UAE announces penalties for corporate tax violations

UAE announces penalties for corporate tax violations

Image: WAM/ MoF

The UAE Ministry of Finance (MoF) has issued 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.

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 August 1, state news agency, WAM, reported.

The 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 regulation.

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.”

Penalties of corporate tax law violations apply…

… on taxable persons, whether an individual or a legal entity, who do not comply with their obligations under the UAE corporate tax law. Penalties will be applied in cases of