Dubai: Property buying and selling too will now be registered on the UAE Pass portal, as the authorities seek to bring in additional transparency into all such transactions.
The UAE Pass had until now primarily been a single window for individuals to store and update their residency records, driver’s license (and vehicle clearance), medical records, etc. All these were tied in to the individual’s Emirates ID.
Property transactions coming under UAE Pass’ registering and record keeping does represent a major step up. Until now, property buyers in Dubai, for instance, only had to register through the REST app. (The app, from Dubai Land Department, is also the marker for all rental contracts done in the emirate.)
Adding the UAE Pass will also help on corporate tax compliance measures, when it comes to individuals with businesses owing real estate assets.
"We know UAE corporate tax applies to brokers and individuals engaging in real estate as an activity, and for companies too," said a tax consultant. "Which is why the UAE Pass mechanism will assist in aiding extra layers of clarity for the increasing volumes in the local real estate market."
Now, the “UAE Pass being used as the gateway for real estate transactions is a further move to ensuring disclosure norms remain high,” said Naqqash Ahmed, Managing Partner at Capital Plus Auditing. “Especially as the corporate tax regime kicks in.
“It will facilitate ease of reporting, and along with the security features ensure that ‘price discovery’ and ‘related balances’ for corporate tax processing are captured at source, without any discrepancy in the reporting criteria.”
Corporate tax does not apply to individual-owned property deal, but of those individuals carry out businesses and where these assets are deployed, then that makes them liable for corporate tax registration. (It’s also an area that business owners will need to go give some serious attention in the near-term.)
Full ‘disclosure’
And being on the UAE Pass’ registration platform adds to the transparency, property market sources say.
“The fact all transactions are to go through UAE Pass gives potential purchasers and sellers more security for their holdings - and further bolsters confidence,” said Muhammad Imran Khan, Managing Director at Investment Experts. “More so, with the UAE continuing to attract investors from all over the world.
"When it comes to investments and reporting about it, the UAE is not leaving anything to chance..."
