The Federal Tax Authority (FTA) has introduced the "Tax Agents Classification" initiative, aiming to simplify tax compliance for taxpayers. The initiative provides an online procedure for taxpayers to select a specialized Tax Agent based on the sector their taxable economic activity belongs to, choosing from a list of 10 diverse sectors that reflect the real-life experiences of accredited Tax Agents registered with the Authority.
The FTA in a press release said that it has launched this initiative to enhance customer satisfaction regarding the services provided by Tax Agents. Taxpayers can access the Authorised Tax Agents Register on the FTA website, use the "Filter Agents" option to classify them based on specialization or sector, and select an agent from the relevant sector.
The FTA disclosed that 319 approved Tax Agents, accounting for over 70 percent of the total 454 agents registered with the Authority, have been classified according to their sectors as part of this initiative.
The FTA emphasised that these performance agreements represent transformative projects that propel the UAE towards a more competitive future. These projects have a significant impact across various sectors within short timeframes, paving the way for implementing new work processes within the UAE Government.
Khalid Ali Al Bustani, Director-General of the FTA, said, “The Federal Tax Authority has launched the Tax Agents Classification initiative as part of its strategy to contribute to the government efforts being made to advance the UAE’s position as a centre for the new economy, by creating the world’s most dynamic economy, in line with the ‘We the UAE 2031’ vision, which requires multiplying efforts to fulfil government aspirations, which will reflect positively on society and various sectors in the UAE.”
“The Authority is committed to continuously developing its services to meet customers’ aspirations, improving their experience, and expanding the range of innovative solutions to facilitate tax compliance,” Al Bustani added. “These solutions are designed based on the results of an opinion poll and proposals fielded by the Authority through its direct communication with customers. The FTA aims to engage taxpayers in the continuous development and modernisation plans, designed to align the services provided by the Authority with the actual needs of customers, facilitate access to services that meet the highest quality standards, and reduce the time and effort needed to complete transactions.”
The FTA Director-General highlighted the user-friendly nature of the Tax Agents Classification initiative, which simplifies the selection process for taxpayers by providing an updated list of specialized agents in each sector. These lists are easily accessible on the Authority's website, streamlining processes, improving efficiency, and enhancing the effectiveness of the tax system.
The Authority conducted a comprehensive study to understand the needs of taxpayers seeking to engage with the FTA through Tax Agents. The study revealed that many customers face challenges in choosing the right Tax Agent due to the increasing number of authorized agents registered with the Authority. Based on this research, the Authority implemented the innovative initiative, leveraging the latest technologies.
The classification process involves adding the Tax Agent's specialization based on their prior experience in specific tax sectors or services. Agents can select the sectors or services they wish to be classified in by providing supporting documents such as recommendation letters from taxpayers and certificates of prior experience.
The FTA outlined the new classification sectors for Tax Agents registered with the Authority, encompassing VAT-registered businesses, Corporate Tax, small and medium-sized enterprises (Muwafaq package), Excise Tax registration, registration of Warehouse Keepers and Designated Areas, Excise Goods registration, Tax Refunds for citizens building new homes and for mosques, government, and charitable entities, foreign businesses (non-residents), and real estate owners.
By implementing the Tax Agents Classification initiative, the Federal Tax Authority anticipates improved compliance with Tax Returns submission, tax payment, and tax registration deadlines. It also enables easy access to accurate information related to tax procedures for all concerned parties.