Federal Tax Authority calls on Registrants to Benefit from the Grace Period to Update their Tax Records before end of March 2025 without incurring administrative penalties
Abu Dhabi, UAE 4 February 2025: The Federal Tax Authority (FTA) has called on registrants who have yet to update their tax records to take advantage of the UAE Cabinet’s decision to grant a grace period, relieving them from administrative penalties. The government’s decision has been attributed to the leadership’s desire to help reduce the tax burden on the business sector, encourage persons and companies to fulfil their tax obligations, and, in doing so, further enhance the UAE’s competitiveness for business.
The FTA stated that the Cabinet decision allows registrants to update information held in their tax records during the period from 1 January 2024 to 31 March 2025, without incurring the administrative penalties for failure to inform the FTA of any instance that may require amendments or updates to their tax records.
Where the registrants have been imposed an administrative penalty during the period from 1 January 2024 until the implementation date of the grace period, the imposed penalty will be reversed. The FTA indicated that there is no requirement to contact them as the reversal will be done automatically.
According to the Cabinet Decision No. 74 of 2023 on the Executive Regulations of the Federal Decree-Law No. 28 of 2022 on Tax Procedures, the registrant shall notify the FTA in the form and mechanism approved by it within twenty (20) business days of any change to its data kept with the FTA. This includes details such as the name and address of the business, email address, trade licence activities, legal entity type, partnership agreements for unincorporated partnerships and articles of association or its equivalent, nature of business, and any address from which the business is conducted by the registrant.
As part of its ongoing efforts, the FTA encouraged those seeking further clarification to read the public clarification issued on the grace period to update information in tax records, which can be accessed through the Public Clarifications service on the FTA’s official website at https://tax.gov.ae/en/. This service aims to keep taxpayers informed about all technical matters related to taxes and taxpayer obligations, offering detailed explanations to simplify these concepts and enable taxpayers to easily comply with tax legislation.
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