FTA Private Clarifications
Resolve tax uncertainties with Stratify’s assistance in obtaining private clarifications from the FTA, ensuring clarity and compliance
What is an FTA Private Clarification?
An FTA Private Clarification is an official response from the Federal Tax Authority (FTA) regarding specific tax-related questions or issues that a business may face. It provides clarity on the application of tax laws, regulations, and procedures in particular circumstances, offering tailored guidance based on the details provided in the request.
Key Aspects of FTA Private Clarifications
Specific Guidance
Private clarifications address specific tax issues or scenarios, offering precise guidance on how to apply tax regulations in particular situations
Official Response
The clarification is an official document issued by the FTA, providing authoritative advice on the interpretation and application of tax laws
Compliance Assurance
By obtaining a private clarification, businesses can ensure compliance with tax laws, minimize risks, and avoid potential disputes with tax authorities
Preemptive Measure
It acts as a preemptive measure to address uncertainties and ensure that tax practices align with FTA requirements before issues arise.
How Stratify Can Help
Permanent Establishment Risk Assessment
We conduct a thorough analysis of your business activities in the UAE to determine whether they create a PE under local laws and international tax treaties. This involves reviewing your operations, contracts, and the role of agents or employees.
Tax Planning and Mitigation
Once a PE risk is identified, we work with you to develop tax strategies that optimize your position. This may include restructuring your operations or utilizing the UAE’s extensive network of DTAs to reduce tax liabilities.
Double Taxation Agreements (DTA) Advisory
We provide advisory services on how DTAs between the UAE and your home country can affect your tax obligations. This includes helping you leverage treaty benefits and avoid double taxation.
Documentation and Compliance Support
Ensuring compliance with UAE tax laws is critical. We assist in preparing the necessary documentation, including corporate tax filings and PE declarations, to ensure you meet all regulatory requirements.
Representation and Audit Support
In the event of a tax audit or inquiry from UAE authorities, we provide representation and support, ensuring that your business is fully compliant with PE regulations.
How Stratify Assists with FTA Private Clarifications
Detailed Query Preparation
We work with you to understand your specific tax-related queries and prepare a comprehensive request for private clarification. This involves detailing the issue, providing relevant documentation, and articulating the question clearly
Submission and Follow-Up
Our team handles the submission of your request to the FTA, ensuring that all required information is included. We also follow up with the FTA to track the progress and ensure timely responses
Interpretation and Implementation
Once the private clarification is received, we assist in interpreting the response and understanding its implications for your business. We provide guidance on how to implement the advice and adjust your tax practices accordingly.
Risk Management
We help assess the impact of the clarification on your business operations and tax liabilities, identifying any potential risks and advising on measures to mitigate them.
Ongoing Support
Our services extend beyond the issuance of a private clarification. We offer ongoing support to address any further questions or issues that may arise in relation to the clarification received.
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Our Other Corporate Tax Services
Corporate Tax Impact Assessment
Corporate Tax Registration
Corporate Tax Return Filing
Transfer Pricing Impact Assessment
Transfer Pricing Compliances
Advisory on cross-border transactions
Tax Residency Certificate
Permanent Establishment (PE) Analysis
Place of Effective Management (POEM) Analysis
FTA Private clarifications
Tax Reliefs/Exemptions
Tax Representation
- Corporate Tax Impact Assessment
- Corporate Tax Registration
- Corporate Tax Return Filing
- Transfer Pricing Impact Assessment
- Transfer Pricing Compliances
- Advisory On Cross-border Transactions
- Tax Residency Certificate
- Permanent Establishment (PE) analysis
- Place of Effective Management (POEM) Analysis
- FTA Private Clarifications
- Tax Reliefs/Exemptions
- Tax Representation
Our Services
Stratify Corporate services is an independent and international organisation with a specialization in crafting sustainable solutions and strategies
Value Added Tax
Ensure full compliance with UAE’s Value Added Tax regulations through tailored advisory, registration, filing, and VAT health check services.
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Corporate Tax
Navigate UAE’s corporate tax landscape with strategic tax planning, filing, and compliance support to optimize your tax position.
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Excise Tax
We assist businesses in understanding and complying with excise tax regulations, including registration, filing, and audit preparation.
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Accounting Outsourcing
Streamline your financial operations by outsourcing your accounting needs, from bookkeeping to financial reporting, for efficient management.
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Customs
Simplify import-export procedures and ensure compliance with UAE Customs regulations through advisory, registration, and customs reconciliation services.
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Company Formation
Start your business in the UAE with expert guidance on company incorporation, licensing, and compliance with local regulations.
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Audit & Assurance
Our audit and assurance services provide reliable financial insights, ensuring transparency and compliance with regulatory requirements.
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Economic Substance
Anti-Money Laundering
Protect your business by staying compliant with UAE’s AML regulations, with risk assessments, monitoring, and reporting solutions.
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Frequently Asked Questions
What is the purpose of an FTA Private Clarification?
An FTA Private Clarification provides official guidance on specific tax-related questions or issues, helping businesses understand how to apply tax laws in particular scenarios and ensure compliance with regulations.
How do I request an FTA Private Clarification?
To request a private clarification, you need to prepare a detailed query outlining your specific tax issue. Stratify can assist in drafting and submitting this request to the FTA on your behalf.
What information is needed for a private clarification request?
Key factors include the location where major business decisions are made, where the board of directors meets, and where the senior management is based. It also considers the operational management of the company.
How long does it take to receive a response from the FTA?
The response time for an FTA Private Clarification can vary depending on the complexity of the query and the FTA’s workload. Stratify monitors the progress and keeps you informed throughout the process.
What should I do if I disagree with the FTA’s clarification response?
If you disagree with the FTA’s response, we can assist in evaluating your options, including requesting a review or seeking further advice. We provide support to address any concerns or disputes.
How can Stratify help with implementing the clarification?
Stratify provides guidance on interpreting the clarification response and advises on how to implement the advice within your business. We help adjust your tax practices to align with the FTA’s guidance.
Can FTA Private Clarifications be used as a defense in case of a tax dispute?
Yes, private clarifications can serve as evidence of your intent to comply with tax laws and can be used to support your position in case of a tax dispute or audit.
Are FTA Private Clarifications confidential?
Yes, private clarifications are specific to the requesting party and are confidential. They are not publicly disclosed, but the FTA may use them for regulatory purposes.
How often should I seek an FTA Private Clarification?
You should seek a private clarification when faced with specific tax uncertainties or complex issues that need official guidance. Regular reviews of your tax practices may also prompt the need for clarifications.
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Ready to Simplify Your Journey?
For expert assistance with FTA Private Clarifications, contact Stratify today. Our experienced team is here to provide precise, timely, and compliant solutions to address your specific tax-related questions and ensure your business remains aligned with UAE tax regulations.
