A Federal Tax Authority is to be formed under federal law 13 of 2016.
In a significant development, the President of the UAE, His Highness Sheikh Khalifa bin Zayed Al Nahyan, issued federal law 13 of 2016 on 24 October, establishing a Federal Tax Authority (FTA) to govern federal taxes (including VAT) in the UAE. This underlines the intention of the federal government to implement VAT in the UAE by January 2018 and to align UAE laws with international tax developments such as tax treaties, tax information exchange agreements (TIEAs), and global tax information exchange programs (such as FATCA and CRS).
The FTA will:
KPMG will analyze the decree in depth once it is published in the Official Gazette. Law 13 of 2016 is expected to come into effect in January 2017.