How Do Digital Services Simplify Tax Fees to Businesses?

The UAE Federal Tax Authority (FTA) is still moving towards digital transformation to ensure the tax compliance process becomes easier, convenient, and more affordable to the business. In the introduction of the Cabinet Decision No. 174 of 2025, FTA has revised the taxes charge, simplified the issuing of paper and electronic tax certificates, and encouraged tax compliance voluntarily by providing digital government services. This program will guarantee quicker access, less paper work, and improved processing times to businesses of any size, including smaller companies as well as bigger multinationals.

What are the revised taxes charges and their implications on businesses?

The FTA also announced new fees on certified paper tax certificates and Warehouse Keeper Registration Certificate under the Cabinet Decision No. 174 of 2025, and promoted the use of free electronic certificates.

Businesses are now in a position to acquire digital registration certificates containing a QR code so that they can be instantly verified without physical paper work. This action will cut down processing time, decrease administrative expenses and encourage the reduction of cost to companies with an organized system of taxation.

The FTA also explained the pricing structure to specialised applications like Unilateral Advance Pricing Agreements (APA), APA renewals and APA amendments. These are particularly applicable among bigger organizations and multinationals that operate the pricing of transfers and teamed tax compliance within numerous jurisdictions.

What Is the Replacement of Paper Tax Certificates by Digital?

Paper-based certificates which are traditionally certified are slowly being substituted with electronic tax system solutions. The FTA currently provides digital registration certificates and free electronic certificates that contain QR codes to be authenticated.

The advantages of such a change are:

Quicker availability of tax records.
The lessening of paperwork and storage.
Enhanced effectiveness in the tax compliance verification.
Provenience to business lodging online registration, online lodging, and online payment.

Considering certificate digitisation, the FTA is developing a simplified process of satisfying tax obligations, which will be in line with the overall strategy of digital services in the UAE government.

What are the Benefits of Voluntary Compliance with Taxes by Businesses?

The shift to digital services invites the business to practice voluntary tax compliance which has several benefits:

Saving of costs, as a result of less manual processing and physical documents.
Quick registration of tax and issuing of certificates.
Effective handling of tax charges and updated charges on the new regulation.
Streamlined management of transfer pricing matters and well-organized tax schemes.
Less chance of mistakes in paper based tax certificates.

The electronic tax system is a form of voluntary compliance that has made businesses well prepared to undergo audit but will have the luxury of convenience and transparency.

What are the advantages of utilizing digital certificates by businesses?

Introduction of the digital registration certificates and free electronic certificates have made businesses in the UAE very efficient.

Key improvements include:

Quick verification through QR codes without necessarily handing in the physical copies.
Quick access to Warehouse Keeper Registration Certificate and other tax documents.
Efficient tax registration, online filing and online payment.
Minimization of expenses on certified paper certificates.

With the implementation of digital services, the businesses can provide tax compliance into their system without delays that used to happen due to the heavy workloads of paperwork.

What is the Impact of Revised Fees on APAs and Multinational Groups?

Unilateral Advance Pricing Agreements (APA), APA renewals, and APA amendments now have a revised fee structure in Cabinet Decision No. 174 of 2025.

This update ensures that:

Multinational groups are able to handle the transfer pricing requirements effectively.
Formal taxation plans are less complex to keep.
Big businesses will be able to plan tax compliance at an expected cost.
The process is incorporated totally into the electronic tax system, which minimizes delays and errors.

Digital services offered to APAs at the FTA contribute to the increased speed of its processing, which means that companies can devote their time to strategy planning when it comes to taxation and not administration issues.

What is the role of Government services in digital format in reducing costs?

The initiative by the UAE to move to digital services regarding tax compliance directly corresponds to the reduction of costs in the form of business:

Removes the usage of certified paper certificates.
Cuts the administration expenses of registering taxes and online filing.
Reduces the costs associated with issuance of cancelled certificates.
Enables quicker accessibility to computerized registration certificates of organized tax plans.
Comes with automatic support of specialised applications.

These cost cuts are in line with the overall aim of ensuring compliance of the UAE as a business-friendly destination to support SMEs as well as multinational groups.

How does the Electronic Tax System of the FTA Fit into Smooth Processes?

Electronic tax system: The FTA has an electronic tax system that is central to making compliance easier:

Internet registration and Internet payment minimize human interventions.
The paper tax certificates are substituted by digital certificates, which enhances efficiency.
Quickly access records help in management of transfer pricing.

Facilitates voluntary compliance with businesses of any size.

The FTA facilitates this by providing systemed digital services which allow businesses to ensure maximum compliance with changes in the rules of VAT, tax registration, and continued tax payment and save time and resources.

Conclusion

The UAE Federal Tax Authority is changing the tax compliance environment with a new Cabinet Decision No. 174 of 2025. The new tax rates, the implementation of online registration certificates, and substitution of certified paper certificates with electronic solutions give businesses more efficient and quicker methods of fulfilling the responsibilities without being costly.

Through the utilization of digital government services, companies will benefit through a shorter processing time, reduced cost, and simplified transfer pricing, structured taxation schemes, and specialised applications such as APAs.