Investing in human capital is one of the most important efforts determining the success of any nation's tax system. In that sense, the UAE is no different, as it lays a solid foundation upon which the UAE's Federal Tax Authority (FTA) is now building its achievements. This is in no small part due to the strategic objectives, outlined and guided by the UAE's leadership, which look set to consolidate the UAE's global leadership in developing tax systems.

Unlike many countries, the UAE is a newcomer to implementing corporate tax on businesses and 'natural persons' who are now obliged, by law, to pay tax. To this end, awareness, training and capacity-building are paramount considerations for the FTA, as the groundwork for optimising efficiency and performance in the tax sector gathers pace. 

In line with the UAE Centennial Plan 2071, the FTA's role as an administrator, collector, and enforcer of Federal Corporate Tax obligations, means it has the unique advantage of building a brand-new tax system in an era of advanced digital transformation and financial sustainability. That is to say that it is unencumbered by outdated legacy systems that need to be updated and it can learn from others on what are best practices and - equally important - those that have been tried and tested, and do not.

The FTA also plays a crucial role in developing the skills of its personnel by providing specialised educational and training programmes that contribute to raising employees' operational performance and readiness to keep pace with the rapidly changing dynamic of nationwide taxation systems, in the 21st century.

The calendar year of 2024 highlights these elements particularly well, with a series of successful initiatives that developed specialised expertise in VAT, corporate tax, and transfer pricing. These initiatives included intensive training on corporate tax law, VAT, and related accounting principles, reflecting the FTA's willingness to develop its employees' capabilities with a comprehensive and solid knowledge base that ensures operational efficiency and taxpayers' engagement satisfaction.

According to senior executives working at the FTA, talent development starts at the earliest stages and this has seen the Authority ramp up its certification of as many new professionals as needed through its dedicated 'Qualifying Tax Cadres' initiative. The initiative's goal is clear: To prepare a new generation of tax experts capable of leading the future of the tax system, in the UAE.

Furthermore, by investing in professional development and using the latest digital and smart tools, FTA employees can rapidly develop their technical skills and knowledge; another factor that will contribute to optimising operations, automating procedures, reducing human error, and providing more accurate services - in less time.

Proof of this can be seen in the various strategies being deployed, to this end, including organising specialised workshops and training courses, providing interactive educational content on advanced electronic platforms that support self-learning, collaborating with universities and research centres, and encouraging a culture of innovation through healthy internal competition and entrepreneurial ideas that foster creative thinking within the work environment.

As the UAE as a whole continues to lead the world in many areas of adopting the latest technologies, the FTA is also playing its part in building a flexible, integrated, technology-based tax system that supports data-driven decision-making and smart analysis. All of which, undoubtedly, will increase transparency and efficiency for taxpayers, while keeping pace with economic and financial dynamics at both local and global levels.

H.E. Khalid Al Bustani

Director General of the Federal Tax Authority