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Last March, the Federal Tax Authority launched a new initiative under the name “Mowafaq” package to support small and medium-sized companies to register in the corporate tax system, which will come into force as of the fiscal year beginning on or after the date of June 1.
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The package is considered the latest support provided by the authority to companies and the emerging business community in the country, after it was previously announced and within the “corporate tax” law that the income of these companies, which does not exceed 375 thousand dirhams, is exempted from tax.
The package provides several services and facilities specially developed to suit the requirements of small and medium enterprises in the UAE, in cooperation with tax agents and accounting software companies, to offer special low-cost packages for the registrants of the “Mowafaq” package, in order to reduce the financial burdens on this category of companies.
When registering for the “Mowafaq” package, companies will get seven privileges only, namely: providing relationship managers for small and medium-sized companies, tax accounting software at a competitive cost, and giving priority to the completion of some services provided by the Federal Tax Authority.
The package also provides educational materials on tax procedures, awareness workshops for small and medium-sized companies, and presentations of tax agents, in addition to other features that will be announced later.
According to the Authority, the “Mowafaq” package aims to increase the commitment of small and medium-sized companies to tax laws and procedures, enhance their proactivity in providing services, and enhance tax compliance in applying tax procedures, such as; Timely tax registration, timely filing and payment of tax returns, providing audit requirements on time, and facilitating businesses to do business.
