In the UAE, taxpayers have certain rights that are protected by law. These rights include the right to privacy, the right to be treated fairly and impartially, the right to appeal decisions made by tax authorities, and the right to receive clear and accurate information about their tax obligations.
Recently, the UAE government has been taking steps to further protect taxpayer rights and ensure transparency in the tax system. In March 2021, the UAE Cabinet approved the establishment of a Tax Dispute Resolution Committee, which will be responsible for resolving disputes between taxpayers and the Federal Tax Authority. This committee aims to provide a fair and efficient mechanism for resolving tax disputes and upholding taxpayer rights.
Additionally, the UAE has been working to improve taxpayer education and awareness through initiatives such as the Tax Clinics program, which offers free tax advisory services to individuals and businesses. By providing taxpayers with the information and support they need to understand their rights and obligations, the UAE is working to create a more transparent and accountable tax system.
The protection of taxpayer rights in the UAE is a priority for the government, and efforts are being made to ensure that taxpayers are treated fairly and have approach to the resources they need to fulfil their tax obligations.
TAX PAYER OBLIGATIONS
1. Filing taxes - Taxpayers are required to file their taxes accurately and on time every year. This includes reporting all sources of income, deductions, and credits.
2. Paying taxes- Taxpayers are obligated to pay the amount of tax owed to the government based on their income and deductions. Non-fulfilment to pay taxes can result in penalties and interest charges.
3. Keeping records - Taxpayers should keep records of all their financial transactions, receipts, and documentation related to their taxes. This information may be needed in case of an audit or if there are discrepancies in their tax return.
4. Reporting income - Taxpayers are required to report all sources of income, including wages, salaries, bonuses, tips, rental income, investment income, and any other income earned during the taxable year.
5. Claiming deductions and credits - Taxpayers can reduce their taxable income by claiming deductions and credits for certain expenses, such as mortgage interest, medical expenses, education expenses, and charitable contributions. It is important to only claim deductions and credits that are allowed by law and to keep accurate records to support these claims.
6. Complying with tax laws - Taxpayers are obligated to comply with all tax laws and regulations set forth by the government. This includes accurately reporting income, filing taxes on time, and paying the correct amount of tax owed.
7. Responding to IRS inquiries - If the IRS has questions or concerns about a taxpayer’s tax return, the taxpayer is obligated to respond promptly and provide any requested information or documentation. Failure to do so may result in penalties or further scrutiny by the IRS.
As a Taxpayer you have right to expect transparency and accountability from government officials in how your dirham are being spent. This includes being informed about how funds are allocated, what programs and services are being funded, and how effective those programs are in achieving their intended goals. Additionally, you have the right to express your opinions and concerns about government spending and to hold elected officials accountable for their decisions.
Last updated : Apr 03, 2024