Good news for tax registrants! The FTA has stated on Jan 24th 2022, to extend the grace period for the re-determination of administrative tax penalty on violating tax laws until Dec 31st 2022.
Good news for tax registrants! The FTA (Federal Tax Authority) has stated on January 24th 2022, to extend the grace period for the re-determination of administrative penalty on violating tax laws until December 31st 2022.
That is to benefit from Cabinet Decision No.49 of 2021. Tax registrants who were not able to fulfill the conditions to benefit from re-determination before December 31st 2021, can now manage to fulfill the conditions before December 31st 2022.
The United Arab Emirates (UAE) Cabinet’s decision stated that the amount of total unpaid penalties that were imposed before June 28, 2021, equal to 30% of the total unpaid penalties, provided the conditions set by the Cabinet are met. The Federal Tax Authority (FTA) will determine the procedures for executing the provisions related to the re-determination of administrative penalties for tax law violations. A maximum of thirty business days from the date specified in the Cabinet Decision will be allowed for redetermination of administrative penalties on tax registrants imposed by the Federal Tax Authority (FTA).
Such a decision has been established to provide an opportunity for the business sector to benefit from the reduction of penalties and reducing burdens on them due to the pandemic and to amplify their capabilities in contributing to more growth of the national economy. This decision is also a part of theFederal Tax Authority's goal to provide a legislative environment that motivates a high level of tax compliance.
The Federal Tax Authority explained that the actual penalties imposed as a result of the re-determination of administrative penalties are already reflected in the accounts of many eligible tax registrants who have fulfilled the conditions stipulated in Cabinet Decision No. 49 of 2021 on amending some provisions of the Cabinet Decision on Administrative Penalties for Violation of Tax Laws in the United Arab Emirates, which came into effect on June 28th 2021. For such registrants, the new values after re-determination appeared on the accounts of registrants on the Federal Tax Authority’s e-Services portal; registrants were also notified by emails that the re-determination process has been completed.
The Arab world’s second-biggest economy, the United Arab Emirate is carrying out legal, economic, and social structural reforms aiming at boosting and strengthening its business environment and attracting foreign investors. United Arab Emirates's tax and vat amendment penalty rules change from intermittently to support businesses and motivate companies to expand their operations in the country. Inspire MS Tax Consultancy in Abu Dhabi can keep your business up to date with tax rules and VAT alterations and handle your VAT registration and VAT filing processes in the United Arab Emirate.