UAE Taxation Revolutionized: AI at FTA

Artificial Intelligence in Taxation: FTA's New Systems Simplify Taxation in the UAE

The Federal Tax Authority (FTA) of the United Arab Emirates is taking the taxation experience to a new level: its artificial intelligence-based systems not only speed up the work of clerks but also simplify navigation through complex tax regulations for entrepreneurs and individuals. The aim of the new tools is to provide faster, more accurate, and proactive support for users, whether they ask for it or not.

FTAGPT: The New Weapon of Customer Service

The FTA's new internal development, the FTAGPT artificial intelligence engine, has been specifically developed for the authority's employees. This system is capable of providing instant and accurate answers to questions related to the UAE tax system, covering value-added tax (VAT), excise tax, or the corporate tax introduced in June 2023.

The goal is clear: call center staff and colleagues in direct contact with taxpayers should be able to provide up-to-date, reliable answers, improving the quality of customer service and reducing the chance of mistakes. FTAGPT not only speeds up work but also contributes to consistent information delivery, which is essential in a complex regulatory system.

TARA: The Public AI Assistant for Taxpayers

The FTA offers artificial intelligence for both internal and external use through the TARA platform available on the tax authority's official website. TARA is designed to allow individuals and companies to ask questions about the status of their cases submitted through the EmaraTax system or about existing tax regulations.

Following the introduction of corporate tax in 2023, TARA has been expanded with new features. Users can now inquire about how to file corporate tax returns or the status of complaints, appeals against fines, or reconsideration requests. The system can interpret naturally phrased questions and provide targeted answers—reducing the time and stress associated with administration.

Proactive Support with Data-Driven Methods

The FTA is not content with merely reacting—the tax authority aims for proactivity. With the help of artificial intelligence, the FTA can analyze frequent questions, typical errors, and send a warning to the user before they encounter a real problem.

This means, for example, if someone regularly fills out the registration form incorrectly or submits their tax return late, the system sends an advance warning message—thereby reducing the chance of fines and promoting compliant behavior. The approach is centered on providing support to taxpayers not only when there is a problem but also when it is preventable.

The UAE Tax System in Brief

The UAE's tax system is still relatively new but already operates with exemplary efficiency. It rests on three main pillars:

Value-Added Tax (VAT)

Introduced on January 1, 2018, it is uniformly 5% and covers all transactions occurring through the supply chain. The final burden is borne by the consumer, while businesses act as tax collectors. This tax plays a crucial role in economic diversification.

Excise Tax

Introduced in October 2017, it increases the price of health-damaging products—such as tobacco products, energy drinks, sweetened drinks, and e-cigarettes. The aim is dual: to promote healthier lifestyles and increase state revenues. The tax rate ranges from 50% to 100% depending on the product type.

Corporate Tax

Effective from June 1, 2023, it is payable on the net profit of companies. The system is designed to support smaller businesses: profits up to 375,000 dirhams are taxed at 0%, and a 9% tax rate applies to the portion exceeding that. This brings the UAE in line with international transparency norms, reinforcing its position as a global business hub.

Why Does This Matter for Taxpayers?

Artificial intelligence is not a distant future—it is already helping businesses and individuals fulfill their tax obligations quickly and accurately. Systems like TARA and FTAGPT reduce human error chances, minimize administration time, and help avoid fines.

Anyone operating a business in the UAE, or registered as a taxpayer, should take advantage of these new AI tools. The FTA continually develops its systems to allow users a more convenient, faster, and more accurate tax administration—all within a transparent and technologically advanced environment.

Summary

The Federal Tax Authority of the United Arab Emirates is taking definitive steps to ensure that the country's tax system is not only modern but also exemplary in customer focus. Developments such as FTAGPT and TARA clearly show that the FTA is building the future not only technologically but also on a service level.

Artificial intelligence does not replace human interaction but complements it effectively. The UAE's example showcases how to blend regulatory precision with user-friendly services and achieve a taxation system that is not a burden but a well-functioning structure.

(The source of the article is a statement from the Federal Tax Authority (FTA).)