Federal Tax Authority, Mohammed Bin Rashid Housing Establishment Sign MoU To Promote Tax Culture

The Federal Tax Authority (FTA) and the Mohammed bin Rashid Housing Establishment signed a Memorandum of Understanding (MoU) on Sunday to strengthen their partnership and promote tax awareness.

The agreement includes plans to organize joint events that will provide updates on tax laws and procedures. Moreover, it will focus on helping UAE nationals with VAT refunds for taxes paid on building new homes.

The MoU, signed by FTA Director General Khalid Ali Al Bustani and CEO of the Mohammed bin Rashid Housing Establishment Omar Hamad Bu Shehab, is aligned with the leadership's goal to create a modern housing system that supports citizens' happiness and well-being.

"Signing this Memorandum of Understanding with the Mohammed bin Rashid Housing Establishment contributes to establishing an effective framework for joint collaboration between our two entities," Al Bustani said, according to WAM.

"This, in turn, supports our plans at the Federal Tax Authority to institute a tax environment that encourages compliance, in line with the highest standards of governance and transparency," he added.

The FTA Director General emphasized the goal of reaching all community members, especially UAE citizens, through ongoing awareness efforts. He stated that the Authority's tax laws are designed to follow the UAE Government's directives for citizens' well-being.

The FTA aims to enhance its services with innovative and sustainable methods to meet customer needs. Al Bustani highlighted the new Maskan smart application as an example of this effort, noting that the app allows UAE citizens to reclaim VAT on new home construction through a fully digital and paperless process.

Bu Shehab, on the other hand, expressed his excitement over the collaboration with the Federal Tax Authority and emphasized the importance of raising tax awareness among citizens, particularly in relation to housing construction.

"This collaboration contributes positively to our goal of empowering citizens to build their homes easily and conveniently and aligns perfectly with our wise leadership's vision of providing a dignified and stable life for all citizens," he said.

"Through this partnership, we aim at providing the necessary information and guidance to simplify the procedures involved, and we look forward to offering the essential facilities associated with reclaiming VAT on housing construction," he added.

The MoU supports the FTA's plan to increase tax awareness and education. It aims to improve cooperation in teaching everyone about UAE taxes including VAT, Excise Tax and Corporate Tax. This includes explaining who must pay these taxes and the rules and processes for staying compliant.