FTA and Dubai Land Department strengthen partnership to streamline real estate tax compliance

The Federal Tax Authority (FTA) and the Dubai Land Department (DLD) have strengthened their strategic partnership to introduce innovative digital solutions aimed at enhancing user experience in real estate transactions while ensuring compliance with tax laws, according to WAM.

As part of this collaboration, the first phase has already been completed, with data-sharing capabilities integrated through electronic linkage platforms. Additional digital features are expected to roll out in the near future.

The announcement of this joint initiative took place on the sidelines of "GITEX Global 2024" at the Dubai World Trade Centre.

This initiative seeks to establish a seamless mechanism for ensuring tax compliance in real estate and commercial land sales, focusing on the facilitation of the VAT collection.

The collaboration aims to integrate VAT-related procedures into real estate transactions, classify services, categorize property types, and identify relevant parties in each transaction.

Furthermore, it will align real estate processes with the Federal Tax Authority’s electronic systems, making operations more streamlined and efficient.

Khalid Ali Al Bustani, Director-General of FTA, emphasized the significance of this partnership, stating, “This joint collaboration paves the way for enhanced cooperation between the FTA and the Dubai Land Department. Through a clear and effective framework, this partnership supports the delivery of seamless digital services using innovative models that highlight the leadership and excellence of government operations. Additionally, it enhances value by saving time and effort while simplifying procedures.”

He further noted that the partnership contributes to creating a regulatory and legislative tax environment that promotes self-compliance according to the highest standards of governance and transparency.

This initiative is part of the broader digital transformation efforts at the FTA, ensuring full integration with other services government services to create a completely electronic system that ensures VAT collection on real estate transactions.

Marwan Ahmed bin Ghalita, Director-General of the Dubai Land Department, highlighted the importance of digital transformation in Dubai’s government operations, stating, “The extensive digital transformation in Dubai necessitates strong collaboration among all government entities. Our partnership with the Federal Tax Authority aims to enhance the integration of digital systems to ensure improved tax compliance in the real estate sector while offering innovative solutions that simplify procedures and increase transparency in line with the aspirations of our wise leadership.”

Bin Ghalita also noted that this strategic partnership plays a key role in realizing Dubai's broader economic vision by promoting sustainable real estate investment through an integrated digital infrastructure.

This infrastructure is designed to improve the efficiency of government operations and provide investors and clients with seamless access to advanced services.

The collaboration between the FTA and DLD extends beyond technical integration and also includes sharing essential data for joint initiatives, organizing awareness campaigns to foster a tax culture within the real estate community, and introducing tax-related procedures for real estate transactions.

Both entities will continue to work closely to ensure full tax compliance and enforcement in the sector.

The partnership will also include joint training sessions, ideas exchanges, and the execution of projects and initiatives that align with the strategic goals of both organizations and Dubai's overall government directives.