The UAE has announced a package of tax incentives and support for small and medium-sized enterprises
The UAE has announced a package of incentives and support for SMEs in the country.
The Federal Tax Authority (FTA) has launched the “Muwafaq Package” initiative, which aims to facilitate doing business and tax compliance in the small and medium-sized enterprises (SMEs) sector by offering them a set of customised services, incentives, and privileges.
The initiative is part of the FTA’s strategy to support the Government Accelerators Project, launched by the UAE government to embody the directives of Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai.
The project aims to apply a new approach to government work and implement major and rapid transformational projects that focus on building the world’s best and most dynamic economy, spearheading major transformations in the economy and across various areas of government work.
UAE Tax support
The FTA announced that the Muwafaq Package can be accessed by SMEs registered in the tax system in the UAE through the digital tax services platform EmaraTax.
Muwafaq offers innovative tax solutions for SMEs registered in the tax system, as well as educational materials about tax systems.
It was specifically tailored to SMEs and designed to empower the people behind these projects to be a driving force for the national economy, promoting entrepreneurship and innovation.
Khalid Ali Al Bustani, Director-General of FTA, said the Muwafaq Package is aimed at supporting the youth in the small and medium-sized enterprises sector.
The initiative is aims to empower young entrepreneurs and enable them to play their part in various sectors, including the economic sector.
The Muwafaq Package provides many advantages for SMEs, which they can access by participating in FTA’s training programmes on the basics of tax procedures.
These programmes will raise their awareness about and help them comply with tax legislation, especially since SMEs represent the largest category of companies operating in the UAE.
The Authority prioritises this important sector in its awareness activities while maintaining contact with other industries.
The Muwafaq Package offers users a set of incentives and privileges to encourage tax compliance, including access to tax accounting programmes 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 services provided by the Federal Tax Authority.
The Package also allows the FTA to identify the challenges the sector may face, develop solutions to address and overcome them, and provide registrants with tailored educational materials about tax procedures to encourage self-compliance. Additional advantages will be offered to SMEs and will be announced at a later stage.
The FTA aims to ensure an ideal tax environment that encourages self-compliance and adheres to the highest standards of governance and transparency.
The Authority also aims to contribute to government efforts to support entrepreneurs and SMEs, given the essential role they play in the success of policies to diversify sources of income, as well as strategies to develop and upskill national human resources.
The Authority expects that implementing Muwafaq Package will raise the level of tax awareness among the people running these companies, and provide proactive services to this large segment of the customers.