UAE reduces penalties for violating tax laws

  • Date: 29-May-2021
  • Source: Khaleej Times
  • Sector:Economy
  • Country:UAE
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UAE reduces penalties for violating tax laws

The Federal Tax Authority (FTA) has confirmed that Cabinet Decision No. 49 of 2021 on amending some provisions of the Administrative Penalties for Violation of Tax Laws in the UAE, is designed to support tax registrants and help them fulfil their tax obligations, thereby enhancing the state's competitiveness in the field of conducting business. In a press release issued on Saturday, Khalid Ali Al Bustani, director-general of the Federal Tax Authority, said the new amendment will become effective on June 28, 2021, and will reduce many administrative penalties imposed for violating tax laws. "This comes as part of the wise leadership's directives to implement the tax system according to the best standards that ensure further growth for the national economy and help achieve transparency and economic momentum, providing an ideal and resilient tax legislative environment that encourages self-compliance and keeps pace with change through constant issuance of decisions in accordance with phased requirements,“ Al Bustani said. The FTA director-general called on tax registrants to take advantage of the important benefits provided by the new amendment as it provides more relief to business sectors in order to support their effective contribution to boosting the national economy's growth. Al Bustani noted that