UAE Ministry of Finance announces new initiatives - Tax consultancy for free zones and refund of eDirhams
The UAE Ministry of Finance has announced the commencement of a digital public consultation on its website regarding the Free Zone regulations of the UAE Corporate Tax. The consultation, which began on July 19, will run until August 2, 2023.
This initiative reflects the Ministry's recognition of the substantial contribution made by free zones to the local economy. Free zones play a crucial role in stimulating growth and facilitating economic transformation both domestically and internationally. By conducting this digital public consultation, the Ministry aims to engage with the business community and other relevant stakeholders, emphasising its commitment to assisting the UAE in achieving its strategic objectives. Moreover, this effort aims to solidify the country's position as a global business and investment hub.
Considering the diverse range of companies operating within the UAE's free zones, it is imperative to ensure that their activities align with the list of qualifying and excluded business activities. In light of this, the Ministry of Finance seeks feedback from companies based in free zones and other relevant parties. The collected insights will help shape future clarifications or executive decisions regarding the scope of these activities.
The Ministry of Finance encourages participants to provide clear and concise comments, substantiated with examples, data (where applicable), or any other relevant information to support their viewpoints. Responses must be submitted by August 2, 2023. It is important to note that all responses will be kept confidential and will not be published.
The Ministry of Finance also unveiled a new service available through its website, offering a fully automated refund process for the balance within eDirham cards. Individuals and establishments seeking refunds can access the service by logging into the Ministry of Finance's website using UAEPASS. Subsequently, they can submit a refund request along with the required supporting documents. Once processed, the remaining balance in the eDirham card will be transferred to a new card issued by First Abu Dhabi Bank.
With these initiatives, the UAE Ministry of Finance demonstrates its commitment to fostering transparency, engaging stakeholders, and providing convenient digital services to enhance the business environment in the country.
Update 1 August:
The Ministry of Finance announced the extension of the deadline for feedback and comments on the recently launched Corporate Tax Free Zone public consultation on its website (link here). The new deadline set for free zone-based businesses to share their inputs is 9 August 2023.
The extension of the consultation deadline reflects the Ministry’s belief in the importance of consulting with the business community and relevant stakeholders. It comes as part of its priorities to contribute to the achievement of the UAE’s strategic goals, and to consolidate the country’s position as an international business and investment hub.
