The Federal Tax Authority (FTA) and the Dubai Land Department (DLD) have bolstered their strategic partnership to introduce innovative digital solutions aimed at improving the user experience for real estate transactions in Dubai. This collaboration ensures compliance with tax regulations and facilitates efficient handling of VAT on real estate and commercial land sales.
The first phase of the initiative has been successfully completed through electronic data-sharing systems, with further advancements to be unveiled in the near future. The partnership was officially announced during GITEX Global 2024 at the Dubai World Trade Centre.
The collaboration focuses on integrating procedures related to VAT compliance, service classification, property categorisation, and the identification of transaction parties. By aligning real estate processes with the FTA's electronic systems, the initiative aims to create a streamlined mechanism for ensuring tax compliance in real estate transactions.
Khalid Ali Al Bustani, Director-General of the FTA, highlighted the importance of this partnership in delivering seamless digital services and enhancing governance and transparency. "This joint collaboration supports a regulatory environment that encourages self-compliance through clear and efficient digital processes, aligning with our broader goal of expanding digital transformation across all FTA services,” Al Bustani said.
Marwan Ahmed bin Ghalita, Director-General of the DLD, stressed the significance of the partnership in advancing Dubai’s digital transformation. He stated, "Through this collaboration, we aim to enhance tax compliance in the real estate sector by integrating our digital systems, thereby simplifying procedures and enhancing transparency in line with the aspirations of our leadership."
This partnership also aims to foster a tax culture within the real estate sector through data-sharing initiatives, awareness campaigns, and the introduction of procedures linked to tax processes. The collaboration outlines plans for joint training sessions, idea exchanges, and the execution of projects that align with the strategic goals of both entities.
The partnership is expected to play a key role in supporting Dubai's comprehensive economic vision by promoting sustainable real estate investment and improving the efficiency of government services for investors and clients.
