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Federal Tax Authority

Overview

The Federal Tax Authority (FTA) was established under Federal Decree Law No. (13) of 2016. It is the government entity responsible for the administration, collection, and enforcement of federal taxes in the United Arab Emirates.

The FTA implements financial and tax laws, regulations, and policies, and oversees compliance with them. It manages and collects various taxes, including Value Added Tax (VAT) and Excise Tax—both of which contribute to the general revenues administered by the Ministry of Finance to support the federal budget.

The Ministry of Finance and the FTA work in close coordination to strike a balance between enhancing government revenues and maintaining an attractive investment climate for businesses and individuals.

Vision

To be a world-leading tax authority in collecting revenues and promoting a culture of voluntary compliance that supports financial sustainability.

Mission

To administer, collect, and enforce federal taxes; apply tax procedures efficiently and effectively; and promote voluntary compliance and tax awareness.

Objectives

Enhance the efficiency of the tax system and simplify tax payment processes in the UAE.
Strengthen tax compliance and minimize tax evasion.
Develop and implement effective tax policies and procedures.
Establish a proactive and adaptable tax system for taxpayer registration, return filing, payments, and refunds.
Ensure audit, collection, and enforcement programs are implemented efficiently and guided by risk-based approaches.
Attract and empower top talent while delivering services through a robust digital infrastructure.
Promote a culture of innovation grounded in agility, proactivity, and readiness within the workplace.

Key Responsibilities

The FTA is responsible for managing, collecting, and enforcing federal taxes and associated penalties, as well as distributing tax revenues and implementing tax procedures across the UAE. Its key responsibilities include:

Implementing laws and regulations related to federal taxes and applicable penalties.

Enforcing double taxation agreements ratified by the UAE.

Proposing legislation related to the administration, collection, and enforcement of federal taxes and penalties, and coordinating revenue distribution with the Ministry of Finance.

Coordinating with the federal and emirate-level governments and taxpayers on all matters related to federal taxation.

Tax Systems and Services

The UAE levies a 5% Value Added Tax (VAT) on goods and services, applied at each stage of the supply chain and ultimately borne by the end consumer. It also imposes excise taxes on products harmful to public health, and a corporate tax on the net income or profits of businesses and other legal entities.

The FTA provides streamlined, user-friendly digital services to support tax compliance. Businesses can register, file tax returns, request refunds, and access their tax records entirely online.

Useful Links

To visit The Federal Tax Authority’s website, click here..
For information on Corporate Tax, click here..
For information on Value Added Tax (VAT), click here..
For information on UAE Domestic Minimum Top-up Tax, click here..
To read about the UAE tax legislation, click here..

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