provides innovative tax solutions, educational materials about tax systems, and tailored advantages for SMEs to promote entrepreneurship and innovation. Khalid Ali Al Bustani, Director General of the FTA, said that the Muwafaq Package aims to support the youth in the SME sector, which represents the largest category of companies operating in the UAE.
The package offers various incentives to encourage tax compliance, including access to tax accounting programs and software at competitive prices, immediate appointments with tax relationship managers, special offers on tax agent services, and priority for registered SME representatives when completing certain FTA services. The Muwafaq Package also includes awareness workshops for SMEs to introduce them to FTA’s services, future directions, and to enhance their tax culture.
The FTA’s goal is to contribute to government efforts to support entrepreneurs and SMEs by ensuring an ideal tax environment that encourages self-compliance and adheres to the highest standards of governance and transparency. The FTA intends to use this initiative to identify the challenges faced by the SME sector, develop solutions to overcome them, and provide registrants with tailored educational materials to encourage self-compliance.
Additionally, the FTA plans to offer further benefits to SMEs, which will be announced at a later date. Implementing the Muwafaq Package is expected to raise the level of tax awareness among the people running these companies and provide proactive services to this large segment of the Authority’s customers.
This article was published on 4 May 2023
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