UAE: New decisions on tax procedures, penalties and exemptions announced

UAE: New decisions on tax procedures, penalties and exemptions announced

Penalties apply for late filing and payment of corporate taxes, as well as for not maintaining proper records or providing required tax information

Published: Sun 30 Jul 2023, 9:52 PM

The UAE Cabinet has issued new decisions related to tax procedures, penalties and exemptions. Under the Cabinet Decision No. (75) of 2023, administrative penalties will be imposed by the Federal Tax Authority (FTA) for violations related to corporate tax law from August 1, 2023, on taxable persons, whether an individual or a legal entity, who does not comply with the corporate tax law.

The penalties will be applied in cases of failure to file and pay corporate tax due on time, including the failure of the registrant to inform the FTA of any case that may require the amendment of the information on his tax record kept by the FTA. A new structure has also been introduced for voluntary disclosure penalties.

The ministry added that penalties would also apply when failing to properly keep records or submitting the required records and other information specified in the tax law.

The ministry explained that penalties had been carefully designed and benchmarked to ensure successful implementation and compliance with the corporate tax law without burdening UAE businesses that