In order to assist businesses in effectively fulfilling their tax duties, the Federal Tax Authority (FTA) released a new decision that grants tax registrants that have fallen behind on updating their tax records a grace period from January 1, 2024, until March 31, 2025. By taking this effort, violators can make the required corrections and avoid the administrative penalties that come with not notifying the FTA of any situations in which their tax records need to be modified.
In accordance with the Penalty Refund Procedures described in Cabinet Decision No. (105) of 2021 on Controls and Procedures for Paying Administrative Penalties by Instalments, and Waiving and Refunding Administrative Penalties, the Cabinet decided to grant a grace period for administrative penalties for registrants who have neglected to update their tax record information. This decision states that if registrants were penalized for failing to update their records on time and they have already paid the penalties between January 1, 2024, and the grace period deadline, the penalties will be reimbursed.
According to Cabinet Decision No. (74) of 2023 on the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures, registered taxpayers must notify the authority using its approved form and procedure within 20 working days of any change in the information registered in the FTA systems. The FTA stated that the initiative aims to encourage registrants to update their tax records. This comprises the registrant’s name, address, email, and activities as stated in their articles of organization, legal form, partnership agreement for joint ventures, and commercial license. It also includes any modifications to the type of business they operate or the address from which they do so.
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