Are You Sharing Your FTA Login Credentials with Your Consultant? The UAE Federal Tax Authority Says You Shouldn't.
In the world of digital technology, do not lose your data at the face of convenience.
The Federal Tax Authority (FTA) has recently come up with an important message to all its taxpayers, on how important it is for them to secure their FTA login credentials and not share them with any 3rd party.
We know that many businesses engage tax consultants or registered tax agents to manage their tax requirements, and some of them also deal with freelancers. Working with tax consultants is still fine when compared to freelancers; however, engaging a tax agent would be the best part. The reason is that providing direct access to your Emaratax account with the credentials can expose your business to unnecessary risks and potential compliance issues if it is not properly handled.
The Right Way: Grant Delegation, Don't Share Access
The FTA has come up with a new feature on the Emaratax portal, as a measure to avoid sharing the FTA portal login details with any third party. The new feature is called Delegation and Authorization which is available on the EmaraTax portal, instead of sharing the business entities' login credentials.
By way of granting official delegation, the taxpayers can now authorise a registered tax agent or representative to act on behalf of their account while maintaining security, transparency, and compliance and overall transparency to understand the log of services done by whom.
Why Delegation Is Better Than Sharing Access
This is the best thing to understand, before delegating the access rather than sharing:
· The authorisation is officially recorded with the FTA, with the details of the user name, email id, mobile number and their access rights given on the portal.
- Your login credentials remain private and secure; the user will have their own login credentials.
- The scope of access is controlled and transparent, to have ownership of the transactions done by the respective person.
- Activities performed by the authorised representative are properly documented and logged in the portal.
- The risk of unauthorised access or misuse is significantly reduced as it is recorded and monitored.
- Also, sharing of usernames and passwords can create serious risks.
The Risks of Sharing Your EmaraTax Login Details
Business owners might think it is normal to share their Emaratax login credentials to their concultant and its harmless, however, the FTA has highlighted several concerns as below:
- Risk of Misuse
- Missed Notifications and Deadlines
- Data Security Concerns
- Compliance Exposure
Appointing a Tax Agent Does Not Transfer Responsibility
Also, we need to be clear that just an appointment of a Tax Agent does not relieve you from the responsibilities of a taxpayer. The business owners will remain responsible for the following as per the FTA:
- Monitoring their tax obligations
- Responding to FTA requests and notifications
- Ensuring contact information remains updated
- Reviewing submissions made on their behalf
- Maintaining proper tax records
A registered tax agent can assist with compliance and represent the taxpayer in front of the FTA; the legal responsibility always remains with the taxpayer.
What Business Owners Should Do
To stay compliant with the requirements of the FTA and protect their business, the taxpayers should:
Do:
- Grant official delegation through EmaraTax for the consultants
- Verify that your representative is an FTA-registered Tax Agent
- Keep your email address and mobile number updated
- Regularly review your FTA tax account
- Respond promptly to FTA notifications and requests
- Stay informed about your tax obligations
Don't:
- Share your username or password
- Allow others to access your personal tax account directly
- Assume compliance responsibilities end after appointing a tax agent
- Ignore FTA communications or reminders
Verify Your Tax Agent Before Appointing Them
Before authorising anyone to represent your business, ensure they are officially registered with the UAE Federal Tax Authority by checking their TAN and TAAN numbers accordingly.
Final Thoughts
The FTA's message is simple and clear: Grant Delegation, Don't Share Access.
Using the official EmaraTax delegation process helps safeguard your business, ensures proper representation, and reduces unnecessary compliance risks.
If you are currently sharing your FTA login credentials with a consultant, now is the right time to review your arrangements and move to the official delegation framework recommended by the Federal Tax Authority.
Stay compliant. Stay secure. Stay in control.
FAQs
Q1. What's the story behind the FTA telling us not to give out our FTA login details?
The FTA warns us that sharing your EmaraTax login with anyone - including consultants or freelancers - puts your business at real risk of all sorts of problems. That includes the misuse of your account, missed FTA notifications, data security breaches and all sorts of compliance issues. And don't forget, as the business owner, you're always the one with the liability. So even if something goes wrong, it's your problem.
Q2. What exactly is this EmaraTax Delegation and Authorisation feature all about?
Well, it's a feature on the EmaraTax portal that lets business owners authorise a registered tax agent or rep to work on their behalf. But here's the thing - they don't need to know your login details. It all gets recorded with the FTA, including the rep's name, email, mobile number and the level of access they have.
Q3. So what's the difference between sharing FTA login access and using delegation?
Sharing your login with someone gives them the keys to the kingdom - they can do whatever they like with no record of what they've done. Delegation, on the other hand, gives them their own login and sets limits around what they can do - all while keeping your own login safe. That way, your rep can do their thing, but you still get to keep an eye on things.
Q4. Does getting a tax agent take the responsibility off my shoulders?
Sorry, no. Appointing a tax agent doesn't transfer the responsibility from you to them. As the business owner, you're still on the hook for keeping an eye on your tax obligations, updating your contact info, checking in on submissions, keeping proper tax records - the whole works. Your tax agent can help with compliance and represent you with the FTA but that doesn't change the fact that it's your neck on the line.
Q5. How do I know if a tax consultant I'm working with is actually an FTA-registered Tax Agent in UAE?
Before you let them anywhere near your EmaraTax account, you need to check that they're properly registered with the FTA. Look up their Tax Agent Number (TAN) and Tax Agency Number (TAAN) on the FTA portal. Don't even think about working with anyone who isn't properly registered - your compliance and security risk just went through the roof.
Q6. What should I do if I'm already sharing my EmaraTax login with a consultant?
Stop it right now and change your password. Then use the Delegation and Authorisation feature to get your consultant sorted with their own proper login credentials. Make sure you've got a current email address and mobile number so you keep getting all the official FTA notifications.
To learn more about Stop Sharing FTA Login Credentials-UAE FTA Warning, book a free consultation with one of the Flyingcolour team advisors.
Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.