Property transactions included in UAE Pass registration and record keeping represent an important step. Until now, property buyers in Dubai, for example, only had to register through the REST app. (The app, from the Dubai Land Department, also flags all rental contracts made in the emirate.)
Adding the UAE Pass will also help in corporate tax compliance measures, when it comes to people with companies that owe real estate assets.
“We know that UAE corporate tax applies to brokers and people engaged in real estate business, and also to companies,” said a tax advisor. “That is why the UAE Pass mechanism will help bring additional layers of clarity to the growing volumes in the local real estate market.”
Now, the “UAE Pass being used as a gateway for real estate transactions is a further step in ensuring that disclosure standards remain high,” said Naqqash Ahmed, managing partner at Capital Plus Auditing. “Especially now that the corporate tax regime comes into force.
“It will facilitate reporting and, along with security features, ensure that ‘price discovery’ and ‘related balances’ for corporate tax processing are captured at source, without any discrepancy in reporting criteria.” “.
Corporate tax does not apply to individually owned property transactions, but those people who conduct business and where these assets are deployed, that makes them responsible for corporate tax registration. (It’s also an area that business owners will need to pay close attention to in the short term.)
And being on the UAE Pass registration platform increases transparency, say real estate market sources.
“The fact that all transactions are carried out through UAE Pass offers potential buyers and sellers more security for their holdings and further strengthens trust,” said Muhammad Imran Khan, CEO of Investment Experts. “More so, as the UAE continues to attract investors from around the world.
“When it comes to investment and information, the United Arab Emirates leaves nothing to chance…”