In order to provide cutting-edge digital solutions that improve the user experience for real estate sales parties in the emirate while guaranteeing compliance with the applicable tax laws, the Federal Tax Authority (FTA) and the Dubai Land Department have reinforced their strategic partnership.
Through data sharing through electronic linkage outlets, the partnership’s first phase was finished. The remaining digital features are currently being developed and will be revealed in the near future.
On the fringes of “GITEX Global 2024” at the Dubai World Trade Center, the Federal Tax Authority and the Dubai Land Department announced their joint partnership.
By collecting the relevant VAT on sales of real estate and commercial land, this initiative aims to create 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.
Khalid Ali Al Bustani, Director-General of FTA, stated, “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. This entails exchanging crucial information for collaborative projects, planning awareness campaigns to promote a tax culture in the community, especially in the real estate industry, introducing real estate procedures and the associated tax processes, and enhancing collaborative coordination to guarantee tax compliance and enforcement about real estate transactions.
Furthermore, the cooperative partnership delineates the strategies for cooperative training sessions and activities, idea sharing, and the implementation of collaborative projects and initiatives that complement each party’s strategic objectives while maintaining alignment with governmental directives.