I sent messages to the companies most in need

«Federal Tax Authority»: «Mowafaq» package is available to all small and medium enterprises

  • Mowafaq package provides a 20% discount on the fees charged by the tax agent. Archival

  • Khalid Al-Bustani: "The goal is to provide an accounting structure that supports companies' compliance with tax requirements, the most important of which is the existence of regular accounting books and systems."


The Director General of the Federal Tax Authority, Khalid Al-Bustani, stated that «the initiative of the (Muwafaq) package launched by the Authority to help small and medium enterprises to comply with tax in terms of accounting and finance, to implement corporate tax, is available to all small and medium enterprises, and can be used without any conditions, not only those who received mails inviting them to join the initiative».

Al-Bustani added to "Emirates Today" that «small companies, especially individual companies, are the most in need of assistance in developing an accounting system and finding regular books, and the package (Mowafaq) in cooperation with tax agents, provides this service with a 20% discount from the fees charged by the tax agent who is nominated or used for his services».

Commenting on the inquiries received by Emirates Today from small business owners regarding the "Muwafaq" package, and whether they can benefit from it or whether it is intended for the category that received messages about it from the Federal Tax Authority, Al-Bustani explained that "the Authority addressed the companies most in need of the package, but the initiative is available to everyone, and the goal is to provide an accounting structure that supports companies' compliance with corporate tax requirements, the most important of which is the existence of regular accounting books and systems."

Tax Solutions

The "Mowafaq" package provides innovative tax solutions to facilitate tax compliance for SMEs currently registered in the tax system, in addition to educational materials on tax systems, through fast and accurate mechanisms, as they are specially designed to suit the SME sector, through which the energies and capabilities of those in charge of these companies are utilized, to enable them to be a driving force for the national economy, to promote a culture of entrepreneurship and innovation.

The package provides many advantages for SMEs, as they can benefit from them by participating in training programs on the basics of tax procedures, which will contribute to self-compliance and raise awareness of tax legislation, noting that SMEs represent the largest percentage of the total companies operating in the UAE, so the Authority places this important sector among its awareness priorities, as well as communicating with other sectors.

Corporate Tax

It is noteworthy that the application of corporate tax to the business community in the UAE began on the first of June, in implementation of Federal Decree-Law No. (47) of 2022 regarding corporate and business tax, provided that businesses in the country are subject to corporate tax as of their first fiscal year, which starts from or after the first of June 2023.

Corporate Tax is set at 9% on taxable income exceeding AED 375,0 and <>% on the portion of taxable income that does not exceed that amount.

Awareness Platform

In addition, the Federal Tax Authority has launched an awareness platform dedicated to introducing corporate tax, to provide continuous knowledge support to those subject to corporate tax, as part of the procedures carried out by the Authority to ensure the smooth application of the Federal Decree-Law on Corporate and Business Tax, which applies to fiscal years starting on or after the first of June 2023, which aims to strengthen the UAE's position as a leading global center for business and investment, and to adhere to international standards of tax transparency.

Through its new platform, the Authority provided a set of awareness materials that currently include 13 introductory workshops in Arabic and English on "Registration in Corporate Tax", which began to be presented via remote visual communication technologies, within a timetable that extends during June 2023, pointing out that participation in these introductory workshops is available to those subject to corporate tax and those concerned with it, at a rate of two workshops per week.

The Federal Tax Authority explained that the introductory workshops on "Registration in Corporate Tax" are available in both Arabic and English, through the "Virtual Workshops for Corporate Tax" platform on the Authority's website.

Al Bustani said: "The launch of the new platform dedicated to virtual workshops for corporate tax came within the framework of the Authority's commitment to enhance communication with taxable persons and all stakeholders within the country, and to provide various awareness channels to facilitate self-tax compliance with clear and transparent procedures."

Al Bustani called on all taxable public shareholding companies and private companies residing in the UAE to participate in the introductory workshops available on the Authority's website on "Registration in Corporate Tax", stressing that "early registration will allow companies and businesses sufficient time to comply with their legal obligations."