The Federal Tax Authority (FTA) of the United Arab Emirates has introduced cutting-edge Artificial Intelligence (AI) systems aimed at simplifying tax filing processes and enhancing support for taxpayers. This initiative marks a significant step forward in the nation’s efforts to modernize its tax administration and improve compliance. Among the standout innovations is FTAGPT, an internal conversational AI engine designed to provide FTA employees with instant, accurate responses to complex tax-related inquiries. This tool is expected to significantly enhance the efficiency of customer service, ensuring taxpayers receive consistent and reliable information. Zahra Al Dahmani, Director of the Taxpayer Services Department at the FTA, emphasized the importance of FTAGPT in addressing employee queries related to the UAE’s three primary taxes: Value Added Tax (VAT), Excise Tax, and Corporate Tax. Additionally, the FTA has upgraded its existing AI-powered platform, TARA, which is accessible to taxpayers via the FTA’s official website. TARA now supports a broader range of queries, including Corporate Tax filing and the status of reconsideration cases. The FTA is also utilizing AI to proactively identify common taxpayer errors and send targeted educational messages to prevent potential penalties. This data-driven approach underscores the FTA’s commitment to transitioning from a reactive to a proactive support model, fostering a seamless and efficient tax environment. The UAE’s tax framework, which includes VAT, Excise Tax, and Corporate Tax, plays a pivotal role in the nation’s economic diversification and strategic goals. By leveraging AI, the FTA aims to align with international tax standards and reinforce the UAE’s position as a global business hub.