The Federal Tax Authority (FTA) and the Dubai Land Department have further strengthened their strategic partnership to provide cutting-edge digital solutions that improve the user experience for real estate clients in the emirate while guaranteeing compliance with the applicable tax laws.
The partnership first phase was finished through the successful completion of data sharing via electronic linkage outlets. The remaining digital features are currently being developed and will be revealed in the near future. The joint partnership between the Federal Tax Authority and the Dubai Land Department was announced at the Dubai World Trade Center, on the fringes of “GITEX Global 2024”.
This initiative aims to collect the relevant VAT on sales of real estate and commercial island, and to create a more efficient system for guaranteeing tax compliance. The initiative will be successfully accomplished by creating a more efficient system for guaranteeing tax compliance. This will be accomplished by combining the processes for real estate transactions involving VAT, classifying services, classifying different kinds of properties, and identifying the parties involved in the transaction. It will also bring real estate operations and procedures into line with the Federal Tax Authority’s electronic systems.
Director-General of FTA, Khalid Ali Al Bustani stated, that “This joint collaboration paves the way for enhanced cooperation between the FTA and the Dubai Land Department. With a clear and effective framework, this collaboration supports delivering seamless digital services through innovative models that showcase the leadership and excellence of the government’s work ecosystem. Additionally, it enhances value by saving time, and effort while simplifying procedures.”
He added, “This collaboration contributes to providing a regulatory and legislative tax environment that encourages self-compliance according to the best governance and transparency standards, in coordination with our partners in all relevant sectors to continue expanding digital transformation across all FTA’s services. These advanced services integrate with the new services provided by other relevant government entities, and this coordination led to the electronic linkage between the two parties to ensure that real estate transactions are linked to the collection of the applicable VAT.”
For his part, Marwan Ahmed bin Ghalita, Director-General of the Land and Property Department in Dubai, said, “The extensive digital transformation in Dubai necessitates strong collaboration among all government entities, a principle we prioritise through our partnership with the Federal Tax Authority. Through this partnership, we aim to enhance the integration of digital systems for both parties to ensure improved tax compliance in the real estate sector while providing innovative solutions that simplify procedures and enhance transparency in line with the aspirations of our wise leadership.”
Bin Ghalita added, “This strategic partnership represents a fundamental step towards realising Dubai’s comprehensive economic vision. It emphasises sustainable real estate investment through the creation of an integrated digital infrastructure that enhances the efficiency of government operations and provides investors and clients with seamless access to advanced services.”
This project aims to improve cooperation between the Dubai Land Department and the Federal Tax Authority in several areas.
Source: propertynews
