Small businesses in the UAE looking for guidance on corporate tax compliance can benefit from the ‘Muwafaq’ service provided by the Federal Tax Authority.
Amit Mehta, Associate Partner – Taxation at Dubai-based consultancy UHY James, explains that the Muwafaq portal assists businesses in understanding the compliance process independently and can also help them connect with tax agents. The best part is that there’s no fee charged by the FTA for this service. However, if a business chooses to engage a tax agent, they may incur a discounted service fee.
Many SMEs are still navigating the complexities of corporate tax regulations, even though they’ve been complying with VAT for some time. Corporate tax compliance is a more significant challenge. Despite ample preparation time provided by UAE authorities (with tax registrations starting on June 1), small businesses are seeking support in this area.
The Muwafaq program, initiated by the tax authority in March, has seen increased interest in recent weeks. This program is tailored to SMEs and does not have a specific time limit. It’s essentially a platform that enables businesses to connect with experts who can assess their situation and provide guidance on how to move forward with corporate tax compliance.
