Corporate tax fines: UAE Ministry of Finance introduces New Tax Procedures Law and penalties

Corporate tax fines: UAE Ministry of Finance introduces New Tax Procedures Law and penalties

Dubai: The UAE Ministry of Finance has made significant announcements concerning tax procedures and penalties, aiming to enhance compliance and foster the country’s position as an attractive investment destination.

In a recent update, the Ministry introduced Cabinet Decision No. (74) of 2023, which focuses on the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures, known as the New Tax Procedures Law. This cabinet decision replaces the existing Executive Regulation, aligning definitions, procedures, and processes with the new law that became effective on March 1, 2023.

Among the key provisions, the cabinet decision outlines the requirements for maintaining accounting records and commercial books, specifying the period and manner of record-keeping. It also introduces updates related to tax agent registration and de-listing procedures, emphasizing the need for communication in Arabic or English.

Additionally, the rights and responsibilities of tax agents, procedures for reconciliation in tax evasion crimes, and conditions for tax payment and refunds are addressed. The decision further highlights the obligations of a trustee in cases of bankruptcy.

Qualifying investment funds

The Ministry on Saturday outlined additional conditions for qualifying investment funds under Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. Investment funds must meet specific criteria