UAE introduces New Tax Procedures Law, penalties for corporate tax violation

UAE introduces New Tax Procedures Law, penalties for corporate tax violation

The UAE Ministry of Finance (MoF) has announced the issuance of Cabinet Decision No. (74) of 2023 on the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures (New Tax Procedures Law).

The Cabinet Decision repeals and replaces the existing Executive Regulation on Tax Procedures and aligns definitions, procedures, and processes, amongst other matters, with the New Tax Procedures Law, which entered into force on 1st March 2023.

With the introduction of Corporate Tax in the UAE and the Corporate Tax Law becoming effective for tax periods starting on or after 1st June 2023, it is crucial to continuously update all relevant legislation and provide Taxable Persons with the necessary guidance to understand how the UAE Tax system applies to them, ensuring ongoing compliance.

The new Cabinet Decision stipulates the accounting records and commercial books to be maintained as well as the period and manner of record-keeping. It further includes updates related to the conditions and controls for registering as a Tax Agent, the procedures for de-listing a Tax Agent, including the requirement to communicate verbally and in writing in Arabic or English, and the rights and responsibilities of a Tax Agent.

Other key updates include procedures related to reconciliation in