The Federal Tax Authority (FTA) has urged registrants to avoid administrative penalties by updating their tax records and take advantage of the UAE Cabinet’s decision to grant a grace period.
The Cabinet decision allows registrants to update information during the period from 1 January 2024 to 31 March 2025. Failure to inform the FTA of any instance that may require amendments or updates to their tax records will incur penalties after that.
The FTA added that those who have been imposed a penalty during the period from 1 January 2024 until the implementation date of the grace period, the charges will be reversed. The FTA indicated that there is no requirement to contact them as the reversal will be done automatically.
According to the Cabinet Decision No.74 of 2023 on the Executive Regulations of the Federal Decree-Law No.28 of 2022 on Tax Procedures, the registrant shall notify the FTA in the form and mechanism approved by it within twenty (20) business days of any change to its data kept with the FTA.
This includes details such as the name and address of the business, email address, trade licence activities, legal entity type, partnership agreements for unincorporated partnerships and articles of association or its equivalent, nature of business, and any address from which the business is conducted by the registrant.
Those seeking further information have been urged to read the public clarification issued on the grace period to update information in tax records, which can be accessed through the Public Clarifications service on the FTA’s official website at https://tax.gov.ae/en/.
The government’s decision of grace period has been attributed to the leadership’s desire to help reduce the tax burden on the business sector, encourage persons and companies to fulfil their tax obligations, and, in doing so, further enhance the UAE’s competitiveness for business.
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