A complete insight into Cabinet Decision No 65 of 2020 on fees for services outline by FTA 

A-complete-insight-into-Cabinet-Decision-No-65-of-2020-on-fees-for-services-outline-by-FTA

What? 

Cabinet Decision No 65 of 2020 highlights the regulations on the fees charged on specified services by the Federal Tax Authority of the UAE. After a thorough review of varied laws and combining a series of amendments, the decision illustrates fees associated with the services provided by the FTA. Do you want to know more about the fees for these services? Don’t worry, we will navigate you through the terms and regulations in the article for your better understanding.  

Why? 

This is aimed to compensate for the services provided by the FTA. 

When? 

This will come into force as of 1st June 2023. 

Specific terms and definitions under Cabinet Decision 65 

Tax Residency Certificate 

A document issued by FTA for an application submitted by any individual to benefit from double taxation avoidance to which the state is a signatory.  

Certificate of Commercial Activities 

A document issued by the Authority in response to the application submitted by any individual. This refers to recovering the imposed Valued Added Tax whether double taxation agreements exist or not.  

Understanding the terms of Article 2 of Cabinet Decision No 65 

Article 2 is the main element for the regulation determined for this decision. The Authority has provided a table highlighting various payable services with accurate fees that individuals need to pay to the Federal Tax Authority. The services include – a Tax Residency Certificate or Certificate of Commercial Activities.  

Additionally, the services mentioned in the article are beneficial for businesses and individuals to avoid paying tax twice or to recover the value-added tax that they paid in other countries. To know more about the services, refer to the table mentioned below in the article.  

What are the amendments to Fees?  

The Finance Ministry of the UAE is flexible and utilizes the power to make changes in the economy and global taxes for the benefit of individuals and businesses. Hence, article 3 of the decision grants the power to change the fees listed in the table whenever required. The Authority can add new fees, remove existing services, or make adequate changes.  

Issuance of Executive Decisions 

The Minister of Finance is held to be responsible for making detailed decisions or changes under Cabinet Decision no 65 of 2020 for fees on a few specified services. This provision highlights detailed planning and execution to ensure the law meets with practical reality.  

Table for Fees on Services highlighted by FTA. 

A complete insight into Cabinet Decision No 65 of 2020 on fees for services outline by FTA 

Concluding words 

The Cabinet Decision no 65 of 2020 highlights the ongoing efforts of UAE to elevate its tax framework. The detailed structure of payable fees on specified services united by the Federal Tax Authority showcases transparency and facilitates compliance for taxpayers in the UAE.  

If you want to know more about the services and fees mentioned in this decision, get in touch with us. The tax consultants of N R Doshi and Partners are dedicated to help you in guiding optimal practices for your business enquiries@nrdoshi.ae or call us at +971 4 352 8001

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