FTA encourages Registrants to Benefit from the Administrative Penalties Redetermination

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UAE- September 23, 2021:

The Federal Tax Authority (FTA) has called on registrants to take advantage from the administrative penalties redetermination – to be equal to 30% of the total unpaid penalties. View the Cabinet Decision No. 49 of 2021 on Amending Provisions of Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws.

The decision outlines 16 types of administrative penalties that have either been reduced or had the method of calculation amended, which came into effect on June 28, 2021, and includes reductions on administrative penalties to help taxpayers meet their obligations.

FTA outlined a set of conditions that need to be met in order to benefit from the redetermination of penalties.

First, the administrative penalty must have been imposed under Cabinet Decision No. 40 of 2017 before June 28, 2021, and that the administrative penalty due were not settled in full until June 27, 2021. Furthermore, the registrant should settle all due payable tax by December 31, 2021, and settle 30% of the total unsettled administrative penalties imposed before June 28, 2021, no later than December 31, 2021.

The FTA indicated that, should the registrant meet all the stipulated conditions, the administrative penalties will be re-determined to equal 30% of the total unpaid penalties that will appear on the FTA’s electronic system after December 31, 2021.

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