The Federal Tax Authority (FTA) and the Dubai Land Department have enhanced their strategic alliance to deliver innovative digital solutions that improve the user experience for real estate sales in the emirate, while ensuring adherence to relevant tax regulations.
The initial phase of this collaboration has been successfully completed through data sharing via electronic linkages, and work is progressing on additional digital features, which will be revealed soon.
This partnership was officially announced during Gitex Global 2024 at the Dubai World Trade Centre.
Streamlining tax compliance
The initiative aims to create a streamlined approach for ensuring tax compliance by collecting the applicable VAT on real estate and commercial land transactions. This will involve integrating VAT-related procedures for real estate transactions, classifying services, categorizing property types, and identifying transaction parties. Furthermore, it will align real estate processes with the electronic systems of the Federal Tax Authority.
Commitment to enhanced cooperation
Marwan Ahmed bin Ghalita, director-general, FTA, remarked that this collaboration opens avenues for enhanced cooperation between the FTA and the Dubai Land Department. He emphasized the aim of providing seamless digital services through innovative models that highlight the leadership and excellence of the government’s ecosystem, while also saving time and simplifying procedures.
Fostering a supportive tax environment
Moreover, the Director-General stated that this alliance helps foster a regulatory and legislative tax environment that encourages self-compliance in line with best practices in governance and transparency. He noted the importance of coordinating with partners across all relevant sectors to expand digital transformation throughout the FTA’s services.
Enhancing digital transformation
The Director-General of the Land and Property Department in Dubai further emphasized that the significant digital transformation in Dubai requires robust collaboration among all government entities. He highlighted the partnership’s aim to improve tax compliance in the real estate sector, providing innovative solutions that simplify processes and enhance transparency.
Advancing economic vision
Also, the Director-General also that this strategic partnership marks a crucial step toward realizing Dubai’s comprehensive economic vision. He mentioned that it underscores sustainable real estate investment by creating an integrated digital infrastructure that boosts the efficiency of government operations.
Collaborative initiatives
The initiative aims to strengthen collaboration between the FTA and the Dubai Land Department across multiple areas. This includes sharing vital data for joint initiatives, organizing awareness campaigns to cultivate a tax culture within the community, and enhancing joint coordination to ensure compliance and enforcement regarding real estate transactions.
Future plans for cooperation
Additionally, the partnership outlines plans for joint training sessions and activities, the exchange of ideas, and the implementation of supportive projects and initiatives that align with the strategic objectives of both organizations, ensuring they remain in harmony with government directives.
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