United Arab Emirates (UAE) has taken the historic stand of introducing the tax system to the country and the more or less similar regimes are under pipeline with the other Gulf Countries. Value added Tax (VAT) will be the first tax under the new Law to be imposed with the effect from the beginning of next year as expected. The draft of UAE tax Law, that is Federal Tax Procedure (FTP) Law is a general framework for the institution of Federal Tax Authority, registration, record and submission of tax returns, Functioning, collection and its enforcement, penalties and administrative surcharges, etc. The supplementary regulations are expected to come during the time with more details. The FTP law is a cumulative parental legislation for assuring the fair treatment to the tax payers.
Author: Associate attorney with Dubai Based law firm, can be reached +971-527520742