MoF announces schedule of administrative penalties for corporate tax violations

MoF announces schedule of administrative penalties for corporate tax violations

ABU DHABI, 29th July, 2023 (WAM) -- The UAE Ministry of Finance (MoF) today announced the issuance of Cabinet Decision No. (75) of 2023 regarding administrative penalties for violations related to the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (Corporate Tax Law). The Cabinet Decision specifies the administrative penalties that will be imposed by the Federal Tax Authority for violations related to the application of the Corporate Tax Law, effective as of 1st August 2023.

The Corporate Tax Law Penalties have been carefully designed and benchmarked to ensure successful implementation and compliance of the Corporate Tax Law without burdening UAE businesses that comply with the new regulations.

Younis Haji Al Khoori, Under-Secretary of the Ministry of Finance, said, “Adhering to Corporate Tax compliance is a responsibility of all taxable persons to support the implementation of the Corporate Tax system in the UAE, which is in line with the highest global standards. It also drives sustainable economic growth in the UAE by providing a conducive legislative environment that promotes tax compliance.”

Under Cabinet Decision No. (75) of 2023, penalties will be imposed on Taxable Persons, whether an individual or a legal entity, who do not comply with their