FTA launched Muwafaq Package to help small & medium-sized enterprises (SMEs) in UAE by creating the necessary conditions for their growth and development. The UAE government is committed to protecting and supporting its citizens in various aspects of their lives. One of the ways the government has achieved this is by providing financial assistance to those in need, especially during difficult times. One such initiative is the Muwafaq Package, which is a comprehensive financial assistance program that offers a range of benefits to eligible UAE nationals.
In this article, we will explore all you need to know about the Muwafaq Package in UAE, including its objectives, eligibility criteria, benefits, and application process.
Objectives of the Muwafaq Package
The Muwafaq Package is a government-led initiative aimed at supporting UAE nationals who are facing financial difficulties. The package aims to provide financial assistance to eligible nationals and help them meet their basic needs. The program also aims to reduce the financial burden on families and improve their standard of living.
- Encourage efficient service delivery.
- Improve SMEs' compliance with tax rules and procedures.
- Improve compliance in the application of tax processes (e.g., timely completion of tax registration,
- Facilitate conducting business for enterprises.
- Filing tax returns on time, making payments on time, meeting audit requirements, and so on).
Eligibility Criteria
To be eligible for the Muwafaq Package, applicants must be UAE nationals who meet the following criteria:
- Registration with the Ministry of Community Development is required.
- Must be residing in the UAE.
- Must not have a monthly income exceeding AED 15,000.
- Must not own any property or a car registered under their name.
- Must not have received any other government social welfare support.
It is worth noting that the eligibility criteria may vary depending on the specific circumstances of the applicant.
Benefits of the Muwafaq Package
The Muwafaq Package provides a range of benefits to eligible UAE nationals. These benefits include:
- Giving SMEs priority for Federal Tax Authority Services: Whether it is tax registration, business setup or any services offered by FTA, Small Businesses gets the first priority.
- Tailored business sessions and workshops: FTA conducts the most tailored business sessions and workshops for businesses that need a custom approach.
- Educational material for tax procedures: Making your business compliant with tax is one of the prior goals. So, small businesses get educational material for taxes like Excise Tax, VAT and Corporate Tax.
- Provides tax accounting software at affordable prices: FTA makes your business life easier through affordable accounting software.
- Tax Agents discount: You can approach FTA Registered Tax Agents in UAE at a discounted price!
- Appointing relationship managers for SMEs: They help SMEs by providing personalized financial advice, helping with banking transactions and providing support for business growth.
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Muwafaq Package Application Process
The application process for the Muwafaq Package is straightforward and can be completed online in the Muwafaq Portal. Applicants must follow the below steps to apply for the program:
- Register with the Ministry of Community Development: Applicants must first register with the Ministry of Community Development to be eligible for the program.
- Complete the application form: Once registered, applicants can complete the Muwafaq Package application form online. The form requires applicants to provide personal and financial information to assess their eligibility.
- Submit supporting documents: Applicants must also submit supporting documents to verify their eligibility. These documents include a copy of their Emirates ID, a copy of their family book, and proof of income.
- Wait for approval: Once the application and supporting documents are submitted, applicants must wait for approval from the Ministry of Community Development. The approval process typically takes up to 15 days.
Conclusion
In conclusion, the Muwafaq Package is a comprehensive financial assistance program that provides vital support to eligible UAE nationals facing financial difficulties. The program offers a range of benefits, including financial assistance, housing support, health support, education support, and job placement support. The eligibility criteria are straightforward, and the application process is simple and can be completed online. This initiative by the UAE government demonstrates their commitment to supporting their citizens and improving their standard of living. If you meet the eligibility criteria and are facing financial difficulties, the Muwafaq Package could be an essential lifeline to help you meet your basic needs and improve your quality of life.
Business consultants in the UAE
BMS auditing is the best business consultancy service in the UAE. We can support small businesses in registering for Muwafaq and claim the most benefit out of it. Contact us in need of any assistance in Businesses in UAE.
Frequently Asked Questions (FAQ)
- What is Muwafaq?
The Muwafaq Package in the UAE equips small and medium businesses (SMEs) with:
- Special benefits for SMEs
- Training programs on tax procedures
- Educational materials on UAE tax laws and regulations
- All to help SMEs comply with tax requirements.
- How to register for the Muwafaq package?
The Muwafaq Package application process is simple and conducted online through the Muwafaq Portal. Applicants need to register with the Ministry of Community Development, fill out the application form with personal and financial details, and submit supporting documents like Emirates ID and proof of income. Approval from the Ministry typically takes around 15 days.
- What is SME in UAE?
A Dubai SME isn't defined by a single rule, but two!
- Number of Employees: Your business needs to have a certain number of employees, depending on whether it's in trading, manufacturing, or services.
- Turnover (Sales): There's also a limit on your annual sales amount, which again depends on your business sector.
If your company meets BOTH the employee and sales thresholds for its sector, then it qualifies as an SME in Dubai.
