Tax Public Clarification: TAXP007
Ensure Compliance Without Penalties:
The UAE Federal Tax Authority (FTA) has announced a grace period to encourage registrants to update their tax records without incurring administrative penalties. This initiative promotes transparency and compliance under the UAE tax regulations.
Key Dates to Remember
- Grace Period Duration:1 January 2024 to 31 March 2025
- Automatic Penalty Reversal: Penalties imposed between 1 January 2024 and the grace period’s implementation will be reversed.
Who Needs to Update Their Records?
Registrants must inform the FTA within 20 business days of any changes, including:
- Name, address, or email updates.
- Trade license activities.
- Legal entity type or partnership agreement amendments.
- Changes in the nature or location of the business.
Failure to update within this timeframe results in administrative penalties under UAE tax laws
Benefits During the Grace Period
- No Penalties: Updates during the grace period are exempt from administrative penalties.
- Automatic Penalty Reversal: Penalties imposed between 1 January 2024 and the grace period’s implementation will be credited back to tax accounts automatically.
No action is required from registrants for reversals!
How Bam Tax Advisors Can Assist Your Company
- We help identify and rectify outdated or missing information in your FTA tax records during the grace period.
- Our team ensures timely and accurate submission of amendments to avoid penalties.
- Our experts provide guidance to keep your tax records compliant beyond the grace period.
