The UAE government shows its commitment to its citizens by providing financial aid, especially during tough times, in the shape of the Muwafaq Package. On March 16, 2023, the Federal Tax Authority (FTA) in the United Arab Emirates (UAE) launched the Muwafaq Package.
The package offers a comprehensive financial assistance program that delivers multiple benefits to eligible UAE nationals. The Federal Tax Authority (FTA) has introduced the Muwafaq Package for the growth and development of Small and Medium-sized Enterprises (SMEs) in the UAE.
In a recent statement on May 14, 2024, the FTA revealed that the number of subscribers to the Muwafaq Package from the SME sector increased to 54,000 by the end of 2023, highlighting a 4.5 percent growth from the 51,660 beneficiaries at its launch in March 2023.
This article will cover everything you need to know about the Muwafaq Package in the UAE, including its features, objectives, benefits, eligibility requirements, and how to apply. Now Consultant, the leading business setup firm, can help you with the complete application process of the Muwafaq Package.
What Is the Muwafaq Package?
The Muwafaq Package is a unique scheme designed to support and grow SMEs in the UAE. It includes training programs and educational sessions on the fundamentals of tax procedures to improve compliance with tax laws and regulations within the sector.
The main purpose of the Muwafaq Package is to encourage a spirit of entrepreneurship and innovation among SMEs, which, as a result, strengthens the national economy of the UAE.
Key Features of the Muwafaq Package
The following are the key features of the Muwafaq package:
VAT-Compliant Invoicing:
The Muwafaq package generates VAT-compliant invoices using customizable templates that meet FTA requirements. It automatically calculates VAT, ensuring accuracy and compliance, thus helping businesses avoid penalties and legal issues.
Record-Keeping:
The Muwafaq package enables businesses to monitor their financial transactions, such as purchases and sales, and to classify them under the appropriate tax codes. This functionality simplifies the process of calculating owed VAT and ensures the generation of accurate VAT returns that reflect the company’s tax obligations.
VAT Calculation Tool:
The Muwafaq package features a VAT calculation tool that helps businesses determine the VAT on their sales and purchases. By inputting transaction details, including the value and tax rate, the software automatically calculates the VAT. This helps businesses avoid errors and ensures accurate tax payments.
Generating VAT Return Tool:
The Muwafaq package includes a tool for efficiently generating VAT returns. By entering transaction details, businesses can automatically produce VAT returns in the required format. This feature saves time and reduces the administrative workload associated with VAT compliance.
Objectives of the Muwafaq Package
The government of the UAE has introduced the Muwafaq Package to assist UAE nationals experiencing financial difficulties. This program offers financial support to eligible individuals, helping them meet their basic needs. The package alleviates the financial burden on families and improves their standard of living.
- Promote effective service provision.
- Improve SMEs’ adherence to tax regulations and procedures.
- Strengthen compliance in implementing tax procedures, such as the timely completion of tax registration.
- Ease the process of conducting business for SMEs.
- Submitting tax returns on time, making timely payments, fulfilling audit requirements, and so on.
Benefits of the Muwafaq Package
The Muwafaq Package offers various benefits to qualifying UAE nationals. These benefits are:
Granting priority to SMEs for Federal Tax Authority services: Small businesses are given priority for services provided by the FTA, including tax registration, business setup, and other offered services.
Customized business sessions and workshops: The FTA organizes customized sessions and workshops designed specifically for businesses needing personalized attention.
Educational resources for tax procedures: Making sure your business follows tax regulations is a top priority. Therefore, small businesses receive educational materials covering taxes such as Excise Tax, VAT, and Corporate Tax.
Offers tax accounting software at competitive prices: The FTA facilitates smoother business operations by providing affordable accounting software.
Tax agent discount: Access FTA-registered tax agents in the UAE at a discounted rate!
Assigning relationship managers for SMEs: These managers offer personalized financial guidance, assist with banking transactions, and provide support for business expansion.
Eligibility Criteria
To be eligible for the Muwafaq Package, applicants must be UAE nationals who fulfill the following criteria:
- Registration of an applicant with the Ministry of Community Development is mandatory.
- The applicant must be residing in the UAE.
- The monthly income is lower than AED 15,000.
- Ownership of any property or registered car under the name of the applicant is not permitted.
- The applicants must not have received any other government social welfare support form.
It is important to note that the eligibility criteria might vary based on the individual circumstances of the applicant.
Muwafaq Package Application Process
The application process for the Muwafaq Package comprises the following steps as given below:
1. Register With the Ministry of Community Development:
To qualify for the Muwafaq Program, the first step is to register with the Ministry of Community Development. This registration is mandatory; after that, the applicant will be allowed to fill out the application form for the program.
2. Fill Out the Application Form:
After registration, applicants can proceed to fill out the Muwafaq Package application form via online. This form requires providing personal and financial details to evaluate the eligibility of applicants.
3. Provide Supporting Documents:
The eligible applicants are required to submit supporting documents to confirm their eligibility to the Ministry of Community Development. These documents include:
- A copy of the applicant’s Emirates ID
- A copy of the applicant’s family book
- Proof of the applicant’s income.
4. Final Approval:
After completing the application and submitting the supporting documents, applicants will receive final approval from the Ministry of Community Development, which generally takes up to 15 days.
Conclusion:
In summary, the Muwafaq Package stands as a comprehensive financial aid initiative providing significant assistance to eligible UAE nationals encountering financial challenges. This program encompasses various benefits, including financial assistance, housing, healthcare, education, and job placement support. The eligibility criteria and the application process are straightforward and accessible online.
How Can We Help You?
If you are the owner of a small or medium business, the Muwafaq Package is the most suitable, and you can grow your business with its proper implementation. If you want to benefit from this opportunity offered by FTA, you need expert guidance, like Now Consultant, that not only fulfills the eligibility criteria but also submits an application for the Muwafaq Package on your behalf.
Our expert team at Now Consultant supports SMEs in registering for Muwafaq and claiming the most benefit out of it. Our experts help you at every step and provide you with complete guidance for successfully providing an advantage to your business.
FAQs:
What Services Are Included In The Muwafaq Package?
The Muwafaq Package includes:
1. Assigning relationship managers for SMEs.
2. Providing tax accounting software to SMEs at competitive prices.
3. Giving SMEs priority for certain services provided by the Federal Tax Authority.
4. Offering educational materials for tax procedures.
5. Offering special deals with tax agents.
Does The Package Include Assistance With Obtaining Business Licenses?
No, the package does not include assistance with obtaining business licenses. Its main focus is on providing SMEs with innovative solutions to help them comply with tax regulations and manage financial statements.
How Much Does The Muwafaq Package Cost?
There is no specific cost set for the Muwafaq Package, as it ranges depending on the applicant’s eligibility and one’s financial circumstances. For the exact calculation of the cost of the Muwafaq Package, you can consult our business setup experts at Now Consultant.
