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The government of the United Arab Emirates has taken numerous initiatives to ensure that local enterprises, as well as businesses from across the world, have no difficulty doing business in the country. To ensure this, the government takes numerous procedures and alters several laws. Voluntary Disclosure is one such practice that will benefit a company in the country.
A taxable individual or company is obligated to make a Voluntary Disclosure. This information will indicate to the Federal Tax Authority (FTA) that an error was made in the computation of returns, refunds, or tax assessments. According to Federal Law Number 7 of 2017 for Tax Procedures, the taxable entity is required to provide the disclosure. Cabinet Decision Number 36 of 2017 of Executive Regulations on Federal Law Number 7 is also required for these disclosures.
The disclosure will allow a company’s or an individual’s management to inform the Federal Trade Commission (FTC) that a mistake has been made on a tax return, assessment, or refund.
The following are the ramifications of the Voluntary Disclosures, according to Article 8 of the Executive Regulations:
1. If a Taxable Person discovers that the Tax Return Assessment Amount is incorrect, and the tax due is less than the original tax due (more than AED 10,000), the person must make a Voluntary Disclosure of the amount within 20 days of discovering the error.
2. If a Taxable Person discovers that the Tax Return Assessment Amount is incorrect in such a way that the tax due is less than the original tax due (by not exceeding the amount of AED 10,000), the entity has two options:
(a)If the entity is required to file a Tax Return for a specified period, the original amount should be entered, and the error repaired for the tax period in which the error was identified.
(b)If the entity does not have a tax return on which to submit the revised amount of taxes due, a Voluntary Disclosure should be made within 20 days of discovering the error.
3. If the entity discovers that the Tax Refund Application that was submitted contains errors, the amount by which the result differs should be specified in the Voluntary Disclosure that must be made within 20 days of discovering the problem.
According to Article 8 ($) of the Executive Regulation, the Federal Tax Authority will prescribe a form on which a Voluntary Disclosure can be submitted.
The UAE government has taken into account that firms should not face any difficulties in submitting the Voluntary Disclosure. The Voluntary Disclosure can be submitted using the VAT part of the Federal Trade Authority’s website’s eServices portal (FTA).
This form will have several fields that will be prepopulated with the taxable entity’s information for the applicable tax period. All that is required of the taxable entity is that it submit accurate information as well as supporting data for the taxes. The taxable entity can also keep track of the present status of the disclosure.
To comprehend the change and its implications for the organization, management should enlist the help of an expert and competent firm that can comprehend all of the company’s needs and supply answers accordingly. Alya Auditors is one such firm in the United Arab Emirates.
We will ensure that all business criteria are met and that the company does not suffer any problems in the future. Please contact us for additional information on the services we offer. We will gladly assist you.
Truly, let us know what service you are looking for and hence we can get back to you with more details.
Definitely, Alya Auditors is the one partner you need to ensure your business is built on accurate accounting books certainly, to spearhead greater growth and wider market reach.
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