21/01/2025
The Financial Audit Authority Hosts an Introductory Session for the Tax Laws and Guidelines Specific for Foreign Banks Operating in Dubai
January 21, 2025 - As a part of its commitment to augment financial transparency and regulate the tax environment, the Financial Audit Authority held an introductory session, covering several topics and details and aiming to clarify Law No. /1/ of 2024 concerning the Tax of Foreign Banks Operating in the Emirate of Dubai and Administrative Resolution No. /107/ of 2024 concerning the application of taxes on these banks.
Furthermore, in light of the latest tax law issued in 2024 to clarify the tax rules applicable to foreign banks operating in Dubai, the Financial Audit Authority elected to hold an introductory session whose purpose is to define the methodology of tax computation, tax adjustments required to compute taxable income, tax forms to be filled by the banks, the deadlines for submitting tax amounts due, forms and declarations, and the list of fines applicable to the banks, which allows the foreign banks operating in Dubai to abide by the legal requirements and avoid any transgressions or fines.
The session comprised several dialogue sessions, each focused on several focal topics related to the new tax laws. The session discussed the mechanisms of tax computation, the new rules of tax adjustments, DIFC loan transactions, and tax rules specific to corporate tax laws, etc.
Several prominent subject matters were also underscored, most important of which are tax adjustments, shared revenues and expenses, banking provisions for individuals and corporates, and accrued expenses.
Lastly, the session introduced the submission of tax forms through the FAA portal, recognizing fines and tax evasion, and the mechanism for submitting a grievance, in addition to a paragraph for asking questions to be answered by specialists.
On his part, Mr. Majid Al Ansari, Executive Director of Operations, Compliance, and Performance Audit Sector, has insisted on the importance of this informative session to achieve an understanding of the new tax laws and their applications, where he stated that “The application of these laws is an important step towards the augmentation of financial transparency and ensuring tax compliance by all foreign banks operating in the Emirate of Dubai. We at the Financial Audit Authority are keen to ensure the optimal application through constant auditing of operations and adherence to the specified standards. We also assert our active role in ensuring the application of these laws in line with the best global practices to enhance financial stability and create an environment that supports investment and sustainable growth.”
“This introductory session is a perfect opportunity for the financial institutions to exchange opinions and inquiries with the experts in the field and to provide the required support to understand the mechanism of implementing these legislations and effectively dealing with the new provisions. We are committed to supporting the banks to efficiently and transparently implement these laws,” added Mr. Al Ansari.
It is worth mentioning that the importance of this session lies in its purpose to enhance transparency in the financial system by enriching the banks’ knowledge of the rules and procedures for implementing this tax, which in turn contributes to full compliance with the new tax law and regulation of tax application on foreign banks operating in Dubai
which will lead to limiting transgressions, thus achieving tax fairness and financial stability in the Emirate.
