The Federal Tax Authority (FTA) in the UAE has announced the intellectual property registration of the “Muwafaq” package, which is specifically designed to support small and medium-sized enterprises (SMEs) in the country.
The authority emphasized that this package aims to make significant strides in promoting innovation within the tax system while providing comprehensive solutions that meet market demands. It expressed its aspiration for “Muwafaq” to empower SMEs and improve their tax compliance capabilities.
Khalid Ali Al Bustani, director-general of the FTA, commented on the announcement, stating, “This registration reinforces the authority’s position as a leading institution in delivering innovative tax solutions. The Muwafaq package offers a range of benefits, facilitation measures, and tailored educational resources designed to support and enhance the compliance of SMEs in the UAE with tax regulations and procedures.”
This initiative underscores the FTA’s dedication to innovation and development, aiming to enhance business efficiency, support regulatory compliance, and promote operational innovation.
Notable increase in registrants
In May 2024, FTA reported a notable increase in the number of registrants benefiting from the diverse services, incentives, and privileges provided by the Muwafaq Package, which was launched to facilitate business operations and tax compliance for the SMEs sector, indicating significant positive results for the Package in its first year.
The number of subscribers to the Muwafaq Package from the SMEs sector increased to nearly 54,000 by the end of 2023, marking a 4.5 percent growth from the 51,660 beneficiaries it had at its launch in March 2023. The FTA also indicated that outgoing calls from the Authority to Muwafaq Package subscribers over the past year amounted to 43,990, while the Muwafaq platform recorded 1,660 visits and 6,400 clicks, with 142 appointments being booked through the platform.
The FTA clarified that these indicators highlight a significant interest in the Muwafaq Package from stakeholders in the tax sector, with the platform reporting a 96 percent satisfaction rate among users. The Authority posted five videos on its Instagram page to introduce the Package, which recorded over 1.23 million views.
Read more: Dubai Chambers, FTA collaborate to strengthen tax awareness among private sector
Advantages for SMEs
The Muwafaq Package provides a host of advantages for SMEs. It enables them to participate in training programmes on basic tax procedures, which serves to enhance self-compliance and raise awareness about tax legislation among them. This is especially critical considering SMEs represent the largest segment of all companies operating in the UAE. With that in mind, the Authority prioritises this key sector in its awareness efforts, in addition to maintaining communication with all other sectors.”
Meanwhile, the Authority organized 12 introductory workshops about the Muwafaq Package, attended by more than 1,730 representatives of small and medium-sized enterprises across all emirates. The workshops recorded a satisfaction rate of 89 percent among attendees.
